Complete Diversity Requirement: A Comprehensive Guide for Law Students

Question 1

True or False: Complete diversity jurisdiction requires that all plaintiffs be citizens of different states AND all defendants are citizens of different states.

Accepted Answer

True

Answer

False

Question 2

Which of the following courts has original jurisdiction over cases involving complete diversity?

Accepted Answer

Federal district courts

Answer

State courts

Answer

Appellate courts

Answer

Supreme Court

Question 3

Which of the following factors is irrelevant to determining complete diversity?

Accepted Answer

Nature of the cause of action

Answer

Citizenship of the parties

Answer

Residence of the parties for jurisdictional purposes

Answer

Amount in controversy

Question 4

What is the consequence of failing to satisfy the complete diversity requirement?

Accepted Answer

The case will be dismissed for lack of subject matter jurisdiction.

Answer

The case will be transferred to a state court.

Answer

The plaintiffs will be required to amend their complaint.

Answer

The defendants will be barred from asserting any defenses.

Question 5

In a case involving complete diversity, which of the following is NOT a permissible basis for removal to federal court?

Accepted Answer

Removal based on diversity of citizenship between the removing defendant and the remaining defendants

Answer

Federal diversity jurisdiction

Answer

Federal question jurisdiction

Answer

Supplemental jurisdiction

Question 6

Which of the following is NOT a type of diversity jurisdiction?

Accepted Answer

Federal question jurisdiction

Answer

Complete diversity

Answer

Minimal diversity

Answer

Strawman diversity

Question 7

What is the "sham" exception to diversity jurisdiction?

Accepted Answer

An exception that applies when the parties are not truly diverse.

Answer

An exception that applies when the amount in controversy is too small.

Answer

An exception that applies when the case is frivolous.

Answer

An exception that applies when the court lacks subject matter jurisdiction.

Question 8

What is the consequence of a finding that a case is a sham?

Accepted Answer

The case will be dismissed for lack of diversity.

Answer

The case will be transferred to a state court.

Answer

The case will continue in federal court.

Answer

The parties will be sanctioned.

Question 9

In a lawsuit involving multiple plaintiffs and multiple defendants, the complete diversity requirement is satisfied if:

Accepted Answer

All plaintiffs are citizens of different states than all defendants

Answer

All defendants are citizens of different states, but different from the state of any plaintiff

Answer

All plaintiffs are citizens of the same state, but different from the state of any defendant

Question 10

Which of the following factors is irrelevant to the determination of citizenship for purposes of the complete diversity requirement?

Accepted Answer

Permanent residency status

Answer

State of incorporation (for corporations)

Answer

Principal place of business (for corporations)

Answer

State of domicile

Question 11

The complete diversity requirement is primarily designed to:

Accepted Answer

Prevent forum shopping by plaintiffs seeking a favorable jurisdiction

Answer

Guarantee access to federal courts for all parties

Answer

Promote efficiency and uniformity in federal court decisions

Answer

Ensure that federal courts are not biased in favor of local parties

Question 12

Which of the following is true about the citizenship of corporations for purposes of the complete diversity requirement?

Accepted Answer

A corporation is considered a citizen of both its state of incorporation and its principal place of business

Answer

A corporation is considered a citizen only of its state of incorporation

Answer

A corporation is considered a citizen only of its principal place of business

Answer

A corporation is not considered a citizen for purposes of diversity jurisdiction

Question 13

The complete diversity requirement does NOT apply to:

Accepted Answer

Actions arising under federal question jurisdiction

Answer

Actions involving aliens as plaintiffs

Answer

Actions involving corporations as parties

Answer

Actions involving citizens of different states

Question 14

In a lawsuit involving a plaintiff from State A suing a defendant from State B, which of the following factors would defeat the complete diversity requirement?

Accepted Answer

The plaintiff's spouse is a citizen of State B

Answer

The lawsuit arises from a contract that was executed in State B

Answer

The defendant has a subsidiary in State A

Answer

The plaintiff has a business in State B

Question 15

Which federal statute codifies and clarifies the U.S. Supreme Court's rulings on the complete diversity requirement for diversity jurisdiction?

Accepted Answer

Diversity Jurisdiction Act of 1958

Answer

Judiciary Act of 1789

Answer

Federal Courts Improvement Act of 1982

Answer

Class Action Fairness Act of 2005

Question 16

Which of the following accurately defines the complete diversity requirement in federal court litigation?

Accepted Answer

All plaintiffs must be citizens of different states than all defendants.

Answer

The complete diversity requirement only applies to cases involving more than $75,000 in controversy.

Answer

Complete diversity exists when all parties are from different countries.

Question 17

Which of the following scenarios would meet the complete diversity requirement?

