- 8 -
During the subject years, Beiner’s knowledge, experience,
and relationships with the three OEMs were critical to
petitioner’s business and were indispensable to petitioner’s
operation and existence. He also negotiated prices and other
terms for petitioner, decided the price at which petitioner
bought and sold its inventory, and knew the uses for each part in
petitioner’s inventory. He established inventory controls,
purchased inventory, resolved with the three OEMs problems
concerning the shipment of parts to petitioner, and ascertained
the quantity of each part that petitioner had to maintain in its
inventory so that petitioner had a part when needed but did not
have too many parts that sat idly on the shelf. Petitioner had a
computerized accounting system that monitored its inventory and
allowed Beiner to set minimum and maximum amounts of each part
that should be in inventory at any one time. Generally once
during each subject year, Beiner reviewed the prior year’s sales
of each part, including whether anything unusual occurred during
the prior year that would have skewed those sales, and
established each part’s minimum and maximum amounts for each
month of the current year. Beiner’s system of inventory
generally allowed petitioner to turn over its inventory four
times a year.
Beiner also set petitioner’s corporate, accounting, and
financial policies, which petitioner’s other employees were not
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