MI Bar Practice Questions - Michigan Bar Examination Exam

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A plaintiff in federal court in Michigan sues on a state-law claim under diversity jurisdiction. The state's substantive tort law conflicts with a federal judge-made rule. Under the Erie doctrine, which law governs the substantive issue?

The substantive law of the forum state (Michigan), because Erie requires federal courts sitting in diversity to apply state substantive law Federal common law, because the case is in federal court Whichever law the federal judge prefers The law of the state where the plaintiff resides regardless of the forum

Correct Answer:

The substantive law of the forum state (Michigan), because Erie requires federal courts sitting in diversity to apply state substantive law

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