Montana Code 16-10-301. Sales below cost
16-10-301. Sales below cost. It is unlawful and a violation of this chapter:
Terms Used In Montana Code 16-10-301
- Cigarettes: means any roll for smoking made wholly or in part of tobacco, irrespective of size or shape and whether or not the tobacco is flavored, adulterated, or mixed with any other ingredient, the wrapper or cover of which is made of nontobacco paper or any other substance or material except tobacco. See Montana Code 16-10-103
- cost to the wholesaler: means the basic cost of cigarettes purchased by the wholesaler from a manufacturer plus the cost of doing business by the wholesaler as evidenced by the standards and methods of accounting regularly employed by the wholesaler in the wholesaler's determination of costs for income tax reporting purposes for the total operation of the wholesaler's business. See Montana Code 16-10-103
- Retailer: means a person who operates a store, stand, booth, concession, or other outlet for the purpose of selling cigarettes at retail. See Montana Code 16-10-103
- sell: means any transfer of cigarettes for consideration, exchange, barter, gift, offer for sale, or distribution, in any manner or by any means. See Montana Code 16-10-103
- Wholesaler: means a person who services retail outlets by maintaining an established place of business for the purchase of cigarettes and who:
(a)purchases cigarettes from a manufacturer for the purpose of selling cigarettes to retailers; or
(b)purchases cigarettes from a sole distributor, another wholesaler, or any other person for the purpose of selling cigarettes to retailers. See Montana Code 16-10-103
(1)for any retailer or wholesaler to:
(a)advertise, offer to sell, or sell, at retail or wholesale, cigarettes at less than cost to a retailer or wholesaler;
(b)offer a rebate in price, give a rebate in price, offer a concession of any kind, or give a concession of any kind in connection with the sale of cigarettes that are sold by the wholesaler or retailer in the ordinary course of trade or business if the rebate or concession offered or given in connection with the sale of cigarettes is not offered or given by the wholesaler or retailer in the same ratio with respect to all other merchandise to which the rebate or concession may lawfully be given;
(2)for any retailer to:
(a)induce or attempt to induce or procure or attempt to procure the purchase of cigarettes at a price less than the cost to the wholesaler, as defined in this chapter;
(b)induce or attempt to induce or procure or attempt to procure any rebate or concession of any kind or nature whatever in connection with the purchase of cigarettes.