NJ Bar Practice Questions - New Jersey Bar Examination Exam

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A federal district court sitting in diversity in New Jersey must decide whether to apply a New Jersey statute of limitations or a conflicting federal common-law limitations period. Which rule governs the court's choice?

The court applies federal common law because it sits in federal court The court applies the New Jersey statute of limitations because statutes of limitations are substantive under Erie/Guaranty Trust The court may choose whichever period is longer to favor the plaintiff The court applies the Federal Rules of Civil Procedure limitations default

Correct Answer:

The court applies the New Jersey statute of limitations because statutes of limitations are substantive under Erie/Guaranty Trust

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