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years at issue, petitioner did not offer age-related discounts on
its bread or other bakery products.
Petitioner regularly sold 4-day-old bread at full retail
price on Sundays during the years in issue. In addition,
individual stores sometimes sold 4-day-old bread on other days of
the week. This would happen if a store found itself with an
oversupply of bread inventory, in which case the store would cut
off its order for new bread, and sell the 4-day-old bread
instead.
On the five bread delivery days (Monday, Tuesday, Thursday,
Friday, and Saturday) petitioner's policy was to remove any
unsold bread on the fourth day after delivery. For example,
bread that was delivered on the morning of Monday, September 16,
1985 (and date stamped "Sep 20", a Friday) if unsold, would be
removed on the morning of Thursday, September 19, 1985, before
the Thursday bread delivery.
As to petitioner's Southern California stores, pick-up
vehicles from charitable organizations went to each store and
picked up the unsold bread and other bakery products on the same
day the unsold bread and other bakery products were removed from
the shelves. As to petitioner's Northern California stores,
petitioner's delivery drivers loaded the removed bread and other
bakery products into the delivery trucks and returned them to
petitioner's San Leandro bakery. Pick-up vehicles from
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