-7-
Consolidated obtained core supplier cores only on a special order
basis in order to satisfy a specific or temporary demand that had
arisen for a particular remanufactured automobile part. Although
there were hundreds of individuals and businesses operating as
core suppliers, Consolidated purchased core supplier cores from
six major core suppliers, one of which was Bishop Engine and
Automatic, Inc. (Bishop Engine).
Bishop Engine was Consolidated's largest core supplier from
which it purchased 44 percent and 38 percent of its core supplier
cores during 1990 and 1991, respectively. Bishop Engine acquired
80 percent of the cores that it sold to automobile parts
remanufacturers from salvage yards (salvage yard cores). Bishop
Engine acquired the balance of such cores from individual
peddlers and from manufacturers of automobile parts (e.g.,
General Motors, Ford, and Chrysler) which sold Bishop Engine
automobile parts that had been returned to them pursuant to the
warranties they had issued to their respective customers. Bishop
Engine acquired approximately 20 percent of its salvage yard
cores from bins that it placed in salvage yards in its local area
and in which salvage yard employees placed cores (bin salvage
yard cores). Bishop Engine acquired the balance of its salvage
yard cores by sending its employees to salvage yards throughout
the United States for the purpose of inspecting the cores in
those yards and buying those cores that those employees believed
were in rebuildable condition (non-bin salvage yard cores).
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Last modified: May 25, 2011