Legal Studies practice questions

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Question 1Introduction to Law and Legal Systems

Which branch of government is generally responsible for creating statutes?

The judiciary
The legislature Correct answer.
The executive
The civil service

Explanation

In the standard separation of powers, the legislature enacts statutes, while the executive implements and administers them and the judiciary resolves disputes by interpreting the law. Legislation is therefore the characteristic product of the legislative branch.

Question 2Introduction to Law and Legal Systems

What does the doctrine of precedent require a lower court to do?

Follow rulings of higher courts in the same hierarchy Correct answer.
Apply only statutes and ignore prior cases
Defer to the opinion of the parties' lawyers
Refer every legal question to the legislature

Explanation

Under stare decisis, a court is bound by decisions of superior courts within the same court hierarchy where the material facts are sufficiently similar. This promotes consistency and predictability, though a higher court may later overrule or distinguish a precedent.

Question 3Introduction to Law and Legal Systems

In a criminal case, which standard of proof must the prosecution satisfy?

Beyond a reasonable doubt Correct answer.
On the balance of probabilities
By clear and convincing evidence
By a preponderance of the evidence

Explanation

Criminal liability requires proof beyond reasonable doubt because the consequences for the accused are severe and liberty may be at stake. Civil disputes generally use the lower balance-of-probabilities standard instead.

Question 4Introduction to Law and Legal Systems

Who normally bears the burden of proving guilt in a criminal trial?

The court clerk
The accused
The victim
The prosecution Correct answer.

Explanation

The presumption of innocence places the burden on the prosecution to establish each element of the offence. An accused generally need not prove innocence, although the defence may bear an evidential burden when raising certain issues.

Question 5Introduction to Law and Legal Systems

Which of these is a primary source of law in a common law jurisdiction?

A university lecture recording
A textbook on contract law
Statutes enacted by the legislature Correct answer.
A newspaper report on a trial

Explanation

Primary sources are the authoritative statements of law itself, principally legislation and binding judicial decisions. Secondary sources such as textbooks and commentary explain or critique the law but do not create binding rules.

Question 6Introduction to Law and Legal Systems

What is the main purpose of a constitution in a legal system?

To list the penalties for every criminal offence
To replace the courts with a legislative committee
To record the private contracts of citizens
To establish governmental institutions and limit their powers Correct answer.

Explanation

A constitution sets out the structure of the state, allocates powers among institutions, and typically protects fundamental rights against government action. Ordinary criminal penalties and private contracts are governed by other laws.

Question 7Introduction to Law and Legal Systems

A court decides a case on facts materially identical to a binding decision of a superior court in the same hierarchy. What should the court do?

Ignore the ruling as merely persuasive
Decline jurisdiction over the dispute
Wait for the legislature to decide the case
Apply the superior court's ruling Correct answer.

Explanation

Where the material facts are indistinguishable and the earlier decision comes from a higher court in the same hierarchy, the doctrine of precedent obliges the lower court to follow it. Only where the facts can be meaningfully distinguished may the court depart from the reasoning.

Question 8Introduction to Law and Legal Systems

Which feature best distinguishes a civil law system from a common law system?

Statutes are never enacted
Comprehensive codes are the dominant source of general law Correct answer.
Judges have no legal training
Juries decide every category of dispute

Explanation

Civil law systems trace to Roman law and rely heavily on comprehensive codes that state general principles, with less weight given to individual judicial decisions. Common law systems place greater emphasis on case-by-case reasoning and binding precedent.

Question 9Introduction to Law and Legal Systems

A regulator issues detailed rules explaining how a statute will be administered. What kind of law is this?

Constitutional convention
Delegated legislation Correct answer.
Equity
Customary international law

Explanation

When a statute authorises an executive body to make rules within the scope of that statute, the resulting instruments are delegated or subordinate legislation. They have legal force but may be invalid if they exceed the authority conferred.

Question 10Introduction to Law and Legal Systems

A judge finds that a statute's literal wording produces an absurd result that defeats the clear purpose of the Act. Which approach is most consistent with purposive interpretation?

Apply the literal meaning regardless of consequences
Ask the parties to agree on a meaning
Refuse to apply the statute entirely
Interpret the words to promote the statute's purpose Correct answer.

Explanation

Purposive interpretation allows a court to prefer the construction that best achieves the object of the legislation where the literal text is ambiguous or produces absurdity. The court still interprets the enacted text and does not rewrite the statute at will.

