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petitioners would receive 100 percent of the revenue.
Notwithstanding the terms of the Alpha Telcom service agreement,
Alpha Telcom made it a practice to pay $58.34 per month per pay
phone, regardless of how little income the pay phone produced.
Additionally, under the Alpha Telcom service agreement, Alpha
Telcom negotiated the site agreement with the owner or
leaseholder of the premises where the pay phones were to be
installed. Alpha Telcom installed the pay phones, paid the
insurance premiums on the pay phones, collected and accounted for
the revenues generated by the pay phones, paid vendor commissions
and fees, obtained all licenses needed to operate the pay phones,
and took all actions necessary to keep the pay phones in working
order. Petitioner Kenneth Dunn signed the Alpha Telcom service
agreement and the ATC, Inc. service selection form on October 14,
1999,2 the same day he signed the ATC pay phone agreement.
Petitioners received an undated letter confirming their pay
phone order and a notice that an order had been placed for the
installation of the pay phones. Petitioners were not able to
select the pay phones that would be assigned to them.
Petitioners, however, knew where the pay phones would be installed.
2 Mr. Dunn, as trustee, signed on behalf of petitioners for
the Kenneth R. Dunn & Delia H. Dunn Revocable Trust Agreement.
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Last modified: May 25, 2011