-7-
orders and processes the orders as they come in. An order is
processed by inputting its data into a computer and, except when
the customer pays by direct deposit, running the customer’s
credit card through a machine in order for petitioner to receive
credit for the sale. Petitioner transmits its inputted orders to
its suppliers to be filled. Typically, petitioner receives 3 to
4 orders a day and takes approximately 10 minutes to process each
order. Petitioner (through Ms. Odell approximately 70 percent of
the time and Mr. Odell the rest) also returns phone calls left on
the answering machine. At the most, Ms. Odell usually works an
average of 2 hours during each day that the Government is open.
In August 1996, petitioner and Ms. Odell entered into three
agreements effective January 1, 1995. These agreements were an
employment agreement, a rental agreement, and a licensing and
sale agreement. Pursuant to the employment agreement, petitioner
agreed to pay $400 per month to Ms. Odell in return for her
services,4 and Ms. Odell agreed that she would receive no
employment compensation from January 1, 1995, through July 31,
1996. Pursuant to the rental agreement, petitioner agreed to pay
to Ms. Odell $600 per month to rent certain of her property.
Pursuant to the licensing and sale agreement, petitioner agreed
to pay to Ms. Odell a monthly royalty fee of the larger of $200
4 Petitioner’s accountant advised it that it should
initially set the wages at $400 per month.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011