H.B. 412

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




Legislative Review Note
as of 2-6-08 6:32 PM

Office of Legislative Research and General Counsel