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PARRIS N. GLENDENING, Governor
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H.B. 1001
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(3) Services the machines or devices by maintaining an established place
of business for the purchase of cigarettes, including warehousing facilities for the
storage and distribution of cigarettes.
(1) (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.
(m) (1) "Wholesaler" means a person who purchases cigarettes directly from
a [manufacturer] CIGARETTE NONRESIDENT DEALER.
(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.
11-505.
(a) Except as provided in subsection (b) of this section, a retailer or wholesaler
with intent to injure a competitor or to destroy or substantially lessen competition
may not:
(1) Sell cigarettes in combination with any other item of merchandise if
the other item is given free of charge or sold at a price below its cost to the retailer or
its cost to the wholesaler, respectively, as defined in Subtitle 4 of this title;
(2) Sell cigarettes in combination with any other item of merchandise if
the total sale price for the cigarettes and all other items included in the sale is less
than the sum of:
(i) The cost to the retailer or the cost to the wholesaler,
respectively, of the cigarettes; and
(ii) The cost to the retailer or the cost to the wholesaler,
respectively, as defined in Subtitle 4 of this title, of all other items included in the
sale, including items given free of charge in connection with the sale;
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- 5301 -
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