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at the food show, in currency or by check, from the vendor to the
member store. In the case of an off-invoice discount, petitioner
stood as an intermediary between the vendor and the member store,
reducing the price it charged the member store to reflect the
off-invoice discount and receiving an equal reduction from the
vendor in the price it charged petitioner. Petitioner made no
explicit price reduction if the vendor agreed to pay show money
directly to the member at the food show.
Vendors exercised their discretion with respect to show
money by indicating their choices on the deal data sheets they
submitted. Information from deal data sheets was transferred by
petitioner to individual sheets for each vendor. Those sheets
were then reproduced and bound into books (show books) for
distribution to members attending the food show.
Each sheet in the show book had attached to it a perforated
strip (tear strip) that the member store could detach and use to
order from petitioner an item (or items) described on the
associated sheet. The member store delivered the tear strip to
the appropriate vendor, who, if an immediate payment of show
money was called for, made that payment and then delivered the
tear strip to petitioner for fulfillment of the order.
Petitioner entered the necessary information from the tear strip
into its billing and accounting records and, in most cases, then
discarded the tear strips. Petitioner ordered additional
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Last modified: November 10, 2007