Brief of Case-Chateau des Charmes Wines v.Sabate USA

Brief of Case-Chateau des Charmes Wines v.Sabate USA -...

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Brief of Case-Chateau des Charmes Wines v. Sabate USA Facts of case: Plaintiff, the buyer, Chateau Charmes Wines Ltd, is a Canadian company. Defendant, the seller, Sabate USA, Inc, and its parent company, Sabate French, Inc, is a manufacturer of wine corks. The seller claimed that their wine cork won’t cause “cork taint” to spoil wine, so the buyer agreed to buy a certain number of corks and also agreed on specific payment and shipping terms by phone. The buyer called to make orders twice, in total of 1.2 million corks. The invoices were sent with eleven shipments by seller’s parent company, which stated that the choice of forum for dispute settlement was French court in Perpignan. Shortly after delivery, the buyer noticed that their wine was spoiled by cork taint. Therefore, the buyer filed suit in federal district court in California, alleging claims for breach of contract, strict liability, false advertising, and unfair competition. The seller filed a motion to dismiss based on the forum selection clauses. The district court was in
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