Beeline Fashions, Inc. v. State Board of Equalization

Beeline Fashions, Inc. ("Beeline") is an Illinois corporation engaged in the business of manufacturing and selling women’s ready-to-wear apparel. It markets such clothing throughout the United States, and is registered as a retailer in California. Full-time employees of Beeline, called “managers,” recruit and contract for the *392 services of “stylists.” These stylists, in turn, organize “home fashion parties” by recruiting housewives to act as “hostesses.” The hostess customarily invites her friends and neighbors to a home fashion party-conducted by the stylist. At the party Beeline’s clothing samples are modeled and the stylist solicits orders. The stylist collects the individual order forms, “consolidates” them, and forwards the consolidated orders to Beeline in Illinois. Customarily the purchasers pay the hostess the charges for their orders within two or three weeks after the party. Beeline packages each purchaser’s order separately, enclosing all such packages resulting from one home fashion party in a larger package. The larger parcel is then shipped to the hostess from Illinois by United States mail, C.O.D. Upon receipt of the shipment, the hostess pays the…