-17- the customer core purchase offer amount on which it was based, the core credit amount generally was equal to the core amount and was based on market-related factors, including the supply and demand of customer cores, although, as discussed above, the customer core purchase offer amount and therefore the core credit amount could have been in an amount less than the core amount because of the condition of the customer core upon its delivery to Consolidated. The core credit amount for each customer core was set at an amount that the marketplace in which Consolidated acquired customer cores demanded. Consolidated's customers did not guarantee the cores that they decided to provide to it. However, Consolidated's requirements for acceptance of a customer core had to be satisfied before Consolidated was willing to accept a customer core. Those requirements were: (1) The customer desiring to deliver the customer core had purchased a remanufactured automobile part from Consolidated; (2) the remanufactured automobile part sales price charged for that part included a core amount; (3) the customer core satisfied Consolidated's customer core policy (Consolidated's customer core policy) relating to, inter alia, the type and condition of the core that Consolidated was willing to accept (e.g., Consolidated's customer core policy for Four Star label cylinder head cores stated that those cores were not acceptable if they were "obviously broken, cracked, or welded"); and (4) the customer followed Consolidated's proceduresPage: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011