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H.B. 412 Enrolled





Chief Sponsor: Stephen H. Urquhart

Senate Sponsor: Curtis S. Bramble

             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
             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.

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