Consolidated Manufacturing, Inc., M. P. Long Living Trust, Merl Philip Long, Trustee, Tax Matters Person - Page 20

                                        -20-                                          
              Consolidated's procedures for delivery of a customer core              
          were:  (1) The customer presented the transportation copy of the            
          request for core credit to the person who picked up the core from           
          the customer's place of business and who usually was an employee            
          of Consolidated making a delivery of remanufactured automobile              
          parts to that customer (Consolidated's driver); (2) a copy of the           
          request for core credit was physically tagged to the customer               
          core that Consolidated's driver picked up from that customer; and           
          (3) Consolidated's driver made a visual inspection of that core             
          and, based solely on that inspection, determined whether the                
          customer was in compliance with Consolidated's customer core                
          policy, including the requirements, if any, in that policy that             
          the type and style of the customer core delivered to Consolidated           
          correspond to the type and style of the remanufactured automobile           
          part purchased by that customer.                                            
               In addition to accepting customer cores from its customers             
          that corresponded to the remanufactured automobile parts that               
          those customers had purchased from Consolidated, Consolidated               
          also accepted delivery from those customers of customer cores               
          that did not correspond to those parts.  In the latter event, for           
          each such customer Consolidated credited the customer account               
          receivable in an amount that was less than the core amount which            
          was part of the remanufactured automobile part sales price for              
          each of the remanufactured automobile parts purchased by that               
          customer.                                                                   




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