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supermarket. Some other potential uses listed in the offering
were various lubricants for high-speed or high-temperature
machinery, pharmaceuticals, cooking oils, disinfectants,
polishing waxes, corrosion inhibitors, candles, animal feed
supplements, and fertilizer. Being a physician, it seems logical
that petitioner would have had some access to information about
the use of jojoba in the pharmaceutical arena; however,
petitioner failed to pursue this possibility. Petitioners'
failure to investigate any of the other enumerated potential uses
of jojoba plants was unreasonable under the circumstances.
Petitioners had no legal or agricultural background or
training; yet they consulted no source of such information before
agreeing to invest more than $30,000 in Blythe II.11 At a
minimum, petitioners could have contacted an attorney to review
the offering, provide legal advice surrounding the partnership,
and explain the legal ramifications of the licensing agreement's
canceling out the R&D agreement. A reasonable and ordinarily
prudent investor under the circumstances would have consulted an
attorney. Also, petitioners could have taken the simple step of
contacting the agricultural department of a nearby college or
university, or going to another reliable source, to inquire about
11 As stated previously, it is unclear from the record
whether petitioners completed the payments provided for in the
promissory note; however, at the very least, they paid $10,000
and legally committed themselves to pay the remaining $23,920.
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