A. The Plaintiff is a company engaged in food manufacturing, processing, sale, import and distribution business, etc., and the Defendant is a corporation established for the manufacture, processing, and sales business of goods produced by its members who engage in the quantitative industry. 2) On July 1, 2004, the Plaintiff entered into a goods supply contract with the Defendant (hereinafter “instant contract”) and continued to extend the contract on a yearly basis pursuant to Article 7 of the instant contract. The main contents are as follows.

Article 2 (Contract Items) The supply contract items are the items requested by the plaintiff for purchase.

Article 3 (Standard and Unit Price) The defendant shall prepare and submit a specification of the goods to be supplied, and shall consult with each other when the presented specification and specifications are insufficient or modified.

Article 7 (Term of Contract) The term of contract shall be one year from July 1, 2004 to June 30, 2005, and it shall be one-year automatic renewal when there is no objection in writing by one month prior to the termination of the contract.

Article 8 (Compensation for Damages) In any of the following cases, the Plaintiff may claim damages to the Defendant by calculating the amount of damages pursuant to the Plaintiff’s regulations, and the Defendant shall compensate the Plaintiff for the amount of damages:

① In the event that the Plaintiff suffers loss due to the violation of the Product Liability Act pursuant to Article 9, the Plaintiff shall compensate the Plaintiff for all damages incurred to the Plaintiff due to a cause attributable to the Defendant in relation to the Product Liability Act.

Article 9 (Liability for Manufacturing Products) (1) In the event that a product manufactured and sold by the Plaintiff was damaged to the Plaintiff due to a defect in the product and the cause of the defect was attributable to the defect in the raw materials (products) supplied by the Defendant, insofar as the Plaintiff was unaware of the existence of the material supplied at the time of the Defendant’s supply of raw materials or of the defect.