Great Buys Inc. imports a wide range of consumer goods from China for online resale in Canada. One of their most popular products are cell phone and laptop replacement batteries, which use lithium ion technology. In recent discussions with its Chinese supplier, Great Buys has discovered that one shipment of batteries was inadvertently shipped to Canada before quality inspection was completed and, as a result, may not be compliant with CSA standards. Great Buys has already sold the batteries to dozens of customers and no complaints have been received. While most lithium batteries are safe, some, mostly counterfeit and no-brand batteries, have overheated and caught fire. These fires are difficult to extinguish and produce toxic fumes.

What are the relevant rules for the import and sale of lithium ion batteries? What is Great Buys’ potential legal liability? What should Great Buys do about the one possibly unsafe shipment?