5
Timberline manufactured panelized house kits for Eagle and
shipped them to Eagle's customers. Timberline's manufacturing
facilities were in Greenwood, South Carolina.
3. House Purchase Agreement
Persons who wanted to buy a house from Eagle signed a
purchase agreement. The purchase agreement was between Eagle and
the customer. The purchase agreement specified the model to be
built, the square footage, and the price.
a. Front Deposits
Before 1991, a customer paid a $4,000 deposit, which Eagle
and its customers referred to as a "front" or "front deposit",
when he or she signed a purchase agreement. In 1991, Eagle
raised the amount of the front deposit to $5,000. The purchase
agreement stated that the front deposit was nonrefundable.
Eagle paid commissions of $650 to the employee who was
responsible for a sale when it received a $5,000 front deposit.1
The purchase agreement stated that once a customer paid the
front deposit, he or she had 15 days to provide specifications to
Eagle and 60 days to submit a house purchase order, accompanied
by full payment or an acceptable method of paying the balance.
1 Eagle also paid commissions when it received the $4,000
deposits. Eagle deducted these commissions in the year it
received the deposits.
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Last modified: May 25, 2011