Wu's pet food store burnt down last month and unfortunately, three employees were injured in the fire. The city fire inspectors determined that the fire has been caused when a shipment of cat food stored in her premises exploded. Scientific analysis of the burnt cans determined that the reason for this explosion was that the manufacturer of the cat food had used incorrect chemical preservatives in its canning process. The manufacturer, Mimi LLC, is located in New Zealand.

Wu had recently purchased this shipment of cat food from a Montreal based import company called Discount Inc. She has been doing business with Discount Inc. for 2 years and until the summer of 2019 she has been satisfied with the products that they sold her. In August 2019 Wu had refused to accept a shipment of dry pet food from Discount Inc. because it smelled really bad. This refusal led to a 2-month legal dispute with Discount Inc. who refused to acknowledge that their products were not fit for consumption. Wu eventually won her arbitration case, however, in order to continue business with Discount Inc., Discount Inc. required Wu to sign the following contractual clause each time she ordered their products;

"The purchaser acknowledges that it has examined the products purchased hereunder and confirms that it accepts said products in their present state and condition. Furthermore the purchaser acknowledges that it will have no claims for damages of any nature whatsoever against the seller arising out of this contract."

The contract that Wu signed when she bought the exploding cat food cans from Discount Inc. contained the above clause.

Having no fire insurance, Wu sent a registered letter to Discount Inc. and to Mimi LLC. claiming that both companies were liable to fully compensate her for the damage to her store and its contents, and that they were also both liable for the damages suffered by her employees. Both companies responded, through their lawyers, that they are liable due to the wording of the above contract clause.

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