<section article="gcl" article_name="Commercial Law" number="11-101" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <text>It is the policy of the State of Maryland to oppose restraints of trade and unfair trade practices in the form of foreign discriminatory boycotts not specifically authorized by the law of the United States which are fostered or imposed by foreign persons, foreign governments or international organizations against any domestic individual on the basis of race, color, creed, religion, sex or national origin. It is also the policy of the State of Maryland to oppose those actions, including the formation of agreements, understandings or contractual arrangements, expressed or implied, which have the effect of furthering or supporting these discriminatory boycotts, in order that the peace, health, safety, prosperity and general welfare of all the inhabitants of the State may be protected and ensured. It is the further policy of the State of Maryland not to impede domestic or foreign commerce, the free flow of goods in commerce, or actions reasonably necessary to protect goods moving in commerce. The State of Maryland recognizes the right of Maryland firms to decide whether to enter into commercial agreements with foreign firms, provided the agreement does not contravene U.S. foreign policy or any federal or Maryland laws and the agreement does not discriminate against domestic individuals entitled to the benefit of the laws of Maryland on the basis of race, color, creed, religion, sex or national origin, and the right of Maryland firms to decide whether to enter into a commercial agreement with a foreign firm that would advance the political and economic interests of a foreign country provided that agreement does not contravene U.S. foreign policy or federal or Maryland laws and does not discriminate against domestic individuals entitled to the benefits of the laws of Maryland on the basis of race, color, creed, religion, sex, or national origin. This subtitle shall be deemed an exercise of the police power of the State of Maryland for the protection of the people of this State, and shall be administered and principally enforced by the Attorney General of the State of Maryland. The provisions of this subtitle shall be construed liberally so as to effectuate this declaration of policy and the laws and Constitution of the United States, but nothing in this subtitle shall be construed to infringe upon the right of the United States government to regulate interstate and foreign commerce.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-102" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Attorney General” means the Attorney General of the State of Maryland.</text> </level> <level label="c"> <text>“Business relationship” means any aspect of business:</text> <level label="1"> <text>Dealing with the sale, purchase, licensing or provision of goods, services or information; or</text> </level> <level label="2"> <text>Affecting the ownership, management, employees, hiring practices, customers, clients, suppliers, contractors, subcontractors or other business associates of any person engaged in commerce.</text> </level> </level> <level label="d"> <text>“Control” means the power to exercise a controlling influence over the management policies of an entity, to influence that management or policies or play a significant role in the implementation of them.</text> </level> <level label="e"> <text>“Discriminatory boycott” means the entering into or carrying out of any provision, express or implied, of any agreement, understanding or contractual arrangement for economic benefit between any person and any foreign government, foreign person, or international organization, which is not specifically authorized by the law of the United States and which is required or imposed, either directly or indirectly, overtly or covertly, by the foreign government, foreign person, or international organization in order to restrict, condition, prohibit, or interfere with any business relationship on the basis of a domestic individual’s race, color, creed, religion, sex, sexual orientation, disability, gender identity, or national origin. Except, that entering into an agreement, understanding or contractual arrangement with respect to the handling or shipping of goods while in international and not intrastate transit or executing and delivering any other document with respect to the handling or shipping of goods while in international and not intrastate transit or carrying out or complying with any provision with respect to the choice of carrier in international and not intrastate transit or the international routing of goods while in international and not intrastate transit contained in any such agreement, understanding, contractual arrangement or other document may not constitute a discriminatory boycott within the meaning of this subtitle.</text> </level> <level label="f"> <text>“Domestic individual” means any individual whose residence, domicile, or principal place of business is in the United States and who is subject to the protection of the laws of the State of Maryland.</text> </level> <level label="g"> <text>“Foreign government” includes all governments and political subdivisions and the instrumentalities thereof, excepting the governments, political subdivisions, and instrumentalities of the United States and the states, commonwealths, territories and possessions of the United States, and the District of Columbia.</text> </level> <level label="h"> <text>“Foreign persons” means any person whose principal place of residence, business or domicile is outside the United States, or any person controlled directly or indirectly by any other person whose principal place of residence, business or domicile is outside the United States.</text> </level> <level label="i"> <text>“International organization” means any association or organization, of which a substantial portion of the membership includes foreign persons or foreign governments, but does not include an international labor organization.</text> </level> <level label="j"> <text>“Person” includes one or more of the following and their agents, employees, servants, representatives, directors, officers, partners, members, managers and superintendents: individuals, the State of Maryland, corporations, partnerships, joint ventures, associations, labor organizations, but not including international labor organizations, educational institutions, legal representatives, mutual companies, joint-stock companies, trusts, unincorporated organizations, trustees, trustees in bankruptcy, receivers, fiduciaries and all other entities recognized at law or in equity by this State.</text> </level> <level label="k"> <text>“State of Maryland” means the State and its political subdivisions and each of the instrumentalities of the State and the political subdivision.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-103" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <text>It is unlawful for a person to:</text> <level label="a"> <text>Knowingly participate in a discriminatory boycott; or</text> </level> <level label="b"> <text>Knowingly aid or assist any other person in participating in a discriminatory boycott. However, nothing in this subtitle shall make it unlawful for any person who does not otherwise participate or agree to participate in a “discriminatory boycott” merely to handle or ship the goods of a person who may be in violation of this subtitle.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-104" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <text>If any violation or possible violation of this subtitle comes to the attention of any officer or any department, board, commission, bureau, division, office or other agency of the Executive Branch of the State government or of any political subdivision of the State, that officer or the chief administrative officer of the department, board, commission, bureau, division, office or other agency, as the case may be, shall submit promptly a written report of the violation or possible violation to the Attorney General. The report shall contain a full statement of the facts and circumstances regarding the violation or possible violation, including the names and addresses of all persons who have or may have knowledge or information with respect to it, and shall be accompanied by copies of any documents pertinent to the violation or possible violation that are in the possession or control of the person making the report.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-105" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <text>Except for purposes of a criminal prosecution, if the Attorney General believes that a person is in possession, custody or control of any documents relevant to the subject matter of an investigation of a possible violation of this subtitle, he may demand and obtain the production of these documents in the manner provided for by § 11–205 of this title.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-106" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <level label="a"> <text>In enforcing this subtitle, the Attorney General may accept an assurance of discontinuance of an act or practice considered in violation of this subtitle from any person engaged in the act or practice.</text> </level> <level label="b"> <text>The assurance of discontinuance shall be in writing and filed with and subject to the approval of the court of the county where the alleged violator resides or has his principal place of business.</text> </level> <level label="c"> <text>The assurance of discontinuance may not be considered for any purpose as an admission of a violation. However, proof of failure to comply with the assurance of discontinuance is prima facie evidence of a violation of this subtitle.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-107" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <level label="a"> <text>The Attorney General shall investigate suspected criminal violations of this subtitle and may require assistance from any State’s Attorney for that purpose.</text> </level> <level label="b"> <text>The Attorney General shall commence and try all prosecutions under this subtitle with the State’s Attorney for the county where the prosecution is brought.</text> </level> <level label="c"> <text>With respect to the commencement and trial of the prosecution, the Attorney General has all the powers and duties vested by law in State’s Attorneys with respect to criminal prosecutions.</text> </level> <level label="d"> <text>A prosecution for any offense in violation of this subtitle shall be commenced within four years after the offense is committed.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-108" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <text>The Attorney General may cooperate with the federal government and other states in enforcement of this subtitle.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-109" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <level label="a"> <level label="1"> <text>The Attorney General shall institute proceedings in equity to prevent or restrain violations of § 11-103 of this subtitle and may require assistance from any State’s Attorney for that purpose.</text> </level> <level label="2"> <text>In a proceeding under this section, the court shall determine whether a violation has been committed and enter any judgment or decree necessary to:</text> <level label="i"> <text>Remove the effects of any violation it finds; and</text> </level> <level label="ii"> <text>Prevent continuation or renewal of the violation in the future.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The United States, the State, and any political subdivision organized under the authority of the State is a person having standing to bring an action under this subsection.</text> </level> <level label="2"> <text>A person injured by a violation of § 11-103 of this subtitle may maintain an action for damages or for an injunction or both against any person who has committed the violation.</text> </level> <level label="3"> <text>If an injunction is issued, the complainant shall be awarded costs and reasonable attorney’s fees.</text> </level> <level label="4"> <text>In an action for damages, if an injury due to a violation of § 11-103 of this subtitle is found, the person injured shall be awarded three times the amount of actual damages which results from the violation, with costs and reasonable attorney’s fees.</text> </level> <level label="5"> <text>The Attorney General may bring an action on behalf of the State or any of its political subdivisions to recover the damages provided for by this subsection or any comparable provision of federal law.</text> </level> </level> <level label="c"> <level label="1"> <text>An action brought to enforce this subtitle shall be commenced within four years after the cause of action accrues.</text> </level> <level label="2"> <text>For the purposes of this subsection, a cause of action for a continuing violation accrues at the time of the latest violation.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-110" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <text>The remedies provided in this subtitle are cumulative.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-111" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <text>Any person who willfully violates any of the provisions of § 11-103 of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $50,000 or imprisonment not exceeding six months or both.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-112" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <text>Any provision of any contract or other document or other agreement which violates, or which, if observed by the person intended to be bound by the provision, would cause a violation of § 11-103 of this subtitle shall be null and void as being against the public policy of the State of Maryland.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-113" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <text>The Attorney General may promulgate rules and regulations for the purpose of implementing and enforcing the provisions of this subtitle with respect to the persons subject to their respective jurisdictions and have the duty, and all powers necessary, to enforce any rules and regulations so promulgated.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-114" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <text>This subtitle may not be deemed to supersede, restrict or otherwise limit the continuing applicability of the antitrust laws of the State of Maryland.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-115" title_number="11" title_name="Trade Regulation" subtitle_number="1" subtitle_name="Foreign Discriminatory Boycotts Act"> <text>This subtitle may be cited as the Maryland Foreign Discriminatory Boycotts Act.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-201" title_number="11" title_name="Trade Regulation" subtitle_number="2" subtitle_name="Antitrust"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Attorney General” means the Attorney General of Maryland or his designee.</text> </level> <level label="c"> <text>“Commodity” means goods, wares, merchandise, machinery, supplies, or any other articles in trade or commerce.</text> </level> <level label="d"> <text>“County” includes Baltimore City.</text> </level> <level label="e"> <text>“Court” means the circuit court of a county.</text> </level> <level label="f"> <text>“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.</text> </level> <level label="g"> <text>“Service” means any activity performed in whole or in part for the purpose of financial gain, and includes any sale, rental, leasing, or licensing for use.</text> </level> <level label="h"> <text>“Trade or commerce” includes all economic activity within the State which involves or relates to any commodity or service.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-202" title_number="11" title_name="Trade Regulation" subtitle_number="2" subtitle_name="Antitrust"> <level label="a"> <level label="1"> <text>The General Assembly of Maryland declares that the purpose of this subtitle is to complement the body of federal law governing restraints of trade, unfair competition, and unfair, deceptive, and fraudulent acts or practices in order to protect the public and foster fair and honest intrastate competition.</text> </level> <level label="2"> <text>It is the intent of the General Assembly that, in construing this subtitle, the courts be guided by the interpretation given by the federal courts to the various federal statutes dealing with the same or similar matters, including:</text> <level label="i"> <text>Act of July 2, 1890, ch. 647, 26 U.S. Stat. 209, 15 U.S.C. §§ 1 through 7;</text> </level> <level label="ii"> <text>Act of Oct. 15, 1914, ch. 323, 38 U.S. Stat. 730, 15 U.S.C. §§ 12 through 27, 44;</text> </level> <level label="iii"> <text>Act of August 17, 1937, ch. 690, Title VIII, 50 U.S. Stat. 693, 15 U.S.C. § 1;</text> </level> <level label="iv"> <text>Act of July 7, 1955, ch. 281, 69 U.S. Stat. 282, 15 U.S.C. §§ 1 through 3;</text> </level> <level label="v"> <text>Act of May 26, 1938, ch. 283, 52 U.S. Stat. 446, 15 U.S.C. § 13c; and</text> </level> <level label="vi"> <text>Any similar act passed in the future.</text> </level> </level> <level label="3"> <text>It is also the intent of the General Assembly that, in deciding whether conduct restrains or monopolizes trade or commerce or may substantially lessen competition within the State, determination of the relevant market or effective area of competition may not be limited by the boundaries of the State.</text> </level> </level> <level label="b"> <level label="1"> <text>For the purpose and intent stated in subsection (a) of this section, this subtitle shall be liberally construed to serve its beneficial purposes.</text> </level> <level label="2"> <text>It is also the intent of the General Assembly that this subtitle may not be construed to prohibit acts or practices which are reasonable in relation to the development and preservation of business or which are not injurious to the public interest.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-203" title_number="11" title_name="Trade Regulation" subtitle_number="2" subtitle_name="Antitrust"> <level label="a"> <text>This subtitle does not make illegal the activity of:</text> <level label="1"> <text>A labor organization or its individual members directed solely to lawful labor objectives, or a collective bargaining agreement between a labor organization, as defined in 29 U.S.C. § 152(5), and an employer or group of employers, which contains those labor objectives;</text> </level> <level label="2"> <text>Any incorporated or unincorporated agricultural or horticultural cooperative organization or its individual members directed solely to their lawful objectives;</text> </level> <level label="3"> <text>A public service company, as defined in § 1–101 of the Public Utilities Article, or a rating organization or bureau representing the company, to the extent that the activity is subject to the jurisdiction of the Public Service Commission or authorized by federal law governing interstate commerce;</text> </level> <level label="4"> <text>An insurer, insurance producer, public adjuster, insurance advisor, or rating organization, to the extent that the activity is:</text> <level label="i"> <text>Regulated by the Maryland Insurance Commissioner; or</text> </level> <level label="ii"> <text>Authorized by the Insurance Article or any other law of the State;</text> </level> </level> <level label="5"> <text>A nonprofit corporation, trust, or organization established exclusively for religious or charitable purposes, or for both purposes, to the extent that the activity is a religious or charitable activity;</text> </level> <level label="6"> <text>A security dealer who is licensed by the State or who is a member of the National Association of Securities Dealers or a member of a National Securities Exchange registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934, in the course of his business of offering, selling, buying and selling, or otherwise trading in or underwriting securities as an agent, broker, or principal, or the activity of a registered National Securities Exchange, including the establishment of commission rates and schedules of charges;</text> </level> <level label="7"> <text>A board of trade designated as a “contract market” by the Secretary of Agriculture of the United States under 9 U.S.C. § 5;</text> </level> <level label="8"> <text>Any person to the extent that the activity is subject to the jurisdiction of the Maryland Transit Administration or the Washington Metropolitan Area Transit Authority;</text> </level> <level label="9"> <text>A state or national bank to the extent that the activity is regulated or supervised under the banking laws of the State or the United States;</text> </level> <level label="10"> <text>A state or federal savings and loan association to the extent that the activity is regulated or supervised under the savings and loan laws of the State or the United States;</text> </level> <level label="11"> <text>A bona fide nonprofit association, society, or board of attorneys, practitioners of medicine, architects, engineers, land surveyors, or real estate brokers licensed and regulated by an agency of the State, in recommending schedules of suggested fees, rates, or commissions for use solely as guidelines in determining charges for professional or technical services;</text> </level> <level label="12"> <text>A political subdivision of the State in furnishing services or commodities; or</text> </level> <level label="13"> <text>A hospital, as defined in § 19–301 of the Health – General Article, in the course of a merger or consolidation or the joint ownership and operation of major medical equipment, to the extent that the activity is approved by the Maryland Health Care Commission under § 19–129 of the Health – General Article.