1.    A person may not provide discounts, rebates, or allowances in connection with the sale of milk products or frozen dairy products, unless the discounts, rebates, or allowances are permitted in accordance with section 4.1-26-13.

Terms Used In North Dakota Code 4.1-26-31

  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • Individual: means a human being. See North Dakota Code 1-01-49
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Markup: The process by which congressional committees and subcommittees debate, amend, and rewrite proposed legislation.
  • Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49

2.    A dealer may not provide free equipment or services to a retailer. This subsection does not prohibit a dealer from:

a.    Stocking the dairy case or frozen products cabinet of a retailer; or

b.    Stamping on each milk product or frozen dairy product the retail price at which the retailer desires to sell the product.

3.    A person may not provide advertising or display allowances.

4.     a.    A person may not give a free milk product or a free frozen dairy product to a customer.

b.    This subsection does not prohibit a person from: (1) Providing tasting samples to an individual; or

(2) Donating products for charitable purposes.

5.    A dealer may not make loans to a retailer, renew loans to a retailer, or provide financial assistance in any other form to a retailer.

6.    A dealer may not furnish signs to a retailer.

7.    A person may not sell, offer to sell, or advertise any milk product or frozen dairy product in combination with any other product or service.

8.    A person may not sell, offer to sell, or advertise any product or service at a price that is available only to purchasers of a milk product or a frozen dairy product.

9.    A dealer may not provide a gift to a retailer.

10.     a.    A dealer may not lease, lend, or rent equipment to a retailer.

b.    If a dealer sells equipment to a retailer, the board shall prescribe the minimum markup, based upon the seller’s invoice cost or the depreciated value in the case of used equipment.

11.    a.     (1) Except as otherwise provided in this subdivision, a person may not require a deposit if milk products or frozen dairy products are purchased in returnable containers.

(2) A person may require a deposit on a milk case, provided the deposit does not exceed the replacement value of the milk case.

b.    A person may not provide an allowance or a credit in connection with the return of a container.

12.     a.    Except as otherwise provided, a dealer may not provide payment to a franchisor, a wholesale grocer, or any other person closely connected with a retailer for central billing, customer solicitation, or other services, if the purpose or effect of the payment is to induce the recipient to influence or attempt to influence a retailer’s decision regarding:

(1) The brand of milk products or frozen dairy products to be purchased and resold by the retailer; or

(2) The amount of space to be allocated to any brand of milk products or frozen dairy products.

b.    If a wholesale grocer establishes a central billing service to guarantee the collection of dealer accounts:

(1) All dealers that supply member or corporate stores must be afforded the same service; and

(2) The central billing service fee may not exceed two percent of the invoice cost.