Zapata entered into a contract with a German corporation to use one of Zapatas oil-drilling rigs off

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Zapata entered into a contract with a German corporation to use one of Zapata’s oil-drilling rigs off the coast of Italy. The contract stated, “Any dispute arising must be treated before the London Court of Justice.” A severe storm damaged the oil rig as it was being towed through the Gulf of Mexico. Zapata filed suit in federal district court. Does the U.S. court have jurisdiction to decide the dispute? What is the purpose behind a choiceof-forum clause, and should the clause be enforced?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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The Legal Environment of Business A Critical Thinking Approach

ISBN: 978-0132664844

6th Edition

Authors: Nancy K Kubasek, Bartley A Brennan, M Neil Browne

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