350

LAWS OF MARYLAND

[Ch. 49

(L) WHOLESALE SALE OF CIGARETTES.

(1)         "WHOLESALE SALE OF CIGARETTES" INCLUDES
ANY SALE WHEREBY CIGARETTES ARE SOLD FOR A VALUABLE
CONSIDERATION, MADE IN THE ORDINARY COURSE OF TRADE OR IN
THE USUAL CONDUCT OF THE SELLER'S BUSINESS TO A RETAILER,
OTHER THAN TO A VENDING MACHINE OPERATOR OR TO A
SUB-WHOLESALER DESCRIBED IN SUBSECTION (M)(2) OF THIS
SECTION, FOR THE BONA FIDE PURPOSE OF RESALE.

(2)         "WHOLESALE SALE OF CIGARETTES" INCLUDES
ANY TRANSFER OF CIGARETTES ON CONSIGNMENT OR OTHERWISE,
WHEREBY TITLE IS RETAINED BY THE SELLER AS SECURITY FOR
THE PAYMENT OF THE PURCHASE PRICE.

REVISOR'S NOTE: This subsection presently appears as
Art. 83, §117(g).

The presently defined phrases "sell cigarettes
at wholesale" and "sale of cigarettes at
wholesale" and the reference to "similar
expressions" are deleted as unnecessary in
light of the consistent use in this subtitle
of the phrase "wholesale sale of cigarettes."

The only other changes are in style.

(M) WHOLESALER.

(1) "WHOLESALES" MEANS A PERSON WHO PURCHASES
CIGARETTES DIRECTLY FROM A MANUFACTURER.

(2)       "WHOLESALER" INCLUDES A PERSON, WHO, AS A
SUB-WHOLESALER:

(i)           PURCHASES CIGARETTES FROM ANOTHER

WHOLESALER SOLELY FOR THE PURPOSE OF BONA FIDE RESALE TO
RETAILERS OTHER THAN THOSE DIRECTLY OR INDIRECTLY OWNED,
AFFILIATED, OR CONTROLLED BY HIM; AND

(ii) SERVICES THE RETAILERS BY MAINTAINING AN
ESTABLISHED PLACE OF BUSINESS FOR THE SALE OF CIGARETTES,
INCLUDING WAREHOUSE FACILITIES,        ADEQUATE INVENTORY,

PROPER ACCOUNTING RECORDS, AND NECESSARY EQUIPMENT AND
VEHICLES FOR THE STORAGE AND DISTRIBUTION OF CIGARETTES.

(3)         IF THE PERSON IS ENGAGED IN THE BUSINESS
OF MAKING BOTH WHOLESALE SALES OF CIGARETTES AND RETAIL
SALES OF CIGARETTES, THE WORD ONLY APPLIES TO THE
WHOLESALE SALES OF CIGARETTES PORTION OF THE BUSINESS.

REVISOR'S NOTE: Paragraphs (1) and (2) of this
subsection presently appear as Art. 83,
§117(c). Paragraph (3) of this subsection is