7 Phillip J. Rigney (Mr. Rigney) signed the agreement on behalf of Safeguard. According to Mr. Rigney, Safeguard was acting as an agent on behalf of the former distributors in the sale of their rights to their customer bases. For over 10 years, Mr. Rigney's position with Safeguard was that of sales manager, which involved direct responsibility for and support of a group of sales distributors. Mr. Rigney found in his experience that the purchase price of a customer list generally is the product of the sales generated from the customer base over the previous 12 months multiplied by a factor ranging from 1 to 2. Mr. Rigney's recollection was that there were several negative factors associated with the lists as to which petitioner acquired the commission rights, including the poor economy in Texas in 1988 and the lack of consistent servicing of the customers on the lists. A factor of 1 was used in determining the price charged to petitioner. In Mr. Rigney's opinion, petitioner was a strong negotiator, and he believed that this is why the Agreement was not finalized until December 1988. Petitioner received commission statements on or about the fifteenth of each month for the prior month's sales. Petitioner operated her business on the cash basis. Safeguard withheld territory repayments of $18,238.42 in 1988 from petitioner's monthly commission statement. The amounts withheld in 1988 were not fixed monthly sums but varied. Petitioner's monthly commission statements for 1989 reflect a total amount ofPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011