Not necessarily. It just means that whatever court does hear the case will apply New York law to it, because those are the rules the contracting parties have ag

Not necessarily. It just means that whatever court does hear the case will apply New York law to it, because those are the rules the contracting parties have agreed to use, whether that court be in New York, California, or Scotland. Having the case actually heard in NY simplifies the application of NY law, but it's probably more for convenience: the parties know that if they have to litigate, they don't need to find new attorney's at some random location.