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which orders are to be placed with TAG, but does not describe the
manner in which sales representatives are to solicit sales.
In 1970 or 1971, when there was a change in TAG’s ownership,
a sales procedure manual was given to Hathaway. Parts of the
sales procedure manual were revised from time to time. The
version of the sales procedure manual that was in effect during
the years in issue was last revised in January 1984. Hathaway
did not consult the sales procedure manual from about January
1984, until well after the end of the years in issue.
The sales procedure manual states that sales representatives
are asked to submit their schedules, and must submit their
vacation requests, to the national sales manager. However, these
provisions were not followed by TAG’s sales representatives, nor
were these requirements enforced by TAG. The sales procedure
manual also states that sales representatives are not authorized
to accept cancellations of orders or agree to returns, and that
TAG reserves the right to refuse any return that does not have an
authorized return sticker. In practice, however, TAG accepted
their sales representatives’ recommendations as to cancellations
and returns.
Communication With TAG
Hathaway communicated to TAG the orders he had solicited by
writing these orders on a scratch pad, then forwarding the
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Last modified: May 25, 2011