Federal district court has the jurisdiction to resolve an automobile accident lawsuit I when the amount in controversy is more than $75,000. II when the plaintiff and defendant are citizens of different states. III only when there is a federal question in the case. a. when both I and III are true. b. when both II and III are true. c. when both I and II are true. d. only when III is true.
C
The correct answer is c. when both I and II are true.
This is because 28 U.S.C. § 1332(a) grants federal district courts jurisdiction over cases in which the matter in controversy exceeds $75,000 and the parties are citizens of different states. This is known as diversity jurisdiction.
Federal question jurisdiction (when there is a federal question in the case) is also a basis for federal court jurisdiction, but it is not the only basis. Therefore, option III alone cannot be the correct answer.
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