Background Facts

The Green Machine Inc. (hereinafter referred to as the “Green Machine”) is a newly formed Canadian corporation with large investors who believe the tea industry is posed for a significant increase in the coming years. The Green Machine is a tea company focusing on green tea, matcha and related accessory products. Some of those accessory products include various teapots, teacups, and devices that heat specialized teapots. The Green Machine has been working to establish direct relationships with large tea growers in the area of Shizuoka, Japan and in the area of Darjeeling. India. Furthermore, the Green Machine has found some companies in and around Tokyo to purchase their tea accessory products. They have reached a point where they would like to start purchasing the products to have shipped to their warehouse in Ontario. As part of this assignment, you are to create the name of the tea growers in the area of Shizuoka, Japan and in the area of Darjeeling, India, which the Green Machine will be purchasing tea from. More specifically, it will be a total of two tea growers, one from each area. You will also be creating the name of a manufacturer in the area of Tokyo, Japan that manufactures the tea accessory products that the Green Machine will be purchasing.

Part One (out of 25 points)

Prior to purchasing the products from the suppliers, the Green Machine's lawyer has advised that contracts should be entered into with the tea growers and the manufacturer of the accessory products. Please identify and discuss at 5 terms that should be included in the contract. Within those 5 terms, make one of those terms address the transfer of ownership of the tea and the accessory products. Part One should not exceed one single spaced page (or 3000 characters)

Part Two (out of 25 points)

The Green Machine is exploring different means of transportation for the tea and accessory products from their suppliers. Please discuss various considerations for the transportation of the product by ocean freight, land transportation and air freight shipments. More specifically, discuss common legal risks associated with ocean, land and air freight shipments. Furthermore, address the types of damage and losses that could take place. Please discuss considerations for the legal responsibility of various parties including carrier, freight forwarder, shipper/exporter and importer that may be involved in the process for the shipment of the tea and accessory products from Japan and India. As part of this discussion, make sure you address limitations of liability for certain parties that were addressed in class.

Part Two should not exceed two single spaced pages (or 6000 characters)

Part Three (out of 25 points) Please explain why the Green Machine will want to purchase insurance for the tea and accessory products prior to any shipments taking place. Discuss what types of insurance policies the Green Machine will want to consider purchasing and the reasons why & why not they may want to purchase that specific policy. Part Three should not exceed two single spaced pages (or 6000 characters)

Part Four (out of 25 points) For this part, assume that some of the tea accessory products that deal with warming tea pots is considered a dangerous good in Canada. What legislation would apply while in Canada. Please discuss the responsibilities and liabilities under any applicable legislation for various parties would and could have while that dangerous product is being transported in Canada. Part Four should not exceed one single spaced page (or 3000 characters)