Prudential Overall Supply - Page 10




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               The terms of an actual agreement could vary from the                   
          Service Rental Agreement.  Terms that were most frequently                  
          changed were the length of the agreement, the right to                      
          cancellation, the replacement charges, and/or the terms of                  
          payment.  Quite frequently, the contract would not be used with             
          petitioner’s very large customers, who instead used their own               
          legal counsel to draft and negotiate the terms of the contract.             
          Laboratory Tests                                                            
               Petitioner had several testing laboratories at which                   
          petitioner tested its fabrics and garments.  Fabric tests were              
          conducted by petitioner to compare fabrics and to qualify new               
          fabrics for use in petitioner’s garments.  The tests performed by           
          petitioner’s quality assurance test laboratories included                   
          wash-and-wear cycle tests, fabric tests, body box tests, and wash           
          tests.  An “ASTM” test and a “Helmke Drum” test were designed to            
          measure particulate contamination present in a garment.  Other              
          tests that were performed were an abrasion test, a moisture vapor           
          transmission test, and specific tests for certain fabrics used in           
          medical markets.                                                            
               Subsequent to the years in issue, petitioner made                      
          representations on its Web site regarding the performance                   
          characteristics of the fabrics that it used in its clean room               
          garments.  In particular, petitioner represented that garments              
          made of certain fabrics were tested in up to 100 wash-and-wear              






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Last modified: May 25, 2011