</text> </level> </level> <level label="b"> <text>Unless authorized under the Insurance Article, subsection (a)(4) of this section may not be construed to prevent the application of this subtitle to a person who:</text> <level label="1"> <text>Agrees to:</text> <level label="i"> <text>Rig bids;</text> </level> <level label="ii"> <text>Allocate customers or territories;</text> </level> <level label="iii"> <text>Boycott;</text> </level> <level label="iv"> <text>Coerce; or</text> </level> <level label="v"> <text>Intimidate; or</text> </level> </level> <level label="2"> <text>Engages in an act of:</text> <level label="i"> <text>Bid rigging;</text> </level> <level label="ii"> <text>Customer or territorial allocation;</text> </level> <level label="iii"> <text>Boycott;</text> </level> <level label="iv"> <text>Coercion; or</text> </level> <level label="v"> <text>Intimidation.</text> </level> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-204" title_number="11" title_name="Trade Regulation" subtitle_number="2" subtitle_name="Antitrust"> <level label="a"> <text>A person may not:</text> <level label="1"> <text>By contract, combination, or conspiracy with one or more other persons, unreasonably restrain trade or commerce;</text> </level> <level label="2"> <text>Monopolize, attempt to monopolize, or combine or conspire with one or more other persons to monopolize any part of the trade or commerce within the State, for the purpose of excluding competition or of controlling, fixing, or maintaining prices in trade or commerce;</text> </level> <level label="3"> <text>Directly or indirectly discriminate in price among purchasers of commodities or services of like grade and quality, if the effects of the discrimination may:</text> <level label="i"> <text>Substantially lessen competition;</text> </level> <level label="ii"> <text>Tend to create a monopoly in any line of trade or commerce; or</text> </level> <level label="iii"> <text>Injure, destroy, or prevent competition with any person who grants or knowingly receives the benefit of the discrimination or with customers of either of them;</text> </level> </level> <level label="4"> <text>In the course of commerce, pay or contract for the payment of anything of value to or for the benefit of a customer of the person as compensation for or in consideration of any service or facility furnished by or through the customer in connection with the processing, handling, sale, or offering for sale of any service or commodity manufactured, sold, or offered for sale by the person, unless the payment or consideration is available on proportionally equal terms to all other customers competing in the distribution of the service or commodity;</text> </level> <level label="5"> <text>Discriminate in favor of one purchaser against another purchaser of a commodity bought for resale, with or without processing, by contracting to furnish, furnishing, or contributing to the furnishing of any service or facility connected with the processing, handling, sale, or offering for sale of the commodity on terms not accorded to all purchasers on proportionally equal terms; or</text> </level> <level label="6"> <text>Lease or make a sale or contract for the sale of a patented or unpatented commodity or service for use, consumption, enjoyment, or resale, or set a price charged for the commodity or service or discount from or rebate on the price, on the condition, agreement, or understanding that the lessee or purchaser will not use or deal in the commodity or service of a competitor of the lessor or seller, if the effect of the lease, sale, or contract for sale or the condition, agreement, or understanding may:</text> <level label="i"> <text>Substantially lessen competition; or</text> </level> <level label="ii"> <text>Tend to create a monopoly in any line of trade or commerce.</text> </level> </level> </level> <level label="b"> <text>For purposes of subsection (a)(1) of this section, a contract, combination, or conspiracy that establishes a minimum price below which a retailer, wholesaler, or distributor may not sell a commodity or service is an unreasonable restraint of trade or commerce.</text> </level> <level label="c"> <text>Subsection (a)(3) through (6) of this section does not prevent:</text> <level label="1"> <text>Differentials which make only due allowance for differences in the cost of manufacture, sale, or delivery resulting from the differing methods or quantities in which the commodity or service is sold or delivered to a purchaser;</text> </level> <level label="2"> <text>A person engaged in selling a commodity or service from selecting his own customers in bona fide transactions and not in restraint of trade;</text> </level> <level label="3"> <text>A person engaged in selling a commodity or service from granting employee discounts to his own bona fide employees;</text> </level> <level label="4"> <text>A seller from introducing evidence to rebut a case brought under subsection (a)(3) through (6) of this section to show that his lower price or the furnishing of services or facilities to a purchaser was made in good faith to meet an equally low price of a competitor, or the services or facilities furnished by a competitor; or</text> </level> <level label="5"> <text>Price changes, from time to time, in response to changing conditions affecting the market for or the marketability of a commodity, which changing conditions include an actual or imminent deterioration of a perishable commodity, obsolescence of a seasonal commodity, distress sales under court process, or sales in good faith in discontinuance of business in the commodity.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-205" title_number="11" title_name="Trade Regulation" subtitle_number="2" subtitle_name="Antitrust"> <level label="a"> <text>Except as provided in subsection (i) of this section, if the Attorney General believes that a person may be in possession, custody, or control of any documentary material, wherever situated, or may have any information which the Attorney General believes is relevant to the subject matter of an investigation of a possible violation of this subtitle, the Attorney General may serve on the person before institution of a civil proceeding for the violation a written civil investigative demand which requires that person to produce the documentary material and permit inspection and copying, to answer in writing written interrogatories, to give oral testimony concerning documentary material or information, or to furnish any combination of such material, answers, or testimony.</text> </level> <level label="b"> <level label="1"> <text>The demand of the Attorney General shall state the statute and section of the statute the alleged violation of which is under investigation, and the general subject matter of the investigation.</text> </level> <level label="2"> <text>If the demand requests production of documentary material, the demand shall:</text> <level label="i"> <text>Describe the class of documentary material to be produced under the demand with reasonable specificity to indicate fairly the material demanded;</text> </level> <level label="ii"> <text>Prescribe a return date of not less than 3 days after the demand is served by which the documentary material is to be produced; and</text> </level> <level label="iii"> <text>Identify the member of the Office of the Attorney General to whom the documentary material is to be made available for inspection and copying.</text> </level> </level> <level label="3"> <text>If the demand requests answers to written interrogatories, the demand shall:</text> <level label="i"> <text>Propound the written interrogatories to be answered;</text> </level> <level label="ii"> <text>Prescribe a return date of not less than 3 days after the demand is served by which the answers to written interrogatories are to be submitted; and</text> </level> <level label="iii"> <text>Identify the member of the Office of the Attorney General to whom such answers are to be submitted.</text> </level> </level> <level label="4"> <text>If the demand requests oral testimony, the demand shall:</text> <level label="i"> <text>Prescribe a date, time, and place at which oral testimony is to be given;</text> </level> <level label="ii"> <text>Identify the member of the Office of the Attorney General who will conduct the examination; and</text> </level> <level label="iii"> <text>Identify the member of the Office of the Attorney General to whom the transcript of the examination is to be submitted.</text> </level> </level> </level> <level label="c"> <text>The demand of the Attorney General may not:</text> <level label="1"> <text>Contain any requirement which would be unreasonable or improper if contained in a summons or summons duces tecum issued by a court of the State; or</text> </level> <level label="2"> <text>Require the disclosure of any documentary material, answers to written interrogatories, or oral testimony which could not be required by a summons or summons duces tecum issued by a court of the State.</text> </level> </level> <level label="d"> <text>Service of the demand of the Attorney General shall be made by:</text> <level label="1"> <text>Delivering an executed copy of the demand to the person to be served;</text> </level> <level label="2"> <text>Delivering an executed copy of the demand to an officer, agent, or employee of the person to be served at the person’s principal place of business in the State if the person is not a natural person or is not available; or</text> </level> <level label="3"> <text>Mailing by registered or certified mail an executed copy of the demand addressed to the person to be served at the person’s principal place of business in the State or, if the person has no place of business in the State, at the person’s principal office or place of business out of State.</text> </level> </level> <level label="e"> <text>The documentary material demanded under this section shall be produced for inspection and copying and oral testimony shall be given during normal business hours at the principal office or place of business of the person served, or at any other time or place agreed to by the person served and the Attorney General.</text> </level> <level label="f"> <level label="1"> <text>Unless otherwise ordered by the court for good cause shown, the documentary material, written answers to interrogatories, transcripts of oral testimony, or copies of any product of discovery produced under the demand may not be presented for inspection or copying by or their contents disclosed to any person other than an authorized employee of the Attorney General without the consent of the person who produced the material.</text> </level> <level label="2"> <text>Copies of the material produced shall be available for inspection and copying by the person who produced the material or the person’s authorized representative under any reasonable terms and conditions prescribed by the Attorney General.</text> </level> <level label="3"> <text>The Attorney General may use the material produced in the enforcement of this subtitle, including presentation before any court. Material which contains trade secrets may not be presented except with the approval of the court in which the action is pending and after adequate notice is given to the person furnishing the material.</text> </level> </level> <level label="g"> <level label="1"> <text>A petition to extend the return date or to modify or set aside a demand issued under subsection (a) of this section may be filed at any time before the return date specified in the demand or within 20 days after the demand is served, whichever period is shorter.</text> </level> <level label="2"> <text>A petition to require the Attorney General or any other person to perform a duty imposed by this section and any other petitions in connection with the demand may be filed by the person on whom the demand is served.</text> </level> <level label="3"> <text>A petition filed under this subsection shall state good cause and be filed in the court of the county where the petitioner resides or where the petitioner’s principal place of business is located.</text> </level> </level> <level label="h"> <level label="1"> <text>If a person fails to comply with a written civil investigative demand served on the person under this section, the Attorney General may file in the court of the county where the person resides, transacts business, or is found, and serve on the person a petition for an order of the court for the enforcement of this section.</text> </level> <level label="2"> <text>If the person transacts business in more than one county the petition shall be filed in the county where the person’s principal place of business is located, or in any other county agreed to by the parties to the petition.</text> </level> <level label="3"> <text>The court in which the petition is filed has jurisdiction to hear and determine the matter presented and enter any order required under this section.</text> </level> </level> <level label="i"> <text>This section is not applicable to a criminal prosecution.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-206" title_number="11" title_name="Trade Regulation" subtitle_number="2" subtitle_name="Antitrust"> <level label="a"> <text>In enforcing this subtitle, the Attorney General may accept an assurance of discontinuance of an act or practice considered in violation of this subtitle from any person engaged in the act or practice.</text> </level> <level label="b"> <text>The assurance of discontinuance shall be in writing and filed with and subject to the approval of the court of the county where the alleged violator resides or has his principal place of business.</text> </level> <level label="c"> <text>The assurance of discontinuance may not be considered for any purpose as an admission of a violation. However, proof of failure to comply with the assurance of discontinuance is prima facie evidence of a violation of this subtitle.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-207" title_number="11" title_name="Trade Regulation" subtitle_number="2" subtitle_name="Antitrust"> <level label="a"> <text>The Attorney General shall investigate suspected criminal violations of this subtitle and may require assistance from any State’s Attorney for that purpose.</text> </level> <level label="b"> <text>The Attorney General shall commence and try all prosecutions under this subtitle with the State’s Attorney for the county where the prosecution is brought.</text> </level> <level label="c"> <text>With respect to the commencement and trial of the prosecution, the Attorney General has all the powers and duties vested by law in State’s Attorneys with respect to criminal prosecutions.</text> </level> <level label="d"> <text>A prosecution for any offense in violation of this subtitle shall be commenced within four years after the offense is committed.</text> </level> <level label="e"> <text>The Attorney General may not commence prosecution under this subtitle against any person while the person is a defendant with regard to a pending complaint, information, or indictment which:</text> <level label="1"> <text>Involves substantially the same subject matter; and</text> </level> <level label="2"> <text>Is filed by the United States for violation or alleged violation of the federal antitrust statutes, including the statutes enumerated in § 11-202 and any similar act passed in the future.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-208" title_number="11" title_name="Trade Regulation" subtitle_number="2" subtitle_name="Antitrust"> <text>The Attorney General may cooperate with the federal government and other states in the enforcement of this subtitle.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-209" title_number="11" title_name="Trade Regulation" subtitle_number="2" subtitle_name="Antitrust"> <level label="a"> <level label="1"> <text>The Attorney General shall institute proceedings in equity to prevent or restrain violations of § 11–204 of this subtitle and may require assistance from any State’s Attorney for that purpose.</text> </level> <level label="2"> <text>In a proceeding under this section, the court shall determine whether a violation has been committed and enter any judgment or decree necessary to:</text> <level label="i"> <text>Remove the effects of any violation it finds; and</text> </level> <level label="ii"> <text>Prevent continuation or renewal of the violation in the future.</text> </level> </level> <level label="3"> <text>The court may exercise all equitable powers necessary for this purpose, including but not limited to injunction, restitution to any person of any money or real or personal property acquired from that person by means of any violation, divestiture of property or business units, and suspension or termination of the right of a foreign corporation or association to do business in the State.</text> </level> <level label="4"> <level label="i"> <text>In addition to the equitable remedies or other relief authorized by this section, the court may assess against any person who violates § 11–204 of this subtitle a civil penalty not exceeding $10,000 for each violation, to be paid to the General Fund of the State.</text> </level> <level label="ii"> <text>Each day that a violation of § 11–204 of this subtitle continues is a separate violation.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The United States, the State, and any political subdivision organized under the authority of the State is a person having standing to bring an action under this subsection.</text> </level> <level label="2"> <level label="i"> <text>A person whose business or property has been injured or threatened with injury by a violation of § 11–204 of this subtitle may maintain an action for damages or for an injunction or both against any person who has committed the violation regardless of whether the person maintaining the action dealt directly or indirectly with the person who has committed the violation.</text> </level> <level label="ii"> <text>In any action under this subsection for damages by an intermediate purchaser or seller in the chain of manufacture, production, or distribution, any defendant, as a partial or complete defense, may, in order to avoid duplicative liability, prove that all or any part of an alleged overcharge was passed on to a later purchaser or ultimate end–user also maintaining an action for damages under this subsection.</text> </level> </level> <level label="3"> <text>If an injunction is issued, the complainant shall be awarded costs and reasonable attorney’s fees.</text> </level> <level label="4"> <text>In an action for damages, if an injury due to a violation of § 11–204 of this subtitle is found, the person injured shall be awarded three times the amount of actual damages which results from the violation, with costs and reasonable attorney’s fees.