McLarty v. The Queen, 2005 DTC 217, 2005 TCC 55, rev'd 2006 DTC 6340, 2006 FCA 152, aff'd supra. -- summary under Section 67

Before going on to find that the purchase price for seismic data acquired by the taxpayer did not exceed its fair market value, Little J. indicated (at p. 229) that "since this was an arm's length transaction, and the expense was reasonable this is not an issue of fair market value" and that "given the highly speculative nature of the oil and gas exploration industry, the fact that seismic data is very difficult to value as well as the experience of Mr. Sapieha [the promoter] in the oil and gas exploration industry, this is not an appropriate case to question the participant's business judgment".