Beauregard Textile Company

In September $1990,$ Joel Calloway and Clarence Beal, Jr$.,$ sales manager and controller respectively of the Beauregard Textile Company, met to prepare recommendations for fourth$-$quarter fabric prices. When approved by the executive committee, fabric prices were published and mailed to customers. These prices were considered firm for the quarter. Beauregard was one of the largest firms in its segment of the textile industry with annual sales of about $$82$ million. Company sales persons were paid straight salaries and sold the full line of fabrics.

I On this occasion, Calloway and Beal were particularly concerned on how to price Triaxx$-30,$ a blend of nylon, polypropelene, and rayon used for special outdoor applications. In January $1990,$ Beauregard had raised its price for Triaxx$-30$ from $$3$ to Staand in$$order$$to$$hain