Description

Case study

Hudson Mini-Fridge Co. Ltd. is one of the leading manufacturers of small refrigerators in the Western Hemisphere. The refrigerators are used primarily in hotels or motels as mini-bars. Based in Churchill, Manitoba, Hudson is the sole Canadian manufacturer of mini-refrigerators. Mini-fridges are sold to hotels, recreational vehicle users and individuals through retail outlets. However, the hotel/motel market is, by far, the largest user accounting for over 60 percent of all mini-fridges sold in Canada. Hudson’s entire output consists of the mini-fridges and is sold entirely for hotel use.

The organization was incorporated in 1982. The establishment of the organization followed a feasibility study which indicated that the Canadian market had a potential of approximately 15,000 mini-bars per year in its 300,000 hotel/motel rooms, 80,000 of which are found in three-to five-star hotels. At that time, although they were quite common in the European hotel industry, the minibars were relatively new in Canada; the majority of mini-bars were being supplied by Electrolux of West Germany and Elektrosuisse of Italy, with a few being supplied by Antarctic of Slovenia. Hudson was set up specifically to produce hotel mini-bars for the MicroFRIG franchise system developed by MicroFRIG SpA of Italy. Hudson purchases certain parts from MicroFRIG with payment by Documentary Letter of Credit. Hudson purchases other components in Costa Rica with final assembly at its plant in Churchill.

Hudson's major competitor is Antarctic, an exporter of Slovenian mini¬-refrigerators. Hudson has been noting a significant decline in sales in recent years and has come to suspect that Antarctic has been selling below what it actually costs to produces these goods in Slovenia. The Special Import Measures Act states that the production of like goods refers to those goods that are identical to the dumped goods, or, in the absence of identical goods, to those goods whose uses and other characteristics closely resemble those of the dumped goods. Admittedly, there are some minor differences in appearance and construction of the outer shell between the dumped and the domestically produced mini-fridges. The differences may render the two non-identical, but in Hudson’s view, they are alike since both share their essential features, uses and characteristics.

Question

Antarctic does not have a sales office in Canada but the organization does have an English language website that proudly waves an animated Canadian flag. Payment is accepted in Canadian dollars. In addition, they have a toll-free number that is answered by English-speaking customer service representatives during normal Canadian business hours. If the Sleep Easy Hotel in Ottawa orders 100 mini-refrigerators from Slovenia, will a Canadian court exert jurisdiction over the case? (300 words)