GAC Produce Co., Inc., An Arizona Corporation - Page 32




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         The Van Dyke contract did not involve border-crossing activities              
         because Van Dyke was located in the United States.                            
              Fresh Choice                                                             
              Fresh Choice Produce, Inc. (Fresh Choice), a California                  
         corporation, was a distributor of green onions.  In February                  
         1992, Fresh Choice entered into a commission merchant agreement               
         (agreement) with Manuel Valladolid Seamanduras, on his own behalf             
         and as representative of Agro Industrias Vigor S.R.L. de C.V.                 
         (Agro), a Mexican corporation, and Vessey & Co. (Vessey), a                   
         California corporation, in which each party agreed to share in                
         the profits from the sale of green onions14 grown by Agro in                  
         Mexico and marketed by Fresh Choice internationally (joint                    
         venture).  Fresh Choice's and Vassey's principal places of                    
         business were in the State of California.                                     
              Fresh Choice received a 25-percent share of the profits of               
         the joint venture, Agro received a 50-percent share, and Vessey               
         received a 25-percent share.  Profits were calculated net of                  
         expenses paid by Fresh Choice on behalf of the joint venture and              
         of Fresh Choice's commission, which was computed as follows:                  





               14Although the agreement on its face is limited to green                
          onions grown by Agros and sold by Fresh Choice, it appears that              
          the sale of brussels sprouts and snow peas also was included in              
          the joint venture.                                                           




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Last modified: May 25, 2011