State Codes and Statutes

Statutes > Kansas > Chapter50 > Article5 > Statutes_21012

50-503

Chapter 50.--UNFAIR TRADE AND CONSUMER PROTECTION
Article 5.--DAIRY PRODUCTS; UNFAIR TRADE PRACTICES

      50-503.   Same; unlawful acts.It shall be unlawful for any person engaged in business as a wholesaler,processor, or distributor, individually or through or by affiliates,subsidiaries, associates, agents or stockholders, directly or indirectly,to do or cause to be done any of the following acts:

      (a)   Except as provided further, furnish, give, rent, lease, or lend to aretail dealerany money, equipment, fixtures, ice cream cabinets or bulk milk dispensers,supplies, or other things having a real or substantial value, or any expendablesupplies commonly provided in connection with sales of dairy products tothe consumer, except that such person may selldairy products. Itshall be lawful to lend or rent ice cream cabinets, milk dispensers or milkcoolers for periods of not to exceed 10 days in any one periodof six consecutive months. The prohibition against leasing of equipment herein shallnot apply to leases of retail outlets entirely owned by such wholesaler,processor, or distributor. This subsection shall not be construed toprohibit the furnishing of normal point-of-purchase advertising matter toretail dealers, but no outside advertising furnished shall advertise itemsother than dairy products of such wholesaler, processor, or distributor.

      (b)   Sell to any retail dealer or consumer any fixtures or equipmentother than ice cream cabinets or bulk milk dispensers, or sell to anyretail dealer or consumer any ice cream cabinets or bulk milk dispensers,except at a price not less than the manufacturer's original net list priceafter deducting an allowance for depreciation computed on a basis of 15%annually of such manufacturer's list pricefrom thedate of manufacture, and adding thereto as a proportionate cost of doingbusiness a markup of 5% of the net price after suchdeduction for depreciation. If such deductions for depreciationafteradding such 5% of the net,exceeds 90% of such manufacturer's list price, then in no event shall suchsale pricebe less than 10% of such manufacturer's list price.Suchsales shall be made either for cash or shall be evidenced by a validconditional sales contract or note and mortgage specifically describingsuch equipment and reciting the indebtedness secured, and which contract orchattel mortgage shall be duly filed in the office of the appropriateregister of deeds. The indebtedness secured thereby shall bepayableand paid in monthly installments, each of which shall be not less than 1/30 ofsuch total indebtedness, and the lastpayment shallmature on a date not later than 30 months from the date ofsuchsale. All deferred payments shall carry interest of not less than 6% per annum.The recorded evidence of such indebtednessshallalso recite the true amount of the cash payment, if any, made by the retaildealer or consumer, and the amount allowed for any fixture or equipmentaccepted by the wholesaler, processor or distributor as part payment.In no event shall such trade-in or exchange credit exceed the minimumamount for which such exchanged or traded-in equipment or fixture could besold by a wholesaler, processor or distributor to a retail dealer orconsumer under the terms of this act. The recorded evidence of suchindebtedness shall also contain a provision accelerating, at the option ofthe seller, the entire unpaid balance, in the event of default in thepayment of any monthly installment for a period of 30 days.

      (c)   Furnish or provide for the mechanical or electrical servicing of anyfixtures or equipment used in connection with the sale or consumption ofdairy products by a retail dealer or consumer.

      (d)   Fail, neglect, or refuse to remove, repossess or institute anappropriate replevin action to recover any fixture or equipment sold to anyretail dealer or consumer under a conditional sales contract or secured bychattel mortgage as authorized by the provisions of this act, if suchretail dealer or consumer has been in default of any payment for more than 90 days.

      (e)   Pay to or credit a retail dealer or pay for or on behalf of or forthe benefit of a retail dealer for any advertising, display or distributionservice, except that payment may be made for the actual newspaper spaceused to advertise the product of the manufacturer, wholesaler ordistributor by the retailer on the basis of the actual cost of such spaceto the retail dealer.

      (f)   Pay or credit a retail dealer for the use of any floor space, shelfspace or equipment within or at such person's place of business.

      (g)   Make, guarantee or procure another to guarantee any loan or thepayment of any financial obligation of a retail dealer.

      (h)   Extend credit to a retail dealer beyond the normal periods ofpayment commonly prevailing in the business territory of the sale.

      (i)   Offer or give any bonus, premium, or compensation to a retaildealer, directly or indirectly, through or to an officer, employee,associate, relative or representative of a retail dealer.

      (j)   Sell, offer for sale, or contract to sell dairy products to anyretail dealer on consignment, or with the privilege of return, or on anybasis other than a bona fide sale, but this provision shall not precludethe practice of replacing dairy products which have become over-aged,spoiled or damaged.

      (k)   Use or employ any device or scheme to subsidize in any manner anyretail dealer.