</text> </level> <level label="5"> <text>The Attorney General may bring an action on behalf of the State or any of its political subdivisions or as parens patriae on behalf of persons residing in the State to recover the damages provided for by this subsection or any comparable provision of federal law.</text> </level> </level> <level label="c"> <text>An action brought by the Attorney General as parens patriae under subsection (b)(5) of this section is presumed superior to any class action brought on behalf of the same person.</text> </level> <level label="d"> <level label="1"> <text>An action brought to enforce this subtitle shall be commenced within 4 years after the cause of action accrues.</text> </level> <level label="2"> <text>For the purposes of this subsection, a cause of action for a continuing violation accrues at the time of the latest violation.</text> </level> <level label="3"> <text>Whenever the State commences a criminal proceeding under this subtitle or the United States commences a criminal antitrust proceeding under the federal antitrust laws, any civil action under this section related to the subject matter of the criminal proceeding shall be commenced within 1 year after the conclusion of the proceeding or within 4 years after the cause of action accrued, whichever is later.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-210" title_number="11" title_name="Trade Regulation" subtitle_number="2" subtitle_name="Antitrust"> <level label="a"> <text>Except as provided in subsection (b) of this section, a final judgment or decree rendered in a criminal proceeding or civil action brought by the Attorney General under this subtitle to the effect that a defendant has violated this subtitle is prima facie evidence against the defendant in an action for damages brought by another party against him under § 11-209(b) of this subtitle with respect to all matters where the judgment or decree would be an estoppel between the parties to it.</text> </level> <level label="b"> <text>This section does not apply to a civil consent judgment or decree entered before any testimony is taken.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-211" title_number="11" title_name="Trade Regulation" subtitle_number="2" subtitle_name="Antitrust"> <text>The remedies provided in this subtitle are cumulative.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-212" title_number="11" title_name="Trade Regulation" subtitle_number="2" subtitle_name="Antitrust"> <text>Any person who willfully violates any of the provisions of § 11-204(a)(1) or (2) of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500,000 or imprisonment not exceeding six months or both.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-213" title_number="11" title_name="Trade Regulation" subtitle_number="2" subtitle_name="Antitrust"> <text>This subtitle may be cited as the Maryland Antitrust Act.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-301" title_number="11" title_name="Trade Regulation" subtitle_number="3" subtitle_name="Gasohol and Gasoline Products Marketing Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Controlled outlet” means an outlet which is operated by a distributor or operated by company employees, a subsidiary company, commissioned agent, or by any person who manages the outlet on a fee arrangement with the distributor.</text> </level> <level label="c"> <text>The distributor may not:</text> <level label="1"> <text>Require the dealer to refuse credit card purchases of gasohol; or</text> </level> <level label="2"> <text>Provide that any credit card it issues may not be used for the purchase of gasohol.</text> </level> </level> <level label="d"> <level label="1"> <text>“Dealer” means a person engaged in the retail sale of gasohol or gasoline products under a marketing agreement, at least 30 percent of whose gross revenue is derived from the retail sale of gasoline products.</text> </level> <level label="2"> <text>“Dealer” does not include an employee of a distributor.</text> </level> </level> <level label="e"> <level label="1"> <text>“Distributor” means a person who:</text> <level label="i"> <text>Engages in the sale, consignment, or distribution of gasohol or gasoline products through retail outlets which he owns or leases; and</text> </level> <level label="ii"> <text>Maintains an oral or written contractual relationship with a dealer for the sale of the products.</text> </level> </level> <level label="2"> <text>“Distributor” includes any subsidiary or affiliated corporation in which a distributor holds at least 30 percent voting control.</text> </level> </level> <level label="f"> <text>“Farm cooperative” means a cooperative organized under Subtitle 5 of Title 5 of the Corporations and Associations Article.</text> </level> <level label="g"> <text>“Gasoline products” includes gasohol.</text> </level> <level label="h"> <text>“Independent jobber” means an individual or corporation who purchases gasohol or gasoline products from a wholesaler for resale to a dealer.</text> </level> <level label="i"> <text>“Marketing agreement” means an oral or written agreement between a distributor and a dealer under which the dealer is granted the right, for the purpose of engaging in the retail sale of gasohol or gasoline products supplied by the distributor, to:</text> <level label="1"> <text>Use a trademark, trade name, service mark, or other identifying symbol or name owned by the distributor; or</text> </level> <level label="2"> <text>Occupy premises owned, leased, or controlled by the distributor.</text> </level> </level> <level label="j"> <text>“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.</text> </level> <level label="k"> <text>“Retail sale” means the sale of a product for purposes other than resale.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-302" title_number="11" title_name="Trade Regulation" subtitle_number="3" subtitle_name="Gasohol and Gasoline Products Marketing Act"> <level label="a"> <text>The General Assembly finds and declares that since the distribution and sale through marketing arrangements of petroleum products in the State vitally affect the economy of the State, and its public interest, welfare, and transportation, it is necessary to define the relationships and responsibilities of the parties to certain agreements pertaining to these marketing arrangements.</text> </level> <level label="b"> <text>This subtitle constitutes a statement of the public policy of the State.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-303" title_number="11" title_name="Trade Regulation" subtitle_number="3" subtitle_name="Gasohol and Gasoline Products Marketing Act"> <text>Before any marketing agreement is concluded, a distributor shall disclose fully to a prospective dealer the following information:</text> <level label="1"> <text>Any gallonage history of the location under negotiation for the shorter of:</text> <level label="i"> <text>The three-year period immediately past; or</text> </level> <level label="ii"> <text>The entire period during which the location has been supplied by the distributor;</text> </level> </level> <level label="2"> <text>The name, last known address, and reason for the termination of the marketing agreement of each person who was a dealer at the location during:</text> <level label="i"> <text>The five-year period immediately past; or</text> </level> <level label="ii"> <text>The entire period during which the location has been supplied by the distributor;</text> </level> </level> <level label="3"> <text>Any commitment for the sale, demolition, or other disposition of the location;</text> </level> <level label="4"> <text>Any training program and any specific goods and services which the distributor will provide for and to the dealer;</text> </level> <level label="5"> <text>Any obligation which will be required of the dealer;</text> </level> <level label="6"> <text>Any restriction on the sale, transfer, and termination of the agreement; and</text> </level> <level label="7"> <text>The total amount of any cash deposit required, any amount of interest to be paid on the deposit, and the conditions for the return of the deposit.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-304" title_number="11" title_name="Trade Regulation" subtitle_number="3" subtitle_name="Gasohol and Gasoline Products Marketing Act"> <level label="a"> <text>Every marketing agreement is subject to the provisions of this section, whether or not expressly set forth in the agreement.</text> </level> <level label="b"> <level label="1"> <text>Until midnight of the seventh business day after the day a marketing agreement is signed or entered into, the dealer may cancel it by giving written notice of cancellation to the distributor in person or by registered or certified mail.</text> </level> <level label="2"> <text>Within 10 days after delivery of the notice of cancellation, the dealer shall return to the distributor full possession of any service station, location, money, equipment, or merchandise loaned, sold, or delivered under the marketing agreement to the dealer by the distributor.</text> </level> <level label="3"> <text>The distributor shall give the dealer full credit or its cash equivalent for all money, equipment, and merchandise returned.</text> </level> </level> <level label="c"> <text>The distributor may not set or maintain or attempt to set or maintain the price at which the dealer sells any product, and the price of any product may not be subject to enforcement or coercion by the distributor in any way. However, the distributor may counsel with the dealer concerning prices and may suggest prices to him.</text> </level> <level label="d"> <text>A distributor may only require a dealer to keep his retail outlet open for business for a specified number of hours per day or days per week when this requirement is negotiated in good faith by both parties and arrived at in mutual agreement and it is on the basis of a bona fide business need.</text> </level> <level label="e"> <text>The distributor may not require the dealer to use any promotion, premium, coupon, give–away, or rebate in the operation of the business. However, if not otherwise prohibited by law, the dealer may participate in a promotional, premium, coupon, give–away, or rebate program sponsored by the distributor.</text> </level> <level label="f"> <text>A distributor who intends not to renew a marketing agreement shall give notice of his intent to the retail service station dealer at least 90 days before the expiration of the term of the marketing agreement, whether or not the marketing agreement contains a provision for automatic renewal or, by its terms, expires at a fixed time. Failure to give notice constitutes a renewal of the marketing agreement for a term of one year from its stated expiration date. This notice requirement supersedes the notice provisions of § 8–402(b) of the Real Property Article as well as any notice provision set forth in the marketing agreement.</text> </level> <level label="g"> <text>The distributor may not unreasonably withhold his consent to any assignment, transfer, sale, or renewal of a marketing agreement, whether or not the marketing agreement contains a provision for automatic renewal or, by its terms, expires at a fixed time. Notice of intent not to renew a marketing agreement shall set forth, in specific detail, the reasons relied upon by the distributor for the nonrenewal.</text> </level> <level label="h"> <level label="1"> <text>Except with respect to a cancellation to which subsection (b) of this section applies, within 30 days after the date a marketing agreement is terminated or canceled, whether by mutual agreement or otherwise, the distributor shall repurchase from the dealer at the then current wholesale price all merchantable products purchased by the dealer from the distributor.</text> </level> <level label="2"> <text>The distributor may apply the proceeds of any repurchased product against any existing debt owed by the dealer to the distributor.</text> </level> <level label="3"> <text>The obligation to repurchase under this subsection is enforceable only to the extent that there are no other valid claims or liens against the products by or on behalf of other creditors of the dealer.</text> </level> </level> <level label="i"> <level label="1"> <text>In addition to the provisions of subsection (h) of this section, if, without the written consent of the dealer, the distributor terminates, cancels, or unreasonably refuses to renew the marketing agreement, the distributor shall pay to the dealer the full value of any business goodwill which the dealer enjoys at the time he is notified of the termination, cancellation, or refusal to renew.</text> </level> <level label="2"> <text>The distributor shall make the payment required by this subsection within 30 days from the effective date of the termination, cancellation, or refusal to renew.</text> </level> <level label="3"> <text>This subsection does not apply if the dealer materially breaches the marketing agreement.</text> </level> </level> <level label="j"> <text>The marketing agreement may not waive the right of either party to trial by jury or interposition of counter–claims or cross–claims.</text> </level> <level label="k"> <text>A clause in any lease or contract from a producer or refiner to a dealer for the use of a retail service station providing for a minimum monthly rental based on a certain volume of sales is not enforceable to the extent the minimum rent exceeds a sum equal to the minimum rent provided for in the lease or contract times a fraction, the denominator of which is the number of gallons of gasoline on which the minimum rent is based and the numerator of which is the number of gallons of gasoline made available by the producer or refiner to the dealer for that month.</text> </level> <level label="l"> <level label="1"> <text>A distributor who sets the retail price of gasoline through controlled outlets shall provide those noncontrolled outlets that it supplies with gasoline products at a wholesale price of at least 4 cents per gallon under the lowest price posted for each grade of gasoline at any controlled outlet. Violation of this subsection constitutes price discrimination as prohibited by § 11–204(a)(3) of this title.</text> </level> <level label="2"> <text>The provisions of this act do not apply to independent jobbers and farm cooperatives.</text> </level> </level> <level label="m"> <level label="1"> <text>A franchise created by a marketing agreement under this subtitle is personal property and shall devolve on death or retirement of a service station dealer to a designated successor in interest of the dealer, limited to the dealer’s spouse, adult child, or adult stepchild.</text> </level> <level label="2"> <level label="i"> <text>Subject to the distributor’s approval which may not be unreasonably withheld, the successor dealer shall be granted a 1 year trial marketing agreement by the distributor, in the name of the successor dealer, under the same terms and conditions as were contained in the original agreement.</text> </level> <level label="ii"> <text>In accordance with subsection (g) of this section, during the period of the trial marketing agreement, and with the consent of the distributor, the successor dealer may:</text> <level label="1"> <text>Sell the business assets;</text> </level> <level label="2"> <text>Assign the marketing agreement; or</text> </level> <level label="3"> <text>Renew the marketing agreement under terms and conditions agreeable to the distributor and the successor dealer.</text> </level> </level> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-305" title_number="11" title_name="Trade Regulation" subtitle_number="3" subtitle_name="Gasohol and Gasoline Products Marketing Act"> <text>Subject to the notice requirements of § 11-306 of this subtitle, in any action filed under this subtitle which is based on a termination or cancellation of a marketing agreement, it is a defense that the marketing agreement was terminated or canceled:</text> <level label="1"> <text>By mutual agreement of the parties, provided however, that the mutual agreement is void and unenforceable unless it clearly states that it is not effective until the seventh business day after the date of its execution during which time either the dealer or the distributor have the absolute right to rescind such mutual agreement by written notice to the other;</text> </level> <level label="2"> <text>Because of the bankruptcy or insolvency of the dealer;</text> </level> <level label="3"> <text>Because the dealer failed to comply with an express requirement of the marketing agreement; or</text> </level> <level label="4"> <text>Because the dealer failed to act in good faith in carrying out the terms of the marketing agreement.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-306" title_number="11" title_name="Trade Regulation" subtitle_number="3" subtitle_name="Gasohol and Gasoline Products Marketing Act"> <level label="a"> <text>A party to a marketing agreement may not raise any defense set out in § 11-305 of this subtitle unless he gives written notice to the other party of his intent to terminate or cancel the agreement. This notice shall be given in person or by registered or certified mail at least 60 days before the date on which he intends to terminate or cancel it.</text> </level> <level label="b"> <text>The 60-day notice is not required if at the time of termination or cancellation of the marketing agreement any of the following is proven:</text> <level label="1"> <text>Criminal misconduct;</text> </level> <level label="2"> <text>Fraud;</text> </level> <level label="3"> <text>Abandonment;</text> </level> <level label="4"> <text>Bankruptcy or insolvency of the dealer;</text> </level> <level label="5"> <text>Adulteration of product; or</text> </level> <level label="6"> <text>Giving a check which is dishonored for insufficient funds.</text> </level> </level> <level label="c"> <text>If notice is given by registered or certified mail, it shall be effective on the date of mailing.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-307" title_number="11" title_name="Trade Regulation" subtitle_number="3" subtitle_name="Gasohol and Gasoline Products Marketing Act"> <text>Any person who violates any provision of this subtitle is liable for damages caused by the violation and is subject to the other legal or equitable remedies available to the party injured by the violation.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-308" title_number="11" title_name="Trade Regulation" subtitle_number="3" subtitle_name="Gasohol and Gasoline Products Marketing Act"> <text>This subtitle may be cited as the Maryland Gasohol and Gasoline Products Marketing Act.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-401" title_number="11" title_name="Trade Regulation" subtitle_number="4" subtitle_name="Sales Below Cost Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Cost to the retailer” means the lesser of the invoice cost or the replacement cost of the merchandise to the retailer, minus any trade discount other than a customary discount for cash, plus:</text> <level label="1"> <text>A freight charge otherwise not included in the invoice cost or the replacement cost of the merchandise;</text> </level> <level label="2"> <text>A cartage cost to the retail outlet if performed or paid for by the retailer, which, in the absence of proof of a lesser cost, is 0.75 percent of the cost to the retailer, after adding the freight charge but before adding the cartage cost and any markup;</text> </level> <level label="3"> <text>A markup to cover in part the cost of doing business, which, in the absence of proof of a lesser cost, is 5 percent of the cost to the retailer, after adding the freight charge and the cartage cost but before adding any markup; and</text> </level> <level label="4"> <text>An additional markup to cover in part the cost of doing business, which, in the absence of proof of a lesser cost, is 2 percent of the cost to the retailer, after adding the freight charge and the cartage cost but before adding any markup, if the retailer:</text> <level label="i"> <text>Buys at wholesale or buys directly from the manufacturer or the agent or broker of the manufacturer; and</text> </level> <level label="ii"> <text>Receives a wholesale price or discount on merchandise for retail sale.