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RE: question 1

Q: What was the rule of decision as to which a conflict existed?

A: In Swift v. Tyson, it seeems that the Court held that federal courts
in diversity of citizenship cases did not have to apply the judge-made
law declared by the court of the state in which they sat, but could
exercise their own independent judgment concerning what the common law
of the State is or should be.  Is there any correlation here regarding
the "Supremacy of Federal Law" that when there are conflicting laws
between state and federal laws, federal laws are the supreme law of the
land and prevail over conflicitng state laws pursuant to the supremacy
clause of the Constitution?

T. Tiu