Mississippi State University Alumni, Inc. - Page 12

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          rings, watches, lamps, crystal clocks, grandfather clocks, and              
          chairs, to MSU's alumni.2  Petitioner contracted with Wayneco for           
          Wayneco to sell Seiko watches in 1988, lamps in 1989, and                   
          Waterford crystal clocks in 1991.  Petitioner had the right to              
          review promotional materials that Wayneco prepared.  Petitioner             
          agreed to:  (a) Sponsor Wayneco's offering of the items; (b) get            
          MSU's approval to use MSU's seal on the items and related                   
          promotional material; (c) allow Wayneco to use facsimile                    
          signatures of an official of petitioner to promote the items; and           
          (d) give Wayneco (i) mailing labels with names and addresses of             
          all living alumni and parents of MSU undergraduates, (ii) samples           
          of its letterhead and envelope for Wayneco to reproduce, (iii)              
          copies of MSU's official seal, and (iv) a letter from an official           
          of petitioner's on its letterhead stating that petitioner had               
          chosen Wayneco to supply the items.  Wayneco agreed to pay                  
          petitioner $25 for each watch, $20 for each lamp, and $25 for               
          each clock that Wayneco sold under the agreement with petitioner.           
          The agreement states that the payments are royalties.  Petitioner           
          compiled and sent mailing list labels to Wayneco.  Wayneco paid             
          all other costs.                                                            
               Political candidates and other vendors asked for permission            
          to use petitioner's mailing list.  Petitioner denied all requests           
          except Wayneco's and PB&T’s during the years in issue.                      

               2Income that petitioner received from the sale of this                 
          merchandise is not at issue in this case.                                   




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