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Gregory Webb (Webb), an employee of Shaw’s Gulf, was the
construction supervisor responsible for overseeing the day-to-day
construction of the Dairy Queen and Western Sizzlin’ SW
remodeling projects. Webb worked with petitioner on the design,
drawings, and cost of the projects. Petitioner approved all of
the details of the renovation projects, set up lines of credit
with vendors, found subcontractors, set up the bank account, and
signed the checks for the cost of construction. During
construction, Webb met with petitioner for about an hour on a
daily basis to discuss the progress and problems encountered on
the remodeling projects.
Petitioner took trips for the purpose of improving his
business operations. He attended conventions, observed the
operations and facilities of other restaurants, and met with
other franchise owners. The trips he took in his airplane are
documented in his airplane flight log. The airplane flight log
recorded the dates of travel, points of departure and arrival,
hours of flight duration, and remarks on the purpose of the
trips. Petitioner’s flight and travel time that related to Shaw
Ltd. was 110 hours in 1995. Petitioner kept calendars for the
years in issue, but they were discarded at the end of each
calendar year.
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Last modified: May 25, 2011