Question

Velvety Pancake House, Inc., a U.S. firm, and Wallaby Waffles, Ltd., an Australian firm, enter into a contract that has a forum-selection of the United States. Litigation between Velvety and Wallaby over a dispute involving this contract may occur in:_____________

Answer 1

Litigation between Velvety and Wallaby over a dispute involving this contract may occur in Australia, the United States, or both.

Explanation:

A dispute is something that arises between two parties of different interests. These disputes are handled by law using "choice of law" or "forum or venue selection". In "Choice of Law" the disputes will be handled by the provision  law of a particular jurisdiction without the consideration of where the dispute was adjudicated.

In "forum or venue selection"  a specific court or state will be set and the adjudication will be proceeded there. In the example given, the legal actions of the companies, the Velvety and Wallaby has a contract of forum-selection. Hence it can occur in Australia, the United States, or both..