MARVIN MANDEL, Governor

353

MACHINE OPERATOR OR RETAILER WHO PURCHASES CIGARETTES AT
PRICES ORDINARILY INVOICED TO A WHOLESALER AND WHO
RECEIVES THE WHOLESALER'S DISCOUNTS ON THEM SHALL:

(i)        FIRST, ADD TO HIS BASIC COST OF

CIGARETTES THE WHOLESALE MARKUP OF 5 PERCENT PROVIDED FOR
IN §11-501(E) TO COVES THE COST OF DOING BUSINESS AS A
WHOLESALER, PLUS THE FULL FACE VALUE OF ANY CIGARETTE
TAXES PAYABLE ON THEM; AND

(ii)        THEN, ON THE RESULTANT SUM, ADD THE

RETAIL MARKUP OF 8 PERCENT PROVIDED FOR IN §11-501(D).

(2) IF THE DISCOUNT RECEIVED BY THE VENDING
MACHINE OPERATOR OR RETAILER IS LESS THAN THAT ORDINARILY
ALLOWED TO WHOLESALERS, THE WHOLESALE MARKUP OF 5 PERCENT
MAY BE REDUCED BY THE DIFFERENCE BETWEEN THE DISCOUNT
ORDINARILY ALLOWED TO WHOLESALERS AND THE DISCOUNT
RECEIVED BY THE RETAILER OR VENDING MACHINE OPERATOR.

(C)        SALE BY WHOLESALER TO OTHER WHOLESALER OR

VENDING MACHINE OPERATOR,

(1) A WHOLESALER WHO SELLS CIGARETTES TO
ANOTHER WHOLESALER OR TO A VENDING MACHINE OPERATOR IS
NOT REQUIRED TO INCLUDE IN HIS SELLING PRICE THE COST TO
THE WHOLESALER. HOWEVER, IN THE ABSENCE OF SATISFACTORY
PROOF OF A LESSER COST FOR THE SERVICE RENDERED, THE
WHOLESALER SHALL INCLUDE IN THE SELLING PRICE HIS BASIC
COST OF CIGARETTES, PLUS A CHARGE OF 1 PERCENT OF HIS
BASIC COST OF CIGARETTES.

(2) IF A WHOLESALER PURCHASES CIGARETTES FROM
ANOTHER WHOLESALER, THEN, ON RESALE OF THE CIGARETTES TO
A RETAILER, HE IS THE WHOLESALER FOR THE PURPOSES OF THIS
SUBTITLE.

REVISOR'S NOTE: This section presently appears as
Art. 83, §119, except for §119(b), the
substance of which now appears in §11—501 (h)
and (m).

The only other changes are in style.

11-504. SALE OR PURCHASE AT LESS THAN COST PROHIBITED.

(A) PROHIBITION ON SALE.

A RETAILER OR WHOLESALER WITH INTENT TO INJURE A
COMPETITOR OR TO DESTROY OR SUBSTANTIALLY LESSEN

COMPETITION MAY NOT MAKE A RETAIL SALE OF CIGARETTES OR A
WHOLESALE SALE OF CIGARETTES AT LESS THAN THE COST TO THE
RETAILER OR THE COST TO THE WHOLESALER, RESPECTIVELY.