When there is more than one state, or more than one jurisdiction (state court, federal court) with a significant relationship to the parties and circumstances involved in a lawsuit or dispute, the question may arise as to which state or jurisdiction’s laws will govern the lawsuit or dispute. The body of law that determines what law governs a dispute is called conflict of laws and consists of legal principles courts use to determine which state or jurisdiction’s law applies—unless the parties to a dispute have agreed (usually in a contract) on what law will apply.

In North Carolina, as in other states, the issue of which jurisdiction's laws apply to a legal dispute is governed by the body of law known as 'conflict of laws' or 'choice of law.' When a case involves parties or circumstances connected to more than one state or jurisdiction, North Carolina courts will use conflict of laws principles to decide which state's laws should apply. These principles consider various factors, such as the location where a contract was signed or where an injury occurred, the residency of the parties involved, and the nature of the transaction or event that gave rise to the lawsuit. Additionally, if the parties have a valid contract that includes a choice of law provision, North Carolina courts will generally honor such agreements, assuming they are not contrary to public policy. In cases involving federal law or where jurisdiction is based on federal question or diversity, federal courts may apply a different set of conflict of laws rules, which can include federal statutes, the U.S. Constitution, or federal common law.