</text> </level> </level> </level> <level label="c"> <text>“Cost to the wholesaler” means the lesser of the invoice cost or the replacement cost of the merchandise to the wholesaler, minus any discount other than a customary discount for cash, plus:</text> <level label="1"> <text>A freight charge otherwise not included in the invoice cost or the replacement cost of the merchandise;</text> </level> <level label="2"> <text>A cartage cost to the retail outlet if performed or paid for by the wholesaler, which, in the absence of proof of a lesser cost, is 0.75 percent of the cost to the wholesaler, after adding the freight charge but before adding the cartage cost and any markup; and</text> </level> <level label="3"> <text>A markup to cover in part the cost of doing business, which, in the absence of proof of a lesser cost, is 2 percent of the cost to the wholesaler, after adding the freight charge and the cartage cost but before adding any markup.</text> </level> </level> <level label="d"> <text>“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.</text> </level> <level label="e"> <text>“Replacement cost” means the cost per unit for which the merchandise sold or offered for sale could have been bought by the wholesaler or retailer at any time within 30 days before the date of sale or the date on which it is offered for sale by him if bought in the same quantity as his last purchase of the merchandise.</text> </level> <level label="f"> <level label="1"> <text>“Retail sale” means any transfer of title to tangible personal property for valuable consideration and in the ordinary course of trade or in the usual conduct of the seller’s business, to a purchaser for consumption or use other than resale, further processing, or manufacturing.</text> </level> <level label="2"> <text>“Retail sale” includes any such transfer of the property whereby title is retained by the seller as security for the payment of the purchase price.</text> </level> </level> <level label="g"> <level label="1"> <text>“Retailer” means a person engaged in the business of making retail sales within the State.</text> </level> <level label="2"> <text>If the person is engaged in the business of making both retail sales and wholesale sales, the word applies only to the retail sales portion of the business.</text> </level> </level> <level label="h"> <level label="1"> <text>“Wholesale sale” means any transfer of title to tangible personal property for valuable consideration and in the ordinary course of trade or the usual conduct of the seller’s business, to a purchaser for the purpose of resale, further processing, or manufacturing.</text> </level> <level label="2"> <text>“Wholesale sale” includes any such transfer of the property whereby title is retained by the seller as security for the payment of the purchase price.</text> </level> </level> <level label="i"> <level label="1"> <text>“Wholesaler” means a person engaged in the business of making wholesale sales within the State.</text> </level> <level label="2"> <text>If a person is engaged in the business of making both wholesale sales and retail sales, the word applies only to the wholesale sales portion of the business.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-402" title_number="11" title_name="Trade Regulation" subtitle_number="4" subtitle_name="Sales Below Cost Act"> <text>This subtitle does not apply to an advertisement, offer to sell, retail sale, or wholesale sale, if the merchandise:</text> <level label="1"> <text>Is sold in a bona fide clearance sale and is so advertised and marked;</text> </level> <level label="2"> <text>Must be sold promptly in order to prevent loss;</text> </level> <level label="3"> <text>Is imperfect, damaged, or being discontinued and is so advertised and marked;</text> </level> <level label="4"> <text>Is sold on the final liquidation of a business;</text> </level> <level label="5"> <text>Is sold for charitable purposes or to relief agencies;</text> </level> <level label="6"> <text>Is sold on contract to a department of a government or governmental institution;</text> </level> <level label="7"> <text>Is sold by an officer acting under the order or direction of a court;</text> </level> <level label="8"> <text>Is sold at a price set in good faith to meet competition; or</text> </level> <level label="9"> <text>Is motor fuel sold by a retail service station dealer.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-403" title_number="11" title_name="Trade Regulation" subtitle_number="4" subtitle_name="Sales Below Cost Act"> <text>For the purposes of this subtitle, if an item of merchandise is advertised, offered for sale, or sold with any other item at a combined price, or is advertised, offered as a gift, or given with the sale of any other item, all of the items are considered to be advertised, offered for sale, or sold. The cost to the retailer or the cost to the wholesaler, as the case may be, of each item is governed by § 11-401(b) and (c), respectively, of this subtitle.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-404" title_number="11" title_name="Trade Regulation" subtitle_number="4" subtitle_name="Sales Below Cost Act"> <level label="a"> <text>A retailer or wholesaler with intent to injure a competitor or to destroy competition may not advertise, offer to sell, or sell at retail sale or wholesale sale any item of merchandise at less than its cost to the retailer or its cost to the wholesaler, respectively.</text> </level> <level label="b"> <text>Proof of an advertisement, offer to sell, or sale of an item of merchandise by a retailer or wholesaler at less than its cost to the retailer or its cost to the wholesaler, respectively, is prima facie evidence of intent to injure a competitor or to destroy competition.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-405" title_number="11" title_name="Trade Regulation" subtitle_number="4" subtitle_name="Sales Below Cost Act"> <text>On complaint of a person who claims to be injured, a circuit court has jurisdiction to enjoin a retailer or wholesaler from the commission of an act prohibited by this subtitle.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-406" title_number="11" title_name="Trade Regulation" subtitle_number="4" subtitle_name="Sales Below Cost Act"> <text>This subtitle may be cited as the Maryland Sales Below Cost Act.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-501" title_number="11" title_name="Trade Regulation" subtitle_number="5" subtitle_name="Cigarette Sales Below Cost Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Basic cost of cigarettes” means the lesser of the invoice cost or the replacement cost of cigarettes to the retailer or wholesaler; plus any in–freight charge to the wholesaler otherwise not included in the invoice cost or the replacement cost; plus, for the wholesaler, the full face value of any applicable Maryland cigarette tax payable by the wholesaler; minus any trade discount or discount for cash.</text> </level> <level label="c"> <level label="1"> <text>“Cigarettes” means any size or shaped roll for smoking that is made of tobacco or tobacco mixed with another ingredient and wrapped in paper or in any other material except tobacco.</text> </level> <level label="2"> <text>“Cigarettes” does not include cigars.</text> </level> </level> <level label="d"> <level label="1"> <text>“Cost to the retailer”, subject to the special cost provisions of § 11–503 of this subtitle, means the basic cost of cigarettes to a retailer, which includes the cost to a wholesaler, plus a markup to cover his cost of doing business, which cost of doing business, in the absence of satisfactory proof of a lesser cost, is presumed to be 8 percent of the basic cost of cigarettes to him.</text> </level> <level label="2"> <text>As to each carton of 200 cigarettes, a fractional part of a cent equal to one–tenth of a cent or more in the cost to the retailer shall be rounded off to the next higher cent.</text> </level> </level> <level label="e"> <level label="1"> <text>“Cost to the wholesaler”, subject to the special cost provisions of § 11–503 of this subtitle, means the basic cost of cigarettes to a wholesaler, plus a markup to cover his cost of doing business, which cost of doing business:</text> <level label="i"> <text>Includes the cartage cost to a retailer; and</text> </level> <level label="ii"> <text>In the absence of satisfactory proof of a lesser cost, is presumed to be 5 percent of the basic cost of cigarettes to him.</text> </level> </level> <level label="2"> <text>As to each carton of 200 cigarettes, a fractional part of a cent equal to one–tenth of a cent or more in the cost to the wholesaler shall be rounded off to the next higher cent.</text> </level> </level> <level label="f"> <level label="1"> <text>“Executive Director” means the Executive Director of the Alcohol, Tobacco, and Cannabis Commission.</text> </level> <level label="2"> <text>“Executive Director” includes a deputy, an inspector, a clerk, or any other individual authorized to act by the Executive Director.</text> </level> </level> <level label="g"> <text>“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.</text> </level> <level label="h"> <text>“Replacement cost” means the cost per unit for which the cigarettes could have been bought by the wholesaler or retailer at any time within 30 days before the date of sale by him if bought in the same quantity as his last purchase of the cigarettes.</text> </level> <level label="i"> <text>“Retail sale of cigarettes” includes any sale whereby cigarettes are sold for a valuable consideration, including an exchange or barter and a sale through a vending machine, made in the ordinary course of trade or the usual conduct of the seller’s business to a purchaser for consumption or use other than resale.</text> </level> <level label="j"> <level label="1"> <text>“Retailer” includes any person engaged in the business of making retail sales of cigarettes within the State at a store, stand, booth, or concession, through vending machines, or otherwise.</text> </level> <level label="2"> <text>If the person is engaged in the business of making both retail sales of cigarettes and wholesale sales of cigarettes, the word only applies to the retail sales of cigarettes portion of the business.</text> </level> </level> <level label="k"> <text>“Sell” includes advertise, offer to sell, or offer for sale.</text> </level> <level label="l"> <text>“Vending machine operator” means a person who:</text> <level label="1"> <text>Makes retail sales of cigarettes or has cigarettes in his possession with the intent to sell them exclusively at retail through the medium of a vending machine or any other mechanical device used for dispensing cigarettes;</text> </level> <level label="2"> <text>Owns, operates, and services vending machines or other mechanical devices used to dispense cigarettes on 40 or more premises; and</text> </level> <level label="3"> <text>Services the machines or devices by maintaining an established place of business for the purchase of cigarettes, including warehousing facilities for the storage and distribution of cigarettes.</text> </level> </level> <level label="m"> <level label="1"> <text>“Wholesale sale of cigarettes” includes any sale whereby cigarettes are sold for a valuable consideration, made in the ordinary course of trade or in the usual conduct of the seller’s business to a retailer, other than to a vending machine operator or to a sub–wholesaler described in subsection (n)(2) of this section, for the bona fide purpose of resale.</text> </level> <level label="2"> <text>“Wholesale sale of cigarettes” includes any transfer of cigarettes on consignment or otherwise, whereby title is retained by the seller as security for the payment of the purchase price.</text> </level> </level> <level label="n"> <level label="1"> <text>“Wholesaler” means a person who purchases cigarettes directly from a manufacturer.</text> </level> <level label="2"> <text>“Wholesaler” includes a person, who, as a sub–wholesaler:</text> <level label="i"> <text>Purchases cigarettes from another wholesaler solely for the purpose of bona fide resale to retailers other than those directly or indirectly owned, affiliated, or controlled by him; and</text> </level> <level label="ii"> <text>Services the retailers by maintaining an established place of business for the sale of cigarettes, including warehouse facilities, adequate inventory, proper accounting records, and necessary equipment and vehicles for the storage and distribution of cigarettes.</text> </level> </level> <level label="3"> <text>If the person is engaged in the business of making both wholesale sales of cigarettes and retail sales of cigarettes, the word only applies to the wholesale sales of cigarettes portion of the business.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-502" title_number="11" title_name="Trade Regulation" subtitle_number="5" subtitle_name="Cigarette Sales Below Cost Act"> <level label="a"> <text>This subtitle does not apply to a retail sale of cigarettes or a wholesale sale of cigarettes, if they are sold:</text> <level label="1"> <text>At a bona fide clearance sale, are so advertised and marked, and the quantity is accurately, clearly, and conspicuously stated in all advertising of the sale and on signs conspicuously posted where the sale takes place;</text> </level> <level label="2"> <text>As imperfect, damaged, or being discontinued, are so advertised and marked, and the quantity is accurately, clearly, and conspicuously stated in all advertising of the sale and on signs conspicuously posted where the sale takes place;</text> </level> <level label="3"> <text>On the complete and final liquidation of the business of the seller;</text> </level> <level label="4"> <text>Under an order, direction, or supervision of a court; or</text> </level> <level label="5"> <text>Subject to subsection (b) of this section, by a retailer or wholesaler at a price set in good faith to meet the competition of another retailer or wholesaler who is rendering the same type of service as the seller, if the price of the competitor which the seller desires to meet is lawful.</text> </level> </level> <level label="b"> <text>For purposes of subsection (a)(5) of this section, the price of cigarettes sold under subsection (a)(1) through (4) of this section is not the lawful price of a competitor.</text> </level> <level label="c"> <text>In calculating the basic cost of cigarettes purchased at a sale under subsection (a)(1) through (4) of this section or at any other sale outside the ordinary channels of trade, a retailer or wholesaler shall use, instead of invoice costs, the replacement cost of the cigarettes based on the quantity last purchased by him through the ordinary channels of trade.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-503" title_number="11" title_name="Trade Regulation" subtitle_number="5" subtitle_name="Cigarette Sales Below Cost Act"> <level label="a"> <text>In a wholesale sale of cigarettes, the presumptive wholesale markup of 5 percent provided for in § 11-501(e) of this subtitle may be reduced by 2 cents for each carton of 200 cigarettes, if:</text> <level label="1"> <text>The cigarettes are not delivered unless their full price is received by the wholesaler at or before delivery; and</text> </level> <level label="2"> <text>The purchaser performs or pays for the cartage cost of the cigarettes to the place of business of the purchaser.</text> </level> </level> <level label="b"> <level label="1"> <text>In the absence of satisfactory proof of a lesser aggregate cost of doing business, a vending machine operator or retailer who purchases cigarettes at prices ordinarily invoiced to a wholesaler and who receives the wholesaler’s discounts on them shall:</text> <level label="i"> <text>First, add to his basic cost of cigarettes the wholesale markup of 5 percent provided for in § 11-501(e) of this subtitle to cover the cost of doing business as a wholesaler; and</text> </level> <level label="ii"> <text>Then, on the resultant sum, add the retail markup of 8 percent provided for in § 11-501(d) of this subtitle.</text> </level> </level> <level label="2"> <text>If the discount received by the vending machine operator or retailer is less than that ordinarily allowed to wholesalers, the wholesale markup of 5 percent may be reduced by the difference between the discount ordinarily allowed to wholesalers and the discount received by the retailer or vending machine operator.</text> </level> </level> <level label="c"> <level label="1"> <text>A wholesaler who sells cigarettes to another wholesaler or to a vending machine operator is not required to include in his selling price the cost to the wholesaler. However, in the absence of satisfactory proof of a lesser cost for the service rendered, the wholesaler shall include in the selling price his basic cost of cigarettes, plus a charge of 1 percent of his basic cost of cigarettes.</text> </level> <level label="2"> <text>If a wholesaler purchases cigarettes from another wholesaler, then, on resale of the cigarettes to a retailer, he is the wholesaler for the purposes of this subtitle.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-504" title_number="11" title_name="Trade Regulation" subtitle_number="5" subtitle_name="Cigarette Sales Below Cost Act"> <level label="a"> <text>A retailer or wholesaler with intent to injure a competitor or to destroy or substantially lessen competition may not make a retail sale of cigarettes or a wholesale sale of cigarettes at less than the cost to the retailer or the cost to the wholesaler, respectively.</text> </level> <level label="b"> <text>A retailer may not purchase cigarettes from a wholesaler at a cost which directly or indirectly is less than the cost to the wholesaler by any means, including offering, accepting, inducing, or attempting to induce a rebate in price or a concession of any kind in connection with the sale or purchase of cigarettes.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-505" title_number="11" title_name="Trade Regulation" subtitle_number="5" subtitle_name="Cigarette Sales Below Cost Act"> <level label="a"> <text>Except as provided in subsection (b) of this section, a retailer or wholesaler with intent to injure a competitor or to destroy or substantially lessen competition may not:</text> <level label="1"> <text>Sell cigarettes in combination with any other item of merchandise if the other item is given free of charge or sold at a price below its cost to the retailer or its cost to the wholesaler, respectively, as defined in Subtitle 4 of this title;</text> </level> <level label="2"> <text>Sell cigarettes in combination with any other item of merchandise if the total sale price for the cigarettes and all other items included in the sale is less than the sum of:</text> <level label="i"> <text>The cost to the retailer or the cost to the wholesaler, respectively, of the cigarettes; and</text> </level> <level label="ii"> <text>The cost to the retailer or the cost to the wholesaler, respectively, as defined in Subtitle 4 of this title, of all other items included in the sale, including items given free of charge in connection with the sale;</text> </level> </level> <level label="3"> <text>Give cigarettes free of charge, except in the case of specially packaged manufacturers’ samples which are designated on the package as not to be sold; or</text> </level> <level label="4"> <text>Make any rebate, advertising allowance, or any other concession by any means or device in connection with the sale of cigarettes whereby the cigarettes are in effect sold below their cost to the retailer or their cost to the wholesaler, respectively.</text> </level> </level> <level label="b"> <text>A retailer or wholesaler may pass on to a purchaser any reduction in cost which results from:</text> <level label="1"> <text>Payment or compensation given by a manufacturer of cigarettes on a uniform and nondiscriminatory basis for promotional services; or</text> </level> <level label="2"> <text>Any coupon issued and ultimately redeemed by a cigarette manufacturer.