51-10 Unfair Trade Practices Law

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CHAPTER 51-10UNFAIR TRADE PRACTICES LAW51-10-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1."Cost" means the actual invoice cost of the merchandise or the replacement cost of<br>the merchandise, whichever is the lower, less all trade discounts, advertising<br>allowances, including customary discounts for cash, to which must be added<br>transportation, including cartage cost, not otherwise included in the invoice cost or<br>the replacement cost of the merchandise. If a manufacturer publishes a list price,<br>proof of such list price, less all discounts, is prima facie evidence of "cost".2."Replacement cost" means the cost per unit at which the merchandise sold or<br>offered for sale could have been bought by the seller at any time prior to the date of<br>sale or the date upon which it is offered for sale by the seller.3."Retailers" means and includes every person, partnership, corporation, limited<br>liability company, or association engaged in the business of making sales at retail<br>within this state. In the case of a person, partnership, corporation, limited liability<br>company, or association engaged in the business of making sales at retail and sales<br>at wholesale, such term must be applied only to the retail portion of such business.4."Sell at retail", "sales at retail", and "retail sale" mean and include any transfer for a<br>valuable consideration, made in the ordinary course of trade or in the usual<br>prosecution of the seller's business, of title to tangible personal property to the<br>purchaser for consumption or use other than resale or further processing or<br>manufacturing, except that sales to contractors or subcontractors engaged in any<br>type of building operation or the repair of buildings or other improvements upon real<br>estate must be deemed sales for consumption and not for further processing or<br>manufacturing.The terms include any transfer of such property when title isretained by the seller as security for the payment of the purchase price.5."Sell at wholesale", "sales at wholesale", and "wholesale sales" mean and include<br>any transfer for a valuable consideration made in the ordinary course of trade or the<br>usual conduct of the seller's business, of title to tangible personal property to the<br>purchaser for purposes of resale or further processing or manufacturing, except that<br>sales to contractors engaged in any type of building operation or the repair of<br>buildings or other improvements upon real estate, regardless of further processing or<br>manufacturing of the material sold, must be deemed retail sales and not wholesale<br>sales. The terms include any transfer of such property when title is retained by the<br>seller as security for the payment of the purchase price.6."Wholesaler" means and includes every person, partnership, corporation, limited<br>liability company, or association engaged in the business of making sales at<br>wholesale within this state. In the case of a person, partnership, corporation, limited<br>liability company, or association engaged in the business of making both sales at<br>wholesale and sales at retail, such terms must be applied only to the wholesale<br>portion of such business.51-10-02. Items advertised, offered for sale, or sold with other items at a combinedprice - Regulations governing. When one or more items are advertised, offered for sale, or<br>sold with one or more other items at a combined price, or are advertised, offered as a gift, or<br>given with the sale of one or more items, each and all of said items, for the purpose of this<br>chapter, must be deemed to be advertised, offered for sale, or sold, and the price of each item<br>named must be governed by the provisions of subsection 1 or 2 of section 51-10-01,<br>respectively.Page No. 151-10-03. Unfair advertising, offer to sell, or sale. Any advertising, offer to sell, or saleof any merchandise, either by retailers or wholesalers, at less than cost as defined in this<br>chapter, which has the intent or the effect of inducing the purchase of other merchandise or of<br>unfairly diverting trade from a competitor or otherwise injuring a competitor, impairs and prevents<br>fair competition, injures public welfare, and is unfair competition and contrary to public policy and<br>the policy of this chapter, if the result of such advertising, offer, or sale is to tend to deceive any<br>purchaser or prospective purchaser, or substantially to lessen competition, or unreasonably to<br>restrain trade, or to tend to create a monopoly in any line of commerce.51-10-04.Schemes or devices included within sales below cost.The inhibitionagainst sales below cost, as defined in this chapter, shall embrace any scheme of special rebate,<br>collateral contract, or any device of any nature by which such result is, in substance or in fact,<br>effected in violation of the spirit and intent of this chapter.51-10-05. Advertising, offering, or selling article at less than cost - Penalty. Anyretailer or wholesaler who shall advertise, offer to sell, or sell any article of merchandise at less<br>than cost to such retailer or wholesaler as defined in this chapter, or who gives, offers to give, or<br>advertises the intent to give away any article of merchandise, with the intent, or with