Every business has an equal right to develop a unique product or service to compete in that market. Congress protected that right of each business to do just that, consistent with due process of the 5th and 14th Amendments of the constitution as this law provides remedies to those stakeholders of a business whose rights been violated. There was no general federal common law under the doctrine of Erie Railroad Co. v. Tompkins in 1938. Federal courts can create federal common law as a form of case law. These laws can be linked to the particular federal constitutional provision, statute or regulation.
Which later included as a part of the constitution. A federal court does not have that kind of freedom like state courts to simply make up law. A state court can make up a law in the absence of constitutional or statutory provisions to replace a common law. Only a few cases like maritime law, a federal court can make up law without the knowledge of constitutional or statutory provision and directly express and authorized the continuation of English common law in the federal level.
Other factors of Erie doctrine is that the federal court cannot command over state law where no federal issue is there. When state law takes to different jurisdiction the federal trial court must apply a decision law and statutory law like they are a state court. This is applicable also when federal court belief that respective state law is an irrational or. Under Erie, there is only one difference of state court and federal court like state courts are free from any federal interpretations of state law.
Also judicial interpretations of federal law from the federal district and intermediate appellate courts having better persuasive value. For state court, they can disobey those interpretations. Though there is only one federal court that can bind all the state court to the interpretation of federal laws as well as the federal constitution and that is United States Supreme Court.
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