Foretravel, Inc. - Page 21

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            reputation as a top quality coach manufacturer.  Petitioner also                               
            used its incentive program to attract buyers for coaches with                                  
            unpopular colors or unpopular sizes and display models that had                                
            been driven to recreational vehicle shows.  The "X" brand                                      
            manufacturers also offered incentive programs to the Foretravel                                
            dealerships.                                                                                   
                  One facet of petitioner's incentives began when Mr. Fore                                 
            operated the California dealership.  The California dealership                                 
            would purchase Foretravel coaches for sale to customers.  At                                   
            times, customers would make Mr. Fore an offer on a Foretravel                                  
            coach, but the purchase price proposed by the customer would be                                
            less than the price the California dealership paid petitioner for                              
            the coach.  Mr. Fore would call Moore at Foretravel and ask him                                
            if petitioner was interested in such a sale.  If petitioner was                                
            interested in selling the coach at the customer's suggested                                    
            price, then petitioner would make a commensurate adjustment in                                 
            its price to the dealer via the Foretravel incentive program.                                  
            This incentive method still was in place during the years in                                   
            issue and was available to a dealer faced with a customer offer                                
            that produced a loss or resulted in a "skinny deal".                                           
                  A "skinny deal" is a transaction that has a $3,000 profit or                             
            less.  A salesperson at the dealership could not turn down any                                 
            deal proposed by the customer, even a skinny deal.  The sales                                  
            manager at the dealership had the authority, as did the general                                






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Last modified: May 25, 2011