Fun Unlimited Inc. was a manufacturer of children's toys and games. For the Christmas season it produced and offered for sale through its retail distribution channels a toy clown doll. The doll was made of fabric and wore a colourful clown suit with several large, bright red buttons down the front. Mr. and Mrs. Johnson purchased one of the clowns as a Christmas gift for their two year old granddaughter. The child was delighted with the toy and played with it for many hours. About a week after Christmas the child's mother noticed two of the buttons missing from the front of the clown suit. A thorough search of the house did not turn up the buttons. Later that day as the mother supervised the child's play, she observed the little girl pulling a button off the clown suit and placing it in her mouth. Before she could reach the child to retrieve it, the button had been swallowed. In the several days which followed, the child had little appetite and showed considerable abdominal distension. When the child's mother took her to a doctor, X-ray's were performed which showed the buttons were lodged in her upper intestinal tract, blocking her entire digestive system. Immediate surgery was required to remove the buttons. The child required considerable post-operative care at home resulting in substantial time lost from work for both parents.

(a)Discuss the nature of the legal action which may be taken in this case, including the remedies and damages sought. Also discuss any defences which may be raised and render a Decision.

(b)If Fun Unlimited had discovered the ease with which the buttons could be removed by children and had ordered a recall of the product, how would this affect your answer to (a), if at all?