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Highlights In general, a supplier’s obligation is to ensure the safety of its goods to the end consumer. A supplier does not owe a duty of care to other commercial parties in a supply chain. Courts are reluctant to recognize that commercial parties in a chain of contracts are provided additional rights outside of a contract where the parties had the chance to address any risks through the contract. Franchisees should not necessarily rely on extra-contractual claims to protect against potential risks and should negotiate these risks ahead of time or insure against them. Franchisors entering into exclusive supply agreements for their franchise system should consider alternative supplier clauses in the event the supply of products is interrupted. ....
Good afternoon. This past week, the Court of Appeal for Ontario provided us with several substantive and interesting civil decisions. The Court of Appeal released two related decisions in Subway Franchise Systems of Canada, Inc. v. Canadian Broadcasting Corporation. Subway sued the CBC and Trent University, which conducted DNA testing for the CBC, after the CBC broadcasted a widley publicized story that Subway s chicken sandwiches only contained 50% of actual chicken. Both decisions dealt with Anti-SLAPP provisions in s.137.1 of the Courts of Justice Act, which were recently considered by the Supreme Court of Canada companion decisions in 1704604 Ontario Ltd. v. Pointes ....