Sherri A. Mulne a.k.a. Sherri A. Shannon - Page 7

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            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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