Contemporary Business and Online Commerce Law 7th Edition by Henry R Cheeseman

Exercise 6

Public Policy Mr. and Mrs. Shute, residents of the State of Washington, purchased passage for a seven-day cruise on the Tropicale, a cruise ship operated by Carnival Cruise Lines. Inc. (Carnival). They paid the fare to the travel agent, who forwarded the payment to Carnival’s headquarters in Miami, Florida. Carnival prepared the tickets and sent them to the Shutes. Each ticket consisted of five pages, including contract terms. The ticket contained a forum-selection clause that designated the State of Florida as the forum for any lawsuits arising under or in connection with the ticket and cruise. The Shutes boarded the Tropicale in Los Angeles, which set sail for Puerto Vallarta, Mexico. While the ship was on its return voyage and in international waters off the coast of Mexico, Mrs. Shute was injured when she slipped on a deck mat during a guided tour of the ship’s galley. Upon return to the State of Washington, she filed a negligence lawsuit against Carnival in U.S. district court in Washington, seeking damages. Carnival defended, arguing that the lawsuit could only be brought in a court located in the State of Florida pursuant to the forum-selection clause contained in its ticket.

What is a forum-selection clause? What public purpose is served by permitting forum-selection clauses in contracts? Is the forum-selection clause in this case enforceable? Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585, 111 S.Ct. 1522, 113 L.Ed.2d 622, Web 1991 U.S. Lexis 2221 (Supreme Court of the United States)