Liability

Governing Law and Disputes

Which state's law applies and where disputes are handled.

Why it matters

If a dispute happens, this clause decides which state’s law applies and where you would have to go. A brand on the other side of the country can make a small claim too expensive to pursue.

How it usually reads

This Agreement is governed by the laws of the State of [GOVERNING_STATE].

What fair looks like

  • A state you can live with, ideally yours, or a neutral one.
  • Small claims court allowed for small amounts.
  • A short attempt to settle before going to court or arbitration.

Red flags

  • exclusive jurisdiction of the courts of

    You may have to sue or defend in a distant state.