the effect of<br>injuring competitors and destroying competition, is guilty of a class A misdemeanor.51-10-05.1. Powers of attorney general. When it appears to the attorney general that aperson has engaged in, or is engaging in, any practice declared to be unlawful by this chapter or<br>when the attorney general believes it to be in the public interest that an investigation should be<br>made to ascertain whether a person in fact has engaged in, is engaging in, or is about to engage<br>in, any such practice the attorney general may:1.Require that person to file on forms prescribed by the attorney general, a statement<br>or report in writing, under oath or otherwise, as to all the facts and circumstances<br>concerning the sale or advertisement of merchandise at less than cost as defined in<br>this chapter and any other data and information the attorney general may deem<br>necessary.2.Examine under oath any person in connection with the sale or advertisement of any<br>merchandise at less than cost as defined in this chapter.3.Examine any merchandise or sample of merchandise, record, book, document,<br>account, or paper as the attorney general may deem necessary.4.Pursuant to an order of a district court impound any record, book, document,<br>account, paper, or sample of merchandise material to such practice and retain it until<br>completion of all relevant proceedings under this chapter.51-10-05.2. Subpoena - Hearing - Rules. The attorney general may issue subpoenasto any person, administer an oath or affirmation to any person, conduct hearings in the aid of any<br>investigation of inquiry, prescribe forms, and adopt necessary rules.51-10-05.3. Failure to display information or obey subpoena. If any person fails orrefuses to file any statement or report, or obey any subpoena issued by the attorney general, the<br>attorney general may file in the district court a petition for an order directing the person to file the<br>required statement or report or to obey the subpoena. The order may be granted by the district<br>court after notice and hearing.51-10-06. Injunctional relief may be had in addition to other penalties - Duty tocommence actions. In addition to the penalties provided in this chapter, the courts of this state<br>are invested with the jurisdiction to prevent and restrain violations of this chapter by injunctional<br>proceedings. The attorney general and the several state's attorneys shall institute suits in behalf<br>of this state, to prevent and restrain violations of the provisions of this chapter. Any person<br>damaged, or who is threatened with loss or injury, by reason of a violation of the provisions ofPage No. 2this chapter, is entitled to sue for and have injunctive relief in the district court against any<br>damage or threatened loss or injury by reason of a violation hereof.51-10-07. Application of provisions of chapter. The provisions of this chapter do notapply to sales at retail or sales at wholesale, where:1.Merchandise is sold in bona fide clearance sales, if advertised, marked, and sold as<br>such.2.Perishable merchandise must be sold promptly in order to forestall loss.3.Merchandise is imperfect or damaged, or is being discontinued and is advertised,<br>marked, and sold as such.4.Merchandise is sold upon the final liquidation of any business.5.Merchandise is sold for charitable purposes or to relief agencies.6.Merchandise is sold on contract to departments of the government or government<br>institutions.7.The price of merchandise is made in good faith to meet legal competition.8.Merchandise is sold by any officer acting under the order or direction of any court.Any retailer or wholesaler claiming the benefits of any of the exemptions provided for in this<br>section shall have the burden of proof of facts entitling such retailer or wholesaler to any of the<br>benefits of said exemptions.51-10-08. No immunity from self-incrimination. No person subpoenaed or orderedmaybeexcusedfromattendingandtestifyingorfromproducingbooks,records,correspondence, documents, or other evidence in any civil action or proceeding instituted or<br>brought, pursuant to the provisions of this chapter, upon the ground that the testimony or<br>evidence required of that person may tend to incriminate that person or subject that person to a<br>penalty or forfeiture. No person may be prosecuted or subjected to any penalty or forfeiture for<br>or on account of any act, transaction, matter, or thing concerning which that person is compelled,<br>after having claimed the privilege against self-incrimination, to testify or produce evidence. The<br>provisions of this section do not exempt any person from prosecution or punishment for perjury.51-10-09. Proof of intent - Cost surveys. Repealed by S.L. 1991, ch. 525,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of Delaware</a></li><li><a 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height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t51/pdf/t51c10.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 51-10UNFAIR TRADE PRACTICES LAW51-10-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1.