DFA,a Kansas Cooperative,has Its Principal Place of Business in Kansas

Multiple Choice

DFA,a Kansas cooperative,has its principal place of business in Kansas City,Missouri.Bassett,an international commodities broker and a Canadian corporation,has its principal place of business in Toronto,Ontario.Bassett is not qualified to do business in Missouri; has no agent for service of process,offices,property,bank accounts,telephone listings,or employees there; and does not advertise or promote its business there.Between July 2009 and February 2011,Bassett purchased more than 3.5 million pounds of dairy products from DFA in about 80 transactions totaling $5 million.The parties did not have a long-term contract,agreeing to each transaction individually by phone.Bassett communicated by phone and email with DFA's Missouri headquarters about delivery and billing.Bassett stopped paying on his account at DFA and DFA sued Bassett in Missouri for failure to pay.The district court dismissed the suit for lack of personal jurisdiction.The total amount due on the account was $220,000.​
-Which of the following statements is correct about subject matter jurisdiction?

A) Federal courts in the United States would have subject matter jurisdiction.
B) Federal courts in the United States do not have subject matter jurisdiction because Bassett is from another country.
C) Federal courts do not have jurisdiction because the amount in dispute does not meet the federal minimums for jurisdiction.
D) Because this is a contract action and no federal statute is involved, the federal courts do not have jurisdiction.