532 LAWS OF MARYLAND. [CH. 330
CHAPTER 330.
(House Bill 246)

AN ACT to repeal Chapter 211 of the Acts of 1937 and Chapter
248 of the Acts of 1939 and to add five new sections to Article
83 of the Annotated Code of Maryland (1939 Edition), title
"Sales and Notices", sub-title "Fair Trade Act", said new
sections to be known as Sections 111 to 115, inclusive, and
to follow immediately after Section 110 of said Article,
making unlawful the unfair trade practices of advertising1,
offering to sell or selling merchandise at less than cost.

WHEREAS, the practice of selling certain items of merchan-
dise below cost in order to attract patronage is generally a
form of deceptive advertising and an unfair method of com-
petition in commerce; and

WHEREAS, such practices cause commercial dislocation, mis-
leads the consumers, works back against the farmers, directly
burdens and obstructs commerce, and diverts business from
dealers who maintain a fair policy; and

WHEREAS, bankruptcy among merchants who fail because of
the competition of those who use such methods result in unem-
ployment, disruption of leases, and non-payment of taxes and
loans, and contribute to an inevitable train of undesirable
consequences, including economic depression; and

WHEREAS, such practice is a medium of eliminating weaker
competitors, thus tending to create monopolies; therefore

SECTION 1. Be it enacted by the General Assembly of Mary-
land, That five new sections, to be known as Sections 111 to
115, inclusive, of Article 83 of the Annotated Code of Mary-
land (1939 Edition), title "Sales and Notices", sub-title "Fair
Trade Act", be enacted to read as follows:

111. This Act shall be known and designated, and may be
cited as the "Unfair Sales Act".

112. When used in this Act the following terms shall have
the following meanings:

(a) "Cost to the Retailer" shall mean the invoice price of
the merchandise to the retailer 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: