By Christopher Basile

I.       Introduction

Choice-of-law provisions may bypass state statutes implemented to protect the general public and they may also reduce the effectiveness of the state’s legislative intent.  A choice-of-law clause is a provision in a contract where the parties choose a state’s law to govern any conflicts or disputes that may arise between the parties.[1]  Companies may implement choice-of-law clauses in their contracts to avoid statutes or regulations of various states.[2]  Many companies use choice-of-law provisions to intentionally avoid New York laws and regulations.  Companies attempt to avoid a series of criminal usury statutes in New York.  Usury is defined as an illegal rate of interest that may be charged on a financial instrument.[3]  In conclusion, many companies intentionally try to avoid New York’s criminal usury statutes through the use of choice-of-law provisions.

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