Chateau des Charmes Wines bought special corks for its wines from Sabate USA, a wholly owned subsidiary

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Chateau des Charmes Wines bought special corks for its wines from Sabate USA, a wholly owned subsidiary of Sabate France. The corks were not supposed to cause wines to be spoiled by “cork taint.” The agreement was made over the phone, the parties agreeing on quantity, price, shipping, and payment terms. Later, Chateau placed a second phone order on the same terms. More than $500 was involved. The corks were sent in 11 shipments. An invoice preceded, accompanied, or followed each shipment. On the face of each invoice, in French, was a forum selection clause designating the Court of Commerce of the City Perpignan as the forum for disputes. Chateau used Sabate’s corks but the wines developed cork taint. Chateau sued Sabate in California. Sabate argued that the case could not be tried there. Is it correct? Explain why.

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Law for Business

ISBN: 978-1259722325

13th edition

Authors: A. James Barnes, Terry M. Dworkin, Eric L. Richards

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