Answered

Welcome to Westonci.ca, your go-to destination for finding answers to all your questions. Join our expert community today! Discover detailed solutions to your questions from a wide network of experts on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

A seller entered a contract with a buyer under which the buyer agreed to purchase certain corporate securities for $500,000. The buyer refused to go through with the purchase, contending that the entire transaction was void because of federal securities statutes. The seller thus sold the securities to another party but was able to sell them for only $420,000. The seller filed an action against the buyer in federal district court, alleging that the transaction did not violate federal securities statutes and seeking $80,000 for the buyer's breach of contract. The seller and the buyer are both citizens of the same state. Does the federal court have subject matter jurisdiction over the action

Sagot :

anthougo

Answer:

Yes.  The federal court has subject matter jurisdiction over the action because it is based on a federal statute.

Explanation:

While the state court will always have subject matter jurisdiction over most cases involving citizens of the same state, the statute under contention is a federal statute, and the defendant is claiming that the transaction violated some federal securities statutes.  Moreover, the amount that the plaintiff is asking for is more than $75,000.  As it is, the federal court has subject matter jurisdiction to hear the case.

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.