Chapter 627

2006 -- H 6886

Enacted 07/14/06

A N A C T

RELATING TO COMMERCIAL LAW -- UNFAIR SALES PRICES

Introduced By: Representative Edwin R. Pacheco

Date Introduced: January 24, 2006

It is enacted by the General Assembly as follows:

     SECTION 1. Section 6-13-1 of the General Laws in Chapter 6-13 entitled "Unfair Sales

Practices" is hereby amended to read as follows:

6-13-1. Definitions. -- (a) "Cost to the retailer" means the invoice cost of the

merchandise to the retailer within thirty (30) days prior to the date of the sale, or the replacement

cost of the merchandise to the retailer within thirty (30) days prior to the date of the sale, in the

quantity last purchased, whichever is lower; less all trade discounts except customary discounts

for cash; to which shall be added:

      (1) Freight charges not otherwise included in the cost of the merchandise;

      (2) Cartage to the retail outlet if performed or paid for by the retailer, which cartage cost

shall be deemed to be three-fourths of one percent (0.75%) of the cost of the merchandise to the

retailer, unless the retailer claims and proves a lower cartage cost; and

      (3) A markup to cover in part the cost of doing business, which markup, in the absence

of proof of a lesser cost, shall be six percent (6%) of the total cost at the retail outlet.

      (b) "Cost to the wholesaler" means the invoice cost of the merchandise to the wholesaler

within thirty (30) days prior to the date of the sale, or the replacement cost of the merchandise to

the wholesaler within thirty (30) days prior to the date of the sale, in the quantity last purchased,

whichever is lower; less all trade discounts except customary discounts for cash; to which shall be

added:

      (1) Freight charges not otherwise included in the cost of the merchandise; and

      (2) Cartage to the retail outlet if performed or paid for by the wholesaler, which cartage

cost shall be deemed to be three-fourths of one percent (0.75%) of the cost of the merchandise to

the wholesaler, unless the wholesaler claims and proves a lower cartage cost; and

      (3) A markup to cover in part the cost of doing business, which markup, in the absence

of proof of a lesser cost shall be two percent (2%) of the total cost at the wholesale establishment.

      (c) Where two (2) or more items are advertised, offered for sale, or sold at a combined

price, the price of each item shall be determined in the manner stated in subsections (a) and (b).

      (d) "Sell at retail," "sales at retail," and "retail sale" mean and include any transfer of title

to tangible personal property for a valuable consideration made in the ordinary course of trade or

in the usual prosecution of the seller's business to the purchaser for consumption or use other than

resale or further processing or manufacturing. In this and in the preceding subsection the previous

terms shall include any transfer of property where title is retained by the seller as security for the

payment of the purchase price.

      (e) "Retailer" means and includes every person, co-partnership, corporation or

association engaged in the business of making sales at retail within this state; provided, that, in

the case of a retailer engaged in the business of making sales both at retail and at wholesale, the

term shall be applied only to the retail portion of the business.

      (f) "Wholesaler" means and includes every person, partnership, corporation, or

association engaged in the business of making sales at wholesale within this state; provided, that,

in the case of a wholesaler engaged in the business of making sales both at wholesale and at

retail, the term shall be applied only to the wholesale portion of the business.

      (g) Whenever any person, partnership, corporation, or association in the course of doing

business performs the functions of both wholesaler and retailer without actually being engaged in

the business of making sales at wholesale, the term "wholesaler" means and includes that function

of the business of preparation for sale at the retail outlet, and the term "retailer" shall be applied

only to the retail portion of the business.

(h) “Household” means and includes those who dwell under the same roof, house or

apartment.

(i) “Rebate” means a refund of a portion of the purchase price made to consumer to

induce purchase of product.

     SECTION 2. Chapter 6-13 of the General Laws entitled "Unfair Sales Practices" is

hereby amended by adding thereto the following section:

6-13-20. Rebate restrictions -- prohibited. – No person, firm, business, partnership or

corporation which issues rebates to its customers in the course of their transactions of business

shall restrict their use to one per household per item purchased.

     SECTION 3. This act shall take effect upon passage.

=======

LC00676

=======