\u0026quot;Cost\u0026quot; means the actual invoice cost of the merchandise or the replacement cost of\u003cbr\u003ethe merchandise, whichever is the lower, less all trade discounts, advertising\u003cbr\u003eallowances, including customary discounts for cash, to which must be added\u003cbr\u003etransportation, including cartage cost, not otherwise included in the invoice cost or\u003cbr\u003ethe replacement cost of the merchandise. If a manufacturer publishes a list price,\u003cbr\u003eproof of such list price, less all discounts, is prima facie evidence of \u0026quot;cost\u0026quot;.2.\u0026quot;Replacement cost\u0026quot; means the cost per unit at which the merchandise sold or\u003cbr\u003eoffered for sale could have been bought by the seller at any time prior to the date of\u003cbr\u003esale or the date upon which it is offered for sale by the seller.3.\u0026quot;Retailers\u0026quot; means and includes every person, partnership, corporation, limited\u003cbr\u003eliability company, or association engaged in the business of making sales at retail\u003cbr\u003ewithin this state. In the case of a person, partnership, corporation, limited liability\u003cbr\u003ecompany, or association engaged in the business of making sales at retail and sales\u003cbr\u003eat wholesale, such term must be applied only to the retail portion of such business.4.\u0026quot;Sell at retail\u0026quot;, \u0026quot;sales at retail\u0026quot;, and \u0026quot;retail sale\u0026quot; mean and include any transfer for a\u003cbr\u003evaluable consideration, made in the ordinary course of trade or in the usual\u003cbr\u003eprosecution of the seller's business, of title to tangible personal property to the\u003cbr\u003epurchaser for consumption or use other than resale or further processing or\u003cbr\u003emanufacturing, except that sales to contractors or subcontractors engaged in any\u003cbr\u003etype of building operation or the repair of buildings or other improvements upon real\u003cbr\u003eestate must be deemed sales for consumption and not for further processing or\u003cbr\u003emanufacturing.The terms include any transfer of such property when title isretained by the seller as security for the payment of the purchase price.5.\u0026quot;Sell at wholesale\u0026quot;, \u0026quot;sales at wholesale\u0026quot;, and \u0026quot;wholesale sales\u0026quot; mean and include\u003cbr\u003eany transfer for a valuable consideration made in the ordinary course of trade or the\u003cbr\u003eusual conduct of the seller's business, of title to tangible personal property to the\u003cbr\u003epurchaser for purposes of resale or further processing or manufacturing, except that\u003cbr\u003esales to contractors engaged in any type of building operation or the repair of\u003cbr\u003ebuildings or other improvements upon real estate, regardless of further processing or\u003cbr\u003emanufacturing of the material sold, must be deemed retail sales and not wholesale\u003cbr\u003esales. The terms include any transfer of such property when title is retained by the\u003cbr\u003eseller as security for the payment of the purchase price.6.\u0026quot;Wholesaler\u0026quot; means and includes every person, partnership, corporation, limited\u003cbr\u003eliability company, or association engaged in the business of making sales at\u003cbr\u003ewholesale within this state. In the case of a person, partnership, corporation, limited\u003cbr\u003eliability company, or association engaged in the business of making both sales at\u003cbr\u003ewholesale and sales at retail, such terms must be applied only to the wholesale\u003cbr\u003eportion of such business.51-10-02. Items advertised, offered for sale, or sold with other items at a combinedprice - Regulations governing. When one or more items are advertised, offered for sale, or\u003cbr\u003esold with one or more other items at a combined price, or are advertised, offered as a gift, or\u003cbr\u003egiven with the sale of one or more items, each and all of said items, for the purpose of this\u003cbr\u003echapter, must be deemed to be advertised, offered for sale, or sold, and the price of each item\u003cbr\u003enamed must be governed by the provisions of subsection 1 or 2 of section 51-10-01,\u003cbr\u003erespectively.Page No. 151-10-03. Unfair advertising, offer to sell, or sale. Any advertising, offer to sell, or saleof any merchandise, either by retailers or wholesalers, at less than cost as defined in this\u003cbr\u003echapter, which has the intent or the effect of inducing the purchase of other merchandise or of\u003cbr\u003eunfairly diverting trade from a competitor or otherwise injuring a competitor, impairs and prevents\u003cbr\u003efair competition, injures public welfare, and is unfair competition and contrary to public policy and\u003cbr\u003ethe policy of this chapter, if the result of such advertising, offer, or sale is to tend to deceive any\u003cbr\u003epurchaser or prospective purchaser, or substantially to lessen competition, or unreasonably to\u003cbr\u003erestrain trade, or to tend to create a monopoly in any line of commerce.51-10-04.Schemes or devices included within sales below cost.The inhibitionagainst sales below cost, as defined in this chapter, shall embrace any scheme of special rebate,\u003cbr\u003ecollateral contract, or any device of any nature by which such result is, in substance or in fact,\u003cbr\u003eeffected in violation of the spirit and intent of this chapter.51-10-05. Advertising, offering, or selling article at less than cost - Penalty. Anyretailer or wholesaler who shall advertise, offer to sell, or sell