Load, Inc. - Page 7

                                        - 7 -                                         
          salespersons), upon completion the manufactured homes are sold by           
          the manufacturers to ADI, by ADI to the independent salespersons,           
          and by the independent salespersons to the retail customers.                
               Of manufactured homes sold by ADI, approximately 90 percent            
          are custom ordered by retail customers based on the decisions and           
          selections customers make in their discussions and negotiations             
          with the independent salespersons and while inspecting ADI’s                
          model manufactured homes on the sales lots.                                 
               Approximately 10 percent of the manufactured homes sold by             
          ADI consist of the model manufactured homes that are purchased by           
          retail customers right off of the sales lots, after negotiating             
          with the independent salespersons.                                          
               ADI sells the manufactured homes to the independent                    
          salespersons for the same wholesale price which ADI pays the                
          manufacturers for the manufactured homes.  The independent                  
          salespersons set the price markup at which the manufactured homes           
          are sold to retail customers, subject of course to negotiations             
          with the customers.                                                         
               Generally, title to manufactured homes that are custom                 
          ordered by retail customers and that are shipped directly to the            
          customers’ homesites is held by ADI and by the independent                  
          salespersons only briefly.  The record is not clear as to exactly           
          when title passes and as to who has title to the manufactured               
          homes during the delivery process.                                          






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011