tedtan
Well-Known Member
Yes, pretty much. Some states are far more business friendly (Delaware, Nevada) than others (California, Connecticut), so businesses tend to favor those for the choice of law provision in a contract*.So just pick a state you’ve never even visited, if you happen to like the laws that state has regarding the kind of contract you’re doing?
And it’s fairly common, even in international agreements. I’ve negotiated contract with clients in Germany that used the laws of England and Wales, clients in England that used Swiss laws, clients in Australia that used English law, etc. This is often done as a means of establishing a neutral “third party” choice of law rather than something favoring one party over the other.
* When it comes to labor laws, though, the labor laws of the state the employee is working in would still come into play, so there could be conflicts between the state labor laws and the choice of law used in the contract which can lead to some interesting lawsuit simply to determine which law applies.
There are lawsuits against the FTC over this (I know of at least two separate suits in Texas) and the judge has ordered an injunction preventing the FTC from enforcing the non-compete law until a final ruling, which is expected this month. But the court’s initial injunction contains wording to the effect that the FTC has overstepped its authority in making the non-compete ban, so it is expected that the ban will be overturned nationally. The Texas ruling will likely be appealed all the way to the Supreme Court, and with the current conservative sitting court, I expect the Texas ruling will be upheld, meaning that the ban will probably removed altogether, putting non-compete issues back in the hands of the various states.Most are illegal nowadays as of 4 months ago:
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FTC Announces Rule Banning Noncompetes
Today, the Federal Trade Commission issued a final rule to promote competition by banning noncompetes nationwide, protecting the fundamenwww.ftc.gov