A more thorough explanation:

The most-significant-contacts test is a doctrine used in conflict of laws to determine which state law should apply to a dispute. The court considers which state has the most substantial connection to the occurrence and the parties involved.

For example, in a tort case, the court will consider where the injury occurred, where the conduct that caused the injury occurred, the residence, place of business, or place of incorporation of the parties, and the place where the relationship between the parties, if any, is centered. In a case involving a contract, the court will consider where the contract was made, where the contract was negotiated, where the contract was to be performed, and the domicile, place of business, or place of incorporation of the parties.

For instance, if a person from California gets into a car accident in Nevada with a driver from Arizona, the court will consider where the accident occurred, where the drivers reside, and where the car was registered to determine which state's law should apply.

The most-significant-contacts test helps ensure that the state with the most significant relationship to the dispute is the one that applies its laws, which promotes fairness and consistency in legal outcomes.