conflict of laws
Definition
Conflict of laws refers to the legal puzzle that arises when a dispute involves two or more states or countries, each with different rules that could apply to the situation. Courts use special rules to figure out which location's laws should govern the case, and the answer can significantly change the outcome for everyone involved.
Example
If you run an online business in Texas and sell a product to a customer in California who gets injured, both states have different liability laws, and a court would need to decide which state's rules actually apply to the lawsuit.
Watch Out
The state whose laws govern your contract or dispute can dramatically affect your rights, so including a 'choice of law' clause in your contracts that specifies which state's laws apply is one of the smartest moves you can make upfront.
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.