Kayu Ltd is a company started in 2008 that manufactures and sells furniture products. In April 2018, the company hired Raymond as marketing manager to promote its products in the region. The company had hitherto only sold in Hong Kong and southern China, but had in 2019 decided to take steps to market the furniture in new markets in Southeast Asia.

In July 2019, Raymond met Forlan, a Frenchman who was starting a boutique hotel in Bali. Raymond told him that Kayu furniture "is regionally recognized for its stylish lines as originally designed by our Jimmy Chu". Forlan replied, "Ah, M'sieur Chu, the famous international designer! Very good." Kayu had a young designer called James Chu (usually referred to as 'Jimmy') who designs all its furniture. He does not have an international reputation. Raymond smiled, and added, "Moreover, our products, which are very exclusive and immaculately hand finished and varnished, won several awards. We have very strong branding in the region. By the way, we are already in the process of supplying furniture to your rival Platinus' new hotel in Guangzhou." The next day, Forlan spoke informally with SCMP's interior design reporter and found out that Kayu had indeed won one local award. He also heard from Ms Samuel, his partner, who told him Kayu was relatively new in the region though it is well known in southern China. Unknown to Raymond and Forlan, their competitor, Platinus, had already ordered its furniture for their hotel in March 2019 from another supplier even though they had received and considered a quotation from Kayu.

In August, Forlan placed an order for 25 lounge sets and dining sets. Upon their delivery in September, he discovered that the sets were thinly disguised copies of furniture readily available in other furniture shops and poorly made.

Advise Forlan.