Fact Pattern 2-1 Yoshi, a Japanese Citizen Working in Atlanta for His Tokyo

question 59

Multiple Choice

Fact Pattern 2-1
Yoshi, a Japanese citizen working in Atlanta for his Tokyo firm, decided to rent an airplane and fly himself to the Annual Catfish and Zydeco festival in Thibodaux, Louisiana. He rented a small plane to fly there. Over Alabama, thunderstorms formed. Because Yoshi was not trained to fly by instruments, he decided to land at the next airport.
As he searched for a runway, Yoshi heard a loud clank followed by silence as the engine died. He tried to land in a field but crashed. While recovering in a rehabilitation center in California, Yoshi filed suit there against the Atlanta Airport and the owners of the airplane, alleging that they were negligent in their maintenance.
-Refer to Fact Pattern 2-1. Assume the defendants have the case removed from the state court in California to a federal court. Under Erie v. Tompkins what law will the federal court be most likely to apply in deciding the dispute?

• A) the state law of Georgia where Yoshi contracted to rent the airplane
• B) the federal common law
• C) the civil law of Japan because Yoshi is a Japanese native
• D) the state law of Louisiana, because Yoshi was going there
• E) none of the other choices are correct

---

Definitions:

Interperiod Tax Allocation

The process of apportioning income tax expenses between different accounting periods to match tax expense with the revenue that generated the tax.

Intraperiod Tax Allocation

The process of allocating income taxes within a single financial reporting period among different items that directly affect reported net income or loss.

Income Tax Allocation

The process of assigning income tax expense to various accounting periods because of temporary differences between accounting income and taxable income.

Tax Laws

Regulations imposed by governmental agencies in relation to the calculation and payment of taxes by individuals and organizations.