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operation. After Maxted's relocation, petitioner continued to
maintain telephone contact with him. On several trips to
California, Maxted visited petitioner.
Sometime before July 1988, Maxted telephoned petitioner and
invited him to visit Phoenix to see his car-shade operation.
During this conversation, Maxted indicated that he might need
financial assistance to continue making car shades. Shortly
thereafter, petitioner went to Phoenix to visit Maxted's
operation. Petitioner went to the shop where the car shades were
made and observed the construction of the car shades. Petitioner
believed the car shades were constructed and packaged nicely.
Petitioner advanced $10,000 to Maxted via a cashier's check
dated July 12, 1988. Petitioner believed Maxted would use the
money to purchase a large quantity of the aluminum-like material
from the east coast suppliers to construct a large quantity of
car shades. Petitioner believed he would be fully repaid from
the proceeds generated by sale of the car shades within 90 days.
Petitioner did not take a promissory note or ask for collateral
for the advance because he believed Maxted's word was good for
the loan.
During the ensuing 90 days, Maxted advised petitioner that
he purchased the materials and that he was constructing the car
shades. Maxted also informed petitioner that he had appointments
with K Mart and Pep Boys to show the car shades. After several
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