L'enfant Ltd was a manufacturer of action figures and dolls. For the Spring season it produced and offered for sale through its retail distribution channels a soft bunny. The doll was made of cotton and wore a colourful jacket with a few tiny buttons. At the Petit Department Store, Mrs. Lee purchased one of the bunnies for her six-year-old granddaughter. The child was delighted with the toy and played with it for many hours. About a week after receiving the bunny the child's mother noticed two of the buttons missing from the front of the jacket of the bunny. A thorough search of the house did not turn up the buttons. Later that day, as she supervised the child's play, the mother had to answer a phone call. While the mother was on the phone, she observed the little girl pulling a button off the jacket on the bunny and placing it in her mouth. Before the mother could reach the child to retrieve it, the button had been swallowed. The child's mother took her to a doctor, X-rays were performed that 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 postoperative care at home, resulting in substantial time lost from work and out of pocket expenses (such as parking expenses when they returned to the hospital for follow-up appointments) for both parents. L'enfant Ltd, the Petit Department Store, Mrs. Lee, the child and the child's parents are in Toronto.

Please advise the child's parents:

(a) Discuss the nature of the legal action which may be taken in this case, including the remedies and damages sought. Discuss the legal test and analyze each step.