2006 Utah Code - 13-5-7 — Sales at less than cost.

     13-5-7.   Sales at less than cost.
     (1) It is hereby declared that any advertising, offer to sell, or sale of any merchandise, either by retailers or wholesalers, at less than cost as defined in this act with the intent and purpose of inducing the purchase of other merchandise or of unfairly diverting trade from a competitor or otherwise injuring a competitor, impairs and prevents fair competition, injures public welfare, is unfair competition contrary to public policy and the policy of this act and is declared to be a violation of this act.
     (2) (a) When used in this act, the term "cost" as applied to production shall include the cost of raw materials, labor, and all overhead expenses of the producer.
     (b) When used in this act, the term "cost to the wholesaler" shall mean the invoice cost of the merchandise to the wholesaler or the replacement cost of the merchandise to the wholesaler, whichever is lower; less all trade discounts except customary discounts for cash; to which shall be added:
     (i) freight charges not otherwise included in the invoice cost or the replacement cost of the merchandise as herein set forth; and
     (ii) cartage to the retail outlet if done or paid for by the wholesaler, which cartage cost, in the absence of proof of a lesser cost, shall be deemed to be 3/4 of 1% of the cost to the wholesaler as herein set forth after adding thereto freight charges but before adding thereto cartage.
     (c) When used in this act, the term "cost to the retailer" shall mean the invoice cost of the merchandise to the retailer within 30 days prior to the date of sale, or the date of offering for sale, or the replacement cost of the merchandise to the retailer, whichever is lower; less all trade discounts except customary discounts for cash; to which shall be added:
     (i) freight charges not otherwise included in the invoice cost or the replacement cost of the merchandise as herein set forth; and
     (ii) cartage to the retail outlet if done or paid for by the retailer, which cartage cost, in the absence of proof of a lesser cost, shall be deemed to be 3/4 of 1% of the cost to the retailer as herein defined after adding thereto freight charges but before adding thereto cartage and markup, and a markup to cover a proportionate part of the cost of doing business, which markup, in the absence of proof of a lesser cost, shall be 6% of the cost to the retailer as herein set forth after adding thereto freight charges and cartage, but before adding thereto a markup.
     (d) When used in this act, the term "replacement cost" shall mean the cost per unit at which the merchandise sold or offered for sale could have been bought by the seller at any time within 30 days prior to the date of sale or the date upon which it is offered for sale by the seller if bought in the same quantities as the seller's last purchase of the said merchandise.

Amended by Chapter 30, 1992 General Session