What must federal courts apply when hearing state law claims under diversity jurisdiction?

The state's law.

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  1. Only federal statutes
  2. International treaties
  3. The state's law ✔

Why: Federal trial courts must apply the statutory and decisional law of the state where they sit.

Huh, didn't know that: Federal trial courts must apply the statutory and decisional law of the state where they sit.

The dad joke
In diversity cases, federal courts borrow the state's rulebook.
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References

Answer: The state's law. Federal trial courts must apply the statutory and decisional law of the state where they sit.

  1. Law of the United States en.wikipedia.org/wiki/Law_of_the_United_States
    federal trial courts must apply the statutory and decisional law of the state in which they sit
    Checked 2026-11-07.

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