§ 2605. Exceptions.
256 words·~1 min read·
/de/title-6/chapter-26-unfair-cigarette-sales-act/2605·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Clearance sales, liquidation sales, etc. — This chapter shall not apply to sales at wholesale:
(1)Where cigarettes are imperfect, damaged or being discontinued, if advertised and marked as such, and the quantity and quality is accurately, clearly and conspicuously stated in all advertising of such sale and in signs conspicuously posted where the sale takes place;
(2)Where cigarettes are sold upon the complete and final liquidation of the seller’s business;
(3)Where cigarettes are sold under the order, direction or supervision of a court;
(4)Where cigarettes are sold by a wholesaler at a price fixed in good faith to meet the competition of another wholesaler who is rendering the same type of service (i.e., “cash and carry” or “service”) as the seller, and provided that the competitor’s price which seller desires to meet is itself lawful and not in violation of the provisions of this chapter. The price of cigarettes sold under paragraphs (a)(1) through
(3)inclusive of this section shall not be deemed the price of a competitor under this paragraph.
(b)Calculating basic cost. — In calculating the basic cost to any wholesaler of cigarettes purchased at any sale under paragraphs (a)(1) through
(4)inclusive of this section or at any other sale outside the ordinary channels of trade, invoice cost shall not be used, but there shall be used instead the replacement cost of the cigarettes as defined in § 2602(1) of this title, based upon the quantity last purchased by the seller through the ordinary channels of trade.