[Federal Register Volume 62, Number 157 (Thursday, August 14, 1997)]
[Notices]
[Page 43520]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21437]
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DEPARTMENT OF EDUCATION
Arbitration Panel Decision Under the Randolph-Sheppard Act
AGENCY: Department of Education.
ACTION: Notice of Arbitration Panel Decision Under the Randolph-
Sheppard Act.
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SUMMARY: Notice is hereby given that on May 28, 1996, an arbitration
panel rendered a decision in the matter of Leslie Lessard v.
Washington Department of Services for the Blind (Docket No. R-S/95-6).
This panel was convened by the U. S. Department of Education pursuant
to 20 U.S.C. 107d-1(a), upon receipt of a complaint filed by
petitioner, Leslie Lessard.
FOR FURTHER INFORMATION CONTACT: A copy of the full text of the
arbitration panel decision may be obtained from George F. Arsnow, U. S.
Department of Education, 600 Independence Avenue, S.W., Room 3230, Mary
E. Switzer Building, Washington DC 20202-2738. Telephone: (202) 205-
9317. Individuals who use a telecommunications device for the deaf
(TDD) may call the TDD number at (202) 205-8298.
SUPPLEMENTARY INFORMATION: Pursuant to the Randolph-Sheppard Act (20
U.S.C. 107d-2(c)), the Secretary publishes in the Federal Register a
synopsis of each arbitration panel decision affecting the
administration of vending facilities on Federal and other property.
Background
In 1978, after completing training, Leslie Lessard, complainant,
was assigned to operate a vending facility at the Jackson Federal
Building in Seattle, Washington, for a six-month period while the
vendor at that location was away pursuing additional education.
In 1984, complainant learned of an opportunity to operate several
vending machines at other Federal facilities in the Seattle area,
including the Terminal Annex Building of the U.S. Postal Service. Mr.
Lessard discussed with the Washington Department of Services for the
Blind, the State licensing agency (SLA), the possibility of the SLA
obtaining a permit to operate these vending machines. The SLA informed
the complainant that, if a permit were to be obtained to operate the
vending machines, complainant would need to supply the machines. The
SLA secured the permit and subsequently the complainant purchased
vending machines for the various locations.
In 1988, the complainant began informal discussions with the SLA
concerning the SLA's purchase of the complainant's vending machines. On
January 9, 1989, the complainant sent a letter to the SLA outlining an
alleged agreement with it to purchase his vending machines. By letters
dated May 3 and October 3, 1989, the SLA responded. The SLA
acknowledged its awareness of the purchase option available to it, but
stated that, due to lack of funds, it would be unable to purchase all
of the machines.
By letter dated December 12, 1989, the SLA requested that the
complainant provide it with invoices for two vending machines. In early
1990, the SLA purchased six machines from Mr. Lessard. Subsequently, by
letter dated August 24, 1992, the complainant offered for sale to the
SLA his remaining machines and equipment. By letter dated May 20, 1994,
the SLA waived its purchase option. On September 24, 1994, a requested
State fair hearing was held concerning this matter. A decision was
rendered on April 24, 1995, by an Administrative Law Judge (ALJ).
The ALJ ruled that there was no contract between the complainant
and the SLA for the sale of the machines, notwithstanding complainant's
assertion of an existing oral agreement between himself and the SLA.
The ALJ further ruled that the agreement in a transaction of this
nature must be in writing and signed by the person against whom
enforcement is being sought. The SLA adopted the ALJ's decision as
final agency action. Mr. Lessard sought review of this decision by a
Federal arbitration panel. A hearing of this case was held on May 28,
1996.
Arbitration Panel Decision
The issue before the arbitration panel was whether, pursuant to 20
U.S.C. 107 et seq. of the Randolph-Sheppard Act, the SLA had a
contractual obligation to purchase Mr. Lessard's vending machines.
The majority of the panel ruled that the SLA never entered into an
oral or written contractual agreement to acquire Mr. Lessard's vending
machines. The majority of the panel further determined that the
complainant and the SLA had never reached an understanding as to what
would be purchased, when, or for how much, and, therefore, there was no
meeting of the minds or agreement that was enforceable by law.
According to the panel, the SLA had merely agreed to purchase vending
machines from the complainant on a case-by-case basis as funds were
available. Finally, the panel noted that Washington State law requires
that a contract for the sale of goods with a value of more than $500
must be in writing and that the statute was applicable with respect to
this complaint because the goods at issue were valued at more than
$500. Therefore, the majority of the panel denied complainant's claim
in its entirety.
One panel member dissented from the majority opinion.
The views and opinions expressed by the panel do not necessarily
represent the views and opinions of the U.S. Department of Education.
Dated: August 8, 1997.
Judith E. Heumann,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 97-21437 Filed 8-13-97; 8:45 am]
BILLING CODE 4000-01-P
