Richard J. and Phyllis Bot - Page 21




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            members, they could not influence MCP’s operations.  Petitioners’                          
            argument that they did not have a sufficient level of control                              
            under Minnesota law to support the explicit contractual                                    
            designation of MCP as petitioners’ agent, even if relevant to our                          
            analysis, is unsupported by any convincing proof in the record.                            
            Finally, petitioners have failed to convince us that                                       
            Minnesota law invalidates an express contractual agency                                    
            designation when both the designated agent and the designated                              
            principal adhere to the terms of the contract.  Petitioners                                
            voluntarily entered into multiple UMAs with MCP, which were in                             
            effect for 1994 and 1995.  Each of those UMAs clearly designated                           
            MCP as petitioners’ agent for the marketing and sale of the corn                           
            petitioners had acquired and delivered pursuant to the UMAs.15                             
            There is no dispute that petitioners produced corn as required by                          
            the UMAs, or that MCP marketed and sold petitioners’ corn and                              
            corn products as required by the UMAs, thereby generating the                              
            value-added payments.  Given these undisputed facts, petitioners’                          
            argument that the contractually based agency designation may be                            


                  15Petitioners also argue that, because they designated MCP                           
            as their agent for the marketing and sale of corn but not for its                          
            processing, no agency relationship was created.  This argument                             
            makes no sense and we reject it.  Petitioners appointed MCP as                             
            their agent to market and sell the corn they had acquired and                              
            delivered to MCP under the UMAs.  Whether MCP was operating as                             
            petitioners’ agent in processing the corn does not control our                             
            analysis of whether petitioners were in the business of                                    
            acquiring, marketing, and selling corn and corn products for                               
            profit.                                                                                    





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