Alling v. American Tool and Grinding Co., Inc.

MEMORANDUM OPINION AND ORDER

KANE, District Judge.

I

BACKGROUND

In early 1976, defendant American Tool and Grinding Company was formed by defendants Vogler, Scognamillo, and Fair-cloth. The concept of the business was the sale of distributorship packages as a business opportunity. The distributorship had three aspects. American Tool and Grinding would: (1) train distributors in the grinding of machine cutting tools, (2) provide each distributor a tool and cutter grinder with which to grind tools and cutters for machinists located in the distributor’s territory, and (3) provide the distribu tor…