H. B. 4565
(By Delegates D. Poling, Hamilton and Williams)
[Introduced February 14, 2008; referred to the
Committee on the Judiciary.]
A BILL to amend and reenact §47-11A-6 of the Code of West Virginia,
1931, as amended, relating to how cost is determined in retail
businesses.
Be it enacted by the Legislature of West Virginia:
That §47-11A-6 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 11A. UNFAIR TRADE PRACTICES.
§47-11A-6. How cost determined.
(a) The term "cost" when applicable to the business of
retailer shall mean bona fide cost and shall mean: (i) The invoice
cost of the article, product or item of merchandise to the retailer
or the replacement cost thereof to the retailer within thirty days
prior to the date of sale, offer for sale or advertisement for
sale, as the case may be, in the quantity last purchased, whichever
is lower, from either of which there shall be deducted all trade discounts, except customary discounts for cash; and (ii) to either
of which there shall be added the following items of expense:
(1) Freight charges not otherwise included in the cost of the
article, product or item of merchandise, but which freight charges
shall not be construed as including cartage to retail outlet if
done or paid for by the retailer;
(2) A markup to cover, in part, the cost of doing business,
which markup, in the absence of proof of a lesser cost, shall be
seven percent of the aggregate of invoice cost or replacement cost
(whichever is used), less trade discounts as aforesaid, and plus
said freight charges;
however, nonintoxicating beer shall be
subject to a markup of twenty percent of the aggregate of invoice
cost or replacement cost (whichever is used), less trade discounts
as aforesaid, and plus freight charges; at the discretion of the
retail store owner.
(b) The term "cost" when applicable to the business of a
wholesaler shall mean bona fide cost and shall mean: (i) The
invoice cost of the merchandise to the wholesaler plus applicable
taxes, or the replacement cost of the merchandise to the wholesaler
within thirty days prior to the date of sale, offer for sale or
advertisement for sale, as the case may be, in the quantity last
purchased, whichever is lower, from either of which there shall be
deducted all trade discounts except customary discounts for cash;
and (ii) to either of which there shall be added the following items of expense:
(1) Freight charges not otherwise included in the cost of the
article, product or item of merchandise, but which freight charges
shall not be construed as including cartage to the retail outlet if
done or paid for by the wholesaler;
(2) A markup to cover, in part, the cost of doing business,
which markup in the absence of proof of a lesser cost, shall be
four percent of the aggregate of invoice cost or replacement cost
(whichever is used), less trade discounts as aforesaid, and plus
said freight charges.
NOTE: The purpose of this bill is to allow retail store owners
to markup nonintoxicating beer up to twenty percent for retail
sale.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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