Source: http://www.legis.state.wv.us/WVCODE/ChapterEntire.cfm?chap=47&art=11A
Timestamp: 2016-09-27 15:38:03
Document Index: 517644475

Matched Legal Cases: ['§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47', '§47']

WV Code Chapter 47 Article 11A skip navigation
§47-11A-1. Legislative findings; designation of article. (a) The Legislature hereby finds that the sale of goods at prices below the cost thereof can result in economic maladjustments and tend toward the creation of monopolies, thereby destroying fair and healthy competition; therefore, the below-cost sale of goods with the intent to destroy or the effect of destroying competition is deemed an unlawful unfair trade practice. (b) This article shall be known as and designated the Unfair Trade Practices Act. WVC 47 - 11 A- 1 §47-11A-1. Legislative findings; designation of article. The sale of goods at less than the cost thereof results in
economic maladjustments and tends toward the creation of
monopolies, thereby destroying fair and healthy competition and
tending toward bankruptcy among merchants who maintain a fair
price policy, and is, therefore, an unfair trade practice. It is
hereby declared that any advertisement, offer to sell, or sale of
any merchandise, either by retailers or wholesalers, at less than
cost, as defined in this article, or any advertisement of an
intent to give, any offer to give, or gift of any merchandise,
either by retailers or wholesalers, for the purposes of unfairly
diverting trade from or otherwise injuring competitors and
destroying competition, is an unfair method of competition
contrary to public policy and in contravention of the policy of
this article, which shall be known and designated as the "Unfair
WVC 47-11A-2
§47-11A-2. When selling below cost prohibited; penalty. Except as otherwise provided herein, it shall be unlawful for any person, partnership, firm, corporation or other entity engaged in business as a retailer or wholesaler within this state to sell, offer for sale, or advertise for sale any product or item of merchandise at a price less than the cost thereof with the intent to destroy or the effect of destroying competition. Each violation shall constitute a misdemeanor and, upon conviction thereof, any person, partnership, firm, corporation or other entity violating this section shall be subject to the penalty set forth in section eleven of this article. WVC 47 - 11 A- 2 §47-11A-2. When selling below cost or giving away of merchandise
prohibited; penalty. It shall be unlawful for any person, partnership, firm,
corporation, joint-stock company, or other association engaged in
business as a retailer or wholesaler within this state, to sell,
offer for sale or advertise for sale any article, product or item
of merchandise at less than the cost thereof to the vendor, or
give, offer to give or advertise the intent to give away any
article, product or item of merchandise for the purposes of
unfairly diverting trade from or otherwise injuring one or more
competitors, and destroying competition. Each violation shall
constitute a misdemeanor, and upon conviction thereof, any
person, partnership, firm, corporation, joint-stock company, or
other association violating this section shall be subject to the
penalty set out in section eleven hereof.
WVC 47 - 11 A- 3 §47-11A-3. When rebates and special privileges prohibited;
§47-11A-5. “Retailer” and “wholesaler” defined; sales and transfers subject to article. (a) The term “retailer” shall mean and include every person, partnership, firm, corporation, or other entity engaged in the business of making sales at retail within this state: Provided, however, That in the case of a person, partnership, firm, corporation, or other entity engaged in the business of making sales both at retail and at wholesale, such term shall be applied only to the retail portion of such business. (b) The term “wholesaler” shall mean and include every person, partnership, firm, corporation, or other entity engaged in the business of making sales at wholesale within this state: Provided, That in the case of a person, partnership, firm, corporation, or other entity engaged in the business of making sales both at retail and wholesale, such term shall be applied only to the wholesale portion of such business. (c) The provisions of this article shall be applicable to all sales at retail made by a retailer as herein defined, and shall be applicable to any transfer for a valuable consideration made in the ordinary course of trade, or the usual prosecution of the retailer's business, of title to tangible personal property to the purchaser for consumption or use other than resale or further proceedings or manufacturing, and shall be applicable also to any transfer of such property where title is retained by the retailer as security for the payment of such purchase price. (d) The provisions of this article shall be applicable to all sales at wholesale, and shall be applicable to any transfer for a valuable consideration made in the ordinary course of trade or in the usual prosecution of the wholesaler’s business, of title to tangible personal property to the purchaser for purposes of resale or further proceedings or manufacturing, and shall be applicable also to any such transfer of property where title is retained by the seller as security for the payment of the purchase price. WVC 47 - 11 A- 5 §47-11A-5. "Retailer" and "wholesaler" defined; sales and transfers subject to article. (a) The term "retailer" shall mean and include every person,
partnership, firm, corporation, joint-stock company or other
association engaged in the business of making sales at retail
within this state: Provided, however, That in the case of a
person, partnership, firm, corporation, joint-stock company or
other association engaged in the business of making sales both at
retail and at wholesale, such term shall be applied only to the
retail portion of such business.
