Principal in making sale of competing goods

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Reference no: EM132193062

Transmash ZAO, a Russian corporation, has an agreement with an unrelated domestic corporation, DC, under which DC acts as Transmash’s exclusive agent in selling Transmash’s equipment in the US and receives a commission for each sale made. The agreement forbids DC from acting as agent or principal in making a sale of competing goods. Is Transmash engaged in business in the US?

Transmash purchases the business of DC and operates it as a branch. After the purchase, Transmash’s equipment is sold in the US by employees working in and out of an office it rents in Ohio. All orders obtained by the branch are transmitted to Transmash’s home office in Yekaterinburg, Russia, for acceptance or rejection, and none of the employees in the US has the power to make contracts on Transmash’s behalf. Does Transmash have a US trade or business after the acquisition?

Reference no: EM132193062

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