How Is a Forum-Selection Clause Related to Questions of Personal

question 20

Multiple Choice

How is a forum-selection clause related to questions of personal jurisdiction?

• A) The two are not related at all.
• B) The forum-selection clause will be valid only if it names a jurisdiction that would have personal jurisdiction over the parties to the contract even in the absence of the forum-selection clause.
• C) Forum-selection clauses are attempts by some parties to contracts to take away jurisdictional rights from the other party,and are generally found to be invalid.
• D) A forum-selection clause will specify which courts have personal jurisdiction over the parties to the contract,and for disputes related to the particular contract,the forum-selection clause will control over the general jurisdiction rules.
• E) Forum-selection clauses are usually enacted by one party to select a jurisdiction most favorable to that party,thus they are effective only if,after a lawsuit has been filed,the defendant in the action agrees to jurisdiction as provided in the clause.

---

Definitions:

Ownership

The legal right or state of having control over something, such as property or a business.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically for the financing of accounts receivable and inventories.

Short-Term Financing

Funding obtained for a period of one year or less, used to cover immediate needs such as working capital requirements.

Minimum Denomination

The smallest unit of value in which a security or financial instrument can be issued or traded.