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Question 1
John, a citizen of Florida, has filed an action in federal court in Georgia against Andrew, a citizen of Georgia, for injuries John sustained during a car accident that occurred in Georgia. Andrew lives Georgia. John seeks $60,000 in damages. After Andrew is served with the summons and complaint, he timely files an answer denying liability. The trial begins, John presents his case, Andrew presents his case, and the court hears final motions before the case is sent to the jury for their decision. Andrew then moves to dismiss the complaint for lack of subject matter jurisdiction. Will the court grant or deny the motion?
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Correct A party cannot waive an objection to subject matter jurisdiction. If, at any time, the court is made aware, or realizes it on its own, that it lacks jurisdiction over the case or controversy, it must dismiss the case, even if the trial has already occurred. The court does not have diversity jurisdiction because the amount in controversy does not meet the minimum requirement.
Incorrect! A party cannot waive an objection to subject matter jurisdiction. If, at any time, the court is made aware, or realizes it on its own, that it lacks jurisdiction over the case or controversy, it must dismiss the case, even if the trial has already occurred. The court does not have diversity jurisdiction because the amount in controversy does not meet the minimum requirement.
Question 2
Andy, a citizen of California, brings a cause of action in federal court against the LMNO Corporation, which is incorporated in California and has its principal place of business in Nevada. If the only basis for the court's subject matter jurisdiction is diversity jurisdiction, how is a court most likely to rule on a LMNO's motion to dismiss for lack of subject matter jurisdiction?
Correct Where one party is a citizen of more than one state, there must be complete diversity of citizenship. Here, the plaintiff is a citizen of California and the defendant is a citizen of both California and Nevada, since that is where its principal place of business is. Therefore, there is diversity of citizenship.
Incorrect! Where one party is a citizen of more than one state, there must be complete diversity of citizenship. Here, the plaintiff is a citizen of California and the defendant is a citizen of both California and Nevada, since that is where its principal place of business is. Therefore, there is diversity of citizenship.
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Incorrect!
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Question 3
Andy, a citizen of California, brings a cause of action in federal court against the LMNO, L.P. (Limited Partnership). LMNO, L.P. is comprised of the following partners: Zack, who is domiciled in Virginia; Chris, who is domiciled in Alabama; Ross, who is domiciled in New Jersey; and LMNO & Co., which is incorporated in Delaware and has its principal place of business in California. Does the court have jurisdiction based on diversity of citizenship? Assume the amount in controversy is greater than $75,000.
Correct
Incorrect!
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Correct To determine the citizenship of an unincorporated association for diversity jurisdiction purposes, one must determine the citizenship of every member of the association. The association adopts the citizenship of every member. Because LMNO & Co. is a citizen of California, LMNO, L.P. is also a citizen of California. Because the plaintiff and the defendant are citizens of the same state, there is no diversity.
Incorrect! To determine the citizenship of an unincorporated association for diversity jurisdiction purposes, one must determine the citizenship of every member of the association. The association adopts the citizenship of every member. Because LMNO & Co. is a citizen of California, LMNO, L.P. is also a citizen of California. Because the plaintiff and the defendant are citizens of the same state, there is no diversity.
Question 4
ABC Corp., a citizen of New Jersey, brings an action in New York state court against DEF Corp., a New York citizen, alleging that DEF Corp. owns all bookstores in New York, New Jersey and Connecticut, and therefore, has a monopoly. ABC Corp. claims it has been injured because it has been unable to create a market for its own bookstores. DEF Corp. moves to dismiss the case on the basis of lack of subject matter jurisdiction. How is the court likely to rule?
Correct
Incorrect!
Correct Under 28 U.S.C. Section 1337 Congress has extended the federal trial courts jurisdiction over matters of federal commerce and antitrust.
Incorrect! Under 28 U.S.C. Section 1337 Congress has extended the federal trial courts jurisdiction over matters of federal commerce and antitrust.
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Incorrect!
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Incorrect!
Question 5
Greg, a citizen of Connecticut, brings an action in federal court in Rhode Island against John, a citizen of Rhode Island, seeking $90,000 in damages. Does the court have subject matter jurisdiction?
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Incorrect!
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Correct The two requirements for federal courts to exercise diversity jurisdiction are: (1) the plaintiff and defendant must be citizens of different states; and (2) the amount in controversy must be greater than $75,000. Because Greg and John are citizens of different states and the amount of controversy is over $75,000, the court has jurisdiction over the claim.
Incorrect! The two requirements for federal courts to exercise diversity jurisdiction are: (1) the plaintiff and defendant must be citizens of different states; and (2) the amount in controversy must be greater than $75,000. Because Greg and John are citizens of different states and the amount of controversy is over $75,000, the court has jurisdiction over the claim.
Correct
Incorrect!
Question 6
XYZ Corp., a company that manufacturers and sells vacuums, is incorporated in Delaware. It has offices in both Wyoming and Iowa. In the office in Wyoming, there are two salespersons, some books, voice mail, and one customer service representative. In Iowa, there are 40 salespersons, the manufacturing plant, the repair facility, the customer service department, and the president's and vice president's offices. Of which state(s) is/are XYZ Corp. a citizen?
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Correct 28 U.S.C. Section 1332(c)(1) provides: " a corporation shall be deemed to be a citizen of any State by which it has been incorporated and of the State where it has its principal place of business." Because XYZ Corp. is incorporated in Delaware, it is a citizen of Delaware. What must be determined is where it has its principal place of business. Under the "nerve center" test, the "corporate activities" test and the "total activity" test, XYZ Corp.'s principal place of business is Iowa. Because a corporation can have only one place of principal business, it is a citizen of both Delaware and Iowa, only.
Incorrect! 28 U.S.C. Section 1332(c)(1) provides: " a corporation shall be deemed to be a citizen of any State by which it has been incorporated and of the State where it has its principal place of business." Because XYZ Corp. is incorporated in Delaware, it is a citizen of Delaware. What must be determined is where it has its principal place of business. Under the "nerve center" test, the "corporate activities" test and the "total activity" test, XYZ Corp.'s principal place of business is Iowa. Because a corporation can have only one place of principal business, it is a citizen of both Delaware and Iowa, only.
Question 7
XYZ Corp., a company that manufacturers and sells vacuums, is incorporated in Delaware and Maryland. It has offices in both Wyoming and Iowa. In the office in Wyoming, there are two salespersons, some books, voice mail, and one customer service representative. In Iowa, there are 40 salespersons, the manufacturing plant, the repair facility, the customer service department, and the president's and vice president's offices. Of which state(s) is/are XYZ Corp. a citizen?
Correct 28 U.S.C. Section 1332(c)(1) provides: " a corporation shall be deemed to be a citizen of any State by which it has been incorporated and of the State where it has its principal place of business." A corporation is a citizen of states in which it is incorporated (even if it is incorporated in more than one) as well as the state in which it has its principal place of business. Therefore, XYZ Corp. is a citizen of Delaware, Maryland and Iowa.
Incorrect! 28 U.S.C. Section 1332(c)(1) provides: " a corporation shall be deemed to be a citizen of any State by which it has been incorporated and of the State where it has its principal place of business." A corporation is a citizen of states in which it is incorporated (even if it is incorporated in more than one) as well as the state in which it has its principal place of business. Therefore, XYZ Corp. is a citizen of Delaware, Maryland and Iowa.