applicable federal, state, and local laws
Definition
This phrase refers to all the rules and regulations that apply to your specific business based on what you do and where you do it. Federal laws come from the national government and apply everywhere in the country, state laws vary by state, and local laws come from your city or county government. When a contract uses this phrase, it means both parties agree to follow every relevant law across all three levels of government.
Example
If you run a restaurant in Austin, Texas, you would need to follow federal food safety regulations, Texas health and labor codes, and Austin city ordinances about permits and zoning all at the same time.
Watch Out
This phrase can quietly make you responsible for following obscure laws you may not even know exist, so consulting a local attorney to understand exactly which laws apply to your business is always worth the investment.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.