- 7 -
would maximize revenue. To motivate her sales representatives
and show her appreciation for their work, petitioner, from time
to time, took them out to lunch or dinner. On 26 occasions in
1991, petitioner entertained her sales representatives and
incurred substantiated expenses of $1,843.23. In addition,
petitioner held meetings with her sales representatives, either
individually or in small groups in places near the downtown
office, over coffee and donuts, bagels, or fruit to discuss work-
related problems or accounts. In this regard, she incurred
expenses of $569 over 60 separate documented occasions. (We
refer to both of these categories collectively as the meals
expenses.)
Respondent called John Moreno (Mr. Moreno) to testify as to
Pacific Bell's corporate policy regarding reimbursement of meals
and entertainment expenses. At the time of the trial, Mr. Moreno
was an outside sales representative for Pacific Bell, but in 1991
he was a telemarketing branch manager for Pacific Bell. For part
of 1991, until petitioner was promoted, he was petitioner's
supervisor or reviewer. In a rather vague response to a question
concerning Pacific Bell's reimbursement policy for meals and
entertainment expenses incurred by an employee, Mr. Moreno stated
that Pacific Bell "would reimburse for expenses if the sales
manager vouchered those expenses." In other words, Pacific Bell
would reimburse an employee if the manager approved the expense.
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