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Case Study: Alice Wonder owns a small candy making factory where she runs her business making custom sweets. She is planning to retire, so she has put the factory up for sale. During the time she owned the factory she installed the following items for use in the business. Alice wants to know if she can retain any of the items from the factory.
Central air-conditioning system, with chillers on the roof, resting on their own weight. They are connected to the electricity and water systems in the building.An integrated candy boiler and packager, unique to the type of candy they make. It is bolted to the floor for safety reasons but can be removed.Shelves, tables, chairs and other office equipment. Some are fixed in place, but others are movable.An antique glass candy molding machine which was used by her grandmother when she started the business 60 years ago. It sits on a pedestal near the front door and is attached to the pedestal.
Questions:
a) Explain the difference between a fixture and a chattel and the tests employed to determine whether an item is a chattel or a fixture.
b) Using those tests, which you have identified in (a), explain whether each of the items listed above would be a fixture or a chattel.
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