Beiner, Inc. - Page 5

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          OEMs intentionally purchased more parts than needed for their               
          manufacturing process and resold the extra (surplus) parts to               
          petitioner at prices far less than the prices which the                     
          authorized distributors paid Allen-Bradley for the same parts.              
          During the relevant years, petitioner also purchased                        
          Allen-Bradley parts at fire sale prices from distressed companies           
          which had either overbought the parts for their own needs or gone           
          out of business.                                                            
               Petitioner’s inventory during the relevant years included              
          approximately 50,000 different types of parts made by                       
          Allen-Bradley, including many parts that Allen-Bradley no longer            
          manufactured but which were still used as replacement parts in              
          some older equipment.  Petitioner sold its inventory throughout             
          the continental United States to approximately 1,100 customers at           
          prices that approximated the prices at which the authorized                 
          distributors purchased those parts from Allen-Bradley.                      
          Petitioner’s typical customers were (1) large plants, such as               
          General Motors Corp., that had a nonperforming part that had to             
          be replaced immediately rather than in the 2 or more days that it           
          took to receive a replacement part from an authorized                       
          distributor, and (2) the authorized distributors of Allen-Bradley           
          parts who also needed a part immediately rather than in the 2 or            
          more weeks that it took to receive the part directly from                   
          Allen-Bradley.                                                              






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Last modified: May 25, 2011