Mr. Lee is the owner of Orient Traders, a company which sells food products to Japan.Sunrise Ltd is Orient's main customer in Japan.

In 2010 Lee was searching for a company which could produce a maple cookie to sell to Sunrise.He was happy to find Jill's Pastry Ltd. where Mr. Davis, the company's export manager, told Mr. Lee that he had extensive experience in importing goods into Japan.Specifically he knew what was required for the cookie to pass Japan customs.The company had to send a list of the ingredients, for example, in the case of the maple cookie, one ingredient was butter and then Japan would issue a "clean declaration."

Davis did obtain a "clean declaration" for the maple cookies and between 2010 and 2015 large quantities of the maple cookies were shipped without problem to Sunrise.

In 2016 the price of butter increased a lot.Jill's Pastry told Lee that they could no longer afford to make the cookies unless Jill's agreed that they could substitute margarine for butter.Lee agreed.Lee purchased 134 cases of the cookies with margarine and paid to have them shipped to Japan where customs stopped the order because the cookies tested positive for a banned preservative found in the margarine.

Lee/Orient sued Jill's Pastry.

1. What is the legal issue/question? (2marks)

2. What is the legal test/rule of law? (1 mark)

3. What is an argument for Lee/Orient? (1 mark)

1. What is an argument for Jill's Pastry? (1 mark)