Reference no: EM133201859

Daw Ltd. is a company that produces commercial lawn care products. One of its products is an industrial strength weed killer called WeedX. This product was advertised as a safe effective chemical that would control most common weeds. WeedX was bought by many cities to control weeds on public property such as parks or beside roads and it sold well for 5 years. One summer though many people across Canada became ill. They developed skin rashes and many became very sick with symptoms of toxic poisoning. The government health department finally determined that WeedX was the cause. It turns out that Daw had used an agent, Andy Lee, to find it a new chemical supplier. Andy had found a new cheaper supplier in Taiwan, TX Ltd. Though TX Ltd. had assured Andy it would provide the same chemicals used in WeedX, it substituted cheaper toxic chemicals in place of the safer chemicals, but TX had hidden this fact from Daw. Daw was shocked when it learned its product was responsible for these illnesses. It is estimated that about 2,000 people in Canada became sick from WeedX, some of whom will have permanent serious health problems. Daw denies any liability and blames Andy Lee and TX Ltd. Andy denies any liability. Daw also reminded the cities that purchased WeedX that the contracts they signed clearly stated that Daw is not liable for any damages or losses that may occur as a result of the use of their product. Lawyers have been called. Discuss all legal issues pertaining to this case.