Per clause 39 (Compliance with Laws) from the Pro-Customer Long Form Outsourcing Agreement. What would be the supplier response and the Customer counterargument for the below clause:

39.1 The Supplier shall perform its obligations in a manner that complies with all applicable Laws (which shall include all Laws affecting the Customer's business of which the Supplier is aware or should, acting as a prudent supplier of services to businesses in the Customer's sectors and geographies, have been aware of). The Supplier's obligations pursuant to this clause shall include identifying and procuring any required permits, certificates, approvals and inspections. If a charge of non-compliance with such Laws occurs, the Supplier shall promptly notify the Customer in writing. Any actual failure to so comply shall give the Customer the right to terminate this Agreement for irremediable material breach pursuant to clause 37.4.2 (irremediable material breach).