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advertising. TAG provided its sales representatives with order
forms, swatch cards, and envelopes preaddressed to TAG; TAG did
not supply its sales representatives with any other materials or
equipment, nor did TAG reimburse its sales representatives for
business-related expenses. Hathaway spent about $1,500-$2,200
per year for all of his "tools of the trade", such as sample
cases, hanging bags, traveling racks, business cards, and
stationery.
Hathaway incurred the costs of maintaining business
quarters, one located at his home in Iowa and another at the
Hyatt Regency Mart in Minneapolis, Minnesota. He invested about
$18,500 to build and furnish a 650-square-foot dual-purpose
office and showroom onto his house. In the showroom, Hathaway
had forms, display tables, and full glass racks. He used the
showroom to display TAG's merchandise to customers in Iowa. In
the office, Hathaway had a desk, computer and printer tables,
bookshelf system, computer, printer, fax machine, copy machine,
and filing cabinets. During the last 6 months of 1990, Hathaway
sublet showroom and office space in the Hyatt Regency Mart in
Minneapolis from another TAG sales representative at a rate of
$315 per month. He spent about $8,500 to outfit the Minneapolis
facility with display and office equipment. On November 26,
1990, Hathaway entered into a direct lease of a suite in the same
Minneapolis facility, for a term from January 20, 1991, through
August 31, 2000.
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