Conflicts of Law

Question 1

Under the Due Process Clause of the Fourteenth Amendment, what must a state show to apply it’s own laws?

Answer 1

That the case has: significant contacts or significant aggregation of contacts with the state such that a choice of law is neither arbitrary or fundamentally unfair.

Ex.) If the forum state’s only contact is the fact that the cause of action was brought in that court, or that the plaintiff once lived there, then application of the substantive law of the forum state will violate due process.

Question 2

Most courts will enforce a contractual choice of law provision if it is:

Answer 2

a. ) A valid agreement;
b. ) applicable to the lawsuit under the terms of the contract;
c. ) reasonably related to the lawsuit; and
d. ) Not in violation of the public policy of the forum state or another interested state.

Question 3

What are the three approaches to choice-of-law?

Answer 3

1. ) Vested Rights Approach (First Restatement)
2. ) Most Significant Relationship (Second Restatement)
3. ) Governmental-Interest

Question 4

What’s the basic analysis of the Vested-Rights approach?

Answer 4

Looks to where the act or relationship that gave rise to the cause of action occurred or was created.

Question 5

The Most Significant Relationship approach applies the laws of the state with . . .

Answer 5

the most significant relationship to the issue in question.

Question 6

What is the forum court’s analysis when applying the Most Significant Relationship approach?

Answer 6

1. ) Isolate the precise legal issue that results in a conflict between competing states;
2. ) identify the policy objectives that each state’s law seeks to achieve with respect to such issue; and
3. ) determine each states interest in view of its policy objectives, concluding which state has a superior connection

Question 7

What is the presumption under the Governmental Interest Approach?

Answer 7

That the forum state will apply its own laws.

However, parties may request that another state’s law be applied because that state has a greater interest in the outcome.

Question 8

Under the Governmental-Interest approach, what happens if the forum court has no interest in the litigation?

Answer 8

Then the court applies the law of the state that does have an interest in the case. (This is called a “false conflict.”)

Question 9

Under the Governmental-Interest approach, what happens if the forum state and another state both have an interest in the litigation?

Answer 9

Then the forum state will review its own policies to determine which law should apply. If the conflict cannot be resolved, then the law of the forum state is applied. (This is called a “true conflict.”)

Question 10

Under the Governmental-Interest approach, what happens if the court determines that it does not have an interest in the case, and forum non conveniens is available?

Answer 10

Then the court should dismiss the case.

Question 11

Under the Governmental-Interest approach, what happens if the court determines that it does not have an interest in the case, and forum non conveniens is not available?

Answer 11

Then the forum state may either make its own determination as to which law is better to use, or apply the law that most closely matches its own state.

Question 12

Under the Governmental-Interest approach, what happens if no state has an interest?

Answer 12

The law of the forum state is applied.

Question 13

Depecage

Answer 13

Essentially, the forums state will apply the laws of multiple states. They’ll apply them on an issue-by-issue basis.

Question 14

Renvoi

Answer 14

When a court applies the laws of another state, that court must also apply the conflict-of-law rules of that state.

Question 15

Federal Tort Claims Act

Answer 15

Requires the application of the whole law, including conflict of law rules, of the place where the act or omission occurred.

Question 16

Tort cases under the Vested-Rights approach

Answer 16

Apply the laws of the state where the injury occurred.

Question 17

Tort cases under the Most-Significant Relationship approach - default rule

Answer 17

the place of injury controls, unless another state has a more significant relationship to the parties or to the occurrence of the tort.

Question 18

If there is an express choice of law provision in a contract, then that law will govern unless:

Answer 18

1. ) it is contrary to public policy;
2. ) there is no reasonable basis for the parties’ choice; or
3. ) there was fraud or mistake and true consent was not given.

Question 19

Under the Vested-Rights approach, what does the court look to when assessing the validity, defenses to, and interpretation of a contract?

Answer 19

The place of execution.

Question 20

Under the Vested-Rights approach, what does the court look to when assessing the details of performance of a contract?

Answer 20

Location where the contract was to be performed.

Question 21

What is the general rule under the Most Significant Relationship approach to contract cases?

Answer 21

When the location of negotiation and performance are the same, the forum court will apply the law of that state.

Question 22

Default Rule under Most Significant Relationship Approach:

Land Contracts

Answer 22

Controlled by the state of the situs.

Question 23

Default Rule under Most Significant Relationship Approach:

Personalty Contracts

Answer 23

Law of the state where the place of delivery is located.

Question 24

Default Rule under Most Significant Relationship Approach:

Life Insurance Contracts

Answer 24

Controlled by the law of the state where the insured is domiciled.

Question 25

Default Rule under Most Significant Relationship Approach:

Casualty Insurance Contracts

Answer 25

Law of the state where the insured risk is located.

Question 26

Default Rule under Most Significant Relationship Approach:

Loan Contracts

Answer 26

Law of the state where repayment is required.

Question 27

Default Rule under Most Significant Relationship Approach:

Surety Contracts

Answer 27

Law of the state governing the principal obligation

Question 28

Default Rule under Most Significant Relationship Approach:

Transportation Contracts

Answer 28

Law of the state where the place of departure is located.

Question 29

Under the UCC, the law governing perfection, and priority in tangible collateral is the law of the state in which:

Answer 29

the debtor is located.