[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