Reference no: EM133199842

Mr. Singh is the owner of Nikka Traders ("Nikka"), a Vancouver company which sells food products to Japan. Cheena Japan Ltd ("Cheena') is Nikka's main customer in Japan. In 2010 Mr. Singh was searching for a company which could produce a maple cookie to sell to Cheena. He was happy to find Gizella Pastry Ltd. (Gizella) where Mr. Dodd, the company's export manager, told Mr. Singh 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." Mr. Dodd 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 Cheena in Japan. In 2016 the price of butter increased a lot. Gizella told Mr. Singh that they could no longer afford to make the cookies unless Nikka agreed that Gizella could substitute margarine for butter. Nikka agreed. Nikka 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. 

Nikka sued Gizella

1. What is the legal issue/question?
2. What is the applicable rule(s) of law?
3. Develop an Argument for the Plaintiff, Jose
4. Develop an Argument for the Defendants and who are they?