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-506" title_number="11" title_name="Trade Regulation" subtitle_number="5" subtitle_name="Cigarette Sales Below Cost Act"> <level label="a"> <text>In any proceeding under this subtitle, including a proceeding relating to licenses before the Executive Director, proof of a sale by a retailer or a wholesaler of cigarettes or of any other item in combination or in connection with cigarettes at less than their cost to the retailer or their cost to the wholesaler, respectively, is prima facie evidence of intent to injure a competitor or to destroy or substantially lessen competition.</text> </level> <level label="b"> <text>In determining cost to the retailer or cost to the wholesaler, the Executive Director or the court shall receive and consider evidence:</text> <level label="1"> <text>That the person complained against purchased cigarettes at a fictitious price or on terms, in a manner, or under invoices which conceal the true costs, discounts, or terms of purchase; and</text> </level> <level label="2"> <text>Of the normal, customary, and prevailing terms and discounts in connection with other sales of a similar nature in the trade area.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-507" title_number="11" title_name="Trade Regulation" subtitle_number="5" subtitle_name="Cigarette Sales Below Cost Act"> <level label="a"> <text>It is the duty of the Executive Director to enforce this subtitle.</text> </level> <level label="b"> <text>The Executive Director shall:</text> <level label="1"> <text>Employ and determine the duties and compensation of the inspectors and other personnel necessary to enforce this subtitle; and</text> </level> <level label="2"> <text>Adopt reasonable rules and regulations necessary to effectuate and enforce the policies of this subtitle.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-508" title_number="11" title_name="Trade Regulation" subtitle_number="5" subtitle_name="Cigarette Sales Below Cost Act"> <level label="a"> <level label="1"> <text>On complaint of the Executive Director or any person affected, a circuit court has jurisdiction to:</text> <level label="i"> <text>Enjoin a retailer or wholesaler from the commission of any act prohibited by this subtitle; and</text> </level> <level label="ii"> <text>Award damages and costs.</text> </level> </level> <level label="2"> <text>In an action for injunctive relief, it is not necessary for the complainant to allege or prove that an adequate remedy at law does not exist or that the complainant has suffered actual damages.</text> </level> </level> <level label="b"> <text>If injunctive relief is not sought or required, an injured person may institute an action for damages in any court of competent jurisdiction.</text> </level> <level label="c"> <text>On violation of this subtitle, the Executive Director shall suspend or revoke the cigarette license of the offender required by § 16–210 of the Business Regulation Article.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-509" title_number="11" title_name="Trade Regulation" subtitle_number="5" subtitle_name="Cigarette Sales Below Cost Act"> <text>Except as specifically provided by § 11-505 of this subtitle with respect to combination sales and concessions, the Maryland Sales Below Cost Act does not apply to the sale of cigarettes.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-510" title_number="11" title_name="Trade Regulation" subtitle_number="5" subtitle_name="Cigarette Sales Below Cost Act"> <text>This subtitle may be cited as the Maryland Cigarette Sales Below Cost Act.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-5A-01" title_number="11" title_name="Trade Regulation" subtitle_number="5A" subtitle_name="Sales of Unpackaged Cigarettes"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Executive Director” has the meaning stated in § 11–501 of this title.</text> </level> <level label="c"> <text>“Retailer” has the meaning stated in § 11–501 of this title.</text> </level> <level label="d"> <text>“Sell” has the meaning stated in § 11–501 of this title.</text> </level> <level label="e"> <text>“Unpackaged cigarette” means any cigarette not contained in a sealed package of 20 or more cigarettes.</text> </level> <level label="f"> <text>“Vending machine operator” has the meaning stated in § 11–501 of this title.</text> </level> <level label="g"> <text>“Wholesaler” has the meaning stated in § 11–501 of this title.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-5A-02" title_number="11" title_name="Trade Regulation" subtitle_number="5A" subtitle_name="Sales of Unpackaged Cigarettes"> <level label="a"> <text>This section does not apply to an individual who produces unpackaged cigarettes for the individual’s consumption by using:</text> <level label="1"> <text>A mechanical rolling machine; or</text> </level> <level label="2"> <text>A hand rolling device or procedure.</text> </level> </level> <level label="b"> <text>Notwithstanding any other provision of law, a retailer or vending machine operator may not purchase from a tobacco product manufacturer or sell, resell, distribute, dispense, or give away to any person an unpackaged cigarette.</text> </level> <level label="c"> <text>Notwithstanding any other provision of law, a wholesaler may not sell, resell, distribute, dispense, or give away to any person in this State an unpackaged cigarette.</text> </level> <level label="d"> <text>In addition to any other penalties provided by law, a person who violates this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500 or imprisonment not exceeding 3 months or both.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-5A-03" title_number="11" title_name="Trade Regulation" subtitle_number="5A" subtitle_name="Sales of Unpackaged Cigarettes"> <level label="a"> <text>The Executive Director shall enforce this subtitle.</text> </level> <level label="b"> <text>The Executive Director shall:</text> <level label="1"> <text>Employ and determine the duties and compensation of the inspectors and other personnel necessary to enforce this subtitle; and</text> </level> <level label="2"> <text>Adopt reasonable regulations necessary to effectuate and enforce the provisions of this subtitle.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-601" title_number="11" title_name="Trade Regulation" subtitle_number="6" subtitle_name="Liquefied Petroleum Gas Containers"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Container” means a liquefied petroleum gas container.</text> </level> <level label="c"> <text>“Liquefied petroleum gas” means any material which is composed predominately of any of the following hydrocarbons or mixtures of them:</text> <level label="1"> <text>Propane;</text> </level> <level label="2"> <text>Propylene;</text> </level> <level label="3"> <text>Normal butane;</text> </level> <level label="4"> <text>Isobutane; or</text> </level> <level label="5"> <text>Butylenes.</text> </level> </level> <level label="d"> <text>“Mark” includes any name, initial, or other device.</text> </level> <level label="e"> <text>“Marked container” means a container which bears on its surface in plainly legible characters the mark of its owner.</text> </level> <level label="f"> <text>“Owner” means:</text> <level label="1"> <text>Any person who holds a written bill of sale under which title or ownership to a container was transferred to him; or</text> </level> <level label="2"> <text>Any manufacturer of a container who has not transferred ownership of the container under a written bill of sale.</text> </level> </level> <level label="g"> <text>“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-602" title_number="11" title_name="Trade Regulation" subtitle_number="6" subtitle_name="Liquefied Petroleum Gas Containers"> <text>This subtitle does not apply to any container which has a total capacity of five gallons or less.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-603" title_number="11" title_name="Trade Regulation" subtitle_number="6" subtitle_name="Liquefied Petroleum Gas Containers"> <text>Unless he is authorized by the owner in writing, a person other than the owner of a container may not:</text> <level label="1"> <text>Fill or refill a marked container with liquefied petroleum gas or any other gas or compound;</text> </level> <level label="2"> <text>Buy, sell, offer for sale, give, take, loan, deliver, permit to be delivered, or otherwise use, dispose of, or traffic in a marked container; or</text> </level> <level label="3"> <text>Deface, erase, obliterate, cover up, or otherwise remove or conceal any mark on a container.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-604" title_number="11" title_name="Trade Regulation" subtitle_number="6" subtitle_name="Liquefied Petroleum Gas Containers"> <text>Unless taken with the written consent of the owner, each of the following actions by any person, other than the person whose mark is on the container, is presumptive evidence of a violation of this subtitle:</text> <level label="1"> <text>Use of a marked container;</text> </level> <level label="2"> <text>Possession of a marked container; or</text> </level> <level label="3"> <text>Purchase of a marked container for:</text> <level label="i"> <text>The sale of liquefied petroleum gas; or</text> </level> <level label="ii"> <text>The filling or refilling of the container with liquefied petroleum gas.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-605" title_number="11" title_name="Trade Regulation" subtitle_number="6" subtitle_name="Liquefied Petroleum Gas Containers"> <level label="a"> <text>If the owner of a marked container, his officer, or authorized agent who has personal knowledge of the facts makes oath in writing before any court of competent jurisdiction that he believes that a person has violated any provision of this subtitle with respect to the container, the court, if satisfied that there is reasonable cause, may issue a warrant and cause the alleged violator to be brought into court for the purpose of discovering and obtaining the container.</text> </level> <level label="b"> <text>If the court finds that a person violated any provision of this subtitle, it shall award an unlawfully taken container to its true owner.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-606" title_number="11" title_name="Trade Regulation" subtitle_number="6" subtitle_name="Liquefied Petroleum Gas Containers"> <text>Any person who violates any provision of this subtitle is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $300 or imprisonment not exceeding 90 days or both.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-701" title_number="11" title_name="Trade Regulation" subtitle_number="7" subtitle_name="False Advertising"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Advertise falsely” means to use any advertisement, including a label, which is misleading in a material respect.</text> </level> <level label="2"> <text>“Advertise falsely” includes the use of an advertisement that contains an affirmative representation that the Maryland sales and use tax will not be collected by the retailer on a particular transaction without notifying the purchaser of the purchaser’s duty to pay the sales and use tax directly to the Comptroller of this State.</text> </level> </level> <level label="c"> <text>“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.</text> </level> <level label="d"> <text>“Telephone company” has the meaning stated in § 1–101 of the Public Utilities Article.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-702" title_number="11" title_name="Trade Regulation" subtitle_number="7" subtitle_name="False Advertising"> <text>This subtitle does not apply to any:</text> <level label="1"> <text>Television or radio broadcasting station which broadcasts an advertisement;</text> </level> <level label="2"> <text>Publisher or printer of a newspaper, magazine, or other form of printed advertisement who publishes or prints an advertisement; or</text> </level> <level label="3"> <text>Publisher, printer, or distributor, including a telephone company or directory provider, of an advertisement or telephone listing in a telephone directory.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-703" title_number="11" title_name="Trade Regulation" subtitle_number="7" subtitle_name="False Advertising"> <text>A person may not advertise falsely in the conduct of any business, trade, or commerce or in the provision of any service.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-704" title_number="11" title_name="Trade Regulation" subtitle_number="7" subtitle_name="False Advertising"> <text>To determine if an advertisement is misleading, the following, in addition to any other appropriate considerations, shall be considered:</text> <level label="1"> <text>Any representation made by statement, word, design, device, or sound, whether alone or together; and</text> </level> <level label="2"> <text>The extent to which the advertisement fails to reveal a fact which, in light of any representation made, is material with respect to the advertised commodity or service under conditions which are:</text> <level label="i"> <text>Customary or usual; or</text> </level> <level label="ii"> <text>Described in the advertisement.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-704.1" title_number="11" title_name="Trade Regulation" subtitle_number="7" subtitle_name="False Advertising"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <level label="i"> <text>“Local telephone classified advertising directory” means a telephone directory that:</text> <level label="1"> <text>Contains classified advertisements; and</text> </level> <level label="2"> <text>Is distributed free of charge to residents in the State.</text> </level> </level> <level label="ii"> <text>“Local telephone classified advertising directory” includes a directory distributed by a person other than a telephone company.</text> </level> </level> <level label="3"> <level label="i"> <text>“Local telephone directory” means a telephone directory that is:</text> <level label="1"> <text>Available free of charge to telephone subscribers in an area of the State; and</text> </level> <level label="2"> <text>Does not contain classified advertisements.</text> </level> </level> <level label="ii"> <text>“Local telephone directory” includes a directory distributed by a person other than a telephone company.</text> </level> </level> <level label="4"> <text>“Location” means any part of the address of a person, including the street, the city, or the state.</text> </level> </level> <level label="b"> <level label="1"> <text>This section applies only to business telephone listings and advertisements.</text> </level> <level label="2"> <text>This section does not apply to any bank, trust company, savings bank, savings and loan association, or credit union incorporated or chartered under the laws of this State or the United States or any other state bank having a branch in this State.</text> </level> </level> <level label="c"> <level label="1"> <text>A person is in violation of § 11–703 of this subtitle if the person:</text> <level label="i"> <text>Causes to be published in a local telephone classified advertising directory an advertisement that misrepresents the location of the person; or</text> </level> <level label="ii"> <text>Causes to be listed in a local telephone directory a telephone listing that misrepresents the location of the person.</text> </level> </level> <level label="2"> <text>For purposes of this subsection, a person commits a separate violation for each edition of a local telephone directory or local telephone advertising directory in which the advertisement or telephone listing is published.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-705" title_number="11" title_name="Trade Regulation" subtitle_number="7" subtitle_name="False Advertising"> <level label="a"> <text>Any person who violates any provision of this subtitle is subject to a penalty not exceeding $500 for each violation, which penalty the Attorney General may recover for the State in a civil action.</text> </level> <level label="b"> <text>Before the Attorney General commences any action under this section, he shall give to the person against whom the action is proposed:</text> <level label="1"> <text>Notice by registered or certified mail of the proposed action; and</text> </level> <level label="2"> <text>An opportunity to show cause orally or in writing why the action should not be commenced.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-706" title_number="11" title_name="Trade Regulation" subtitle_number="7" subtitle_name="False Advertising"> <text>In any action brought under this subtitle, it is a defense that the advertisement concerning which the action is brought is subject to and complies with the rules and regulations of and the statutes administered by the Federal Trade Commission or any unit of the State government.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-707" title_number="11" title_name="Trade Regulation" subtitle_number="7" subtitle_name="False Advertising"> <text>This subtitle does not modify any right of a person in private litigation.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-801" title_number="11" title_name="Trade Regulation" subtitle_number="8" subtitle_name="Consignees"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Consignee” means a commercial agent who is:</text> <level label="1"> <text>Entrusted with the possession of goods or agricultural products, by or for the owner, to be sold for compensation in the ordinary course of the agent’s trade or business; and</text> </level> <level label="2"> <text>Generally known by those dealing with him to be substantially engaged in selling the goods or agricultural products of others.</text> </level> </level> <level label="c"> <text>“Goods” includes wares or merchandise, but does not include agricultural products.</text> </level> <level label="d"> <text>“Person” includes an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.</text> </level> <level label="e"> <text>“Possessory document” means a bill of lading, warehouse receipt, order for delivery of goods, or other document which evidences possession.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-802" title_number="11" title_name="Trade Regulation" subtitle_number="8" subtitle_name="Consignees"> <text>A consignee is entitled to a lien on goods shipped or consigned to him for any money or negotiable instrument advanced or given to or for the use of the person in whose name the goods were shipped or consigned, unless the consignee has notice that the person is not the true owner of the goods.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-803" title_number="11" title_name="Trade Regulation" subtitle_number="8" subtitle_name="Consignees"> <level label="a"> <text>Except as provided by subsection (b) of this section, a consignee entrusted with and in possession of a possessory document is considered the true owner of the goods described in the document for the purpose of any contract with a third person for:</text> <level label="1"> <text>The sale or disposal of the goods; or</text> </level> <level label="2"> <text>The pledge or deposit of them as security for any money or negotiable instrument advanced or given on the faith of the possessory document.</text> </level> </level> <level label="b"> <text>A contract, pledge, or deposit described in subsection (a) of this section is not valid if the third person has notice that the consignee is not the true owner of the goods.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-804" title_number="11" title_name="Trade Regulation" subtitle_number="8" subtitle_name="Consignees"> <level label="a"> <text>Except as provided in subsection (b) of this section, if in the ordinary course of business a contract for sale of goods is made between a consignee and a third person, the contract and any payment made in the ordinary course of business for the goods under the contract is valid against the owner of the goods, even if the third person has notice that the seller of the goods is a consignee.</text> </level> <level label="b"> <text>A contract or payment described in subsection (a) of this section is not valid against the owner of the goods if the third person has notice that the seller is not authorized to sell the goods or to receive payments for them, as the case may be.