any article of merchandise at less\u003cbr\u003ethan cost to such retailer or wholesaler as defined in this chapter, or who gives, offers to give, or\u003cbr\u003eadvertises the intent to give away any article of merchandise, with the intent, or with the effect of\u003cbr\u003einjuring competitors and destroying competition, is guilty of a class A misdemeanor.51-10-05.1. Powers of attorney general. When it appears to the attorney general that aperson has engaged in, or is engaging in, any practice declared to be unlawful by this chapter or\u003cbr\u003ewhen the attorney general believes it to be in the public interest that an investigation should be\u003cbr\u003emade to ascertain whether a person in fact has engaged in, is engaging in, or is about to engage\u003cbr\u003ein, any such practice the attorney general may:1.Require that person to file on forms prescribed by the attorney general, a statement\u003cbr\u003eor report in writing, under oath or otherwise, as to all the facts and circumstances\u003cbr\u003econcerning the sale or advertisement of merchandise at less than cost as defined in\u003cbr\u003ethis chapter and any other data and information the attorney general may deem\u003cbr\u003enecessary.2.Examine under oath any person in connection with the sale or advertisement of any\u003cbr\u003emerchandise at less than cost as defined in this chapter.3.Examine any merchandise or sample of merchandise, record, book, document,\u003cbr\u003eaccount, or paper as the attorney general may deem necessary.4.Pursuant to an order of a district court impound any record, book, document,\u003cbr\u003eaccount, paper, or sample of merchandise material to such practice and retain it until\u003cbr\u003ecompletion of all relevant proceedings under this chapter.51-10-05.2. Subpoena - Hearing - Rules. The attorney general may issue subpoenasto any person, administer an oath or affirmation to any person, conduct hearings in the aid of any\u003cbr\u003einvestigation of inquiry, prescribe forms, and adopt necessary rules.51-10-05.3. Failure to display information or obey subpoena. If any person fails orrefuses to file any statement or report, or obey any subpoena issued by the attorney general, the\u003cbr\u003eattorney general may file in the district court a petition for an order directing the person to file the\u003cbr\u003erequired statement or report or to obey the subpoena. The order may be granted by the district\u003cbr\u003ecourt after notice and hearing.51-10-06. Injunctional relief may be had in addition to other penalties - Duty tocommence actions. In addition to the penalties provided in this chapter, the courts of this state\u003cbr\u003eare invested with the jurisdiction to prevent and restrain violations of this chapter by injunctional\u003cbr\u003eproceedings. The attorney general and the several state's attorneys shall institute suits in behalf\u003cbr\u003eof this state, to prevent and restrain violations of the provisions of this chapter. Any person\u003cbr\u003edamaged, or who is threatened with loss or injury, by reason of a violation of the provisions ofPage No. 2this chapter, is entitled to sue for and have injunctive relief in the district court against any\u003cbr\u003edamage or threatened loss or injury by reason of a violation hereof.51-10-07. Application of provisions of chapter. The provisions of this chapter do notapply to sales at retail or sales at wholesale, where:1.Merchandise is sold in bona fide clearance sales, if advertised, marked, and sold as\u003cbr\u003esuch.2.Perishable merchandise must be sold promptly in order to forestall loss.3.Merchandise is imperfect or damaged, or is being discontinued and is advertised,\u003cbr\u003emarked, and sold as such.4.Merchandise is sold upon the final liquidation of any business.5.Merchandise is sold for charitable purposes or to relief agencies.6.Merchandise is sold on contract to departments of the government or government\u003cbr\u003einstitutions.7.The price of merchandise is made in good faith to meet legal competition.8.Merchandise is sold by any officer acting under the order or direction of any court.Any retailer or wholesaler claiming the benefits of any of the exemptions provided for in this\u003cbr\u003esection shall have the burden of proof of facts entitling such retailer or wholesaler to any of the\u003cbr\u003ebenefits of said exemptions.51-10-08. No immunity from self-incrimination. No person subpoenaed or orderedmaybeexcusedfromattendingandtestifyingorfromproducingbooks,records,correspondence, documents, or other evidence in any civil action or proceeding instituted or\u003cbr\u003ebrought, pursuant to the provisions of this chapter, upon the ground that the testimony or\u003cbr\u003eevidence required of that person may tend to incriminate that person or subject that person to a\u003cbr\u003epenalty or forfeiture. No person may be prosecuted or subjected to any penalty or forfeiture for\u003cbr\u003eor on account of any act, transaction, matter, or thing concerning which that person is compelled,\u003cbr\u003eafter having claimed the privilege against self-incrimination, to testify or produce evidence. The\u003cbr\u003eprovisions of this section do not exempt any person from prosecution or punishment for perjury.51-10-09. Proof of intent - Cost surveys. 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