What is the term for the federal court power to hear cases involving parties from different states when the amount in controversy meets a threshold?

• A. Federal question jurisdiction
• B. Appellate jurisdiction
• C. Diversity jurisdiction
• D. Exclusive jurisdiction

Answer: (C)

Diversity jurisdiction is the federal court power to hear civil cases between parties from different states when the amount in controversy exceeds the statutory threshold. This allows the federal system to resolve disputes where state law might be less neutral due to differing state interests, provided there is complete diversity (typically no plaintiff shares a state of citizenship with any defendant) and the amount in controversy meets the minimum, currently $75,000. This is distinct from federal question jurisdiction, which rests on claims arising under federal law; it is not about appeals (which is appellate jurisdiction) or about cases that are exclusively in federal courts (exclusive jurisdiction). When a dispute involves parties from different states and the claim surpasses the threshold, diversity jurisdiction is the applicable federal-power concept.