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Petitioner's baking process resulted in a high quality bread,
with good aroma, keeping quality, and texture. Petitioner used
no preservatives or inhibitors in the manufacture of this bread.
During the years in issue, petitioner closed its bread bags
with a flat plastic disc called a "Kwik Lok." Petitioner date
stamped each Kwik Lok with a date that was 4 days after the
bakery delivered the bread to a specific store. For example,
petitioner date stamped the Kwik Loks for bread delivered to a
store on September 16, 1985 (a Monday) with the date "Sep 20" (a
Friday). The date was stamped on the Kwik Lok in very small
print. The Kwik Lok contained no other words, such as "sell by,"
"fresh through," or the like.
Petitioner delivered to its stores each morning, except on
Wednesdays and Sundays, bread and other bakery products that had
been baked either earlier the same morning or after 6 p.m. the
previous day. Bakery products that had been acquired by
petitioner's bakeries were also delivered at the same time.
Each of petitioner's stores determined its need for delivery
of fresh bread on a daily basis, based on amounts of bread on
hand and anticipated sales. Each store transmitted its daily
order to the bakery, which then adjusted its production to
accommodate store orders. Petitioner's goal was to supply each
store with 5 percent more bread on hand than was actually
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