- 12 - 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 aPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011