Accepted Answer

A case where the plaintiff, a citizen of California, sues the defendant, a citizen of New York.

Answer

A case where the plaintiff and defendant are both citizens of California.

Answer

A case where the plaintiff, a U.S. citizen, sues a defendant from Canada.

Question 18

What is the primary purpose behind the implementation of the complete diversity requirement?

Accepted Answer

To mitigate potential local bias against out-of-state litigants in federal court.

Answer

To guarantee equal access to federal courts for all parties.

Answer

To increase the overall number of cases filed in federal court.

Question 19

How does the complete diversity requirement relate to the amount in controversy requirement?

Accepted Answer

The complete diversity requirement is an additional condition that must be fulfilled in conjunction with the amount in controversy requirement.

Answer

The complete diversity requirement eliminates the need for the amount in controversy requirement.

Answer

The complete diversity requirement serves as an alternative to the amount in controversy requirement.

Question 20

Which of the following cases would be exempt from the complete diversity requirement?

Accepted Answer

A lawsuit filed by a California resident against a fellow Californian for violation of federal antitrust laws.

Answer

A lawsuit filed by a California resident against a New York resident for breach of contract.

Question 21

Which of the following is a fundamental tenet of the complete diversity requirement for diversity jurisdiction?

Accepted Answer

All plaintiffs must be citizens of different states than all defendants.

Answer

The case must arise under federal law.

Answer

The amount in controversy must exceed $75,000.

Question 22

Which level of federal court has jurisdiction over lawsuits that satisfy the complete diversity requirement?

Accepted Answer

United States District Courts.

Answer

State courts.

Answer

Supreme Court of the United States.

Answer

Federal Courts of Appeals.

Question 23

What is the consequence of failing to establish complete diversity jurisdiction in a lawsuit?

Accepted Answer

The case will be dismissed for lack of subject matter jurisdiction.

Answer

The case will be transferred to a state court.

Answer

The plaintiffs will be awarded attorney's fees.

Question 24

Which of the following scenarios would NOT meet the complete diversity requirement?

Accepted Answer

A lawsuit between a citizen of California and a citizen of New York who resides in California.

Answer

A lawsuit between a citizen of California and a citizen of Canada.

Answer

A lawsuit between a citizen of California and a citizen of Texas.

Question 25

Which of the following cases would NOT satisfy the complete diversity requirement?

Accepted Answer

A lawsuit between a California corporation and a Delaware LLC.

Answer

A lawsuit between a Texas citizen and a Massachusetts citizen.

Answer

A lawsuit between a New York corporation and a California resident.

Question 26

What is the purpose of the complete diversity requirement?

Accepted Answer

To prevent local prejudice against out-of-state parties.

Answer

To ensure that federal courts only hear cases involving substantial federal questions.

Answer

To reduce the workload of federal courts.

Question 27

What is the difference between diversity jurisdiction and alienage jurisdiction?

Accepted Answer

Alienage jurisdiction requires that one party be a foreign citizen or subject.

Answer

Diversity jurisdiction requires a greater amount in controversy than alienage jurisdiction.

Answer

Alienage jurisdiction is only available in federal question cases.

Question 28

Which of the following courts has original jurisdiction over cases involving the complete diversity requirement?

Accepted Answer

United States District Courts.

Answer

Supreme Court of the United States.

Answer

United States Courts of Appeals.

Answer

State courts.

Question 29

What is the significance of the amount in controversy requirement for complete diversity jurisdiction?

Accepted Answer

It ensures that federal courts will only hear cases involving significant monetary stakes.

Answer

It prevents frivolous lawsuits from being filed in federal court.

Answer

It promotes uniformity in federal law.

Question 30

What is the primary purpose of the complete diversity requirement in federal court litigation?

Accepted Answer

To prevent forum shopping and ensure that federal courts do not become havens for out-of-state plaintiffs.

Answer

To protect the rights of minority plaintiffs.

Question 31

Which landmark case established the complete diversity requirement?

Accepted Answer

Strawbridge v. Curtiss (1806)

Answer

McCulloch v. Maryland (1819)

Answer

Gibbons v. Ogden (1824)

Question 32

What is the effect of the complete diversity requirement on federal court jurisdiction in diversity cases?

Accepted Answer

It limits federal court jurisdiction.

Answer

It expands federal court jurisdiction.

Question 33

What is the significance of the complete diversity requirement in the context of American federalism?

Accepted Answer

It promotes the balance of power between the federal government and the states.

Answer

It undermines the principle of federal supremacy.

Question 34

The complete diversity requirement applies to:

Accepted Answer

All civil actions filed in federal court based on diversity of citizenship.

Answer

Criminal actions filed in federal court.

Answer

Actions filed in state court.

