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the rigs.8 Additionally, companies in the rig selling business
used manufacturers' representatives to do the maintenance so the
representative could provide certificates to a prospective
purchaser with independent verification that the equipment was
operational. CDC did not hire equipment manufacturers'
representatives but rather performed its own maintenance work.
Companies that were in the business of selling drilling rigs
maintained offices in Houston because buyers from around the
world came to Houston to shop for drilling rigs. CDC never
opened an office in Houston. CDC located its rigs in remote
areas in Oklahoma and Texas where the demand for drilling would
occur.
CDC would have advertised the sale of its rigs in trade
publications. CDC never advertised in any trade publication that
specialized in advertising rig sales in order to sell any of its
rigs.
CDC would not have acquired trucks and forklifts because it
would have been cheaper to hire a trucking company to move the
rigs and equipment only one time before they were sold.
8 It was more expensive to maintain rigs in a state of
readiness than it was to maintain them for resale.
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