Background Facts

Spice Slice Imports Inc. (hereinafter referred to as the "SSI, Inc.") is a newly formed Canadian corporation with large investors who believe the international cuisine industry is posed for a significant increase in the coming years. SSI, Inc. is focusing on spices and kitchen accessories. Some of those accessory products include various pans, griddles, mortar & pestles, and knives. SSI, Inc. has been working to establish direct relationships with large spice producers in India. Furthermore, SSI, Inc. has found some companies in China that can produce some of the specialty equipment. They have reached a point where they would like to start purchasing the products to have shipped to their warehouse in Ontario for distribution to their retail clients. As part of this assignment, you are to create the name of the companies that supply the spices from India and the company that makes the accessories from China (do not use real companies).

Question 1

Prior to purchasing the products from the suppliers, SSI, Inc.'s lawyers have advised that contracts should be entered into with the spice producers and the manufacturer of the accessory products. Please identify and discuss 5 terms that should be included in the contract. Within those 5 terms, make sure one of those terms addresses the transfer of ownership of the spices and the accessory products.

Question 2

SSI, Inc. is exploring different means of transportation for the spices and accessory products from their suppliers. Please discuss various considerations for the transportation of the product by ocean freight, land transportation, and air freight shipments. More specifically, discuss common legal risks associated with ocean, land, and air freight shipments. Furthermore, address the types of damage and losses that could take place. Please discuss considerations for the legal responsibility of various parties including carrier, freight forwarder, shipper/exporter, and importer that may be involved in the process for the shipment of the spices and accessory products from China and India. As part of this discussion, make sure you address limitations of liability for certain parties that were addressed in class.

Question 3

Please explain why SSI, Inc. will want to purchase insurance for the spices and accessory products prior to any shipments taking place. Discuss what types of insurance policies SSI, Inc. will want to consider purchasing and the reasons why & why they may not want to purchase that specific policy

Question 4

For this part, you should assume that some of the cooking accessory products are dangerous goods. In addition, keep in mind that spices are a food product. What legislation would apply while in Canada. Please discuss the responsibilities and liabilities under any applicable legislation for various parties that would address these products being imported into Canada.