(a) No retailer licensed under Kan. Stat. Ann. § 41-2701 et seq., and amendments thereto, to sell cereal malt beverage or beer containing not more than 6% alcohol by volume in original and unopened containers and not for consumption on the licensed premises shall sell or offer for sale directly or indirectly any cereal malt beverage or beer containing not more than 6% alcohol by volume at a price that is less than the acquisition cost of such cereal malt beverage or beer containing not more than 6% alcohol by volume to the licensee.

(b) The director may issue to a retailer a permit authorizing the retailer to sell cereal malt beverage or beer containing not more than 6% alcohol by volume at less than the acquisition cost thereof, if:

(1) The retailer is actually closing out the retailer’s stock for the purpose of completely discontinuing sale of the item for a period of not less than 12 months;

(2) the item is damaged or deteriorated in quality and notice is given to the public thereof; or

(3) the sale of the item is by an officer acting under the order of a court.

(c) Violation of this section is a misdemeanor punishable as provided by Kan. Stat. Ann. § 41-2711, and amendments thereto.

(d) Violation of this section shall be grounds for suspension or revocation of the retailer’s license as provided by Kan. Stat. Ann. § 41-2708, and amendments thereto.