Which term describes the jurisdiction based on parties from different states and a monetary threshold?

Which term describes the jurisdiction based on parties from different states and a monetary threshold?

• A. Diversity jurisdiction
• B. Federal question jurisdiction
• C. Concurrent jurisdiction
• D. Removal

Answer: (A)

Diversity jurisdiction is the concept being tested. It refers to federal court authority to hear civil cases when the parties come from different states and the amount in controversy meets a statutory minimum. In practice, this means there must be complete diversity—no plaintiff shares a state of citizenship with any defendant—and the claim must exceed the monetary threshold (often $75,000). This type of jurisdiction is distinct from federal question jurisdiction (based on a federal issue in the claim), concurrent jurisdiction (both state and federal courts could hear the case), and removal (the process of moving a case from state to federal court).

Diversity jurisdiction is the concept being tested. It refers to federal court authority to hear civil cases when the parties come from different states and the amount in controversy meets a statutory minimum. In practice, this means there must be complete diversity—no plaintiff shares a state of citizenship with any defendant—and the claim must exceed the monetary threshold (often $75,000). This type of jurisdiction is distinct from federal question jurisdiction (based on a federal issue in the claim), concurrent jurisdiction (both state and federal courts could hear the case), and removal (the process of moving a case from state to federal court).