According to Car Trim, if the buyer supplies all materials for manufacturing, the contract is treated as a service.

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The main concept here is how a contract for manufacturing is categorized when the buyer supplies all the materials. Car Trim establishes that if the buyer furnishes every material and the contractor’s obligation is only to process or fabricate the item, the agreement is treated as a service contract rather than a sale of goods. The key reason is that ownership of the materials remains with the buyer and the contractor is providing a transforming service—the fabrication or manufacturing—using those materials. Therefore, the price reflects the service performed, not a transfer of ownership of materials or finished goods. The classification matters because it aligns with who provides the materials and who bears risk for them, rather than with the mere outcome of producing a finished product. Hence, the statement is correct.