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reinspected the non-bin salvage yard cores, inspected the bin
salvage yard cores, and removed any unwanted components of such
cores. As a result of the inspection process at Bishop Engine's
place of business, Bishop Engine determined that 15 to 20 percent
of the non-bin salvage yard cores and approximately 80 percent of
the bin salvage yard cores which it had purchased were not in
rebuildable condition. Bishop Engine sold the salvage yard cores
that did not pass inspection at its place of business as scrap
metal and offered the balance of its salvage yard cores that did
pass such inspection for sale to, inter alia, automobile parts
remanufacturers.
Bishop Engine determined the amounts to charge automobile
parts remanufacturers for the various types of core supplier
cores that it offered for sale to them by taking account of the
amounts being charged by its competitors for those types of core
supplier cores and market factors relating to supply and demand.
Whenever Consolidated purchased core supplier cores from Bishop
Engine, it paid the amounts that Bishop Engine was charging for
those cores.
Bishop Engine and the other core suppliers from which
Consolidated purchased core supplier cores guaranteed those cores
to be in rebuildable condition (core supplier guarantee). If
Consolidated discovered during the remanufacturing process that a
core supplier core had to be scrapped because it was not in
rebuildable condition, that core was removed from that process
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Last modified: May 25, 2011