Canada v. Pardee Equipment Limited, 99 DTC 5012, [1999] 1 CTC 101 (FCA) -- summary under Inventory

The taxpayer, which was a farm equipment dealer, was found to have received equipment from the distributor (Deere Canada) on consignment, rather than having acquired the equipment, notwithstanding that it had no express right of return over the equipment (this factor not being determinative in determining whether or not a consignment arrangement existed). There was no ambiguity in the terms of the agreements that the equipment was held on consignment.Accordingly, it did not qualify as the taxpayer's inventory.