Question 11Introduction to Law and Legal Systems

Which statement best describes the relationship between law and morality?

Morality always overrides law
They overlap but are not identical Correct answer.
They are always identical
They are entirely unrelated

Explanation

Many legal rules reflect moral values, yet law and morality are conceptually distinct: some immoral conduct is lawful and some legal duties have no moral content. Legal validity does not depend solely on moral merit.

Question 12Introduction to Law and Legal Systems

What is the essential function of an independent judiciary?

Setting tax rates
Drafting legislation for the government
Deciding disputes impartially without improper influence Correct answer.
Directing police investigations

Explanation

Judicial independence, secured by tenure and remuneration protections, allows judges to decide cases on the law and evidence without pressure from other branches or litigants. This underpins public confidence and the rule of law.

Question 13Introduction to Law and Legal Systems

A person is prosecuted for an offence created by a statute, but the conduct occurred before the statute came into force. Which principle is engaged?

The rule against perpetuities
The parol evidence rule
The doctrine of merger
Non-retroactivity of criminal liability Correct answer.

Explanation

A core rule of legality holds that conduct cannot be criminalised retrospectively, so a person may only be punished under a law in force when the act was done. Retrospective criminal liability is widely prohibited by constitutional and human rights instruments.

Question 14Introduction to Law and Legal Systems

Which of these best expresses the core idea of the rule of law?

The executive may act free of legal limits
Judges should follow public opinion
Only citizens, not officials, are bound by law
Government authority must be exercised according to law Correct answer.

Explanation

The rule of law requires that power be exercised under known, general rules applied equally, with officials themselves subject to law. It stands opposed to arbitrary or personal rule and supports accountability mechanisms such as judicial review.

Question 15Introduction to Law and Legal Systems

What is the principal distinction between criminal and civil proceedings?

Criminal proceedings are brought by private citizens alone
Civil proceedings require proof beyond reasonable doubt
Criminal proceedings address wrongs against the state and may impose punishment Correct answer.
Civil proceedings always result in imprisonment

Explanation

Criminal proceedings are typically brought by the state to establish guilt and may lead to punishment such as imprisonment or fines. Civil proceedings resolve disputes between parties and usually result in remedies like damages or orders rather than punishment.

Question 16Introduction to Law and Legal Systems

A court is asked to review whether a minister exceeded powers granted by statute. What is this type of proceeding called?

Judicial review of administrative action Correct answer.
A criminal appeal against conviction
A private prosecution
An arbitration

Explanation

Judicial review allows a court to examine the legality of executive decisions, including whether the decision-maker acted within statutory authority or followed required procedures. It focuses on legality and process rather than substituting the court's view of the merits.

Question 17Introduction to Law and Legal Systems

Which statement about the concept of legal personality is accurate?

Corporations cannot be sued
Both natural persons and certain entities can hold legal rights and duties Correct answer.
Only human beings can ever hold legal rights
Legal personality is irrelevant to contract law

Explanation

Legal personality denotes the capacity to bear rights and obligations, and the law may confer it on entities such as companies as well as on natural persons. Separate corporate personality, for example, allows a company to contract and be sued in its own name.

Question 18Introduction to Law and Legal Systems

A lower court is faced with a binding precedent whose reasoning rests on a principle that does not apply to the facts before it. What technique may the court use?

Ignore the precedent silently
Distinguish the precedent on its material facts Correct answer.
Amend the precedent's text
Overrule the precedent outright

Explanation

Distinguishing allows a court to avoid applying a precedent where the material facts differ in a legally relevant way, so the earlier reasoning does not govern. Only a higher court in the same hierarchy, or a court of equal rank in limited circumstances, can formally overrule a binding decision.

Question 19Introduction to Law and Legal Systems

Legislation is enacted with a preamble stating its object, but a key operative provision is ambiguous. How should a court approach the ambiguity?

Use the stated object as an aid to construing the provision Correct answer.
Resolve the ambiguity against the statute's purpose
Apply the provision only to future cases
Disregard the preamble as irrelevant surplusage

Explanation

Where operative words are ambiguous, courts may look to the statute's stated objects and purpose, including a preamble, as legitimate interpretive aids. This reflects the modern preference for purposive construction over narrow literalism.

