Fine Furnishings Canada Inc. (FFC) is a manufacturer of hand-crafted wood furniture. The company has decided to discontinue its line of outdoor patio furniture and picnic tables. FFC is planning to sell off various assets relating to these product lines to Cottage Living (CLC). The sale includes the following:
(a) Remaining inventory will be shipped from FFC’s warehouse in British Columbia to CLC’s warehouse in Ontario. FFC will be required to arrange transport at its own expense and provide adequate insurance coverage for the goods while they are in transit.
(b) FFC uses a proprietary lacquer formula in its manufacturing process that improves the water resistance and shine of its outdoor furniture lines. FFC will sell CLC the exclusive Canadian rights to use this process.
(c) FFC’s customer support centre in Vancouver will continue to answer calls and emails from customers on assembly enquiries, missing parts, product information, and warranty claims for one year after the closing date of the sale. FFC will charge CLC a monthly fee for this service.
FFC will bill CLC’s head office in Alberta for each of the above items. The assets sold do not represent substantially all of the assets needed to run the furniture manufacturing business.
For each transaction, determine the place of supply.
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