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Date
Rule
802.1
Staff
Michael Verne
Response/Comments
Yes

Question

From: (redacted)
Sent: Wednesday, November 09, 2005 2:47 PM
To: Verne,B. Michael
Subject: Used Durable Goods

Mike,

Company A sells"Brand X Airplane" it uses in its business (but not an airline ortransport company, more like a tech or manufacturing company) to Company B for$25 million. Company A also sells off the remainder of its fleet of Brand XAirplanes to others.

Company A thenreplaces its fleet with "Brand Y Airlines" within six months of thesale to Company B.

Is the airplanesold to Company B a used durable good?

I believe it isbecause
(1) it is used repeatedly and
(2) has a useful life greater than one year and
(3) was not acquired as part of an operating unit and
(4) the acquired person replaced by acquisition all of the productive capacityof the airplane within six months of the sale.

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Informal interpretations provide guidance from previous staff interpretations on the applicability of the HSR rules to specific fact situations. You should not rely on them as a substitute for reading the Act and the Rules themselves. These materials do not, and are not intended to, constitute legal advice.

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