Identify the Correct Statement About the Choice-Of-Law and the Choice-Of-Forum

question 11

Multiple Choice

Identify the correct statement about the choice-of-law and the choice-of-forum clauses.

• A) Even if the contract says that a particular state's law will be applied if there is a dispute, the judge has discretion in whether to apply that state's law as a rule of decision in the case or not.
• B) Ordinarily, a choice-of-law clause is independent of a choice-of-forum clause.
• C) In a choice-of-forum clause, the parties in the contract specify which court they will go to in the event of a dispute arising under the terms of contract.
• D) In a choice-of-forum clause, the court applies a particular state's law as a rule, as mentioned in the contract between two parties to a case.
• E) If the plaintiff fails to answer the complaint, the court can enter a default judgment, awarding the defendant what he seeks.

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Definitions:

Foreign Market

This refers to the markets outside the domestic boundaries where a company can sell its products or services, often requiring adaptation to local needs and regulations.

Franchisor

An entity or individual that grants another party the right to conduct business under their trademark or trade name in exchange for a franchisee fee and a percentage of franchise operation sales.

Franchisee

An individual or company that is granted the license to do business under the franchisor's trademark, brand, and business model.

Capital Costs

Expenses incurred to create, purchase, or improve fixed assets such as buildings, machinery, and equipment, considered long-term investments.