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1253(a) to include "an agreement which gives one of the parties
to the agreement the right to distribute, sell, or provide goods,
services, or facilities, within a specified area." We have found
this definition to be consistent with the common understanding of
the term. Jefferson-Pilot Corp. v. Commissioner, supra at 440-
441. When Congress uses a term that has accumulated a settled
meaning under equity or the common law, courts must infer that
Congress intended to incorporate the established meaning of the
term, unless the statute otherwise dictates. NLRB v. Amax Coal
Co., 453 U.S. 322, 329 (1981); see also Jefferson-Pilot Corp. v.
Commissioner, supra at 442 n.8. Since we find no indication that
Congress intended "franchise" to carry a different meaning in the
context of section 865, we adopt this definition for purposes of
this section.
Pursuant to section 1253(a), the transfer of a franchise,
trademark, or trade name shall not be treated as the sale or
exchange of a capital asset if the transferor retains a
significant power, right, or continuing interest with respect to
the subject matter of the franchise, trademark, or trade name.
Prior to its amendment in the Omnibus Budget Reconciliation Act
of 1993 (OBRA), Pub. L. 103-66, sec. 13261(c), 107 Stat. 312,
539,18 section 1253(d)(2)(A) provided that if a transfer of a
18Congress amended sec. 1253(d) by replacing pars. (2), (3),
(4), and (5) with the following:
(continued...)
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