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7. R. W. Davis Co. and Oyster Bay Inc. are corporations organized under the laws of the Commonwealth of Virginia. R. W. Davis Co. owns large tracts of property along the shores of the Chesapeake Bay in Virginia and Maryland. Davis keeps some of the land for its own use, and sells real estate contracts for the rest. Davis sells the land for a uniform price per waterfront foot and conveys title to the purchaser when the full purchase price had been paid. Most purchasers of the land lease it back to Oyster Bay Inc., service company that will grow oysters in the adjacent waters, and harvest, pool, and market the oysters, providing profits to the purchasers of the land. Oyster Bay holds "full and complete" possession of the land specified in the services contract and leaves the purchasers of the property no right of entry and no right to the oysters that are grown and harvested. In its advertising materials, Davis stresses the experience and superiority of Oyster Bay's service. Davis markets the land through a resort hotel it owns in Virginia Beach, and promises significant profits in its sales pitch to those who express interest in the oyster beds. Most purchasers of the land are not Virginia residents or watermen. Most often, they are business and professional people inexperienced in aquiculture and lacking the skill or equipment to tend to the oyster beds by themselves. Must R.W. Davis Co. and Oyster Bay Inc. register their contracts as securities? Explain

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