(b) The term "wholesaler" shall mean and include every
other association engaged in the business of making sales at
wholesale within this state: Provided, That in the case of a
retail and wholesale, such term shall be applied only to the
wholesale portion of such business.
(c) The provisions of this article shall be applicable to
all sales at retail made by a retailer as herein defined, and
shall be applicable to any transfer for a valuable consideration
made in the ordinary course of trade, or the usual prosecution of
the retailer's business, of title to tangible personal property
to the purchaser for consumption or use other than resale or
further proceedings or manufacturing, and shall be applicable
also to any transfer of such property where title is retained by
the retailer as security for the payment of such purchase price.
(d) The provisions of this article shall be applicable to
all sales at wholesale, and shall be applicable to any transfer
for a valuable consideration made in the ordinary course of trade
or in the usual prosecution of the wholesaler's business, of
title to tangible personal property to the purchaser for purposes
of resale or further proceedings or manufacturing, and shall be
applicable also to any such transfer of property where title is
retained by the seller as security for the payment of the
WVC 47-11A-6
§47-11A-6. How cost determined. (a) The term “cost” when applicable to the business of retailer shall mean bona fide cost and shall mean: (i) The invoice cost of the product or item of merchandise to the retailer or the replacement cost thereof to the retailer within thirty days prior to the date of sale, offer for sale or advertisement for sale, as the case may be, in the quantity last purchased, whichever is lower, from either of which there shall be deducted all trade discounts, except customary discounts for cash; and (ii) to either of which there shall be added the following items of expense: (1) Freight charges not otherwise included in the cost of the article, product or item of merchandise, but which freight charges shall not be construed as including cartage to retail outlet if done or paid for by the retailer; (2) A markup to cover, in part, the cost of doing business, which markup, in the absence of proof of a lesser cost, shall be seven percent of the aggregate of invoice cost or replacement cost (whichever is used), less trade discounts as aforesaid, and plus said freight charges: Provided, That such a markup to cover the cost of doing business as provided for in this subdivision shall be exclusive of any federal and state motor fuel taxes. (b) The term “cost” when applicable to the business of a wholesaler shall mean bona fide cost and shall mean: (i) The invoice cost of the merchandise to the wholesaler to include applicable taxes, or the replacement cost of the merchandise to the wholesaler within thirty days prior to the date of sale, offer for sale or advertisement for sale, as the case may be, in the quantity last purchased, whichever is lower, from either of which there shall be deducted all trade discounts except customary discounts for cash; and (ii) to either of which there shall be added the following items of expense: (1) Freight charges not otherwise included in the cost of the article, product or item of merchandise, but which freight charges shall not be construed as including cartage to the retail outlet if done or paid for by the wholesaler; (2) A markup to cover, in part, the cost of doing business, which markup in the absence of proof of a lesser cost, shall be four percent of the aggregate of invoice cost or replacement cost (whichever is used), less trade discounts as aforesaid, and plus said freight charges: Provided, That such a markup to cover the cost of doing business as provided for in this subdivision shall be exclusive of any federal and state motor fuel taxes. WVC 47 - 11 A- 6 §47-11A-6. How cost determined. (a) The term "cost" when applicable to the business of
retailer shall mean bona fide cost and shall mean (i) the invoice
cost of the article, product or item of merchandise to the
retailer or the replacement cost thereof to the retailer within
thirty days prior to the date of sale, offer for sale or
advertisement for sale, as the case may be, in the quantity last
purchased, whichever is lower, from either of which there shall
be deducted all trade discounts, except customary discounts for
cash, and (ii) to either of which there shall be added the
following items of expense:
(1) Freight charges not otherwise included in the cost of
the article, product or item of merchandise, but which freight
charges shall not be construed as including cartage to retail
outlet if done or paid for by the retailer;
(2) A markup to cover, in part, the cost of doing business,
which markup, in the absence of proof of a lesser cost, shall be
seven percent of the aggregate of invoice cost or replacement
cost (whichever is used), less trade discounts as aforesaid, and
plus said freight charges.
