Michelle is a law student at Rutgers University Law School and Jose is a law student at Fordham University Law School. Michelle and Jose enter into a written contract for Jose's new, unused, classic Air Jordan sneakers, signed by Jordan himself, for the bargain price of $2,000.00. Michelle, who lives in Millburn, New Jersey borrows her dad's car and goes to Brooklyn, New York, where Jose lives, to pick up the sneakers and pay Jose. When Michelle sees that the sneakers were dirty and worn with holes in the bottom of the sneakers, she tells Jose that this was not the sneaker she agreed to buy. Jose responded that this is the only sneaker he has, she saw a picture of it and agreed to buy it. He throws the sneakers in her car and yells at her that she owes him the money. Michelle refuses to give Jose the money and Jose tells her "see you in court" as he walks back into his home. Michelle goes back home very upset and nervous because she had already agreed to re-sell that sneaker to Paul for $79,000.00. Michelle comes to you to get advice as her attorney in a lawsuit for breach of contract and fraud against Jose for the $77,000.00 in Federal Court for the loss from not being able to sell to Paul.

1. Would the Federal Court in New York have jurisdiction to hear the case Michelle v. Jose? Give the definitions and apply the facts to your analysis/answer. (15 POINTS)
2. Michelle is curious as a law student and asks you: what is required for the venue to be in Federal Court in an action or lawsuit against Jose in New York. Give the definitions and apply the facts to your analysis/answer.