Question 20Introduction to Law and Legal Systems

In a system with a rigid, entrenched constitution, which consequence most directly follows for ordinary legislation?

Courts may invalidate legislation inconsistent with the constitution Correct answer.
Judges must apply unconstitutional statutes without question
Parliament may amend the constitution by ordinary statute
The executive may suspend constitutional rights at will

Explanation

Entrenchment means the constitution can only be altered through a special procedure, and it typically ranks above ordinary legislation. Courts with review power may therefore declare inconsistent statutes invalid or inoperative to the extent of the inconsistency.

Question 21Sources of Law: Constitutions, Statutes, Regulations, and Case Law

Which source of law is generally supreme within a national legal system and prevails over conflicting ordinary legislation?

A constitution Correct answer.
An administrative regulation
A procedural rule of court
A municipal ordinance

Explanation

A constitution establishes the framework of government and typically ranks above all other domestic legal norms, so statutes and regulations that conflict with it may be invalidated. This supremacy is often enforced through judicial review. Ordinary regulations and local ordinances rank below both constitutions and statutes.

Question 22Sources of Law: Constitutions, Statutes, Regulations, and Case Law

A legislature passes a bill, and the executive signs it into law. What type of legal authority has been created?

A statute Correct answer.
A treaty
A regulation
A precedent

Explanation

A statute is enacted by a legislative body following the prescribed legislative process, including executive approval where required. Statutes are primary legislation that governs conduct directly. Regulations, by contrast, are issued by agencies under delegated authority.

Question 23Sources of Law: Constitutions, Statutes, Regulations, and Case Law

Which term describes the body of judge-made law developed through decisions in individual cases?

Statutory law
Common law Correct answer.
Administrative law
Constitutional law

Explanation

Common law is the body of rules derived from judicial decisions, often built up case by case and applied to later disputes through precedent. It contrasts with law created by legislatures or agencies. Its authority rests on courts following earlier rulings.

Question 24Sources of Law: Constitutions, Statutes, Regulations, and Case Law

An agency adopts a rule that specifies how a statute will be implemented in practice. This rule is best characterized as which kind of law?

A regulation Correct answer.
A constitutional amendment
A judicial precedent
A private contract

Explanation

Regulations are rules issued by administrative agencies under authority delegated by a statute. They carry the force of law and fill in the details of statutory schemes. They differ from statutes because they are made by agencies rather than legislatures.

Question 25Sources of Law: Constitutions, Statutes, Regulations, and Case Law

Under the doctrine of precedent, how is a prior decision normally treated by a lower court in the same jurisdiction?

As persuasive authority only
As a statute that replaces legislation
As binding authority that must be followed Correct answer.
As irrelevant to the current dispute

Explanation

Under stare decisis, a lower court within the same hierarchy is generally bound by the holdings of higher courts in its jurisdiction. The binding force attaches to the ratio decidendi, the legal reasoning essential to the decision. Persuasive authority, by contrast, does not compel a court.

Question 26Sources of Law: Constitutions, Statutes, Regulations, and Case Law

Which body typically has the authority to enact statutes at the national level?

The supreme court
The central bank
The legislature Correct answer.
The cabinet secretariat

Explanation

Statutes are enacted by the legislature, which holds the primary lawmaking power under the constitutional structure. Other bodies may issue rules but do not enact statutes. Courts interpret statutes but do not legislate them.

Question 27Sources of Law: Constitutions, Statutes, Regulations, and Case Law

What is the primary function of a constitution within a legal system?

To replace the need for courts and judges
To set detailed technical standards for industries
To codify all private contracts between citizens
To establish governmental institutions and limit their powers Correct answer.

Explanation

A constitution creates the structure of government, allocates powers among institutions, and typically protects rights against government overreach. It is a framework document rather than a detailed code. Technical standards and private contracts are handled by other legal instruments.

Question 28Sources of Law: Constitutions, Statutes, Regulations, and Case Law

A national statute conflicts with a validly ratified treaty that, under the constitution, has domestic legal force. Which principle most directly determines the outcome?

The rule against perpetuities
The parol evidence rule
The hierarchy of norms governing the relationship between the two sources Correct answer.
The doctrine of separation of powers

Explanation

Resolving a conflict between two legal sources requires consulting the hierarchy of norms established by the constitution, which determines which source prevails. Some systems give treaties superior status, while others treat them as equivalent to statutes. The other doctrines listed govern unrelated areas of law.

