Sabaté France (defendant) manufactures special wine corks that it claims will not cause “cork taint” spoilage. It sells the corks through a wholly owned California subsidiary, Sabaté USA, Inc. (defendant). Canadian winery Chateau des Charmes Wines, Ltd. (plaintiff) agreed by phone to purchase a number of corks and also to specific payment and shipping terms. Sabaté France’s invoices specified that any dispute arising under the contract is to be brought before a court in France. Shortly after delivery, Chateau des Charmes noticed that its wine was tainted by cork flavors. Chateau des Charmes filed suit in federal district court in California, alleging claims for, among others, breach of contract, strict liability, and false advertising. Sabaté France and Sabaté USA filed a motion to dismiss based on the forum selection clauses printed in the invoices. Holding that the clauses were valid and enforceable, the district court dismissed the action. Chateau des Charmes appealed.