Edward G Smith and Jan M. Smith - Page 5




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          event that a warranty claim or repair work request is made.2                
          Scrap or excess flooring materials remaining after 1 year are               
          either returned to the client or thrown out.                                
               Smith Floors uses its warehouse area to store padding and              
          flooring installation materials including glue/adhesives, nails,            
          cap metal, and cove stick.  Smith Floors purchases padding and              
          glue/adhesives in monthly allotments (based on work projected for           
          the month).  Smith Floors does not charge separately for flooring           
          installation materials but includes such expenses in its labor              
          charges.                                                                    
               Smith Floors does not store any flooring materials in its              
          warehouse for resale to the general public.                                 
          Smith Floors uses its showroom area to display samples of                   
          flooring materials.  Smith Floors encourages architects,                    
          designers, and contractors to visit its showroom to view its                
          samples of flooring materials for particular projects.                      
               Smith Floors (through petitioner) has developed an expertise           
          regarding the proper installation of flooring material for                  
          particular applications.  For example, petitioner has expertise             
          regarding the proper installation of flooring material in                   
          hospital operating rooms which require antibacterial surfaces,              
          and in schools and kitchens which require slip-resistant                    
          surfaces.  Petitioner is also known for his skill and                       


               2  Smith Floors warrants its work for 1 year.                          





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Last modified: May 25, 2011