Conflicts of Law

Question 1

Under the ________________ approach, it is presumed that the forum state will apply its own law, but the parties may request that another state’s law be applied.

Answer 1

governmental-interest

Question 2

When will a court enforce a contractual choice of law agreement?

Answer 2

Courts will enforce the contractual choice of law agreement if it is:
(1) A valid agreement with an effective choice of law clause;
(2) Applicable to the lawsuit under the terms of the contract;
(3) Reasonably related to the lawsuit; and
(4) Does not violate the public policy of the forum state or another interested state.

Question 3

Under the _________________ the court looks to the location where the last liable event took place to determine choice-of-law.

Answer 3

vested rights approach

Question 4

TRUE OR FALSE: Under the doctrine of renvoi, a forum court that is applying the law of another state must also apply that foreign state’s conflict-of-law rules.

Answer 4

TRUE

Question 5

Under Klaxon in a federal diversity case, the federal district court is generally required to apply the conflict-of-laws rules of ___________________, only to the extent that the state’s rules are valid under the Full Faith and Credit and Due Process Clauses of the U.S. Constitution.

Answer 5

the state in which it sits

Question 6

How does a court determine an individual’s domicile?

Answer 6

Domicile is determined by:
(1) a person’s actual physical presence in a location, and
(2) the person’s intent to make the location his/her home for the time being.

Question 7

Under the Due Process Clause of the Fourteenth Amendment, a forum state may apply its own law to a particular case only if it has _______________ with the state such that a choice of its law is neither arbitrary nor fundamentally unfair.

Answer 7

significant contact(s)

Question 7

TRUE OR FALSE: Under the dépeçage approach, the law of one state may govern one or more particular issues while other issues are controlled by the law of one or more other states.

Answer 7

TRUE

Question 8

Questions of law relating to the grounds for divorce and personal property are controlled by the law of _________________ in a divorce matter.

Answer 8

the plaintiff’s domicile

Question 9

TRUE OR FALSE: For transactions governed by the UCC when the debtor and the collateral are located in different states, then the law of the state where the debtor is located determines perfection, the effect of perfection or nonperfection, and the priority of that security interest if the security interest is a possessory security interest.

Answer 9

FALSE: If the security interest is a possessory security interest, then the law of the state where the collateral is located determines perfection, the effect of perfection or nonperfection, and the priority of that security interest.

Question 10

Under the most-significant-relationship approach, what are the four important contacts the court considers?

Answer 10

The court considers the:
(1) place of injury;
(2) place where conduct causing injury occurred;
(3) domicile, residence, place of incorporation, or place of business of the parties; and
(4) place where the relationship is centered.

Question 10

Divorce decrees from other states are entitled to full faith and credit as long as the original state had ____________ to enter the decree and the decree is _____________in the original state.

Answer 10

jurisdiction; valid

Question 11

What are three arguments generally made against the application of foreign law?

Answer 11

That the law applied is: (1) procedural rather than substantive, (2) against public policy, or (3) a penal law.

Question 12

Under the Restatement (Second) approach, land contracts are controlled by the law of the state of __________________.

Answer 12

the situs of the land

Question 13

TRUE OR FALSE: Under Erie, in diversity jurisdiction cases, the federal district court must apply both the procedural law and substantive law of the state where the court sits.

Answer 13

FALSE: Under the Erie doctrine, in diversity jurisdiction cases, federal district courts must apply the substantive law of the state where the court sits.

The Erie doctrine does not require that the state’s procedural laws be applied, however, and if a Federal Rule of Civil Procedure addresses the procedural issue at hand, then that rule will be applied. If no federal rule applies, then the district court must follow state law with regard to substance, but it can choose to ignore state law with regard to procedure, under certain circumstances.

Question 13

TRUE OR FALSE: Workers’ compensation matters are governed by the state in which the employee was hired or employed.

Answer 13

FALSE: Any state with a legitimate interest in an injury and its consequences may apply its workers’-compensation act.

In general (and this can vary depending on the state’s statute), a state will have a legitimate interest if it is the state where:
(i) the employment relationship was entered into by the worker and the employer,
(ii) the injury to the employee occurred,
(iii) the employment relationship principally occurred (even if the injury did not occur there), or
(iv) the employee or the employee’s dependents reside.

Question 14

Under the UCC, for issues involving corporate securities, the law of the _________________ generally controls.

Answer 14

issuer’s state of incorporation

Question 14

What are the seven policy principles under the most-significant relationship approach to choice of law?

Answer 14

(1) The needs of the interstate or international system.
(2) The relevant policies of the forum.
(3) The policies of the interested states.
(4) The parties’ expectations.
(5) The policies underlying the substantive areas of law.
(6) Certainty, predictability, and uniformity.
(7) The ease of future application.

Question 14

In the absence of a stipulation regarding the applicable governing law under the UCC, what law applies to the transaction?

Answer 14

The forum state will apply its version of the UCC to transactions bearing an appropriate relation to the forum state.

Question 15

Under the vested-rights approach to contract disputes, the laws of _______________________________________ determine the validity, defenses to formation, and interpretation of the contract, whereas the details of performance are governed by the laws of _______________________________________.

Answer 15

the location where the contract was executed; the location where the contract was to be performed.

Question 16

For matters of perfection, the effect of perfection or nonperfection, and the priority of security interests in tangible collateral, the law of the state in which ___________ is located generally govern.

Answer 16

the debtor

Question 16

Questions regarding the transfer of property from someone who dies intestate are governed by ______________, but questions regarding the transfer of real property from someone who dies intestate or who has a will are governed by_____________________.

Answer 16

the law of the deceased’s domicile at the time of death; the law of the situs of the real property.

Question 17

What three requirements must be met in order for a judgment to meet the full faith and credit requirements?

Answer 17

It must: (1) have been brought in the proper jurisdiction, (2) be finalized (with no appeals outstanding), and (3) be on the merits.