2Go Restaurant Supplies Inc. ("2Go") is a business located in Hamilton, Ontario, with a total of 14 employees. 2Go is an importer and supplier of take-out containers and other packaging products to restaurants throughout the Hamilton-Niagara region. - In 2019, Janelle and her spouse Alejandro incorporated a business and started a restaurant in St Catharines called the Lakeside Terrace. Unfortunately, due to the covid pandemic and numerous lockdowns / closures, their restaurant has been frequently closed to diners. For much of 2020 and 2021 , they were forced to rely on take-out orders to keep the business going. 2Go has been the sole supplier of styrofoam containers, plastic cutlery and plastic straws and stir sticks to the Lakeside Terrace. - Recently, the restaurant received a large order of supplies from 2Go and was invoiced in the amount of $24,500, with payment due in 30 days (as per usual). Unfortunately, Janelle subsequently learned that the federal government passed, effective June 1, 2022, regulations that ban the manufacture, import and sale of single-use plastic items that cannot be recycled.
- Janelle and Alejandro have refused to pay for the supplies, even though some of them have already been used at their restaurant for take-out orders. Some of the supplies, e.g. the plastic straws, have gone straight into the trash. It is close to 30 days past the invoice date. - It appears that the owners of Lakeside Terrace have no intention of paying for the supplies. Text messages from 2 Go have been ignored and calls have not been returned. 1 What immediate steps should 2 Go take in order to collect the account?
2 If the account remains unpaid, which option(s) would you recommend to 2Go ? Why? 3 Would your answer to question no. 2. be different if the order was for $39,000 ? Explain. (2)