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Fishfader had become disillusioned with the expense and time
that it took to sell the higher quality coaches such as those
manufactured by Foretravel. Fishfader wanted to drop the entire
Foretravel line of coaches and focus on selling a higher volume
of the less expensive coaches. Nicholson felt that focusing
entirely on less expensive coaches would be a mistake, and he
wanted to continue selling the Foretravel line. Fishfader and
Nicholson were unable to agree on whether to drop the Foretravel
line of coaches and, in 1985, Fishfader asked Nicholson to
purchase his interest in Northwest. Nicholson did not have the
funds to purchase Fishfader's interest, so he approached
petitioner and asked for financial assistance.
Petitioner had established similar relationships in the past
and had recently acquired the Arizona dealership, but petitioner
was not looking for additional company-owned dealerships.
Nonetheless, Nicholson persuaded petitioner that Northwest was
doing an excellent job, and that it would not be in petitioner's
best interest for Northwest to drop the Foretravel product line.
Petitioner concluded that, if it did not assist Nicholson, there
would no longer be a Foretravel dealer in that region.
On August 30, 1985, petitioner agreed to purchase
Fishfader's 51-percent interest in Northwest for $27,017.
Several weeks later, petitioner and Nicholson entered into a
repurchase agreement (the repurchase agreement) which provided
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Last modified: May 25, 2011