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Driver, a resident of State A, rented a delivery van from Rental Co. in State A for a two-day trip to State B. Rental Co. is incorporated and headquartered in State A. Before renting the van, Rental Co.'s mechanics in State A negligently failed to replace worn brake pads. While Driver was crossing State C on the way to State B, the brakes failed and Driver struck Pedestrian, a resident of State B who was walking near a roadside motel in State C.
Pedestrian sued Rental Co. in State A court. State A has a statute limiting noneconomic damages against local vehicle-rental companies to $250,000 to keep rental costs low for State A businesses and consumers. State B allows full recovery and states a policy of fully compensating its domiciliaries for personal injury. State C allows full recovery and has strict brake-maintenance regulations designed to promote safe driving on State C roads.
Analyze which state's law should govern the damages limitation issue under the traditional tort approach, the Restatement Second most-significant-relationship approach, and governmental interest analysis.