Erie Doctrine and Choice of Law – Choice of Law Self-Quiz
The choice
of law rules apply to cases being heard by:
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Choice of
law rules:
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In a survey
of different states across the country,
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Maude, a resident
of Portland, Oregon, was flying a kite in Central Park when the wind shifted
and the kite went into a nosedive striking Kit, a lifelong resident of
Brooklyn, New York, in the head. Kit was knocked unconscious, and brought
to the hospital where she was diagnosed with a concussion. Kit, who was
a paralegal at a large law firm in Manhattan, sued Maude in New York state
court for negligence and medical costs, both tort actions. New York law
provides Kit with a claim. Oregon law prevents Kit from claiming any monetary
damages that are a result of the accident. Which law will the New York
state court most likely implement in making its decision?
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Carla, a resident
of New Mexico, entered into a contract with Masquerade, Inc., an Arizona
company that supplied masquerade costumes for special events and occasions.
Carla called John, a representative with Masquerade, Inc., from her home
to make arrangements with the company to rent several costumes for Halloween.
John informed Carla that Masquerade had a local distribution office in
Santa Fe, New Mexico where she and her friends could pick and choose costumes.
Carla and her friends went to the office in Santa Fe and selected the
costumes they wanted on September 15, 2003. However, when they went to
the costume shop, they found that their costumes had been rented out to
other people. Furious, Carla sued Masquerade, Inc., for breach of contract
in Arizona state court. Arizona law provides a full refund of the contract
price, while New Mexico law provides for the full refund plus additional
monetary damages (such as costs for renting substitute costumes). Which
law should the Arizona state court apply in Carla’s lawsuit?
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Leonard, a
resident of Portland, Maine, purchased a cellular phone from Horizon Mobile
(HM), Inc., a corporation based in Houston, Texas. Leonard also entered
into a contract with HM, Inc., for a one-year cellular phone plan, providing
national service for a fixed rate. Leonard was dissatisfied with his cellular
phone service and found that it provide satisfactory service. He launched
several complaints with HM, Inc., who stated that it was customary for
cellular service to “occasionally” drop out of range. Leonard
continually visited his local HM, Inc. office in Portland and sent letters
to the downtown Portland customer complaint office. Frustrated, Leonard
broke his contract and refused to pay the penalty amount. HM, Inc., sued
Leonard in Texas state court to recover the penalty amount. Texas law
permitted the full payment of the penalty to the plaintiff, while the
Maine law prohibited the collection of the payment if there is a legitimate
complaint. Which law should the Texas state court apply to HM, Inc.’s
lawsuit?
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In the same
example as above, except that Leonard’s contract contains a clause
that states the following: “For all disputes, relating to contract
service, fees, and other related issues regarding this customer’s
cellular phone service and phone hardware, the applicable court hearing
such dispute should litigate such claims under the laws of the state of
Texas”. HM, Inc., sues Leonard in Texas state court for the same
claims. Which law should the state court apply?
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Patty, a resident
of New York, was riding a train from New York to Charlotte, North Carolina.
Suretrak, Inc., a corporation based in New York, operated the train. Tragically,
the train struck an unoccupied train that was left on the track by Suretrak,
killing Patty outside of Richmond, Virginia. Patty’s family sued
Suretrak, Inc., for lost wages and other civil damages in New York state
court. Virginia law allows for the recovery of limited lost wages, but
prevents any other damages from being claimed. New York law allows for
the recovery of a larger amount of damages as well as other civil damages.
Which law should the New York court apply?
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