Opinion ID: 441645
Heading Depth: 2
Heading Rank: 1

Heading: Summer Program.

Text: 13 AFS's preferred sales target in this program has always been the group of single white females between the ages of 18 and 21 living at home with a parent who could co-sign for the credit extension. Although requested, the parent of the single white female need not co-sign in order for credit to be extended. AFS automatically ships the goods to the applicants in this group without checking the credit of the single white female applicant or the parent(s), if the parent(s) co-signed. 14 The district court explained how AFS reached its preferred market of 18 to 21 year old single white females: 15 [AFS] has encouraged sales to this preferred group by adoption of a policy (by specific directions to its sales force), to sell in areas believed to be all white, or predominantly white, and by avoiding sales areas where the minority population might be substantial. It has discouraged sales personnel to pursue minority or non-preferred groups through deferred commission arrangements on such sales which arrangements are markedly different from, and substantially less lucrative than, the immediate full commission arrangements for sales to the preferred market group of white single females between the ages of 18 and 21. 16 Id. at 555 p 33. The district court pointed out further: 17 The non-preferred sales, which are to almost all black females, are explained by mostly unavoidable encounters of salespersons with black or other minority persons as part of mixed audiences in markets targeted by AFS as all white colleges, all white neighborhoods and all white high schools. 18 Id. at 555 p 34. 19 Where sales presentations are made to persons outside the preferred single white female group, goods are shipped on a deferred basis, following among other things a satisfactory credit check made on both the applicant and co-signer. About 20% of the persons in this non-preferred category fail to qualify for credit under AFS's alleged customary credit standards. Although, where possible, AFS avoids making sales to black and other minority persons, there is no evidence that AFS has expressly refused to sell its product on a cash basis to an individual solely based on factors such as race, sex, or marital status. However, if an applicant fails the credit check, credit is not extended. If credit is the only method by which an applicant can purchase, then no sale is made. This result cannot occur with the single white female group because there is no credit check of anyone in that group. 20 Parents of applicants in the non-preferred group are strongly encouraged to co-sign when the sale is based on their credit standing. Furthermore, a large deposit is encouraged on non-preferred program sales, although the minimum applicable to all sales will be accepted. 21