Enforceability of Choice of Law Clauses

If the law chosen by the parties to a consumer lease is that of a jurisdiction other than a jurisdiction in which the lessee resides at the time the lease agreement becomes enforceable or within 30 days thereafter or in which the goods are to be used, the choice is not enforceable. MCLA § 440.2806

Choices of law provisions are generally enforceable in Michigan. Michigan has adopted the Restatement approach, which states that parties are free to specify choice of law provisions in their contracts "if the issue is one the parties could have resolved by an express contractual provision." Chrysler Corp v Skyline Industrial Services, Inc, 448 Mich. 113, 126 (1995) (citing §187(1) Restatement of Conflict of Laws 2d). However, the Michigan Supreme Court has also acknowledged two exceptions to the general rule. Choice of law provisions are enforceable unless: (a) the chosen state has no substantial relationship to the parties or the transaction and there is no other reasonable basis for the parties choice, or (b) application of the law of the chosen state would be contrary to a fundamental policy of a state which has a materially greater interest than the chosen state in the determination of the particular issue and which, under the rule of § 188, would be the state of the applicable law in the absence of an effective choice of law by the parties. §187(2) Restatement of Conflict of Laws 2d.