James G. LeBloch and Cathy Michelsen LeBloch - Page 7




                                         -7-                                          
          and she was at the residence, about the status of the shops                 
          including whether any manager needed or desired any specific                
          piece (or pieces) of inventory that Michelsen had at the                    
          residence.  Michelsen purchased inventory for all of the shops,             
          usually by calling the vendors and having most (if not all) of              
          the merchandise shipped directly to the shops.5  She aimed to               
          coordinate a somewhat even distribution of inventory between the            
          shops, and, when she visited the shops (usually on a weekly                 
          basis), she transported inventory (in her car) from the residence           
          to the shops or from one shop to another.  Michelsen also                   
          prepared and monitored the budget for the shops, and she                    
          generally deposited the shops’ weekly receipts into the bank.               
          For the most part in 1997, Michelsen also toured a few locations            
          in Southern California in search of a place to move the second              
          Nature’s Touch store and a place to open the third Nature’s Touch           
          shops.                                                                      
               Inventory was displayed at the shops or, to a lesser extent,           
          stored at the residence in either the garage or in the guest                
          bedroom closet (approximately 56 square feet in size), or at the            




               5 Michelsen also once or twice a year purchased inventory at           
          retailer-only gift shows.  There, petitioners (and sometimes one            
          or more employees of Nature’s Touch) viewed various merchandise             
          displayed by manufacturers (usually on tables) and ordered                  
          products for sale at the Nature’s Touch stores.                             






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Last modified: November 10, 2007