Cars R Us is a manufacturer of car parts looking to expand their business outside of their current state with suppliers in other states. As part of their contracts with new parts dealers, their attorney would insert a ________ clause that will specify the law that will be applied to resolve any disputes under the contract.

A) breach of contract
B) venue
C) choice-of-law
D) change-of-law
E) court choice

Choice-of-Law Clause

A provision in a contract that specifies which jurisdiction's laws will be applied to interpret the contract.

Breach of Contract

The failure of one party to fulfill the terms agreed upon in a contract, justifying legal action for enforcement or damages by the other party.

Contract Disputes

Disagreements that arise over the terms, conditions, or performance of a legally binding agreement between parties.