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order, Triplex bills Names for the fees associated with filling
the order, including running, special selection, media, and
shipping fees. Names then bills the mailer or the mailer's list
broker. If the mailer uses an independent list broker, the bill
is for the listed base price, plus any special selection, media,
and shipping fees, less the 10-percent list brokerage commission
(which was included in the base price). Before it sends the bill
to the mailer, the list broker adds its commission to the bill.
The mailer pays the list broker the full price reflected on the
bill that the mailer receives. The list broker deducts its
commission and remits the remaining payment to Names. If Names
acts as the list broker in the transaction, the bill sent to the
mailer includes the full base price (including the 10-percent
list brokerage commission), plus any special selection, media,
and shipping fees, and the mailer remits the full payment
directly to Names.
After receiving payment from the mailer or its list broker,
Names deducts its commission, pays Triplex its fees, and remits
the remainder to petitioner. If a mailer cancels its order, it
is required to pay a "processing fee" of $50. The fee is
retained by Names.
List rental transactions are carried on continuously.
During 1991 and 1992, petitioner's gross receipts (base price
less commissions, Triplex's running fees, and other miscellaneous
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Last modified: May 25, 2011