Which of the Following Suits Could Be Properly Heard in Federal

question 10

Multiple Choice

Which of the following suits could be properly heard in federal district court?

• A)a suit between two contracting parties in one state over a UCC interpretation question
• B)a suit for damages of $50,000 between a citizen of Oregon and a citizen of Washington
• C)a suit challenging the constitutionality of a state's death penalty statute
• D)all of the above

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Definitions:

Priority Claims

Debts that are given special status and are paid before other debts in a bankruptcy proceeding.

Subordination Agreements

Legal documents that alter the priority of financial claims, making one party's claim rank behind another's in the event of a bankruptcy or liquidation.

Pro Rata

A Latin term that means "in proportion," often used to describe a method of allocating amounts or shares among participants according to their entitlement or contribution.

Chapter 11

A provision under the U.S. Bankruptcy Code that allows businesses to reorganize and restructure their debts while continuing operations.