S 1518 Session 109 (1991-1992)
S 1518 General Bill, By Patterson and F. Gilbert
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 provisions 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 sale of motor fuel in the wholesale or retail market at a
level below the actual cost of acquiring the product, including transportation
and taxes, shall require documentation of the date, time, and specific
business by actual location responsible for creating the need to sell below
cost, and provide for related matters; 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.
04/28/92 Senate Introduced, read first time, placed on calendar
without reference SJ-26
Indicates Matter Stricken
Indicates New Matter
INTRODUCED
April 28, 1992
S. 1518
Introduced by SENATORS Patterson and Gilbert
S. Printed 4/28/92--S.
Read the first time April 28, 1992.
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 SALE OF MOTOR FUEL IN THE
WHOLESALE OR RETAIL MARKET AT A LEVEL BELOW THE
ACTUAL COST OF ACQUIRING THE PRODUCT, INCLUDING
TRANSPORTATION AND TAXES, SHALL REQUIRE
DOCUMENTATION OF THE DATE, TIME, AND SPECIFIC
BUSINESS BY ACTUAL LOCATION RESPONSIBLE FOR
CREATING THE NEED TO SELL BELOW COST, AND PROVIDE
FOR RELATED MATTERS; 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. 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.
Any sale of motor fuel in the wholesale or retail market at a level
below the actual cost of acquiring the product, including transportation
and taxes, shall require documentation of the date, time, and specific
business by actual location responsible for creating the need to sell
below cost. Such records must be maintained for each wholesale or
retail outlet at a designated location in South Carolina identified to the
Administrator of the South Carolina Department of Consumer Affairs
and the Attorney General. Such records are subject to inspection by and
shall be made available upon request to the Administrator of the South
Carolina Department of Consumer Affairs and the Attorney General or
their designees. No such data is subject to submission to any state
official for review purposes. The provisions of this paragraph are
applicable to every retail and wholesale outlet in the State. The cost of
motor fuel for the purposes of this paragraph includes only the cost of
acquiring the product, taxes, and transportation costs to the point of
wholesale or retail sale."
SECTION 2. Section 39-3-150 of the 1976 Code is amended to read:
"Section 39-3-150. 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.
Any sale of motor fuel in the wholesale or retail market at a level
below the actual cost of acquiring the product, including transportation
and taxes, shall require documentation of the date, time, and specific
business by actual location responsible for creating the need to sell
below cost. Such records must be maintained for each wholesale or
retail outlet at a designated location in South Carolina identified to the
Administrator of the South Carolina Department of Consumer Affairs
and the Attorney General. Such records are subject to inspection by and
shall be made available upon request to the Administrator of the South
Carolina Department of Consumer Affairs and the Attorney General or
their designee. No such data is subject to submission to any state
official for review purposes. The provisions of this paragraph are
applicable to every retail and wholesale outlet in the State. The cost of
motor fuel for the purposes of this paragraph includes only the cost of
acquiring the product, taxes, and transportation costs to the point of
wholesale or retail sale."
SECTION 3. Article 1, Chapter 41, Title 39 of 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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