Greenleaf Co Ltd $($Greenleaf$)$ is involved in the business of growing cabbage. Graham, the Chief Executive Officer of Greenleaf, has been approached by Gina, who breeds and exports silkworms from Australia. Gina had observed that Greenleaf regularly disposes of significant quantities of cabbage leaves removed from the outside of heads of cabbage. These outer leaves are often damaged and are removed to make the cabbage look more attractive at the supermarket. Gina had noted the crisp, juicy quality of Greenleaf$$s outer cabbage leaves and has decided they would be perfect for her silkworms to live on during their long transportation to export destinations.

A small insect which loves to eat cabbage leaves has managed to avoid quarantine and sneak into Australia. Fortunately, the insect can be easily contained by spraying the outer leaves of cabbages with IXL, a chemical compound. Gina knew about the use of IXL and specifically asked Graham about it$.$ Graham told her the cabbage leaves would be suitable for use in packaging the silkworms. He also told her that, although there would be traces of the IXL on the leaves, the cabbage leaves would not be contaminated so as to be unsuitable for this purpose. He did not mention that he was aware of research published by the University of Wollongong which indicated that the chemical may have adverse effects on humans in certain circumstances. Last week, because of concerns about the safety of persons who would eventually wear the silk produced by silkworms, the relevant authorities prohibited the use of cabbage treated with the chemical for the export of silkworms. Gina, who got the cabbage leaves from Graham, now cannot get the cabbage leaves needed for packaging her silkworms for export and has had to close her business down.

Advise Gina of her legal position in these circumstances. Support your answer with case law and legislation where applicable.