USVI Bar Practice Questions - United States Virgin Islands Bar Examination Exam

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A federal court sitting in diversity must decide whether to apply state or federal law to a substantive issue of tort liability. Under the Erie doctrine, what law governs?

A uniform national rule developed by the federal courts of appeals Whichever law produces the more equitable outcome Federal common law fashioned by the court The substantive law of the state in which the federal court sits

Correct Answer:

The substantive law of the state in which the federal court sits

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