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obtained all licenses needed to operate the telephones, and took
all actions necessary to keep the telephones in working order.
On December 29, 2000, petitioner entered into a second
“Telephone Equipment Purchase Agreement” contract with ATC,
ostensibly purchasing two more telephones for $5,000 each.4 He
again signed a services agreement and selected the “Level 4”
service. Again, Alpha Telcom was responsible for all
maintenance, and petitioner was to receive $58.34 per month, per
telephone. Petitioner was later informed that these two pay
telephones were placed at an amateur baseball field in West
Warwick, Rhode Island. As was true with all of the pay
telephones assigned to petitioner under this scheme, Alpha Telcom
negotiated for the placement of the telephones, and petitioner
was not involved in any way with those negotiations.
Alpha Telcom modified the pay telephones to be accessible to
the disabled: (1) By adjusting the cord length so that the
telephones would be accessible to the wheelchair bound, and/or
(2) by installing volume controls to make them more useful to the
hearing impaired, and/or (3) by reducing the height at which the
telephones were installed. Alpha Telcom represented to investors
4 The Telephone Equipment Bill of Sale and Purchase
Agreement was left blank; it did not actually identify in any way
the telephones that would be assigned to petitioner.
Additionally, though the Buy Back Election was slightly modified
from its earlier form, it still provided for a repurchase price
of $5,000 per telephone.
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Last modified: November 10, 2007