H 3998 Session 110 (1993-1994)
H 3998 General Bill, By H.M. Hallman, Carnell, Cobb-Hunter, R.S. Corning,
J.G. Felder, R.C. Fulmer, Govan, Harrell, Harrison, Harvin, D.N. Holt,
Inabinett, Koon, Law, J.G. McAbee, J.T. McElveen, D.E. McTeer, Meacham,
J.H. Neal, Quinn, Riser, Scott, Sharpe, J.S. Shissias, J.W. Tucker,
L.S. Whipper, D. Williams, Witherspoon, S.S. Wofford and R.M. Young
Similar(S 707)
A Bill to amend Section 39-5-350, Code of Laws of South Carolina, 1976,
relating to merchandising unfair trade practices and exemptions, and Section
39-3-150, relating to the provision of law that sales at less than cost for
the purpose of injuring competitors is a conspiracy to form a monopoly, so as
to provide that any wholesale or retail sale of motor fuel at a level below
the actual cost of acquiring the product, which is permitted to meet
competition, shall require certain documentation of the competition's pricing;
to further amend Section 39-3-150 so as to provide that except to meet
competition, no person may sell any grade of motor fuel at a retail outlet at
a price that is below the cost of acquiring the product plus taxes and
transportation; and to amend the 1976 Code by adding Section 39-41-255 so as
to require every service station to post in a conspicuous place the
self-service pump price for each type of gasoline it has available and provide
for related matters.
04/14/93 House Introduced and read first time HJ-25
04/14/93 House Referred to Committee on Labor, Commerce and
Industry HJ-25
A BILL
TO AMEND SECTION 39-5-350, CODE OF LAWS OF SOUTH
CAROLINA, 1976, RELATING TO MERCHANDISING UNFAIR
TRADE PRACTICES AND EXEMPTIONS, AND SECTION 39-3-150,
RELATING TO THE PROVISION OF LAW THAT SALES AT LESS
THAN COST FOR THE PURPOSE OF INJURING COMPETITORS
IS A CONSPIRACY TO FORM A MONOPOLY, SO AS TO
PROVIDE THAT ANY WHOLESALE OR RETAIL SALE OF
MOTOR FUEL AT A LEVEL BELOW THE ACTUAL COST OF
ACQUIRING THE PRODUCT, WHICH IS PERMITTED TO MEET
COMPETITION, SHALL REQUIRE CERTAIN DOCUMENTATION
OF THE COMPETITION'S PRICING; TO FURTHER AMEND
SECTION 39-3-150 SO AS TO PROVIDE THAT EXCEPT TO MEET
COMPETITION, NO PERSON MAY SELL ANY GRADE OF
MOTOR FUEL AT A RETAIL OUTLET AT A PRICE THAT IS
BELOW THE COST OF ACQUIRING THE PRODUCT PLUS TAXES
AND TRANSPORTATION; AND TO AMEND THE 1976 CODE BY
ADDING SECTION 39-41-255 SO AS TO REQUIRE EVERY
SERVICE STATION TO POST IN A CONSPICUOUS PLACE THE
SELF-SERVICE PUMP PRICE FOR EACH TYPE OF GASOLINE IT
HAS AVAILABLE AND PROVIDE FOR RELATED MATTERS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 39-5-350 of the 1976 Code is amended to read:
"Section 39-5-350. (A) No part of this article shall
be construed to apply to sales at wholesale to hotels, restaurants,
colleges, bona fide licensed contractors, farmers buying for their
plantations, including labor on their own farms, boardinghouses,
religious institutions, or county, city, federal, or state
institutions or departments or to cooperative purchases for redistribution
among farmers. Retail sales of merchandise of like grade and quality at
a price to meet existing competition at any time in any town or locality
are also exempt from the provisions of this article. But if such
competition is created by any person in violation of this article or when
any two or more persons contend that they are meeting the competition
of the other and all would be making retail sales in violation of this
article, except for the above provisions allowing existing competition to
be met, any retailer affected thereby may enjoin all in such category
from continuing such practices in any court of competent jurisdiction in
this State.
(B) Any person selling motor fuel at wholesale or retail at a
price below the actual cost of acquiring the product, including
transportation and taxes, claiming exemption from this article on the
basis that such sales of motor fuel by that person are at a price to meet
existing competition under subsection (A) of this section shall keep and
maintain records substantiating each effort to meet the competition,
including the identity and place of business of the competitors whose
competition that person is meeting. The records must be made available
to the Department of Consumer Affairs and the Attorney General on
request made in connection with any investigation of a possible violation
of this article by the department or the Attorney General."
SECTION 2. Section 39-3-150 of the 1976 Code is amended to read:
"Section 39-3-150. (A) If any person engaged in
the manufacture, sale, or distribution of any commodity in
general use in this State shall, with the intent or purpose of driving out
competition or for the purpose of financially injuring competitors, sell
at less than cost of manufacture or at less than the cost of such
commodity bought in the open markets plus the freight and other
charges to point of destination or give away such product for the purpose
of driving out competition or financially injuring any competitor
engaged in the manufacture, sale, or distribution of such
commodity in this State, such person shall be guilty of a conspiracy to
form or secure a trust or monopoly in restraint of trade and of unfair
discrimination, which is prohibited and declared to be unlawful. Any
person violating any of the provisions of this section and any officer,
agent, or receiver of any firm, company, association,
or corporation or any member thereof or any individual guilty of a
violation of this section shall be liable for a penalty of not less than five
hundred dollars nor more than five thousand dollars to be recovered at
the suit of the State in the court of common pleas of any county. The
Attorney General may allow one-half of the penalties provided in this
section to anyone who may conduct the suit and the Attorney General
shall be authorized to proceed as provided in this article to enforce the
provisions hereof. Each sale so proven under the provisions of this
section shall be considered a separate offense.
(B) Sales of motor fuel in general use in this State at wholesale
or retail at a price to meet existing competition which is below the actual
cost of acquiring the product, including transportation and taxes, are
exempt from the provisions of this section, provided that any person
claiming the exemption shall keep and maintain records substantiating
his effort to meet this competition, including the identity and place of
business of the competitors whose competition that person is meeting.
The records must be made available to the Department of Consumer
Affairs and the Attorney General on request made in connection with
any investigation of a possible violation of this section by the
department or the Attorney General.
(C) Except as otherwise permitted to meet competition as provided
by law, no person may sell any grade of motor fuel at a retail outlet at a
price that is below the cost of acquiring the product plus taxes and
transportation."
SECTION 3. The 1976 Code is amended by adding:
"Section 39-41-255. Every service station shall post in a
conspicuous place the self-service pump price for each type of gasoline
it has available; provided, that such posted price must include either the
cash or the credit price but need not include both such prices. The
manner in which the prices are posted must not conflict with any state
or local laws or ordinances that regulate the size, use, or placement of
billboards or signs."
SECTION 4. This act takes effect upon approval by the Governor.
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