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Sellers who sold large quantities in bulk at conventions
also tended to be selling at distress prices, even below the
values in Warren's report. A sale at distress prices indicates a
seller under compulsion or a bulk sale. The regulation does not
permit either circumstance to dictate valuation. Sec. 20.2031-
1(b), Estate Tax Regs.
In 1985, stores specializing in movie memorabilia were
located in such major metropolitan areas as New York, Los
Angeles, and San Francisco. These stores also competed in
nationwide markets through catalog sales along with dealers who
specialized in catalog sales. Despite the lack of specific
comparative sales data in the record concerning the different
markets, we conclude that it is more likely than not, based upon
the testimony of both experts, that retail stores were the most
common form of sale to “ultimate consumers” of movie memorabilia
in 1985.
The mint condition of the collection particularly suited it
to sale on consignment in the retail store setting or in the
catalog sales market. The absence of “high end” titles would
have precluded sale of most of the collection on an item-by-item
basis in the auction market. These factors support our ultimate
finding that, in December 1985, retail stores were the relevant
market for the Leibowitz collection. We therefore reject
Warren's overall valuation of the collection.
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