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-805" title_number="11" title_name="Trade Regulation" subtitle_number="8" subtitle_name="Consignees"> <level label="a"> <text>Except as provided in subsection (c) of this section, if a third person takes goods or a possessory document in deposit or pledge as security for a preexisting debt or demand from any other person entrusted with them or to whom they are consigned or who is entrusted with and in possession of a possessory document, he acquires only the right, title, or interest as was possessed and might have been enforced by the person from whom he received the goods or possessory document.</text> </level> <level label="b"> <text>Except as provided in subsection (c) of this section, if a third person knows that he is dealing with a consignee, he may take goods or a possessory document in deposit or pledge as security for a preexisting debt or demand, but he acquires only the right or interest in the goods or possessory document that was possessed by the consignee at the time of the deposit or pledge.</text> </level> <level label="c"> <text>If a third person has notice that the consignee is not authorized to pledge, deposit, or part with possession of the goods or possessory document, he acquires no right, title, or interest in the goods.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-806" title_number="11" title_name="Trade Regulation" subtitle_number="8" subtitle_name="Consignees"> <text>Unless a third person contracts for or receives goods on deposit or pledge without knowledge that a consignee is not authorized to sell, deposit, or pledge the goods, a claim or demand of setoff of a debt due by the consignee is not allowed against his principal in favor of the third person.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-807" title_number="11" title_name="Trade Regulation" subtitle_number="8" subtitle_name="Consignees"> <text>Nothing in this subtitle deprives an owner of goods of any remedy which he might have against a consignee on any matter or contract between them or for the violation of any engagement, duty, or debt for which the consignee is liable, subject, however, to the right of the consignee to have the benefit of any payment of any debt or damages paid on the contract by a third person.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-808" title_number="11" title_name="Trade Regulation" subtitle_number="8" subtitle_name="Consignees"> <level label="a"> <text>A consignment of agricultural products by the grower, producer, or owner to a consignee for sale for the use and benefit of the consignor does not vest in the consignee any other title or right to the products except to sell and deliver them to a bona fide purchaser for a valuable consideration.</text> </level> <level label="b"> <text>If, without the express consent of the grower, producer, or owner, a consignee mortgages, pledges, deposits, or otherwise disposes of agricultural products consigned only for sale for the use and benefit of the grower, producer, or owner, the disposition is void and title to the products does not pass but remains in the grower, producer, or owner as if no disposition were made.</text> </level> <level label="c"> <text>Nothing in this section impairs any right of any lien which a consignee acquires or is entitled to for bona fide advances made in money or goods to the grower, producer, or owner on the faith and the security of the consignment.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-809" title_number="11" title_name="Trade Regulation" subtitle_number="8" subtitle_name="Consignees"> <level label="a"> <text>Any consignee, his agent, or employee who converts to his own use goods or agricultural products entrusted to the consignee for sale or the proceeds from the sale of them is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding six months or both.</text> </level> <level label="b"> <text>The failure of a consignee who sells goods or agricultural products on commission to pay the proceeds from the sale, less his charges, to the person entitled to receive the proceeds within five days after receiving the proceeds from the purchaser and after demand for payment is prima facie evidence of conversion of the goods or agricultural products.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-810" title_number="11" title_name="Trade Regulation" subtitle_number="8" subtitle_name="Consignees"> <level label="a"> <text>After a sale of goods consigned for sale by a person in this State to a person engaged in the business of selling goods on consignment, the consignee shall transmit to the consignor within 24 hours after the sale a full account of the sale, including:</text> <level label="1"> <text>The amount and price of the goods sold; and</text> </level> <level label="2"> <text>The name and address of the purchaser, including the house or business number, street, and city.</text> </level> </level> <level label="b"> <text>A person who violates this section is guilty of a misdemeanor and on conviction is subject to a fine of $5 for each violation, and court costs.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-8A-01" title_number="11" title_name="Trade Regulation" subtitle_number="8A" subtitle_name="Consignment of Works of Fine Art"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Art dealer” means an individual, partnership, firm, association, or corporation, other than a public auctioneer, that undertakes to sell a work of fine art created by someone else.</text> </level> <level label="c"> <text>“Artist” means the creator of a work of fine art.</text> </level> <level label="d"> <text>“On consignment” means delivered to an art dealer for the purpose of sale or exhibition, or both, to the public by the art dealer other than at a public auction.</text> </level> <level label="e"> <text>“Work of fine art” means an original art work which is:</text> <level label="1"> <text>A visual rendition including a painting, drawing, sculpture, mosaic, or photograph;</text> </level> <level label="2"> <text>A work of calligraphy;</text> </level> <level label="3"> <text>A work of graphic art including an etching, lithograph, offset print, or silk screen;</text> </level> <level label="4"> <text>A craft work in materials including clay, textile, fiber, wood, metal, plastic, or glass; or</text> </level> <level label="5"> <text>A work in mixed media including a collage or a work consisting of any combination of works included in this subsection.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-8A-02" title_number="11" title_name="Trade Regulation" subtitle_number="8A" subtitle_name="Consignment of Works of Fine Art"> <text>If an art dealer accepts a work of fine art on a fee, commission, or other compensation basis, on consignment from the artist:</text> <level label="1"> <text>The art dealer is, with respect to that work of fine art, the bailee of the artist;</text> </level> <level label="2"> <text>The work of fine art is bailment property in which the art dealer has no legal or equitable interest until the work is sold to a bona fide third party; and</text> </level> <level label="3"> <text>The proceeds of the sale of the work of fine art are bailment property in which the art dealer has no legal or equitable interest until the amount due the artist from the sale, minus the agreed commission, is paid.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-8A-03" title_number="11" title_name="Trade Regulation" subtitle_number="8A" subtitle_name="Consignment of Works of Fine Art"> <text>Notwithstanding the subsequent purchase of the work of fine art by the art dealer directly or indirectly for the art dealer’s own account, a work of fine art that is bailment property when initially accepted by the art dealer remains bailment property until the purchase price, minus the agreed upon commission, is paid in full to the artist.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-8A-04" title_number="11" title_name="Trade Regulation" subtitle_number="8A" subtitle_name="Consignment of Works of Fine Art"> <text>Property that is bailment property under this subtitle is not subject to the claims, liens, or security interests of the creditors of an art dealer.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-901" title_number="11" title_name="Trade Regulation" subtitle_number="9" subtitle_name="Miscellaneous Provisions"> <text>In this subtitle, “person” means an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-902" title_number="11" title_name="Trade Regulation" subtitle_number="9" subtitle_name="Miscellaneous Provisions"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Attached” means printed, painted, stamped, burned, or otherwise placed on or attached to.</text> </level> <level label="3"> <text>“Battery” means an electric storage battery which has an identification mark attached to it.</text> </level> <level label="4"> <text>“Identification mark” means:</text> <level label="i"> <text>The word “rental”; or</text> </level> <level label="ii"> <text>Any other word, mark, device, or character which is attached to a battery to identify its ownership.</text> </level> </level> </level> <level label="b"> <text>A person may not remove, deface, alter, or destroy or cause to be removed, defaced, altered, or destroyed any identification mark attached to a battery which he does not own.</text> </level> <level label="c"> <text>A person other than the owner may not dispose of, sell, deliver, or give or attempt to dispose of, sell, deliver, or give any battery to any person except its owner.</text> </level> <level label="d"> <text>Except in an emergency, a person may not recharge any battery without the consent of its owner or his authorized agent or employee.</text> </level> <level label="e"> <text>A person may not retain possession of a battery for more than 30 days after the owner demands the return of the battery by registered or certified mail.</text> </level> <level label="f"> <text>Any person who violates any provision of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $25.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-903" title_number="11" title_name="Trade Regulation" subtitle_number="9" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>In this section, “goods” includes wares or merchandise.</text> </level> <level label="b"> <text>The provisions of this section do not apply to goods which are:</text> <level label="1"> <text>Produced, manufactured, or mined by convicts and prisoners on parole or probation; or</text> </level> <level label="2"> <text>Shipped into the State for sale to or exchange with:</text> <level label="i"> <text>The State or any of its political subdivisions; or</text> </level> <level label="ii"> <text>A State aided, owned, controlled, or managed public or quasi–public institution or agency.</text> </level> </level> </level> <level label="c"> <text>Except as provided in subsection (b) of this section, goods manufactured or produced, wholly or in part, or mined by convicts or prisoners of the United States or of a territory, district, or other state of the United States may not be shipped into the State for sale on the open market.</text> </level> <level label="d"> <text>Any person who violates any provision of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $500 or imprisonment not exceeding 60 days or both.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-905" title_number="11" title_name="Trade Regulation" subtitle_number="9" subtitle_name="Miscellaneous Provisions"> <level label="a"> <text>In this section, “premises” means the land and the structures erected on it which are used for the commercial boarding of animals.</text> </level> <level label="b"> <text>A veterinarian, as defined in § 2-301(h) of the Agriculture Article, or a commercial boarding kennel operator who does not provide 24-hour supervision by a person physically on the premises to an animal under the care or custody of the veterinarian or the commercial boarding kennel operator shall provide written notification to the owner of the animal advising the owner of the lack of 24-hour supervision.</text> </level> <level label="c"> <text>Any person who violates the provisions of this section, or any regulation adopted to implement the provisions of this section, is subject to a fine not exceeding $50, in an action in the District Court in the State of Maryland.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1001" title_number="11" title_name="Trade Regulation" subtitle_number="10" subtitle_name="Hulls of Vessels"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Direct molding process” means any process by which a hull of a vessel or component of the hull of a vessel is used as a plug for the making of a mold from which a duplication of the hull or component of the hull is made.</text> </level> <level label="3"> <text>“Mold” means any pattern, hollow form, matrix, or other device for giving shape or form to material in a plastic or molten state.</text> </level> <level label="4"> <text>“Plug” means a manufactured item used to make a mold.</text> </level> <level label="5"> <level label="i"> <text>“Vessel” means every description of watercraft that is used or capable of being used as a means of transportation on water or ice.</text> </level> <level label="ii"> <text>“Vessel” includes:</text> <level label="1"> <text>An iceboat; and</text> </level> <level label="2"> <text>The motor, spars, sails, and accessories of a vessel.</text> </level> </level> <level label="iii"> <text>“Vessel” does not include a seaplane.</text> </level> </level> </level> <level label="b"> <text>A person may not duplicate or misappropriate for commercial purposes by copying or using the direct molding process the design of a hull of a vessel or any component of the hull of a vessel manufactured by another person without the prior written consent of the other person.</text> </level> <level label="c"> <text>If a person knew or should have known that a hull of a vessel or any component of the hull of a vessel was duplicated or misappropriated for commercial purposes in violation of subsection (b) of this section, the person may not sell in this State the vessel that was manufactured in violation of subsection (b) of this section.</text> </level> <level label="d"> <text>Any person who is injured in the person’s business by virtue of any violation of subsection (b) or subsection (c) of this section:</text> <level label="1"> <text>May sue and recover three times the amount of damages incurred by virtue of the violation, the costs of the suit, and reasonable attorney’s fees; and</text> </level> <level label="2"> <text>May sue for injunctive relief and a court of competent jurisdiction may grant the injunctive relief regardless of whether the person proves irreparable injury because of the violation.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1101" title_number="11" title_name="Trade Regulation" subtitle_number="11" subtitle_name="Distress Sales"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <level label="1"> <text>“Advertise” means to publish, circulate, disseminate, or place before the public through any print or broadcast medium for the purpose of the sale of goods or services.</text> </level> <level label="2"> <text>“Advertise” includes to advertise by outside or inside signs, handbills, or price tags.</text> </level> </level> <level label="c"> <level label="1"> <text>“Distress sale” means a sale that is conducted and represented through advertising that the sale is being held or required for reasons of:</text> <level label="i"> <text>Economic or business distress;</text> </level> <level label="ii"> <text>Inability to continue business at the same location; or</text> </level> <level label="iii"> <text>Any expression that conveys to the public the information or belief that on disposal of the goods, the business will cease, be discontinued, vacated, transferred, or surrendered to a successor in business or a different principal owner and conducted under a new name.</text> </level> </level> <level label="2"> <text>“Distress sale” includes:</text> <level label="i"> <text>A “going out of business sale”, “closing out sale”, “liquidation sale”, “lost our lease sale”, or “must vacate sale”; or</text> </level> <level label="ii"> <text>A sale of goods damaged by fire, smoke, or water.</text> </level> </level> </level> <level label="d"> <level label="1"> <text>“Person” means an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, two or more persons having a joint or common interest, or any other legal or commercial entity.</text> </level> <level label="2"> <text>“Person” includes a liquidation service.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1102" title_number="11" title_name="Trade Regulation" subtitle_number="11" subtitle_name="Distress Sales"> <text>A person shall advertise and conduct a distress sale only under the provisions of this subtitle.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-1103" title_number="11" title_name="Trade Regulation" subtitle_number="11" subtitle_name="Distress Sales"> <text>A person who advertises and conducts a distress sale may not:</text> <level label="1"> <text>Conduct the distress sale for more than 60 days from the first day of the sale;</text> </level> <level label="2"> <text>Order and receive any goods for the purpose of selling the goods at the distress sale; and</text> </level> <level label="3"> <text>Sell goods at the distress sale that are not listed in the record of inventory required under § 11-1104 of this subtitle.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1104" title_number="11" title_name="Trade Regulation" subtitle_number="11" subtitle_name="Distress Sales"> <level label="a"> <text>Before a distress sale, a person shall compile a complete and detailed record of the inventory that is to be sold at the distress sale, including:</text> <level label="1"> <text>A description of each item;</text> </level> <level label="2"> <text>The approximate quantity of each item; and</text> </level> <level label="3"> <text>The regular price and the proposed sale price of each item.</text> </level> </level> <level label="b"> <text>The record of inventory required under subsection (a) of this section shall be open for inspection by the Division of Consumer Protection in the Office of the Attorney General at any time during normal business hours.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1105" title_number="11" title_name="Trade Regulation" subtitle_number="11" subtitle_name="Distress Sales"> <level label="a"> <text>This subtitle provides minimum standards to protect consumers in the State.</text> </level> <level label="b"> <text>A county, a municipality, or an agency of a county or municipality may adopt standards concerning distress sales, within the scope of its authority, only if the standards:</text> <level label="1"> <text>Are at least as stringent as the provisions of this subtitle; and</text> </level> <level label="2"> <text>Are not inconsistent with the provisions of this subtitle.</text> </level> </level> <level label="c"> <text>This subtitle is enforceable under Title 13 of this article or by any appropriate local jurisdiction.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1106" title_number="11" title_name="Trade Regulation" subtitle_number="11" subtitle_name="Distress Sales"> <text>A violation of any provision of this subtitle is an unfair or deceptive trade practice within the meaning of Title 13 of this article and is subject to the enforcement and penalty provisions contained in Title 13 of this article.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-1201" title_number="11" title_name="Trade Regulation" subtitle_number="12" subtitle_name="Maryland Uniform Trade Secrets Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Improper means” includes theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage through electronic or other means.</text> </level> <level label="c"> <text>“Misappropriation” means the:</text> <level label="1"> <text>Acquisition of a trade secret of another by a person who knows or has reason to know that the trade secret was acquired by improper means; or</text> </level> <level label="2"> <text>Disclosure or use of a trade secret of another without express or implied consent by a person who:</text> <level label="i"> <text>Used improper means to acquire knowledge of the trade secret; or</text> </level> <level label="ii"> <text>At the time of disclosure or use, knew or had reason to know that the person’s knowledge of the trade secret was:</text> <level label="1"> <text>Derived from or through a person who had utilized improper means to acquire it;</text> </level> <level label="2"> <text>Acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use; or</text> </level> <level label="3"> <text>Derived from or through a person who owed a duty to the person seeking relief to maintain its secrecy or limit its use; or</text> </level> </level> <level label="iii"> <text>Before a material change of the person’s position, knew or had reason to know that it was a trade secret and that knowledge of it had been acquired by accident or mistake.