Choice of law rules for specific areas

Question 1

Vested rights approach to tort cases

Answer 1

Apply the law of the state where the injury occurred [Lex loci delecti]

Question 1

Mini outline – choice of law rules for specific areas

Answer 1

(1) torts
(2) contracts
(3) family law

Question 2

Modern “most significant relationship” approach to tort cases

Answer 2

To determine which state has the “most significant relationship” to any particular issue, consider the policies and interests at stake for the following states:
▪ The states where the parties are domiciled
▪ The state where the injury occurred

Question 3

Dram shop act exception

Answer 3

Instead of applying the substantive law of the state where the injury occurred, the forum usually applies the law of the state where the tavern is located, except when:

The tavern in question uses advertising to target residents of another state, and

The tavern keeper can anticipate that out-of-state residents could return to their home state shortly after consuming beverages at the tavern

E.g., the bar is located near the border of two states

Question 4

Express stipulation rule for contract cases

Answer 4

The parties can agree to apply the law of certain state if
(1) it is expressly stated in the contract
(2) the stipulation doesn’t appear as boilerplate language in an adhesion contract,
(3) the parties picked a state that has a substantial relation to the contract, AND
(4) the law of the parties’ chosen state does not violate the public policy of that state with the most significant relationship to the issue in question

Question 5

Vested rights approach to contract cases

Answer 5

If no stipulation + vested rights = Apply the law of the state where the contract was made [Lex loci contractus]

Question 6

Modern approach to contract cases

Answer 6

If no stipulation + modern approach = Determine the “most significant relationship” by considering the policies and interests of those states where:
o The parties negotiated the contract
o The parties made the contract
o The performance obligations were to be met
o The subject matter of the contract is located
o The parties are domiciled, reside, conduct business, or are incorporated

Question 7

UCC rule for choice of law

Answer 7

If no stipulation by the parties + sale of goods = a state’s UCC can apply to any transaction that bears an appropriate relation to that state

Question 8

Choice of law for validity of marriage

Answer 8

Apply the law of the state where the ceremony took place

Question 9

Choice of law for divorce proceeding

Answer 9

Apply the law of the forum