Which jurisdiction allows federal courts to hear cases involving parties from different states when the amount in controversy meets a required minimum?

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

Answer: (B)

Diversity jurisdiction lets a federal court hear civil cases where the parties come from different states and the amount in controversy exceeds the statutory minimum (currently $75,000). This setup provides a neutral federal forum for interstate disputes and helps prevent potential bias that might exist in state courts. Because the scenario describes parties from different states with a sufficiently large claim, it fits this rule and can be heard in federal court. Federal question jurisdiction would apply if the case hinged on federal law, not the states of the parties. Appellate jurisdiction concerns reviewing lower court decisions rather than original filings, and exclusive jurisdiction refers to cases reserved for a particular court.