      (l)   Sell any products, unit or combination thereof, for less than costto the wholesaler, processor or distributor at the point of delivery; orsell to any retail dealer any expendable supplies for less than cost to anysuch wholesaler, processor or distributor at the point of delivery plus amarkup of 6% of such cost as a proportionate share ofthecost of doing business; except a person may sell either such dairy productsor expendable supplies at prices made in good faith to meet existing lawfulcompetition. Competent evidence of the prevailing cost to other suchwholesalers, processors, or distributors engaged in selling dairy productson the same market shall constitute prima facie evidence of the cost to anyperson charged with violation of this provision.

      (m)   Grant, either directly or indirectly, to any retail dealer any secretdiscount, make any rebate, or permit any deviation from the price at which suchperson furnishes dairy products of the same quality,brand and quantityto other retail dealers in the same city, unincorporated town, or immediatevicinity thereof, except that deviations from such prices may be given whenmade in good faith to meet existing lawful competition. Bids, deviating fromsuch prices, made pursuant toinvitations issued by federal institutions or installations, may be filed,and contracts entered into, and fulfilled, without being deemed inviolation of the provisions of this subsection. The terms "made in goodfaith" and "lawful" as used in this and the preceding subsection means inconformity with and not in conflict with nor contrary to, anylaw ofthis state or of the United States of America.

      (n)   Permit any retail dealer to do for or on behalf of such wholesaler,processor or distributor any of the acts hereby made unlawful to be done.

      History:   L. 1957, ch. 309, § 3;L. 1991, ch. 157, § 1; July 1.

State Codes and Statutes

Statutes > Kansas > Chapter50 > Article5 > Statutes_21012

50-503

Chapter 50.--UNFAIR TRADE AND CONSUMER PROTECTION
Article 5.--DAIRY PRODUCTS; UNFAIR TRADE PRACTICES

      50-503.   Same; unlawful acts.It shall be unlawful for any person engaged in business as a wholesaler,processor, or distributor, individually or through or by affiliates,subsidiaries, associates, agents or stockholders, directly or indirectly,to do or cause to be done any of the following acts:

      (a)   Except as provided further, furnish, give, rent, lease, or lend to aretail dealerany money, equipment, fixtures, ice cream cabinets or bulk milk dispensers,supplies, or other things having a real or substantial value, or any expendablesupplies commonly provided in connection with sales of dairy products tothe consumer, except that such person may selldairy products. Itshall be lawful to lend or rent ice cream cabinets, milk dispensers or milkcoolers for periods of not to exceed 10 days in any one periodof six consecutive months. The prohibition against leasing of equipment herein shallnot apply to leases of retail outlets entirely owned by such wholesaler,processor, or distributor. This subsection shall not be construed toprohibit the furnishing of normal point-of-purchase advertising matter toretail dealers, but no outside advertising furnished shall advertise itemsother than dairy products of such wholesaler, processor, or distributor.

      (b)   Sell to any retail dealer or consumer any fixtures or equipmentother than ice cream cabinets or bulk milk dispensers, or sell to anyretail dealer or consumer any ice cream cabinets or bulk milk dispensers,except at a price not less than the manufacturer's original net list priceafter deducting an allowance for depreciation computed on a basis of 15%annually of such manufacturer's list pricefrom thedate of manufacture, and adding thereto as a proportionate cost of doingbusiness a markup of 5% of the net price after suchdeduction for depreciation. If such deductions for depreciationafteradding such 5% of the net,exceeds 90% of such manufacturer's list price, then in no event shall suchsale pricebe less than 10% of such manufacturer's list price.Suchsales shall be made either for cash or shall be evidenced by a validconditional sales contract or note and mortgage specifically describingsuch equipment and reciting the indebtedness secured, and which contract orchattel mortgage shall be duly filed in the office of the appropriateregister of deeds. The indebtedness secured thereby shall bepayableand paid in monthly installments, each of which shall be not less than 1/30 ofsuch total indebtedness, and the lastpayment shallmature on a date not later than 30 months from the date ofsuchsale. All deferred payments shall carry interest of not less than 6% per annum.The recorded evidence of such indebtednessshallalso recite the true amount of the cash payment, if any, made by the retaildealer or consumer, and the amount allowed for any fixture or equipmentaccepted by the wholesaler, processor or distributor as part payment.In no event shall such trade-in or exchange credit exceed the minimumamount for which such exchanged or traded-in equipment or fixture could besold by a wholesaler, processor or distributor to a retail dealer orconsumer under the terms of this act. The recorded evidence of suchindebtedness shall also contain a provision accelerating, at the option ofthe seller, the entire unpaid balance, in the event of default in thepayment of any monthly installment for a period of 30 days.

