When a federal court hears a case based on diversity of citizenship, which law does it typically apply?

Correct answer: The relevant state law

Explanation

This concept is based on the Erie doctrine. When a federal court's jurisdiction is based on diversity of citizenship (rather than a federal question), it must apply the substantive law of the state in which it sits to decide the case, ensuring that the outcome is not different simply because the case is in federal court instead of state court.

Other questions

Question 1

Which United States Supreme Court case explicitly established the power of judicial review?

Question 2

What are the two requirements for a federal court to exercise original jurisdiction over a case based on diversity of citizenship?

Question 3

Under the 'sliding-scale' standard for determining jurisdiction in cyberspace, which type of business contact is LEAST likely to result in a court exercising jurisdiction?

Question 4

What is the primary difference between a court of original jurisdiction and a court of appellate jurisdiction?

Question 5

What is the simplest form of Alternative Dispute Resolution (ADR) where parties attempt to settle their dispute informally, with or without attorneys?

Question 6

The Federal Arbitration Act (FAA) of 1925 enforces arbitration clauses in contracts involving what type of commerce?

Question 7

In the United States Supreme Court, what is the minimum number of justices that must approve of a petition for a writ of certiorari for it to be issued?

Question 8

The requirement that a party must have a sufficient 'stake' in a matter to justify seeking relief through the court system is known as what?

Question 9

In the case of Buckeye Check Cashing, Inc. v. Cardegna, the U.S. Supreme Court held that a challenge to the validity of an entire contract (as opposed to just the arbitration clause) must be considered by whom?

Question 10

How many court systems are there in the United States, including the federal system and systems for each state and the District of Columbia?

Question 11

What type of jurisdiction gives a court power over an individual or company?

Question 12

A state court can exercise jurisdiction over an out-of-state defendant based on activities that took place within the state under the authority of what type of statute?

Question 13

Probate courts and bankruptcy courts are examples of courts with what kind of jurisdiction?

Question 14

When both federal and state courts have the power to hear a case, what type of jurisdiction exists?

Question 15

What does a court's venue determine?

Question 16

In a mediation process, what is the primary role of the neutral third party?

Question 17

Which form of ADR involves a neutral third party hearing a dispute and imposing a resolution on the parties, which is often legally binding?

Question 18

The issue of whether a particular matter must be resolved through arbitration is known as what?

Question 19

About what percentage of states have intermediate appellate courts?

Question 20

The process of resolving a dispute through the court system is known by what term?

Question 21

According to the text, the U.S. federal court system is basically a three-tiered model consisting of which three components?

Question 22

In what circumstances do federal courts have exclusive jurisdiction?

Question 23

What is a primary advantage of Alternative Dispute Resolution (ADR) over traditional litigation?

Question 24

In the context of state courts, what are small claims courts?

Question 25

Clauses in international contracts that designate the country where any dispute will be litigated are known as what?

Question 26

What is the primary function of an appellate court?

Question 27

In the case of Mastondrea v. Occidental Hotels Management S.A., on what basis did the New Jersey court sustain the exercise of personal jurisdiction over the Mexican hotel?

Question 28

In the context of the 'sliding-scale' standard for jurisdiction, an Internet communication is typically considered active if it is...

Question 29

In the context of standing to sue, a controversy that is real and substantial, as opposed to hypothetical or academic, is known as a what?

Question 30

How many U.S. courts of appeals, also known as U.S. circuit courts of appeals, are there in the federal court system?

Question 31

What is the primary difference between a question of fact and a question of law?

Question 32

Under what circumstance will an appellate court typically tamper with a trial court's finding of fact?

Question 33

What does a denial of a writ of certiorari by the U.S. Supreme Court signify?

Question 34

In the 'Insight into Ethics' feature, what two developments are cited as major contributors to the 'vanishing trial' phenomenon in civil courts?

Question 35

The Court of Appeals for the Thirteenth Circuit, known as the Federal Circuit, has what kind of jurisdiction?

Question 36

When a corporation is a party in a lawsuit, for purposes of diversity jurisdiction, of which state is it considered a citizen?

Question 37

What type of ADR involves parties presenting their arguments to a jury whose verdict is not binding but serves as a guide for negotiations?

Question 38

The United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards assists in the enforcement of what?

Question 39

When a court has jurisdiction over property located within its boundaries, it is known as what type of jurisdiction?

Question 40

What is the major provider of ADR services in the United States, founded in 1926?

Question 41

In a trial court of limited jurisdiction such as a small claims court in some states, what is a key feature of the proceedings?

Question 42

In the case of Morrison v. Circuit City Stores, Inc., the U.S. Court of Appeals for the Sixth Circuit considered whether what type of provision in an arbitration agreement was enforceable?

Question 43

In the 'Insight into Ethics' feature, what is identified as an ethical concern with private arbitrators in the context of repeat business?

Question 44

In New York, what is the name for the state's highest court?

Question 45

In what two countries do territorial courts serve as both federal and state courts?

Question 47

According to the chapter, approximately what percentage of civil lawsuits are settled before trial using some form of ADR?

Question 48

What does a federal question arise from?

Question 49

Which of the following is an example of a court of general jurisdiction?

Question 50

What is an arbitrator's decision called?