2004 -- S 2531

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2004

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A N A C T

RELATING TO COMMERCIAL LAW -- UNFAIR SALES PRACTICES

     Introduced By: Senators Alves, and McBurney

     Date Introduced: February 11, 2004

     Referred To: Senate Finance

It is enacted by the General Assembly as follows:

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

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Practices" is hereby amended to read as follows:

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

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

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

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

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for cash; to which shall be added:

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

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

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

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

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

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

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     (4) In regard to the sale of tobacco products only, as set forth in section 6-13-2, a markup

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to cover in part the costs of doing business, which markup shall be twelve percent (12%) of the

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total cost at the retail outlet.

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

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

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

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

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added:

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

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

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

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

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

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

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establishment.; and

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     (4) In regard to the sale of tobacco products only, as set forth in section 6-13-2, a markup

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to cover in part the costs of doing business, which markup shall be three percent (3%) of the total

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cost at the wholesale establishment.

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

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

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

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

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

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

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

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payment of the purchase price.

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

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

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

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

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

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

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

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

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

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

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

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

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only to the retail portion of the business.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO COMMERCIAL LAW -- UNFAIR SALES PRACTICES

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     This act would permit a twelve percent (12%) markup of the total cost at a retail outlet

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for tobacco product sales.

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     This act would take effect upon passage.

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