The agreement specifies California law as the governing law and designates federal or state courts in Santa Barbara, California as the exclusive venue for any disputes not resolved through arbitration.
This analysis describes what Impact's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision establishes California law and Santa Barbara courts as the governing legal framework and exclusive litigation venue, which may impose practical litigation burdens on non-California users and may interact with mandatory local jurisdiction rights for EU and UK users.
Interpretive note: The enforceability of the California exclusive venue clause against EU and UK users may be limited by mandatory local jurisdiction rights under applicable regional law.
Under this clause, any disputes not subject to arbitration must be litigated in California courts under California law. Users located outside California, particularly in the EU or UK, may have non-waivable statutory rights to litigate in their home jurisdiction that interact with this provision.
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"These Terms of Use shall be governed by and construed in accordance with the laws of the State of California, without giving effect to any choice of law or conflict of law provisions. Any legal action or proceeding arising under these Terms of Use that is not subject to the arbitration provision shall be brought exclusively in the federal or state courts located in Santa Barbara, California.— Excerpt from Impact's Impact Terms and Conditions
(1) REGULATORY LANDSCAPE: Choice of law and exclusive jurisdiction clauses are generally enforceable in US B2B commercial agreements. However, EU users retain rights under Brussels I Regulation (recast) and Rome I Regulation that may require disputes to be heard in the user's home jurisdiction and governed by their home country's mandatory consumer protection law, notwithstanding the contractual choice of California law. UK users have similar protections under retained EU law. (2) GOVERNANCE EXPOSURE: Low for US-based commercial users. Medium for EU and UK-based users where statutory jurisdiction rights may conflict with the exclusive venue clause. (3) JURISDICTION FLAGS: EU and UK business users and any users qualifying as consumers in their jurisdiction may have non-waivable rights to litigate locally. California courts applying the forum selection clause may nonetheless decline jurisdiction in favor of a more appropriate forum in certain circumstances. (4) CONTRACT AND VENDOR IMPLICATIONS: EU and UK entities contracting with impact.com should assess whether the California governing law and venue clause is acceptable or whether a data processing agreement with a separate governing law provision is required. (5) COMPLIANCE CONSIDERATIONS: Legal teams in non-US jurisdictions should assess whether the California law choice adequately addresses their local regulatory obligations, particularly under GDPR, and whether a separate data processing agreement with GDPR-compliant dispute resolution terms is in place.
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This provision establishes California law and Santa Barbara courts as the governing legal framework and exclusive litigation venue, which may impose practical litigation burdens on non-California users and may interact with mandatory local jurisdiction rights for EU and UK users.
Under this clause, any disputes not subject to arbitration must be litigated in California courts under California law. Users located outside California, particularly in the EU or UK, may have non-waivable statutory rights to litigate in their home jurisdiction that interact with this provision.
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