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4. Advertising
ABS advertised the credit card program in both
petitioner’s national magazine, Sierra, and in the publications
of local chapters. ABS was charged the usual rates for such
advertisements, although it failed to pay amounts billed to it
for advertisements in Sierra for 1987 in the amount of $8,230.
Petitioner attempted to collect that amount but was
unsuccessful.
The SC-ABS agreement does not require petitioner to accept
advertisements from ABS although it does require petitioner “to
cooperate with ABS on a continuing basis in the solicitation
and encouragement of SC members to utilize the Services
provided by ABS”. It is conceivable that petitioner and ABS
contemplated such cooperation as extending to the acceptance of
advertising by petitioner. Even if that were so, however, the
evidence is that ABS was charged the usual rates for
advertising. Although ABS failed to pay for its 1987
advertisements, nothing indicates that, when petitioner
accepted ABS’s advertising, petitioner had any lower
expectation that ABS would pay than it had for any other
advertisers. In other words, there is no evidence that
petitioner extended ABS any credit preference. That being the
case, we find no basis for concluding that any portion of the
receipts was in consideration of advertising services. Neither
do we conclude that petitioner anticipated ABS’s failure to pay
its 1987 bill and, in negotiating the SC-ABS agreement,
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