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that customer, bore any risk of loss, and received payment on the
account. On some occasions TAG asked Hathaway if he would be
willing to guarantee a prospective customer’s credit. Over the
years, there were three occasions when Hathaway guaranteed a
prospective customer’s credit and payment was not forthcoming;
Hathaway had to bear the losses resulting from his guarantees.
Sales For Other Companies
Some of TAG's sales representatives also handled lines of
merchandise from other companies. TAG knew that some of its
sales representatives handled other lines of merchandise, but did
not actively discourage this practice. Sales representatives for
TAG, however, were permitted to handle other manufacturers’ lines
of merchandise only if those lines did not conflict with any line
of TAG merchandise. TAG management made the decision as to
whether a line of merchandise was conflicting.
In 1989 and 1990, while Hathaway was a sales representative
for TAG, he also handled a gloves line for Gates-Mills, Inc., for
which he received commissions in the amounts of $14,693.94 and
$5,000 in 1989 and 1990, respectively. Gates-Mills, Inc., is
unrelated to TAG. TAG knew that Hathaway handled the sale of
apparel for other manufacturers.
Termination
TAG could have terminated Hathaway’s position as a sales
representative at any time. Likewise, Hathaway could have
terminated his position with TAG at any time. However, if a
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