Answer

Actions brought by the federal government.

Question 35

What is the primary purpose of the complete diversity requirement?

Accepted Answer

To prevent local prejudice against non-resident parties.

Answer

To reduce the workload of federal courts.

Answer

To ensure that federal courts have jurisdiction over all cases involving federal law.

Question 36

What is the effect of a corporate party on complete diversity?

Accepted Answer

A corporation is considered a citizen of both its state of incorporation and its principal place of business.

Answer

A corporation is only considered a citizen of its state of incorporation.

Question 37

What are the consequences if a plaintiff fails to establish complete diversity?

Accepted Answer

The federal court will dismiss the action for lack of subject matter jurisdiction.

Answer

The court will transfer the action to state court.

Answer

The court will allow the plaintiff to amend the complaint to add additional plaintiffs.

Question 38

Which of the following is a best practice when drafting a complaint to establish complete diversity?

Accepted Answer

Allege the citizenship of all plaintiffs and defendants in the body of the complaint.

Answer

File a separate motion for leave to file a supplemental pleading to establish diversity.

Answer

Attach exhibits to the complaint proving the citizenship of the parties.

Question 39

Which of the following is a requirement for complete diversity of citizenship for diversity jurisdiction purposes?

Accepted Answer

All plaintiffs are citizens of different states than all defendants

Answer

The amount in controversy exceeds $75,000

Answer

The claim arises under federal law

Question 40

What is the primary purpose of the complete diversity requirement?

Accepted Answer

To prevent forum shopping and ensure a neutral forum for adjudicating disputes between citizens of different states

Answer

To increase the number of cases heard in federal courts

Answer

To promote uniformity in the interpretation of federal law

Question 41

Which of the following statements about the complete diversity requirement is accurate?

Accepted Answer

It applies to both cases originally filed in federal court and cases removed from state court

Answer

It only applies to cases removed from state court

Answer

It only applies to cases originally filed in federal court

Question 42

Which of the following is a potential consequence of failing to satisfy the complete diversity requirement?

Accepted Answer

Dismissal of the case for lack of subject-matter jurisdiction

Answer

Transfer of the case to a state court

Answer

Grant of a continuance to allow parties to amend their pleadings

Question 43

In which of the following cases would the complete diversity requirement be satisfied?

Accepted Answer

A citizen of California sues a citizen of New York and a citizen of Texas

Answer

A citizen of California sues a citizen of New York and a permanent resident of Georgia

Answer

A citizen of California sues a citizen of New York and a citizen of California

Question 44

How does the supplemental jurisdiction statute interact with the complete diversity requirement?

Accepted Answer

It allows federal courts to exercise jurisdiction over claims related to a claim that satisfies the complete diversity requirement

Answer

It prevents federal courts from exercising jurisdiction over claims unrelated to a claim that satisfies the complete diversity requirement

Question 45

Which of the following is a fundamental requirement for invoking complete diversity jurisdiction in federal court?

Accepted Answer

All plaintiffs must be citizens of different states than all defendants

Answer

The case must involve a federal question

Answer

The amount in controversy must exceed $75,000

Question 46

The primary goal of the complete diversity requirement is to:

Accepted Answer

Ensure impartiality in federal courts by eliminating potential bias based on citizenship

Answer

Promote uniformity of state laws

Answer

Limit the number of cases brought in federal court

Question 47

In a case involving multiple plaintiffs and multiple defendants, the complete diversity requirement is satisfied if:

Accepted Answer

No plaintiff is a citizen of the same state as any defendant

Answer

All plaintiffs are citizens of the same state

Answer

All defendants are citizens of the same state

Question 48

A potential drawback of the complete diversity requirement is that it can:

Accepted Answer

Limit access to federal court for plaintiffs who lack diversity of citizenship

Answer

Increase the cost of litigation

Answer

Create unnecessary delays in litigation

Question 49

Which Article and Clause of the U.S. Constitution provides the authority for the complete diversity requirement?

Accepted Answer

Article III, Section 2, Clause 1

Answer

Article IV, Section 1, Clause 2

Answer

Article V, Section 1, Clause 3

Question 50

Which of the following courts has exclusive jurisdiction over cases that do not meet the complete diversity requirement?

Accepted Answer

State courts

Answer

Federal courts

Answer

Tribal courts

Answer

International courts

Question 51

The Supreme Court has held that the complete diversity requirement applies to:

Accepted Answer

All civil actions, including tort claims

Answer

Only cases involving more than $1 million in damages

Answer

Only federal question cases

Answer

Only contract disputes

Question 52

The complete diversity requirement is an example of:

Accepted Answer

A jurisdictional requirement

Answer

A substantive requirement

Answer

An evidentiary requirement

Answer

A procedural requirement