California Business and Professions Code 17027 – In establishing the cost of a given article or product to the …
In establishing the cost of a given article or product to the distributor and vendor, the invoice cost of the article or product purchased at a forced, bankruptcy, closeout sale, or other sale outside of the ordinary channels of trade may not be used as a basis for justifying a price lower than one based upon the replacement cost as of the date of the sale of the article or product replaced through the ordinary channels of trade, unless the article or product is kept separate from goods purchased in the ordinary channels of trade and unless the article or product is advertised and sold as merchandise purchased at a forced, bankruptcy, closeout sale, or by means other than through the ordinary channels of trade.
Such advertising shall state the conditions under which the goods were purchased, and the quantity of the merchandise to be sold or offered for sale.
Terms Used In California Business and Professions Code 17027
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- State: means the State of California, unless applied to the different parts of the United States. See California Business and Professions Code 21
(Amended by Stats. 2009, Ch. 500, Sec. 2. (AB 1059) Effective January 1, 2010.)