-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