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Beiner’s brother, who was Beiner’s mentor in petitioner’s
business at the start of that business, disagreed with the change
and as a result of the change disaffiliated himself entirely from
any ownership or continued participation in petitioner. Numerous
other individuals also believed that petitioner’s new business
would be a failure.
During the relevant years, Allen-Bradley sold its parts only
to its authorized distributors and to original equipment
manufacturers (OEMs). The authorized distributors sold the parts
which they purchased from Allen-Bradley directly to end users.
Allen-Bradley sold its parts to OEMs not for resale but to
incorporate the parts into equipment that they manufactured and
sold as finished products.
Petitioner is neither an OEM nor an authorized distributor
of Allen-Bradley parts. Petitioner bought and sold Allen-Bradley
parts in a bootleg market for those parts. During the subject
years, petitioner purchased Allen-Bradley parts primarily from
three OEMs. These OEMs purchased large quantities of
Allen-Bradley parts either (1) directly from Allen-Bradley at
prices which were deeply discounted from those of the retail
market or (2) from one or more of Allen-Bradley’s authorized
distributors at prices which were commensurate with the retail
market but which were subsidized by Allen-Bradley so as to reduce
significantly the prices paid by the OEMs for those parts. These
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Last modified: May 25, 2011