      (c)   Furnish or provide for the mechanical or electrical servicing of anyfixtures or equipment used in connection with the sale or consumption ofdairy products by a retail dealer or consumer.

      (d)   Fail, neglect, or refuse to remove, repossess or institute anappropriate replevin action to recover any fixture or equipment sold to anyretail dealer or consumer under a conditional sales contract or secured bychattel mortgage as authorized by the provisions of this act, if suchretail dealer or consumer has been in default of any payment for more than 90 days.

      (e)   Pay to or credit a retail dealer or pay for or on behalf of or forthe benefit of a retail dealer for any advertising, display or distributionservice, except that payment may be made for the actual newspaper spaceused to advertise the product of the manufacturer, wholesaler ordistributor by the retailer on the basis of the actual cost of such spaceto the retail dealer.

      (f)   Pay or credit a retail dealer for the use of any floor space, shelfspace or equipment within or at such person's place of business.

      (g)   Make, guarantee or procure another to guarantee any loan or thepayment of any financial obligation of a retail dealer.

      (h)   Extend credit to a retail dealer beyond the normal periods ofpayment commonly prevailing in the business territory of the sale.

      (i)   Offer or give any bonus, premium, or compensation to a retaildealer, directly or indirectly, through or to an officer, employee,associate, relative or representative of a retail dealer.

      (j)   Sell, offer for sale, or contract to sell dairy products to anyretail dealer on consignment, or with the privilege of return, or on anybasis other than a bona fide sale, but this provision shall not precludethe practice of replacing dairy products which have become over-aged,spoiled or damaged.

      (k)   Use or employ any device or scheme to subsidize in any manner anyretail dealer.

      (l)   Sell any products, unit or combination thereof, for less than costto the wholesaler, processor or distributor at the point of delivery; orsell to any retail dealer any expendable supplies for less than cost to anysuch wholesaler, processor or distributor at the point of delivery plus amarkup of 6% of such cost as a proportionate share ofthecost of doing business; except a person may sell either such dairy productsor expendable supplies at prices made in good faith to meet existing lawfulcompetition. Competent evidence of the prevailing cost to other suchwholesalers, processors, or distributors engaged in selling dairy productson the same market shall constitute prima facie evidence of the cost to anyperson charged with violation of this provision.

      (m)   Grant, either directly or indirectly, to any retail dealer any secretdiscount, make any rebate, or permit any deviation from the price at which suchperson furnishes dairy products of the same quality,brand and quantityto other retail dealers in the same city, unincorporated town, or immediatevicinity thereof, except that deviations from such prices may be given whenmade in good faith to meet existing lawful competition. Bids, deviating fromsuch prices, made pursuant toinvitations issued by federal institutions or installations, may be filed,and contracts entered into, and fulfilled, without being deemed inviolation of the provisions of this subsection. The terms "made in goodfaith" and "lawful" as used in this and the preceding subsection means inconformity with and not in conflict with nor contrary to, anylaw ofthis state or of the United States of America.

      (n)   Permit any retail dealer to do for or on behalf of such wholesaler,processor or distributor any of the acts hereby made unlawful to be done.

      History:   L. 1957, ch. 309, § 3;L. 1991, ch. 157, § 1; July 1.


State Codes and Statutes

State Codes and Statutes

Statutes > Kansas > Chapter50 > Article5 > Statutes_21012

50-503

Chapter 50.--UNFAIR TRADE AND CONSUMER PROTECTION
Article 5.--DAIRY PRODUCTS; UNFAIR TRADE PRACTICES

      50-503.   Same; unlawful acts.It shall be unlawful for any person engaged in business as a wholesaler,processor, or distributor, individually or through or by affiliates,subsidiaries, associates, agents or stockholders, directly or indirectly,to do or cause to be done any of the following acts:

      (a)   Except as provided further, furnish, give, rent, lease, or lend to aretail dealerany money, equipment, fixtures, ice cream cabinets or bulk milk dispensers,supplies, or other things having a real or substantial value, or any expendablesupplies commonly provided in connection with sales of dairy products tothe consumer, except that such person may selldairy products. Itshall be lawful to lend or rent ice cream cabinets, milk dispensers or milkcoolers for periods of not to exceed 10 days in any one periodof six consecutive months. The prohibition against leasing of equipment herein shallnot apply to leases of retail outlets entirely owned by such wholesaler,processor, or distributor. This subsection shall not be construed toprohibit the furnishing of normal point-of-purchase advertising matter toretail dealers, but no outside advertising furnished shall advertise itemsother than dairy products of such wholesaler, processor, or distributor.

