SUMMARY
SAMCO, INC.
Sam Melko is the sales representative in the Columbus area for three local computer software producers: Accto Company, which produces accounting-related software; Saleco, Inc., a producer of sales management software; and Invo, Inc., a producer of inventory control software.
Sam’s main job was to call on possible customers. Once he made a sale, he would send the order to the respective producer, who would ship the programs directly to the customer. The producer would bill the customer and Melko would receive a commission varying from five percent (5%) to ten percent (10%) of the dollar value of the sale.
Melko called on anyone in the Columbus area who might use the products he sold. At first, his job was relatively easy, and sales came quickly because he had little competition. Many national companies offer similar products but at that timethey were not well represented in the Columbus area.
In 1990, Melko sold $250,000 worth of Accto software, earning ten percent (10%) commission; $100,000 worth of Saleco software, also earning a ten percent (10%) commission; and $200,000 worth of Invo software, earning a five percent (5%) commission. He was encouraged with his progress and looked forward to expanding sales in the future. A manufacturer of small lift trucks had recently approached him, but Sam wasn’t too enthusiastic about this offer because the commission was only two percent (2%) on potential annual sales of $150,000.
The Metclean Company, also in Columbus, has made what looks like an attractive offer. They heard what a fine job Sam was doing and felt that he could help them solve their present problem. Metclean is having trouble with its whole marketing effort and would like Sam Melko to take over.
Metclean, Inc. produces solvents used to make coatings for metal products. It sells mainly to industrial customers in the Mid-Ohio area and