Torts and Contracts

Question 1

What state law applies for tort under the traditional approach?

Answer 1

Apply law of the place of injury - last event needed to create tort is the injury

Question 2

How is it determined whether a state has in interest in a tort under the government interest analysis approach?

Answer 2

States are interested in wrongful conduct:

1. Occurs in their territory
2. Causes injury in territory
3. Injures domiciliary of state

Question 3

What are contacts that a court will balance for a tort case under most significant relationship approach?

Answer 3

1. Place of injury (rebuttable presumption)
2. Place where conduct causing injury took place
3. Domicile, residence, or place of business
4. Place where relationship b/w parties is centered

Question 4

What is an exception to the choice of law clause?

Answer 4

Validity of contract cannot be solely resolved by parties’ choice of law, eg: subject matter, incapacity, absence of formalities

Question 5

When can parties still choose the law that applies to contract validity?

Answer 5

1. State has substantial relationship to party or transaction OR
2. Other reasonable basis for the choice

Question 6

When can parties’ choice of law for validity be ignored?

Answer 6

When application would be contrary to fundamental policy of state with most significant relationship to the issue

Question 7

What state law applies for contracts cases under the traditional approach?

Answer 7

1. Place of contracting governs (a) contract formation, (b) interpretation, and (c) validity - last act necessary to create contract usually place of acceptance
2. Issue related to performance is law of the place of performance

Question 8

What are contacts that a court will balance for a contracts case under most significant relationship approach?

Answer 8

1. Place of contracting, negotiation, and performance
2. Place where subject matter of contract is located
3. Location of parties’ domiciles, etc.

Question 9

When is there a presumption that a certain state’s law applies?

Answer 9

When the location of negotiation and performance are the same

Question 10

What state law governs for the perfection, nonperfection, and priority of security interests in collateral?

Answer 10

Generally the law of the state in which the debtor is located