EMAIL Potential litigation issues We have had a number of problems arising out of the recent activities of the members of our group. Please could you give us some advice on any claims or liabilities which any group companies may have. A. Trade fair One of our subsidiary companies is Delphix Diagnostics Ltd {"Delphix"). The regional manager of Delphix recently attended a trade fair at which she purchased three autoclave machines from a firm of distributors. The Autoclave Partnership. The deal was negotiated with one of the three partners in that rm, Emilio Farimani (\"Emilio"), who was attending the trade fair. Emilio gave the regional manager his Autoclave business card. Delphix were expecting delivery of the machines this week. However. we have just received a letter from The Autoclave Partnership telling us that Emilio had only attended the trade fair with a remit to market the finn's products. not to take orders for them. The rm has indicated that it could only full the order if the price agreed with Emilio was increased by 20%. B. Manufacture of generics of recently expired drug patent The patent for the drug, trilmenicill has recently expired. Delphix tendered for the generic manufacture of the drug when Pharmadist LLP {"Pharmadist') was looking for a manufacturer for a generic product they could brand and sell through pharmacies. Pharmadist circulated some prot forecasts with the tender documentation. Delphix queried these with Marjorie Coslake, one of the LLP members. Marjorie said that she had prepared them herself for the LLP. She said that as she had over 20 years' experience in the preparation of prot forecasts for patent-expired drugs, Delphix could take her own word for it that the forecasts were reliable. On the basis of those assurances, Delphix submitted a tender and won the contract. It is now clear that those forecasts had not been properly prepared. and were based on out- of-date market research. Delphix is now tooled up to make trilmenicil, and it will cost more money to pull out than to carry on. But it expects to make a loss overall. It is concerned that Pharmadist may be heading towards administration, as a number of concerns have been expressed about it in the industry press. C. Personal injury claim One of our other subsidiariesl Faung Products Ltd (\"Farlung" , manufactures generic asthma products. It has been making a product called Deepair for a number of years, which has been very successful