H. B. 2688
(By Delegate Sprouse)
[Introduced January 10, 1996; referred to the
Committee on the Judiciary.]
A BILL to amend and reenact section six, article eleven-a,
chapter forty-seven of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
eliminating the applicability of gasoline sales to the seven
percent rule.
Be it enacted by the Legislature of West Virginia:
That section six, article eleven-a, chapter forty-seven of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 11. FAIR TRADE ACT.
§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
(except for gasoline sales which shall be specifically exempted
from this section) seven percent of the aggregate of invoice cost
or replacement cost (whichever is used), less trade discounts as
aforesaid, and plus said freight charges.
(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 exempt gasoline sales
from the seven percent rule.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.