Question 29Sources of Law: Constitutions, Statutes, Regulations, and Case Law

A court is asked to apply a statute whose wording is ambiguous. Which approach is most consistent with standard statutory interpretation?

Choose the interpretation that maximizes judicial discretion
Defer entirely to the agency's preference without review
Apply the literal meaning only and ignore context
Consider the text, legislative purpose, and structure of the statute Correct answer.

Explanation

Courts typically interpret ambiguous statutes by examining the ordinary meaning of the text alongside legislative purpose and statutory structure. This purposive and contextual approach helps produce a coherent reading. Ignoring context or deferring without review departs from accepted interpretive method.

Question 30Sources of Law: Constitutions, Statutes, Regulations, and Case Law

An appellate court distinguishes a binding precedent because the material facts of the current case differ. What is the effect of this reasoning?

The precedent is formally overruled for all future cases
The precedent is converted into a statute
The precedent does not control the outcome of the current case Correct answer.
The precedent becomes persuasive only in other jurisdictions

Explanation

Distinguishing a precedent means showing that its material facts differ, so its holding does not govern the new dispute. The precedent remains valid law for cases with similar facts. Distinguishing is therefore narrower than overruling.

Question 31Sources of Law: Constitutions, Statutes, Regulations, and Case Law

A regulation issued by an agency exceeds the scope of authority granted by its enabling statute. What is the most likely judicial response?

Treat the regulation as a constitutional amendment
Refer the regulation to the legislature for automatic approval
Invalidate the regulation as ultra vires Correct answer.
Enforce the regulation as written

Explanation

A regulation must remain within the authority delegated by the enabling statute. If an agency acts beyond that grant, a court may hold the regulation ultra vires and invalidate it. This doctrine enforces the principle that agencies exercise only delegated power.

Question 32Sources of Law: Constitutions, Statutes, Regulations, and Case Law

Which characteristic best distinguishes a constitution from an ordinary statute?

It expires automatically after one year
It typically has higher legal status and a more demanding amendment process Correct answer.
It is always shorter in length than any statute
It is enacted by an administrative agency

Explanation

Constitutions generally occupy a superior position in the hierarchy of norms and are amended through special, often more demanding procedures. These features help stabilize the fundamental framework of government. Length or agency origin are not defining characteristics.

Question 33Sources of Law: Constitutions, Statutes, Regulations, and Case Law

A court must decide whether a statutory provision applies to a new type of transaction not contemplated when the statute was enacted. Which interpretive aid is most relevant?

The popularity of the transaction in the market
The number of parties involved in the transaction
The legislative purpose underlying the provision Correct answer.
The personal opinion of the presiding judge

Explanation

When a statute's text does not expressly address a new situation, courts commonly look to the legislative purpose to determine whether the provision was meant to cover it. This purposive reasoning keeps interpretation faithful to the legislature's aim. Personal preferences and market popularity are not legitimate interpretive aids.

Question 34Sources of Law: Constitutions, Statutes, Regulations, and Case Law

Which statement best describes the relationship between statutes and regulations in a typical legal system?

Regulations implement statutes and must be consistent with them Correct answer.
Statutes are drafted by agencies to implement regulations
Regulations and statutes are always identical in content
Regulations override statutes whenever the two conflict

Explanation

Regulations are subordinate legislation issued by agencies to implement and administer statutes. They must remain consistent with the enabling statute and the constitution. If a regulation conflicts with a valid statute, the statute generally prevails.

Question 35Sources of Law: Constitutions, Statutes, Regulations, and Case Law

A lawyer relies on a decision from a court in a different jurisdiction that has no authority over the case. How should that decision be characterized?

Persuasive authority Correct answer.
Binding precedent
Constitutional mandate
Ultra vires regulation

Explanation

A decision from a court outside the hierarchy that binds the current court is persuasive authority: it may be considered for its reasoning but does not compel a result. Binding precedent comes only from courts higher in the same hierarchy. The other labels describe unrelated legal concepts.

Question 36Sources of Law: Constitutions, Statutes, Regulations, and Case Law

A statute delegates rulemaking power to an agency but provides no standards to guide the exercise of that power. Which challenge is most directly raised?