(b) The term "cost" when applicable to the business of a
wholesaler shall mean bona fide cost and shall mean (i) the
invoice cost of the merchandise to the wholesaler plus applicable
taxes, or the replacement cost of the merchandise to the
wholesaler within thirty days prior to the date of sale, offer
for sale or advertisement for sale, as the case may be, in the
quantity last purchased, whichever is lower, from either of which there shall be deducted all trade discounts except customary
discounts for cash and (ii) to either of which there shall be
added the following items of expense:
charges shall not be construed as including cartage to the retail
outlet if done or paid for by the wholesaler;
which markup in the absence of proof of a lesser cost, shall be
four percent of the aggregate of invoice cost or replacement cost
(whichever is used), less trade discounts as aforesaid, and plus
said freight charges.
WVC 47 - 11 A- 7 §47-11A-7. When invoice cost of goods purchased at forced, etc.,
§47-11A-8. Sales exempt. The provisions of this article shall not apply to any sale, offer for sale, or advertisement to sell made: (a) In closing out in good faith the owner's stock or any part thereof for the purpose of discontinuing trade in any such stock or commodity; (b) When perishable merchandise must be sold promptly to avert loss to the retailer or wholesaler by spoilage or depreciation; (c) When the goods are damaged or deteriorated in quality or when merchandise is sold in bona fide clearance sales and, in each case, merchandise is advertised, marked and sold as such; (d) By an officer acting under the orders of any court; (e) To meet the price of a competitor; (f) Involving a discount or rebate earned by purchases through the use of a bonus, loyalty or rewards program or involving the redemption of credits, discounts or rebates through a bonus, loyalty or rewards program; (g) For charitable purposes or to relief agencies; (h) Where merchandise is sold on contract to departments of the government or governmental institutions; and (i) During and for fifteen days after a business grand opening as determined by the completion date. WVC 47 - 11 A- 8 §47-11A-8. Sales exempt. The provisions of this article shall not apply to any sale
(a) In closing out in good faith the owner's stock or any
part thereof for the purpose of discontinuing his trade in any
such stock or commodity, and in the case of the sale of seasonal
goods or to the bona fide sale of perishable goods to prevent
loss to the vendor by spoilage or depreciation;
(b) When the goods are damaged or deteriorated in quality or
where merchandise is sold in bona fide clearance sales, and, in
each case, merchandise is advertised, marked and sold as such;
(c) By an officer acting under the orders of any court;
(d) In an endeavor in good faith to meet the legal prices of
a competitor as herein defined selling the same article, product
or item of merchandise, in the same locality or trade area;
(e) For charitable purposes or to relief agencies;
(f) Where merchandise is sold on contract to departments of
the government or governmental institutions.
WVC 47-11A-9
§47-11A-9. Injunctions; damage suits; and jurisdiction. (a) Any person, partnership, firm, corporation, or other entity injured by a violation of the provisions of this article may maintain an action to enjoin a continuance of any such violation in the circuit court of the county wherein said violation is alleged to have occurred. If a violation is established in such an action, the court shall enjoin, restrain or otherwise prohibit such violation. In such action, if damages are alleged and proven, the plaintiff in the action, in addition to injunctive relief, shall recover from the defendant the actual damages sustained and proven to be a result of the violation. (b) In the event no injunctive relief is sought or required, any person, partnership, firm, corporation, or other entity injured by a violation of the provisions of this article may maintain an action for damages alone in the circuit court of the county wherein said violation is alleged to have occurred. If a violation is established in such an action and proven, a plaintiff shall recover from the defendant the actual damages sustained and proven to be a result of the violation. (c) In any action under subsection (a) or (b) of this section it shall be an absolute defense that the sale price of any product or item of merchandise alleged to be in violation of this article is equal to or greater than the sales price of the same product or item being sold by a competitor of the defendant. (d) A court may dismiss any action under subsection (a) or (b) of this section upon a motion for summary judgment if the court finds pursuant to Rule 56 of the West Virginia Rules of Civil Procedure that the provisions of subsection (c) of this section have been satisfied. (e) The circuit courts of this state shall have jurisdiction of actions under this section. WVC 47 - 11 A- 9 §47-11A-9. Injunctions and damage suits. Any person, firm, partnership, corporation, joint-stock
company, or trade association may maintain a proceeding to enjoin
a continuance of any act or acts in violation of the provisions
of this article and, if injured thereby, for the recovery of
damages in the circuit court of the county wherein said article
is alleged to have been or is being violated. If, in such
proceeding, the court shall find that the defendant is violating
or has violated any of the provisions of this article, it shall
enjoin such defendant from a continuance thereof. It shall not
be necessary that actual damages to the plaintiff be alleged or
proved. In addition to such injunctive relief, the plaintiff in
said action shall be entitled to recover from the defendant three
times the amount of the actual damages, if any, sustained.
