DE Bar Conflict of Laws 1 — Questions and Answers
Question 1: Under the traditional First Restatement approach (lex loci delicti), which law governs a tort claim?
- Law of the state where the defendant is domiciled
- Law of the state where the injury occurred (Correct answer)
- Law of the state with the most significant relationship
- Law of the forum state
Correct answer: Law of the state where the injury occurred
Under the First Restatement's lex loci delicti rule, tort claims are governed by the law of the place where the injury occurred.
Question 2: Under the Second Restatement approach adopted by most states, which test governs choice of law in tort cases?
- Place of the defendant's conduct
- Place of injury rule
- Most significant relationship test (Correct answer)
- Better law approach
Correct answer: Most significant relationship test
The Second Restatement uses the 'most significant relationship' test, examining contacts like place of injury, conduct, domicile of the parties, and the center of their relationship.
Question 3: Under the Second Restatement, a contractual choice-of-law clause will generally NOT be enforced if:
- One party is domiciled in a different state than the other
- The chosen state has no substantial relationship to the parties or transaction and there is no reasonable basis for the choice (Correct answer)
- The contract value is below a statutory threshold
- The contract involves the sale of real property
Correct answer: The chosen state has no substantial relationship to the parties or transaction and there is no reasonable basis for the choice
Under Restatement (Second) §187, a party autonomy clause is unenforceable if the chosen state has no substantial relationship to the parties or transaction and no reasonable basis exists for the choice, or it violates a fundamental public policy.
Question 4: Which constitutional provision requires each state to recognize and enforce valid final judgments of other states?
- Due Process Clause of the Fourteenth Amendment
- Full Faith and Credit Clause of Article IV (Correct answer)
- Supremacy Clause of Article VI
- Dormant Commerce Clause
Correct answer: Full Faith and Credit Clause of Article IV
The Full Faith and Credit Clause of Article IV, Section 1 mandates that each state give full faith and credit to the public acts, records, and judicial proceedings of every other state.
Question 5: For conflict of laws purposes, a person's domicile is defined as:
- The state where the person was born
- The state where the person maintains their primary employment
- The state where the person is physically present with the intent to remain indefinitely (Correct answer)
- The state where the person owns real property
Correct answer: The state where the person is physically present with the intent to remain indefinitely
Domicile requires both physical presence in a place and the intent to remain there indefinitely (or without a fixed present intent to leave), distinguishing it from mere temporary residence.
Question 6: Under the interest analysis approach, a 'false conflict' arises when:
- Both states have a genuine policy interest in applying their law
- Only one state has a genuine interest in applying its law to the dispute (Correct answer)
- The parties have contractually agreed on which law governs
- Neither state has any interest in the outcome of the dispute
Correct answer: Only one state has a genuine interest in applying its law to the dispute
A false conflict exists when only one state has a genuine policy interest at stake, making the choice straightforward — apply the law of the only interested state.
Question 7: Under the Erie doctrine, a federal court sitting in diversity jurisdiction must apply:
- Federal common law on all substantive and procedural issues
- The substantive law of the state in which the federal court sits, including that state's conflict of laws rules (Correct answer)
- The law of the state most favorable to the plaintiff
- Federal statutory law as the default on all substantive questions
Correct answer: The substantive law of the state in which the federal court sits, including that state's conflict of laws rules
Under Erie Railroad Co. v. Tompkins (1938), federal courts in diversity cases must apply the substantive law of the forum state, including its choice of law rules (per Klaxon Co. v. Stentor).
DE Bar Conflict of Laws 1
Under the traditional First Restatement approach (lex loci delicti), which law governs a tort claim?