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designated common and recreation areas, as well as the resources of
Resorts Condominium International, a time-share exchange network.
Hawaii and Key West Trips
Petitioners believed that firsthand observation of other
vacation resorts was necessary to maintain a competitive edge in
the time-share industry. Between 1984 and 1992, on at least seven
occasions, WVI’s board of directors approved the expenditure of:
such sums as are necessary in travel and
entertainment to visit other luxury resorts
and hotels in order to keep Powhatan
Plantation competitive in product, services,
and to remain knowledgeable about innovations
in the resort industry and to seek new
business opportunities and to engage in or
sponsor retreats with political or business
persons affecting the resort industry.
WVI bore all these expenses, with no commitment of reimbursement
from Powhatan Associates.
Beginning in 1986, and continuing through the years in issue,
petitioners made numerous trips to Hawaii and Key West, Florida.
Most of these trips were taken around the Thanksgiving, Christmas,
and New Year’s holidays and often lasted between 2 and 3 weeks.
During these trips, petitioners conducted “interviews” with
guests of the resorts, took tours of the resort facilities and
premises, and examined the kitchen amenities and menus for
compatibility with Powhatan Plantation. The purpose of the
interviews and inspections was to gauge customer service and
determine the level and efficiency of those services each resort
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