Conflict of Laws Flashcards

A contract was signed in State A but is to be performed entirely in State B. The parties did not include a choice-of-law clause. A dispute arises and suit is filed in State C. Under the Restatement (Second) of Conflict of Laws, which state's law most likely governs the contract?

Answer: State B, because that is the place of performance

Under the Restatement (Second) § 188, courts weigh multiple contacts, including place of contracting, place of negotiation, place of performance, location of subject matter, and domicile of the parties. When performance is entirely in one state and there is no choice-of-law clause, the place of performance typically carries the greatest weight.

Paula, domiciled in Oklahoma, is injured in a car accident in Texas caused by Dave, a Texas resident. Paula sues Dave in Oklahoma. Which state's tort law will an Oklahoma court most likely apply under the most-significant-relationship test?

Answer: Texas, because that is where the injury and conduct occurred

For torts, the Restatement (Second) § 145 looks to the place of injury, place of conduct, domicile of the parties, and place where the relationship is centered. When the injury and the tortious conduct all occur in Texas, Texas has the most significant relationship and its law applies.

A valid divorce decree was entered in State X. The defendant spouse had been personally served but chose not to appear. The plaintiff spouse later moves to Oklahoma and seeks recognition of the divorce. Under the Full Faith and Credit Clause, Oklahoma must:

Answer: Give the State X decree full faith and credit and recognize the divorce

The Full Faith and Credit Clause (Art. IV, § 1) requires each state to recognize valid final judgments of sister states. A divorce decree entered by a court with jurisdiction — established when the plaintiff was domiciled in State X and the defendant was personally served — is a valid judgment entitled to full faith and credit.

Under traditional conflict-of-laws rules, 'domicile' for choice-of-law purposes is best defined as:

Answer: The state where a person is physically present with the intent to remain indefinitely

Domicile requires two elements: physical presence in a place AND the intent to make that place one's permanent home (intent to remain indefinitely). Mere residence or birth state is insufficient. Domicile drives important choice-of-law determinations in areas like intestacy and personal status.

A statute in State A bars recovery for pain and suffering in personal injury cases. State B imposes no such limitation. Plaintiff (State B resident) sues Defendant (State A resident) in a State B court for an injury that occurred in State A. State B applies the Restatement (Second) approach. Which result is most likely?

Answer: State A law applies because it has the most significant relationship to the tort, barring pain-and-suffering recovery

Under the Restatement (Second) most-significant-relationship test for torts (§ 145), the place of injury (State A) typically controls. The damages limitation is a substantive rule, not merely procedural, so State A's cap on pain-and-suffering recovery applies. The public-policy exception is narrow and unlikely to override a mere damages cap.

When parties to a commercial contract include a valid choice-of-law clause selecting Oklahoma law, Oklahoma courts will generally:

Answer: Honor the clause as long as the chosen state bears a reasonable relationship to the transaction and the result is not contrary to a fundamental public policy of Oklahoma

Oklahoma follows the general rule reflected in Restatement (Second) § 187 and UCC § 1-301: a contractual choice-of-law clause is enforceable if (1) the chosen state has a reasonable relationship to the parties or transaction, and (2) enforcement would not violate a fundamental public policy of the forum state.