Absolute No Federal Court Overclaim
This trap appears as a wrong-answer choice in 1 active question. Spotting how it is built is the repair: read each example's “why it's attractive” before the “why it's wrong.”
Subject distribution
- Civil Procedure1
Example wrong choices
19533_christian_bookstore_llc · CIVIL_PROCEDURE · Choice BNo, because LLCs may never appear in federal court.
Why it's attractive
LLCs may appear in federal court if jurisdiction is satisfied.
Why it's wrong
LLCs may appear in federal court if jurisdiction is satisfied.
19533_christian_bookstore_llc · CIVIL_PROCEDURE · Choice CYes, because the LLC was organized in New Mexico and has its main office in Colorado.
Why it's attractive
The corporate rule does not apply to unincorporated entities.
Why it's wrong
The corporate rule does not apply to unincorporated entities.
19533_christian_bookstore_llc · CIVIL_PROCEDURE · Choice DYes, because only managing members count.
Why it's attractive
All members (and their partners, traced through entity layers) count; no managing-member carve-out.
Why it's wrong
All members (and their partners, traced through entity layers) count; no managing-member carve-out.
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