BUSINESS CONTRACTS/CHOICE OF LAW AND FORUM.

View NCGA Bill Details2017-2018 Session
Senate Bill 621 (Public) Filed Tuesday, April 4, 2017
AN ACT TO VALIDATE CHOICE OF NORTH CAROLINA LAW AND FORUM PROVISIONS IN BUSINESS CONTRACTS.
Intro. by Barringer.

Status: Ch. SL 2017-123 (Senate Action) (Jul 18 2017)

Bill History:

S 621/S.L. 2017-123

Bill Summaries:

  • Summary date: Jul 18 2017 - More information

    AN ACT TO VALIDATE CHOICE OF NORTH CAROLINA LAW AND FORUM PROVISIONS IN BUSINESS CONTRACTS. Enacted July 18, 2017. Effective July 18, 2017, and applies to business contracts entered into before, on, or after that date. 


  • Summary date: Apr 24 2017 - More information

    Senate committee substitute makes the following changes to the 1st edition.

    Amends proposed GS 1G-4 (Choice of North Carolina Forum in business contracts). Modifies subsection (d) to expand the exceptions to the parties' choice of forum in an action brought in a county permitted by subsection (c) (choice of venue provisions), providing that a court can change the place of trial to another county in the state pursuant to GS 1-83(2) (when witness convenience and justice is promoted), GS 1-83(3) (when the judge has at any time been interested as party or counsel), or GS 1-84 (removal for fair trial is necessary) only (previously, could be moved only pursuant to GS 1-83(2)).


  • Summary date: Apr 4 2017 - More information

    Enacts new GS Chapter 1G, the North Carolina Choice of Law and Forum in Business Contracts Act.

    Defines terms as they are used in the Chapter, including business contract (a contract or undertaking entered into primarily for business or commercial purposes, not including consumer contracts or employment contracts).

    Provides that the parties to a business contract may agree in the contract that North Carolina law shall govern their rights and duties, whether or not the parties, the contract, or the transaction bears a reasonable relation to the State, or a provision of the contract is contrary to the fundamental policy of the jurisdiction whose law would apply in the absence of the parties' choice of North Carolina law, except to the extent GS 25-1-301(c) conflicts, at which point that statute controls.

    Authorizes parties to business contracts to bring an action in this State's courts for a dispute arising from the business contract if the contract contains a provision designating North Carolina law as the law governing the contract, and a provision designating North Carolina's courts as the venue for disputes under the contract. Provides that agreeing to such a contract makes a party consent to personal jurisdiction of this State's courts. Authorizes contracts to designate one or more counties as the proper venue for a dispute arising from the contract, and in the absence of such a clause parties may bring an action in any county in this State. Authorizes Courts to change the place of trial to another county in this state.

    Does not affect choice of law or forum provisions in non-business contracts, confer subject matter jurisdiction, or affect the designation of an action as a mandatory complex business case.

    Amends GS 25-1-301 to make conforming changes.

    Applies to business contracts entered into before, on, or after the date this act becomes law.


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