WVC 47-11A-10
§47-11A-10 Repealed. Acts, 2016 Reg. Sess., Ch. 217 WVC 47 - 11 A- 10 §47-11A-10. Certifications to and duty of attorney general as to
companies convicted or enjoined; suits to forfeit
charters and privileges and enjoin business
permanently; jurisdiction. Whenever any corporation or joint-stock company shall be
convicted of, or shall be enjoined from violating any of the
provisions of this article, it shall be the duty of the clerk of
the court wherein said corporation or joint-stock company has
been convicted or enjoined to certify said conviction or
injunction decree, as the case may be, to the attorney general of
this state. Upon the third conviction for the violation of this
article by any corporation or joint-stock company, or whenever
any corporation or joint-stock company shall have been enjoined
three times from violating this article, it shall be the duty of
the attorney general to institute proper suits in any circuit
court in this state for the forfeiture of its charter, rights,
franchises or privileges and powers exercised by such corporation
or joint-stock company, and to enjoin permanently such violator
from transacting business within this state; and if in such suit
the court shall find that the party defendant is guilty of
violating said article as aforesaid, it shall enjoin said party
defendant from doing business in this state, permanently or for
such time as the court, in its discretion, shall order, and if
the order be for permanent injunction against the transaction of
business, the court shall order the forfeiture of the charter,
rights, franchises or privileges and powers exercised by such
Jurisdiction is hereby vested in the circuit courts of this
state to carry into effect the provisions of sections nine and
ten hereof.
WVC 47 - 11 A- 11 §47-11A-11. Penalties for violations. Any person, firm, partnership, corporation, joint-stock
§47-11A-12 Repealed. Acts, 2016 Reg. Sess., Ch. 217 WVC 47 - 11 A- 12 §47-11A-12. Contracts violating article illegal and
unenforceable. Any contract, express or implied, made by any person, firm,
partnership, corporation, joint-stock company or other
association, in violation of any of the provisions of this
article, is hereby declared to be an illegal contract and no
recovery thereon shall be had.
WVC 47 - 11 A- 12 A
§47-11A-13 Repealed. Acts, 2016 Reg. Sess., Ch. 217 WVC 47 - 11 A- 13 §47-11A-13. Prima facie evidence of violation. In any injunction proceeding or in any prosecution for a
misdemeanor under the provisions of this article, proof of any
advertisement, offer to sell, or sale of any merchandise by a
retailer or wholesaler, at less than cost, or any advertisement
of an intent to give, offer to give, or gift of any merchandise
by a retailer or wholesaler, or any secret payment, allowance of
rebates, refunds, commissions, or unearned discounts, whether in
the form of money or otherwise, or secretly extending to certain
purchasers special services or privileges not extended to all
purchasers purchasing upon like terms and conditions, shall be
prima facie evidence of a violation of this article, and proof of
a violation of this article by any person as officer, director or
agent shall be sufficient proof of a violation of this article by
the person, firm or corporation for whom or for which he acts.
WVC 47-11A-14
§47-11A-14. Purposes of article. The Legislature declares that the purposes of this article are: (1) To safeguard consumers from the creation of monopolies by prohibiting predatory pricing; (2) to foster market efficiency; and (3) to protect market competition. WVC 47 - 11 A- 14 §47-11A-14. Purpose and construction of article. The Legislature declares that the purpose of this article is
to safeguard the public against the creation or perpetuation of
monopolies and to foster and encourage competition, by
prohibiting unfair and discriminatory practices by which fair and
honest competition is destroyed or prevented. This article shall
be liberally construed that its beneficial purposes may be