A denial of the right to a jury in civil cases
An unlawful delegation of legislative authority Correct answer.
A violation of the parol evidence rule
A breach of a private contract

Explanation

Delegation doctrine concerns whether a legislature may transfer rulemaking power to an agency and, in many systems, requires an intelligible standard to guide that power. A delegation without standards may be challenged as an unlawful transfer of legislative authority. The other options concern unrelated areas of law.

Question 37Sources of Law: Constitutions, Statutes, Regulations, and Case Law

A constitutional provision guarantees freedom of expression, and a statute restricts peaceful assembly. A court finds the statute inconsistent with the constitution. What is the result?

The court must enforce the statute regardless of the conflict
The statute is invalid to the extent of the inconsistency Correct answer.
The statute automatically repeals the constitution
The constitutional provision is amended by the court

Explanation

Because the constitution ranks above ordinary legislation, a statute that conflicts with it may be declared invalid to the extent of the inconsistency. Courts apply the constitution as supreme law. They cannot amend the constitution or repeal it through statutory interpretation.

Question 38Sources of Law: Constitutions, Statutes, Regulations, and Case Law

Which factor most strongly supports a court treating a prior decision as binding rather than merely persuasive?

The prior decision was rendered by a higher court in the same jurisdiction Correct answer.
The prior decision was written in a longer opinion
The prior decision involved a well-known party
The prior decision was widely reported in the media

Explanation

Binding force under stare decisis depends on the position of the deciding court within the same judicial hierarchy. A decision by a higher court in the same jurisdiction binds lower courts there. Media coverage, opinion length, and party identity do not determine authority.

Question 39Sources of Law: Constitutions, Statutes, Regulations, and Case Law

A legislature enacts a framework statute, and an agency later issues detailed rules under it. A regulated party claims the rules impose burdens not authorized by the statute. Which inquiry is central?

Whether the rules fall within the authority conferred by the statute Correct answer.
Whether the regulated party is large or small
Whether the agency's staff favored the rules
Whether the rules were announced at a press conference

Explanation

The validity of subordinate rules depends on whether they remain within the authority granted by the enabling statute. Courts examine the statutory grant to determine whether the agency exceeded it. Internal preferences, party size, and announcement methods do not determine legality.

Question 40Sources of Law: Constitutions, Statutes, Regulations, and Case Law

A court overrules its own earlier precedent. What is the most accurate description of the effect?

The earlier decision is retroactively converted into a statute
The earlier decision remains binding on the same court
The earlier decision binds courts in all other countries
The earlier decision no longer governs future cases on that issue Correct answer.

Explanation

Overruling means a court with authority departs from its prior holding, so the earlier decision ceases to govern future cases on that point. The court's power to overrule reflects the flexibility of judge-made law. Overruling does not create legislation or extend authority to foreign courts.

Question 41Sources of Law: Constitutions, Statutes, Regulations, and Case Law

A statute uses a term defined in the statute itself. How should a court generally treat that definition when applying the statute?

Replace the definition with the court's own standard
Ignore the definition and use common usage
Apply the definition only if the parties agree
Apply the statutory definition rather than the ordinary meaning Correct answer.

Explanation

When a statute supplies its own definition, that definition controls the interpretation of the term within the statute. Legislatures use definitions to fix meaning precisely and avoid ambiguity. Courts do not substitute ordinary usage or personal standards for an express definition.

Question 42Sources of Law: Constitutions, Statutes, Regulations, and Case Law

In a system where treaties have the same rank as statutes, a later statute conflicts with an earlier treaty provision. Which principle most likely governs?

The conflict is resolved by the United Nations
The treaty always prevails because it is international
The earlier provision always prevails because it came first
The later enactment prevails under the principle of lex posterior Correct answer.

Explanation

When two norms share the same rank, the principle lex posterior derogat legi priori generally gives effect to the later enactment. This rule resolves conflicts between sources of equal status. It applies differently where the constitution assigns treaties a higher rank.

Question 43Sources of Law: Constitutions, Statutes, Regulations, and Case Law

A court considers a precedent whose reasoning is essential to its outcome but also contains a lengthy discussion of hypothetical situations. Which part of the decision carries binding authority?

The headnote prepared by the publisher
The obiter dicta, the discussion of hypotheticals
The dissenting opinion of a single judge
The ratio decidendi, the reasoning necessary to the result Correct answer.

Explanation

Binding authority attaches to the ratio decidendi, the legal reasoning on which the decision rests. Remarks on hypothetical situations are obiter dicta and are not binding, though they may be persuasive. Headnotes and dissents lack binding force.

