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Initially, Smith Floors’ operations were modest and limited
to flooring installation services. Smith Floors would dispatch
its employees to a job site to install flooring materials that
had been ordered by and delivered to the general contractor.
Running its business in this fashion exposed Smith Floors to
operational disruptions arising from errors by contractors in
ordering flooring materials and scheduling installations. To
avoid these disruptions, and to increase Smith Floors’ range of
services, petitioner decided to expand Smith Floors’ operations
by obtaining warehouse space which would allow Smith Floors to
acquire and hold the flooring materials that it would install
pursuant to its flooring installation contracts.
Smith Floors operates its business out of an 8,500 square
foot commercial building in Riverside, California. Smith Floors
uses 6,000 square feet of space as warehouse area and 2,500
square feet of space as showroom and office areas.
Smith Floors receives invitations to bid on jobs from
architects, contractors, and developers. Prior to submitting a
bid, Smith Floors receives floor plans for the job and
specifications identifying the flooring materials to be
installed. Although petitioner makes product recommendations,
Smith Floors generally has no discretion as to manufacturer,
type, grade, or color of the flooring materials that it installs.
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Last modified: May 25, 2011