Federal courts exercising diversity jurisdiction apply state substantive law and federal procedural law, as established by the Erie doctrine. Statutes of limitations are considered substantive for Erie purposes because they significantly affect the outcome of the case and are tied to state-defined policies governing the claims at issue. Procedural rules, such as how a statute of limitations is tolled or structured under federal rules, remain governed by federal law. The other answers incorrectly address the balance of state and federal law or misstate substantive/procedural distinctions.
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Multistate Bar Examination
Civil Procedure
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