      (b)   Sell to any retail dealer or consumer any fixtures or equipmentother than ice cream cabinets or bulk milk dispensers, or sell to anyretail dealer or consumer any ice cream cabinets or bulk milk dispensers,except at a price not less than the manufacturer's original net list priceafter deducting an allowance for depreciation computed on a basis of 15%annually of such manufacturer's list pricefrom thedate of manufacture, and adding thereto as a proportionate cost of doingbusiness a markup of 5% of the net price after suchdeduction for depreciation. If such deductions for depreciationafteradding such 5% of the net,exceeds 90% of such manufacturer's list price, then in no event shall suchsale pricebe less than 10% of such manufacturer's list price.Suchsales shall be made either for cash or shall be evidenced by a validconditional sales contract or note and mortgage specifically describingsuch equipment and reciting the indebtedness secured, and which contract orchattel mortgage shall be duly filed in the office of the appropriateregister of deeds. The indebtedness secured thereby shall bepayableand paid in monthly installments, each of which shall be not less than 1/30 ofsuch total indebtedness, and the lastpayment shallmature on a date not later than 30 months from the date ofsuchsale. All deferred payments shall carry interest of not less than 6% per annum.The recorded evidence of such indebtednessshallalso recite the true amount of the cash payment, if any, made by the retaildealer or consumer, and the amount allowed for any fixture or equipmentaccepted by the wholesaler, processor or distributor as part payment.In no event shall such trade-in or exchange credit exceed the minimumamount for which such exchanged or traded-in equipment or fixture could besold by a wholesaler, processor or distributor to a retail dealer orconsumer under the terms of this act. The recorded evidence of suchindebtedness shall also contain a provision accelerating, at the option ofthe seller, the entire unpaid balance, in the event of default in thepayment of any monthly installment for a period of 30 days.

      (c)   Furnish or provide for the mechanical or electrical servicing of anyfixtures or equipment used in connection with the sale or consumption ofdairy products by a retail dealer or consumer.

      (d)   Fail, neglect, or refuse to remove, repossess or institute anappropriate replevin action to recover any fixture or equipment sold to anyretail dealer or consumer under a conditional sales contract or secured bychattel mortgage as authorized by the provisions of this act, if suchretail dealer or consumer has been in default of any payment for more than 90 days.

      (e)   Pay to or credit a retail dealer or pay for or on behalf of or forthe benefit of a retail dealer for any advertising, display or distributionservice, except that payment may be made for the actual newspaper spaceused to advertise the product of the manufacturer, wholesaler ordistributor by the retailer on the basis of the actual cost of such spaceto the retail dealer.

      (f)   Pay or credit a retail dealer for the use of any floor space, shelfspace or equipment within or at such person's place of business.

      (g)   Make, guarantee or procure another to guarantee any loan or thepayment of any financial obligation of a retail dealer.

      (h)   Extend credit to a retail dealer beyond the normal periods ofpayment commonly prevailing in the business territory of the sale.

      (i)   Offer or give any bonus, premium, or compensation to a retaildealer, directly or indirectly, through or to an officer, employee,associate, relative or representative of a retail dealer.

      (j)   Sell, offer for sale, or contract to sell dairy products to anyretail dealer on consignment, or with the privilege of return, or on anybasis other than a bona fide sale, but this provision shall not precludethe practice of replacing dairy products which have become over-aged,spoiled or damaged.

      (k)   Use or employ any device or scheme to subsidize in any manner anyretail dealer.

      (l)   Sell any products, unit or combination thereof, for less than costto the wholesaler, processor or distributor at the point of delivery; orsell to any retail dealer any expendable supplies for less than cost to anysuch wholesaler, processor or distributor at the point of delivery plus amarkup of 6% of such cost as a proportionate share ofthecost of doing business; except a person may sell either such dairy productsor expendable supplies at prices made in good faith to meet existing lawfulcompetition. Competent evidence of the prevailing cost to other suchwholesalers, processors, or distributors engaged in selling dairy productson the same market shall constitute prima facie evidence of the cost to anyperson charged with violation of this provision.

      (m)   Grant, either directly or indirectly, to any retail dealer any secretdiscount, make any rebate, or permit any deviation from the price at which suchperson furnishes dairy products of the same quality,brand and quantityto other retail dealers in the same city, unincorporated town, or immediatevicinity thereof, except that deviations from such prices may be given whenmade in good faith to meet existing lawful competition. Bids, deviating fromsuch prices, made pursuant toinvitations issued by federal institutions or installations, may be filed,and contracts entered into, and fulfilled, without being deemed inviolation of the provisions of this subsection. The terms "made in goodfaith" and "lawful" as used in this and the preceding subsection means inconformity with and not in conflict with nor contrary to, anylaw ofthis state or of the United States of America.

      (n)   Permit any retail dealer to do for or on behalf of such wholesaler,processor or distributor any of the acts hereby made unlawful to be done.

      History:   L. 1957, ch. 309, § 3;L. 1991, ch. 157, § 1; July 1.