H.B. 412 Enrolled

1

BELOW COST SALES
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Stephen H. Urquhart
5 Senate Sponsor: Curtis S. Bramble
6
7 LONG TITLE
8 General Description:
9 This bill eliminates provisions of Title 13, Chapter 5, Unfair Practices Act, concerning
10 the sale of products below cost.
11 Highlighted Provisions:
12 This bill:
13 . eliminates provisions of Title 13, Chapter 5, Unfair Practices Act, concerning the
14 sale of products below cost; and
15 . makes technical changes.
16 Monies Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 None
20 Utah Code Sections Affected:
21 AMENDS:
22 13-5-9, as last amended by Laws of Utah 2007, Chapter 306
23 REPEALS:
24 13-5-7, as last amended by Laws of Utah 1992, Chapter 30
25
26 Be it enacted by the Legislature of the state of Utah:
27 Section 1. Section 13-5-9 is amended to read:
28 13-5-9. Limitation on quantity of article or product sold or offered for sale to any
29 one customer.

30 [(1) For the purpose of preventing evasion of this chapter in all sales involving more
31 than one item or commodity the vendor's or distributor's selling price shall not be below the cost
32 of all articles, products, and commodities included in such transactions. Each article, product, or
33 commodity individually advertised or offered for sale, shall be individually subject to the
34 requirements of Section 13-5-7 , when sold with other articles, products, or commodities.]
35 [(2) Under this section, proof of limitation of the quantity of any article or product sold
36 or offered for sale to any one customer of a quantity less than the entire supply thereof owned
37 or possessed by the seller or which he is otherwise authorized to sell at the place of such sale or
38 offering for sale, together with proof that the price at which the article or product is so sold or
39 offered for sale is in fact below its cost, raises a presumption of the purpose or the intent of the
40 sale being to injure competitors or destroy competition, and is unlawful. This section applies
41 only to sales by persons conducting a retail business, the principal part of which involves the
42 resale to consumers of commodities purchased or acquired for that purpose, as distinguished
43 from persons principally engaged in the sale to consumers of commodities of their own
44 production or manufacture.]
45 [(3) There shall be no circumvention of] A person may not circumvent the provisions of
46 this chapter relating to the quantity of articles or products any one customer may purchase by
47 requiring presentation of coupons, certificates, special purchase authorizations, or any other
48 procedures designed in any way to limit quantity of purchases as provided herein.
49 Section 2. Repealer.
50 This bill repeals:
51 Section 13-5-7, Sales at less than cost.