Hypo $1$

Amanda owns a fencing business in Olive Hill, Kentucky, building and repairing fences primarily for area cattle and horse farms. To improve her bottom line, Amanda has developed a fairly accurate system for predicting how much material she'll need for the upcoming year, and buying it all at once in bulk to save money. Ben is a fencing material supplier out of Ironton, Ohio, and his advertisement caught Amanda's eye. Not only was he offering fenceposts at a highly competitive price, he also offered free delivery, a money back guarantee, and an offer to pay for the return shipping if the customer was not completely satisfied with his product. "Perfect," Amanda thought, and placed her order, which after sales tax came to exactly $$75,000.$

The next week, Amanda loaded up a batch of fenceposts from Ben's and headed off to do a job. She couldn't help thinking on her way to the worksite that those fenceposts seemed awfully light. Sure enough, when she pulled the first one off the truck to install it$,$ it snapped in half and she could see it was completely rotted out through the center. She pulled two or three more off the truck to see if it was just one bad one. They all broke easily over her knee. When she called Ben to arrange for the return and refund, Ben refused.

The Federal Trade Commission Act $($FTCA; federal law$)$ and the Kentucky Consumer Protection Act $($KCPA; state law$)$ provide remedies for consumers like Amanda who are the victims of deceptive business practices.

Question: If Amanda decides to sue under the FTCA, in what court may Amanda file suit against Ben?

$1.$

Amanda may sue in her local district court because it's a court of general jurisdiction and it has jurisdiction to hear cases in the amount of Amanda's loss.

$2.$

Amanda may sue in her local circuit court because it's a court of general jurisdiction and it has jurisdiction to hear cases in the amount of Amanda's loss.

$3.$

Amanda can sue in federal court on a theory of federal question jurisdiction becuase her suit would arise under federal law.

$4.$

Amanda can sue in federal court on a theory of diversity jurisdiction because she and Ben are from different states and the amount in controversy is met.