La Terre and La Pomme are apple growers in the town of Alexandria, Ontario, not far from the Quebec - Ontario border.

Knowing that there would be a very abundant crop this year, and knowing that it would be difficult to find workers to collect all of the apples, they decided to try something different. They were going to manufacture apple cider, as opposed to selling the apples themselves to retailers.

Not having the required equipment to make cider, they looked through the catalogue they had recently received, in the mail, from Old MacDonald Farm Supply Inc. (hereafter "Old Mac"). They had received the catalogue because they frequently bought articles from Old Mac, whose place of business was in Rougemont, Quebec In the catalogue, they found two apple presses that interested them. - the basic model, called the "Squeeze" selling for $10,000.00, and the deluxe model, the "Mojito", selling for $20,000.00.

Being a new, unknown venture, wanting to keep costs down, and believing that the "Squeeze" could do what they wanted, they sent a fax to Old Mac to order one unit. Karloff, the super salesman at Old Mac, knowing how committed they were to this new venture saw an opportunity to try to convince them to buy the more expensive press, namely the "Mojito". Moreover, Karloff told them that if they did not buy the "Mojito"* Karloff would inform the major supermarkets and grocery chains not to buy their cider as it was not good

La Terre and La Pomme reconsidered, and one day later, sent a fax to Old Mac to purchase a "Mojito"

Because, at $20.000.00, the press required a major outlay of money, La Terre and La Pomme did not pay the full price at the time of sale. They paid $10,000.00 cash, and undertook to pay the balance over the next twenty-four (24) months.

The "Mojito" was delivered. The apples were pressed to create the cider. Some of the cider was sent to the Glengarry, Ontario County Fair as part of the cider competition. Unfortunately, not only did their cider not get good marks, but the judges claimed that it tasted like paint thinner

La Terre and La Pomme were devastated. They came to you, a lawyer in Montreal, to find out what they could do. Amongst other things, they wanted know what action they could take; where they would have to do so; what grounds or reasons they could invoke to support their action(s); what Old Mac could possibly do, especially, if in protest, La Terre and La Pomme stopped making the payments; what their responsibility would be; and so on.

QUESTION:

Advise La Terre and La Pomme, particularly, with regard to their specific questions and to any other issues that you believe may be relevant.

GIVE REASONS FOR YOUR ANSWERS