</text> </level> </level> </level> <level label="d"> <text>“Person” means an individual, corporation, business trust, statutory trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.</text> </level> <level label="e"> <text>“Trade secret” means information, including a formula, pattern, compilation, program, device, method, technique, or process, that:</text> <level label="1"> <text>Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and</text> </level> <level label="2"> <text>Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1202" title_number="11" title_name="Trade Regulation" subtitle_number="12" subtitle_name="Maryland Uniform Trade Secrets Act"> <level label="a"> <text>Actual or threatened misappropriation may be enjoined.</text> </level> <level label="b"> <text>Upon application to the court, an injunction shall be terminated when the trade secret has ceased to exist, but the injunction may be continued for an additional reasonable period of time in order to eliminate commercial advantage that otherwise would be derived from the misappropriation.</text> </level> <level label="c"> <text>In exceptional circumstances, an injunction may condition future use upon payment of a reasonable royalty for no longer than the period of time for which use could have been prohibited.</text> </level> <level label="d"> <text>In appropriate circumstances, affirmative acts to protect a trade secret may be compelled by court order.</text> </level> <level label="e"> <text>In this section, “exceptional circumstances” includes a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation that renders a prohibitive injunction inequitable.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1203" title_number="11" title_name="Trade Regulation" subtitle_number="12" subtitle_name="Maryland Uniform Trade Secrets Act"> <level label="a"> <text>Except to the extent that a material and prejudicial change of position prior to acquiring knowledge or reason to know of misappropriation renders a monetary recovery inequitable, a complainant is entitled to recover damages for misappropriation.</text> </level> <level label="b"> <text>Damages under this subtitle may include:</text> <level label="1"> <text>The actual loss caused by misappropriation; and</text> </level> <level label="2"> <text>The unjust enrichment caused by misappropriation that is not taken into account in computing actual loss.</text> </level> </level> <level label="c"> <text>In lieu of damages measured by any other methods, the damages caused by misappropriation may be measured by imposition of liability for a reasonable royalty for a misappropriator’s unauthorized disclosure or use of a trade secret.</text> </level> <level label="d"> <text>If willful and malicious misappropriation exists, the court may award exemplary damages in an amount not exceeding twice any award made under subsection (a) of this section.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1204" title_number="11" title_name="Trade Regulation" subtitle_number="12" subtitle_name="Maryland Uniform Trade Secrets Act"> <text>The court may award reasonable attorney’s fees to the prevailing party if:</text> <level label="1"> <text>A claim of misappropriation is made in bad faith;</text> </level> <level label="2"> <text>A motion to terminate an injunction is made or resisted in bad faith; or</text> </level> <level label="3"> <text>Willful and malicious misappropriation exists.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1205" title_number="11" title_name="Trade Regulation" subtitle_number="12" subtitle_name="Maryland Uniform Trade Secrets Act"> <text>In an action under this subtitle, a court shall preserve the secrecy of an alleged trade secret by reasonable means, which may include granting protective orders in connection with discovery proceedings, holding in-camera hearings, sealing the records of the action, and ordering any person involved in the litigation not to disclose an alleged trade secret without prior court approval.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-1206" title_number="11" title_name="Trade Regulation" subtitle_number="12" subtitle_name="Maryland Uniform Trade Secrets Act"> <level label="a"> <text>An action for misappropriation must be brought within 3 years after the misappropriation is discovered or by the exercise of reasonable diligence should have been discovered.</text> </level> <level label="b"> <text>For the purposes of this section, a continuing misappropriation constitutes a single claim.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1207" title_number="11" title_name="Trade Regulation" subtitle_number="12" subtitle_name="Maryland Uniform Trade Secrets Act"> <level label="a"> <text>Except as provided in subsection (b) of this section, this subtitle displaces conflicting tort, restitutionary, and other law of this State providing civil remedies for misappropriation of a trade secret.</text> </level> <level label="b"> <level label="1"> <text>This subtitle does not affect:</text> <level label="i"> <text>Contractual remedies, whether or not based upon misappropriation of a trade secret;</text> </level> <level label="ii"> <text>Other civil remedies that are not based upon misappropriation of a trade secret; or</text> </level> <level label="iii"> <text>Criminal remedies, whether or not based upon misappropriation of a trade secret.</text> </level> </level> <level label="2"> <text>Nothing contained in this act may be applied or construed to waive or limit any common law or statutory defense or immunity possessed by State personnel as defined under § 12-101 of the State Government Article.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1208" title_number="11" title_name="Trade Regulation" subtitle_number="12" subtitle_name="Maryland Uniform Trade Secrets Act"> <text>This subtitle shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this subtitle among states enacting it.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-1209" title_number="11" title_name="Trade Regulation" subtitle_number="12" subtitle_name="Maryland Uniform Trade Secrets Act"> <text>This subtitle may be cited as the “Maryland Uniform Trade Secrets Act”.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-1301" title_number="11" title_name="Trade Regulation" subtitle_number="13" subtitle_name="Maryland Fair Distributorship Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Agreement” means a contract or other agreement between a grantor and a distributor.</text> </level> <level label="c"> <level label="1"> <text>“Cancel” means to terminate an agreement prior to the natural expiration date of its term.</text> </level> <level label="2"> <text>“Cancel” includes a de facto cancellation.</text> </level> </level> <level label="d"> <text>“Commercial goods” means, as those terms are defined in the wholesale trade section of the 1987 edition of the federal Office of Management and Budget’s Standard Industrial Classification Manual, durable goods, except for:</text> <level label="1"> <text>Motor vehicles and motor vehicle parts and supplies;</text> </level> <level label="2"> <text>Furniture;</text> </level> <level label="3"> <text>Office equipment, computers, computer peripheral equipment, and software; and</text> </level> <level label="4"> <text>Prerecorded tapes, cassettes, film, and videos and books or other similar items for which copyright protection might be available.</text> </level> </level> <level label="e"> <text>“De facto cancellation” means actions taken by the grantor that:</text> <level label="1"> <text>Materially alter the competitive business and economic conditions of a distributor;</text> </level> <level label="2"> <text>Are not applicable to similarly situated distributors of that grantor’s products; and</text> </level> <level label="3"> <text>Are intended to be discriminatory and detrimental to the distributor.</text> </level> </level> <level label="f"> <text>“Deficiency” means the failure of a distributor to comply substantially with the fair, reasonable, and material requirements imposed or sought to be imposed on the distributor by the grantor.</text> </level> <level label="g"> <level label="1"> <text>“Distributor” means a person:</text> <level label="i"> <text>Whose primary business is the wholesale distribution of commercial goods for resale;</text> </level> <level label="ii"> <text>Who maintains an inventory of commercial goods for resale;</text> </level> <level label="iii"> <text>Who has been granted either expressly or implicitly the right to sell or distribute a grantor’s commercial goods in Maryland for resale to retailers or other resellers or to an industrial or commercial manufacturer; and</text> </level> <level label="iv"> <text>Who conducts a substantial business in Maryland.</text> </level> </level> <level label="2"> <text>“Distributor” does not include:</text> <level label="i"> <text>A sales representative that does not maintain an inventory of commercial goods; or</text> </level> <level label="ii"> <text>A direct seller whose work is exempt from covered employment under § 8-206(b) of the Labor and Employment Article.</text> </level> </level> </level> <level label="h"> <text>“Grantor” means a person, including a manufacturer, that grants distribution and sales rights to a distributor.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1302" title_number="11" title_name="Trade Regulation" subtitle_number="13" subtitle_name="Maryland Fair Distributorship Act"> <level label="a"> <text>This subtitle applies to any agreement under which a grantor’s commercial goods are distributed or sold in this State.</text> </level> <level label="b"> <text>Notwithstanding any other provision of this subtitle, this subtitle does not apply to:</text> <level label="1"> <text>A seller of business opportunities regulated under the Maryland Business Opportunity Sales Act, Title 14, Subtitle 1 of the Business Regulation Article;</text> </level> <level label="2"> <text>A franchisor regulated under the Maryland Franchise Registration and Disclosure Law, Title 14, Subtitle 2 of the Business Regulation Article;</text> </level> <level label="3"> <text>A supplier regulated under the Equipment Dealer Contract Act, Title 19 of this article;</text> </level> <level label="4"> <text>A manufacturer, producer, or refiner of petroleum products that are motor fuels regulated under Title 10 of the Business Regulation Article;</text> </level> <level label="5"> <text>A franchisor regulated under the Beer Franchise Fair Dealing Act; or</text> </level> <level label="6"> <text>A manufacturer, producer, or supplier of wine or distilled spirits.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1302.1" title_number="11" title_name="Trade Regulation" subtitle_number="13" subtitle_name="Maryland Fair Distributorship Act"> <text>In addition to any other provision of this subtitle, when notifying a distributor of a proposed cancellation or nonrenewal of any agreement, a grantor shall provide a notice of the distributor’s failure to comply with a reasonable requirement of the agreement and an opportunity to cure or dispute the asserted deficiency.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-1303" title_number="11" title_name="Trade Regulation" subtitle_number="13" subtitle_name="Maryland Fair Distributorship Act"> <level label="a"> <text>Except as provided in subsections (d) and (e) of this section, a grantor shall notify a distributor not less than 60 days before:</text> <level label="1"> <text>The proposed date of cancellation of an agreement that has not expired according to its terms; or</text> </level> <level label="2"> <text>For agreements that contemplate renewal options exercisable by either party, the expiration date of an agreement that the grantor does not intend to renew.</text> </level> </level> <level label="b"> <text>The notice required under subsection (a) of this section shall:</text> <level label="1"> <text>Be in writing and be sent by certified mail, return receipt requested; and</text> </level> <level label="2"> <text>Contain:</text> <level label="i"> <text>A statement that the grantor intends to cancel or not renew the agreement;</text> </level> <level label="ii"> <text>A list of reasons for the proposed cancellation or nonrenewal, including any deficiencies on the part of the distributor;</text> </level> <level label="iii"> <text>A statement of the effective date of the proposed cancellation or nonrenewal; and</text> </level> <level label="iv"> <text>If deficiencies are identified by the grantor under subparagraph (ii) of this paragraph, a statement that the distributor may attempt to cure deficiencies that are identified as a basis for the cancellation or nonrenewal, as provided in § 11-1305 of this subtitle.</text> </level> </level> </level> <level label="c"> <text>Unless the parties agree to the contrary, neither a distributor nor a grantor may alter payment, credit, or delivery terms affecting the distributor during the period between the notice required under subsection (a) of this section and the proposed date of cancellation or nonrenewal, or during the period of cure described in § 11-1305 of this subtitle.</text> </level> <level label="d"> <text>A grantor is not required to comply with the provisions of this section if the reason for the cancellation or nonrenewal includes any of the following:</text> <level label="1"> <text>For any items that are not in dispute, the failure of the distributor to pay the grantor for commercial goods received;</text> </level> <level label="2"> <text>The actual or pending insolvency, the occurrence of an assignment for the benefit of creditors, or the bankruptcy of the distributor or of its parent entity or of any affiliated entity that has financial control over it;</text> </level> <level label="3"> <text>A danger to the public health or safety caused by the distributor or any affiliated entity over which it has control;</text> </level> <level label="4"> <text>Abandonment of the agreement by the distributor or any other matter which a court finds to be justification for a premature cancellation or nonrenewal;</text> </level> <level label="5"> <text>Conduct by the distributor expressly prohibited under a written agreement that materially affects the relationship between the distributor and grantor;</text> </level> <level label="6"> <text>Conduct by the distributor that materially alters the commercial viability of the grantor’s commercial goods in the marketplace; or</text> </level> <level label="7"> <text>Affirmative bad faith, dishonest, fraudulent, or illegal acts by the distributor.</text> </level> </level> <level label="e"> <text>Notwithstanding any other provision of this section, the notice and cure provisions of this subtitle do not apply to a termination of a distributorship at the natural expiration of the specified term of a written contract that does not contemplate renewal options exercisable by either party.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1304" title_number="11" title_name="Trade Regulation" subtitle_number="13" subtitle_name="Maryland Fair Distributorship Act"> <level label="a"> <text>Except as provided in subsection (c) of this section, on cancellation or nonrenewal of an agreement by a grantor for any reason, including a distributor’s failure to cure under § 11-1305 of this subtitle, the grantor shall have the right to, and must at the option of the distributor, repurchase all merchandise sold by the grantor to the distributor, and the distributor must sell the merchandise to the grantor, at a price equal to:</text> <level label="1"> <text>An amount agreed on by the parties; or</text> </level> <level label="2"> <level label="i"> <text>With respect to merchandise that is still in its original condition, is part of the grantor’s current product line, and was shipped within 6 months of the cancellation or nonrenewal, the purchase price paid by the distributor;</text> </level> <level label="ii"> <text>With respect to all other merchandise, including samples, display models, and damaged merchandise, the wholesale fair market value of the merchandise less depreciation, or the purchase price paid by the distributor, whichever is less; and</text> </level> <level label="iii"> <text>With respect to special tools, accessories, display equipment, and other similar items, the purchase price paid by the distributor, less depreciation, or an amount agreed upon by the parties.</text> </level> </level> </level> <level label="b"> <text>The repurchase requirements under subsection (a) of this section shall be completed within 30 days after the effective date of cancellation or nonrenewal, unless the parties agree otherwise.</text> </level> <level label="c"> <text>The distributor’s option to repurchase under subsection (a) of this section does not apply if the reason for cancellation or nonrenewal includes any of the reasons listed in § 11-1303(d) of this subtitle.</text> </level> <level label="d"> <text>Repurchase of inventory under this section is not subject to the bulk transfers provisions of Title 6 of this article.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1305" title_number="11" title_name="Trade Regulation" subtitle_number="13" subtitle_name="Maryland Fair Distributorship Act"> <level label="a"> <text>If the grantor identified deficiencies on the part of the distributor in the notice under § 11-1303(b)(2)(ii) of this subtitle and if a distributor opposes the cancellation or nonrenewal of an agreement, the distributor shall be permitted to attempt to resolve its differences with the grantor by:</text> <level label="1"> <text>Within 30 days after the receipt of the notice of cancellation or nonrenewal, filing with the grantor a notice of intention to oppose the cancellation or nonrenewal; and</text> </level> <level label="2"> <text>Implementing a plan, as approved by the grantor, for the correction of the deficiencies described by the grantor as constituting the reasons for the cancellation or nonrenewal.</text> </level> </level> <level label="b"> <text>The grantor and distributor must make good faith efforts to mutually adopt the plan described in subsection (a)(2) of this section.</text> </level> <level label="c"> <text>Unless otherwise mutually agreed by the parties, the plan described in subsection (a)(2) of this section must be implemented within 60 days of its acceptance by the grantor.</text> </level> <level label="d"> <text>A notice of cancellation or nonrenewal shall be ineffective if the distributor implements the plan described in subsection (a)(2) of this section.</text> </level> <level label="e"> <text>A cancellation or nonrenewal shall be effective immediately upon the expiration of the period provided in subsection (c) of this section if the distributor fails to implement the plan described in subsection (a)(2) of this section.</text> </level> <level label="f"> <text>Nothing in this section shall permit a distributor to attempt to cure if the only reasons identified by the grantor in the notice required under § 11-1303(b)(2)(ii) of this subtitle are reasons that are not curable by the distributor.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1306" title_number="11" title_name="Trade Regulation" subtitle_number="13" subtitle_name="Maryland Fair Distributorship Act"> <text>If a dispute arises between the grantor and the distributor relating to the application of this subtitle, the requirements of § 11-1302.1 of this subtitle, the notice of cancellation or nonrenewal, the plan for the correction of the deficiencies described by the grantor as the reasons for cancellation or nonrenewal, whether or not the distributor has complied with the plan and corrected the deficiencies described by the grantor as the reasons for cancellation or nonrenewal, or the purchase price or fair market value of any merchandise subject to repurchase under § 11-1304 of this subtitle, the grantor and distributor on the request of either party shall submit the dispute to arbitration in the State under the Maryland Uniform Arbitration Act.