Frontier Chevrolet Co. - Page 3




                                        - 3 -                                         
               Petitioner is engaged in the trade or business of selling              
          and servicing new and used vehicles.3  Roundtree Automotive                 
          Group, Inc. (Roundtree), is a corporation engaged in the trade or           
          business of purchasing and operating automobile dealerships and             
          providing consulting services to these dealerships.4  Frank                 
          Stinson (Mr. Stinson) was involved in the operations of Roundtree           
          during the years 1987 through 1994.                                         
               Roundtree originally purchased all the stock of petitioner             
          in August of 1987.  Consistent with Mr. Stinson’s and Roundtree’s           
          policy of management, petitioner filled the position of executive           
          manager of its dealership with one of Mr. Stinson’s long-term               
          employees, Dennis Menholt (Mr. Menholt).  As part of his                    
          employment by petitioner, Mr. Menholt was allowed to purchase,              
          from 1987 through 1994, 25 percent of the stock of petitioner.              
               In 1994, Mr. Menholt was the general manager of petitioner’s           
          automobile dealership located in Billings, Montana, and Mr.                 
          Stinson was the president of Roundtree.  Mr. Stinson participated           
          in the management of petitioner’s business, particularly in                 
          advertising and sales training.  Roundtree received monthly                 
          payments of $22,000 for management services it performed for                


               3Petitioner was formerly known as Frontier Chevrolet                   
          Company.  References to petitioner include events which occurred            
          when it was known as Frontier Chevrolet Company.                            
               4Roundtree was formerly known as FS Enterprises, Inc.                  
          References to Roundtree include events which occurred when it was           
          known as FS Enterprises, Inc.                                               




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011