Crucial Exams

Multistate Bar Examination Practice Question

A software company based in Arizona files a breach of contract claim in federal court against a hardware manufacturer based in California. The case is heard under diversity jurisdiction. The contract includes a clause providing for six years to file any claims arising under it. However, under the state law where the contract was formed, the statute of limitations for breach of contract claims is four years. Should the federal court apply the six-year contractual period or the four-year state statute of limitations?

  • The federal court should apply the state four-year statute of limitations because statutes of limitations are considered substantive law.

  • The federal court should apply the six-year contractual provision because federal common law governs cases in federal courts.

  • The federal court should apply federal law to determine whether the six-year contractual period is enforceable.

  • The federal court should apply the six-year contractual provision because contracts supersede state law in diversity cases.

Multistate Bar Examination
Civil Procedure
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