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-1307" title_number="11" title_name="Trade Regulation" subtitle_number="13" subtitle_name="Maryland Fair Distributorship Act"> <level label="a"> <text>The laws of the State shall apply to agreements under this subtitle to which a distributor with a principal place of business in the State is a party. This subtitle shall be construed to provide the minimum terms and conditions applicable to grantors and distributors covered by this subtitle.</text> </level> <level label="b"> <text>This subtitle does not limit or restrict the rights of a grantor or distributor at any time to seek in the State all legal and equitable remedies for any violation of this subtitle or any material breach of an agreement.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1401" title_number="11" title_name="Trade Regulation" subtitle_number="14" subtitle_name="Copyright Royalties"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Area” means a circular geographic region having a 25-mile radius surrounding each business location of a proprietor.</text> </level> <level label="c"> <text>“Copyright owner” means the owner of a copyright of a nondramatic musical or similar work recognized and enforceable under the copyright laws of the United States pursuant to Title 17 of the United States Code.</text> </level> <level label="d"> <text>“Performing rights society” means an association or corporation that licenses the public performance of nondramatic musical works on behalf of copyright owners, such as the American Society of Composers, Authors and Publishers (ASCAP), Broadcast Music, Inc. (BMI), and SESAC, Inc.</text> </level> <level label="e"> <text>“Proprietor” means the owner of a retail establishment, restaurant, inn, bar, tavern, sports or entertainment facility, or any other similar place of business or professional office located in this State, in which the public may assemble and in which nondramatic musical works or similar copyrighted works may be performed, broadcast, or otherwise transmitted for the enjoyment of the members of the public there assembled.</text> </level> <level label="f"> <text>“Royalty” or “royalties” means the fees payable by a proprietor to a performing rights society for the public performance of nondramatic musical or other similar works.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1402" title_number="11" title_name="Trade Regulation" subtitle_number="14" subtitle_name="Copyright Royalties"> <level label="a"> <level label="1"> <text>A performing rights society may not enter into or execute a contract for the payment of royalties by a proprietor unless, no later than 72 hours prior to the execution of the contract, the performing rights society provides to the proprietor, in writing, the following:</text> <level label="i"> <text>A schedule of the rates and terms of royalties under the contract;</text> </level> <level label="ii"> <text>A schedule of the rates and terms of royalties under agreements executed by the performing rights society and proprietors of comparable businesses in the area;</text> </level> <level label="iii"> <text>The toll free telephone number required under paragraph (2) of this subsection;</text> </level> <level label="iv"> <text>In the case of a performing rights society which offers discounts to proprietors in the area on any basis, the amounts and terms of those discounts; and</text> </level> <level label="v"> <text>Notice that the proprietor is entitled to the information required by this section, and that the failure of the performing rights society to provide that information is a violation of this subtitle and may render a contract unenforceable under this subtitle.</text> </level> </level> <level label="2"> <text>The performing rights society shall establish a toll free telephone number which can be used to answer inquiries of a proprietor regarding specific musical works and the copyright owners represented by that performing rights society.</text> </level> </level> <level label="b"> <text>Every contract between a performing rights society and a proprietor for the payment of royalties executed or renewed in this State shall:</text> <level label="1"> <text>Be in writing;</text> </level> <level label="2"> <text>Be signed by the parties to the contract; and</text> </level> <level label="3"> <text>Include at least the following information:</text> <level label="i"> <text>The proprietor’s name and business address and the name and location of each place of business to which the contract applies;</text> </level> <level label="ii"> <text>The name and business address of the performing rights society;</text> </level> <level label="iii"> <text>The duration of the contract; and</text> </level> <level label="iv"> <text>The schedule of rates and terms of the royalties to be collected under the contract, including any sliding scale, discount, or schedule for any increase or decrease of those rates for the duration of the contract.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the performing rights society shall offer to the proprietor a 1-year contract.</text> </level> <level label="2"> <text>The performing rights society and the proprietor may agree to a contract for other than 1 year.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1403" title_number="11" title_name="Trade Regulation" subtitle_number="14" subtitle_name="Copyright Royalties"> <level label="a"> <text>Before discussing a contract for the payment of royalties or the use of copyrighted works by a proprietor and before collecting or attempting to collect a royalty or fee under the contract, an agent or an employee of a performing rights society shall:</text> <level label="1"> <text>Disclose that the agent or employee is acting on behalf of a performing rights society;</text> </level> <level label="2"> <text>Identify the performing rights society for which the agent or the employee acts; and</text> </level> <level label="3"> <text>Disclose the purpose of the discussion.</text> </level> </level> <level label="b"> <text>A performing rights society or the agent or employee of the performing rights society may collect a royalty or any other fee only as provided in a contract executed in accordance with the provisions of this subtitle.</text> </level> <level label="c"> <text>A performing rights society or the agent or employee of a performing rights society may not:</text> <level label="1"> <text>Use or attempt to use an unfair or deceptive act or practice in dealing or negotiating with a proprietor or the employee of a proprietor; or</text> </level> <level label="2"> <text>Charge or collect a royalty which is unreasonable in comparison to the royalties for similar licenses in the same area.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1404" title_number="11" title_name="Trade Regulation" subtitle_number="14" subtitle_name="Copyright Royalties"> <level label="a"> <text>This subtitle applies only to performing rights societies.</text> </level> <level label="b"> <text>This subtitle does not apply to:</text> <level label="1"> <text>Copyright owners of motion pictures or other audiovisual works distributed on any medium;</text> </level> <level label="2"> <text>A contract between a performing rights society and a broadcaster licensed by the Federal Communications Commission;</text> </level> <level label="3"> <text>A contract between a performing rights society and a cable operator or programmer; or</text> </level> <level label="4"> <text>Any conduct undertaken for the purpose of enforcing § 7-308 of the Criminal Law Article.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1405" title_number="11" title_name="Trade Regulation" subtitle_number="14" subtitle_name="Copyright Royalties"> <level label="a"> <text>A person who violates any provision of this subtitle is liable to the person affected by the violation for actual damages caused by the violation and for reasonable attorney’s fees.</text> </level> <level label="b"> <text>In addition to the remedies provided under subsection (a) of this section, a person affected by a violation of this subtitle may:</text> <level label="1"> <text>Bring an action for an injunction against any person who violates any provision of this subtitle; and</text> </level> <level label="2"> <text>Seek any other remedy available at law.</text> </level> </level> <level label="c"> <text>The rights, remedies, and prohibitions provided under this subtitle shall be in addition to and cumulative of any other right, remedy, or prohibition provided under common law, federal law, or any other laws of this State, and nothing contained in this subtitle may be construed to deny, abrogate, or impair any such federal or State common-law or statutory right, remedy, or prohibition.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1501" title_number="11" title_name="Trade Regulation" subtitle_number="15" subtitle_name="Truth in Music Advertising Act"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Performing group” means a vocal or instrumental group seeking to use the name of a recording group.</text> </level> <level label="c"> <text>“Recording group” means a vocal or instrumental group with at least one member who has:</text> <level label="1"> <text>Previously released a commercial sound recording under that group’s name; and</text> </level> <level label="2"> <text>A legal right to use the group’s name due to the member’s use of or operation under the group’s name without having abandoned the name or affiliation with the group.</text> </level> </level> <level label="d"> <text>“Sound recording” means a work that results from the fixation on a material object of a series of musical, spoken, or other sounds regardless of the nature of the material object, such as a disk, tape, or other phonorecord, in which the sounds are embodied.</text> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1502" title_number="11" title_name="Trade Regulation" subtitle_number="15" subtitle_name="Truth in Music Advertising Act"> <level label="a"> <text>Except as provided in subsection (b) of this section, a person may not advertise or conduct a live musical performance or production in the State through the use of a false, deceptive, or misleading affiliation, connection, or association between a performing group and a recording group.</text> </level> <level label="b"> <text>Subsection (a) of this section does not apply if:</text> <level label="1"> <text>The performing group is the authorized registrant and owner of a service mark for that group that is registered with the United States Patent and Trademark Office;</text> </level> <level label="2"> <text>At least one member of the performing group was a member of the recording group and the member has a legal right to the recording group name due to the member’s use of or operation under the group name without having abandoned the recording group name or affiliation with the recording group;</text> </level> <level label="3"> <text>The live musical performance or production is identified in all advertising and promotion as a salute, tribute, parody, or satire and the performing group name is not so closely related or similar to that used by the recording group that it would tend to confuse or mislead the public;</text> </level> <level label="4"> <text>The advertising does not relate to a live musical performance or production in the State; or</text> </level> <level label="5"> <text>The performance or production is expressly authorized by the recording group.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1503" title_number="11" title_name="Trade Regulation" subtitle_number="15" subtitle_name="Truth in Music Advertising Act"> <level label="a"> <text>If the Attorney General believes that a person has engaged in or will engage in a violation of § 11–1502 of this subtitle, and an injunction would be in the public interest, the Attorney General may seek an injunction to prohibit a person from continuing or engaging in the violation.</text> </level> <level label="b"> <text>If a court issues a permanent injunction under subsection (a) of this section, the court may enter a judgment to restore to a person any money or real or personal property acquired from the person by means of any prohibited practice.</text> </level> <level label="c"> <level label="1"> <text>In addition to any relief granted under subsection (b) of this section, a person who violates § 11–1502 of this subtitle is subject to a civil penalty of not less than $5,000 or more than $15,000 for each violation.</text> </level> <level label="2"> <text>Each performance or production in violation of § 11–1502 of this subtitle is considered a separate violation.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1504" title_number="11" title_name="Trade Regulation" subtitle_number="15" subtitle_name="Truth in Music Advertising Act"> <text>This subtitle may be cited as the “Truth in Music Advertising Act”.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-1601" title_number="11" title_name="Trade Regulation" subtitle_number="16" subtitle_name="Bad Faith Assertions of Patent Infringement"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Claim” means the scope of the patent owner’s exclusive rights to the use and control of the patent owner’s invention.</text> </level> <level label="c"> <text>“Demand letter” means a letter, an electronic mail, or any other written communication asserting that a person has engaged in patent infringement.</text> </level> <level label="d"> <text>“Division” means the Division of Consumer Protection of the Office of the Attorney General.</text> </level> <level label="e"> <text>“Target” means a person:</text> <level label="1"> <text>Who has received a demand letter or against whom an assertion of patent infringement has been made;</text> </level> <level label="2"> <text>Who has been threatened with litigation or against whom a lawsuit has been filed alleging patent infringement; or</text> </level> <level label="3"> <text>Who has at least one customer who has received a demand letter asserting that the person’s product, service, or technology has infringed a patent.</text> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1602" title_number="11" title_name="Trade Regulation" subtitle_number="16" subtitle_name="Bad Faith Assertions of Patent Infringement"> <text>This subtitle does not apply to an assertion of patent infringement that includes a claim for relief arising under 35 U.S.C. § 271(e)(2) or 42 U.S.C. § 262.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-1603" title_number="11" title_name="Trade Regulation" subtitle_number="16" subtitle_name="Bad Faith Assertions of Patent Infringement"> <level label="a"> <text>A person may not make an assertion of patent infringement against another in bad faith.</text> </level> <level label="b"> <level label="1"> <text>A court may consider the following factors as evidence that a person has made an assertion of patent infringement in bad faith:</text> <level label="i"> <text>The demand letter sent by the person does not contain:</text> <level label="1"> <text>The alleged patent number;</text> </level> <level label="2"> <text>The name and address of the patent owner or assignee, if any; or</text> </level> <level label="3"> <text>Facts relating to the specific areas in which the target’s product, service, or technology infringes the patent or is covered by the claims in the patent;</text> </level> </level> <level label="ii"> <text>The target requested the information described in item (i) of this paragraph, and the person failed to provide the information within a reasonable period of time;</text> </level> <level label="iii"> <text>Before sending the demand letter, the person did not conduct an analysis comparing the claims in the patent to the target’s product, service, or technology, or the analysis was conducted but does not identify specific areas in which the product, service, or technology is covered by the claims in the patent;</text> </level> <level label="iv"> <text>The demand letter demanded a response or payment of a licensing fee within an unreasonably short period of time;</text> </level> <level label="v"> <text>The person offered to license the patent for an amount that is not based on a reasonable estimate of the value of the license;</text> </level> <level label="vi"> <text>The assertion of patent infringement is without merit, and the person knew, or should have known, that the assertion is without merit;</text> </level> <level label="vii"> <text>The assertion of patent infringement is deceptive;</text> </level> <level label="viii"> <level label="1"> <text>The person, or a subsidiary or an affiliate of the person, previously has filed or threatened to file one or more lawsuits based on the same or a similar assertion of patent infringement; and</text> </level> <level label="2"> <level label="A"> <text>The threats or lawsuits did not provide the information described in item (i) of this paragraph; and</text> </level> </level> <level label="B"> <text>A court found the person’s assertion to be without merit; and</text> </level> </level> <level label="ix"> <text>Any other factor the court determines to be relevant.</text> </level> </level> <level label="2"> <text>The court may consider the following factors as evidence that a person has made an assertion of patent infringement in good faith:</text> <level label="i"> <text>If the demand letter sent by the person does not contain the information described in paragraph (1)(i) of this subsection, the person provides the information to the target within a reasonable period of time;</text> </level> <level label="ii"> <text>The person has:</text> <level label="1"> <text>Engaged in a good faith effort to establish that the target has infringed the patent; and</text> </level> <level label="2"> <text>Attempted to negotiate an appropriate remedy;</text> </level> </level> <level label="iii"> <text>The person has:</text> <level label="1"> <text>Demonstrated good faith business practices in previous efforts to enforce a patent; or</text> </level> <level label="2"> <text>Successfully enforced a patent through litigation;</text> </level> </level> <level label="iv"> <text>The person has made a substantial investment in the use of the patent or in the production or sale of a product covered by the patent;</text> </level> <level label="v"> <text>The person is:</text> <level label="1"> <text>An inventor of the patent or an original assignee; or</text> </level> <level label="2"> <text>A representative of an institution of higher education or a technology transfer organization affiliated with an institution of higher education; and</text> </level> </level> <level label="vi"> <text>Any other factor the court determines to be relevant.</text> </level> </level> </level> </section> <section article="gcl" article_name="Commercial Law" number="11-1604" title_number="11" title_name="Trade Regulation" subtitle_number="16" subtitle_name="Bad Faith Assertions of Patent Infringement"> <text>The Attorney General and the Division shall have the same authority under this subtitle to adopt regulations, conduct investigations, and bring civil and criminal actions as provided in Title 13 of this article.</text> </section> <section article="gcl" article_name="Commercial Law" number="11-1605" title_number="11" title_name="Trade Regulation" subtitle_number="16" subtitle_name="Bad Faith Assertions of Patent Infringement"> <level label="a"> <text>In addition to any action by the Division or Attorney General authorized by Title 13 of this article, a target may bring an action in an appropriate court to recover for injury or loss sustained as a result of a violation of this subtitle.</text> </level> <level label="b"> <text>If a target prevails in an action brought under this subtitle and is awarded damages, the court also may award:</text> <level label="1"> <text>Court costs and fees, including reasonable attorney’s fees;</text> </level> <level label="2"> <text>Exemplary damages in an amount not to exceed the greater of:</text> <level label="i"> <text>$50,000; or</text> </level> <level label="ii"> <text>Three times the total of damages, costs, and fees; and</text> </level> </level> <level label="3"> <text>Any equitable relief that the court considers appropriate.</text> </level> </level> </section>