(RIN:139)

Friday, November 28, 1997

 

String Industry Council

Charles Avsharian, President

P.O.Box 1411

Ann Arbor Michigan 48106                                                                      Tel: 313 665 3978

 

Re: Topic for Agenda

 

Dear Mr. Avsharian,

 

Thank you for the information regarding the upcoming breakfast meeting on Wednesday morning, Dec. 17th , 1997.

 

As per our last meeting in Chicago, those in attendance suggested various topics which should be put on the agenda for further discussions. One of the topics you recorded is the issue of kickbacks, commissions, finder fees, etc.

 

Especially, since the article by Strings editor Mary VanClay, in Strings magazine of Nov. '96, entitled: "Mysteries of the Market," and particularly the subheading "The TABOO subject," questioned the legality of such practices. Therefore, this question of legality, which should receive support from both violin dealers and string teachers would be the answer gotten from a legal opinion extracted from a lawyer, specializing in Consumer Fraud, Anti Trust and Unfair Competition.

 

The question, for which teachers and dealers need a legal opinion, could be formulated as follows:

 

"What is the legality of a violin dealer paying a percentage of the sales price to the string teacher    without the knowledge of the purchasing student and/or parent (so called: under the table)    as payment (kick backs, commissions, finders fees) or remuneration, either in cash or as credit toward merchandize--. for using his fiduciary relationship, in giving the student his approval to purchase a specific instrument, bow or service from a specific violin dealer or violin repairer?

 

Looking forward seeing you on December 17,

I remain, Sincerely Yours

 

Fritz Reuter