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
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exclusive jurisdiction of the courts of
You may have to sue or defend in a distant state.