Question 44Sources of Law: Constitutions, Statutes, Regulations, and Case Law

An agency interprets an ambiguous term in its governing statute and adopts a reasonable interpretation through formal rulemaking. A court reviewing the rule is most likely to do which?

Invalidate the rule because agencies may never interpret statutes
Require the legislature to vote on the interpretation
Replace the agency's interpretation with the court's preferred policy
Defer to the agency's reasonable interpretation where the statute is genuinely ambiguous Correct answer.

Explanation

In many systems, courts give weight to an agency's reasonable interpretation of an ambiguous statute it administers, particularly when adopted through formal procedures. Deference is not unlimited and yields to clear statutory text. Courts do not substitute policy preferences for reasoned agency interpretation.

Question 45Courts, Jurisdiction, and Civil Procedure

Which court is the principal trial court of general jurisdiction in the United States federal system?

The United States Court of Federal Claims
The United States District Court Correct answer.
The United States Court of Appeals
The United States Supreme Court

Explanation

Federal district courts are the general trial courts where most federal cases begin, hearing both civil and criminal matters. The courts of appeals review district court decisions, and the Supreme Court is primarily an appellate tribunal. The Court of Federal Claims has narrow jurisdiction over specific money claims against the United States.

Question 46Courts, Jurisdiction, and Civil Procedure

A state court may exercise personal jurisdiction over a nonresident defendant when the defendant has which of the following?

Ownership of a website accessible from the forum state
Minimum contacts with the forum state such that jurisdiction comports with fair play and substantial justice Correct answer.
A mailing address in a neighboring state
A single isolated visit to the forum state unrelated to the claim

Explanation

The due process test requires sufficient minimum contacts with the forum plus a finding that exercising jurisdiction is reasonable. Random, isolated, or unrelated contacts generally do not satisfy the standard. A website or nearby residence alone does not establish purposeful availment.

Question 47Courts, Jurisdiction, and Civil Procedure

Which basis of subject-matter jurisdiction allows a federal court to hear a state-law claim between citizens of different states?

Supplemental jurisdiction
Original exclusive jurisdiction
Pendent appellate jurisdiction
Diversity jurisdiction Correct answer.

Explanation

Diversity jurisdiction permits federal courts to hear civil actions between citizens of different states when the amount in controversy exceeds the statutory threshold. Supplemental jurisdiction instead attaches to claims related to a claim already within federal jurisdiction. It is not an independent basis for a state-law claim between diverse parties.

Question 48Courts, Jurisdiction, and Civil Procedure

Under the well-pleaded complaint rule, federal question jurisdiction exists when which of the following appears on the face of the plaintiff's complaint?

A federal claim arising under federal law Correct answer.
A state-law claim with a federal counterclaim
An anticipated federal preemption argument
A federal defense raised by the defendant

Explanation

The well-pleaded complaint rule looks to the plaintiff's own claim, not to defenses or counterclaims, to determine whether a federal question is presented. A federal defense, even one that anticipates preemption, does not create federal question jurisdiction. The plaintiff must assert a right created by federal law.

Question 49Courts, Jurisdiction, and Civil Procedure

What is the primary function of a pleading in civil procedure?

To give notice of the claims and defenses to the opposing party and the court Correct answer.
To present evidence and witness testimony at trial
To record the final judgment of the court
To compel a nonparty to produce documents

Explanation

Pleadings such as the complaint and answer serve to notify the parties and the court of the claims and defenses at issue. Evidence and testimony are presented later through discovery and at trial. Discovery tools and judgments are separate stages with different functions.

Question 50Courts, Jurisdiction, and Civil Procedure

A plaintiff files a complaint in federal court alleging that the defendant breached a contract worth $100,000, and the parties are citizens of different states. Which requirement must also be satisfied for the court to hear the case?

The plaintiff must exhaust state administrative remedies
The defendant must consent to federal jurisdiction
The claim must arise under federal law
The amount in controversy must exceed the statutory threshold for diversity cases Correct answer.

Explanation

Diversity jurisdiction requires both complete diversity of citizenship and that the amount in controversy exceed the statutory minimum. A contract claim does not arise under federal law, so federal question jurisdiction is unavailable. Consent and exhaustion are not conditions for diversity jurisdiction.