Ark. Code Ann. » Title 4 Chapter 75
Arkansas Code Annotated

Ark. Code Ann. § 4-75-704 (2020)

Transactions permitted to meet lawful competition

✓ Arkansas Code release r76: Acts through about 2020 (2021-2025 sessions missing)
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    1. Any wholesaler may advertise, offer to sell, or sell cigarettes at a price made in good faith to meet the price of a competitor who is rendering the same type of service and is selling the same article at cost to the competing wholesaler as defined by this subchapter.
    2. Any retailer may advertise, offer to sell, or sell cigarettes at a price made in good faith to meet the price of a competitor who is selling the same article at cost to the competing retailer as defined in this subchapter.
  2. The price of cigarettes advertised, offered for sale, or sold under the exceptions specified in § 4-75-703 shall not be considered the price of a competitor and shall not be used as a basis for establishing prices below cost, nor shall the price established at a bankrupt sale be considered the price of a competitor within the purview of this section.
  3. In the absence of proof of the actual cost to the competing wholesaler or to the competing retailer, as the case may be, the cost may be presumed to be the lowest cost to wholesalers or the lowest cost to retailers, as the case may be, within the same trading area as determined by a cost survey made pursuant to § 4-75-711(b).

History. Acts 1951, No. 101, § 7; A.S.A. 1947, § 70-607.

Case Notes

Made in Good Faith.

Because patronage dividends paid to retailers by cooperatives constituted illegal rebates under § 4-75-708(b), any attempt by a wholesaler to match that price could in no way be made in good faith where the plain language of subdivision (a)(1) of this section allowed a wholesaler to sell at a price made in good faith to meet the price of a competitor. McLane Southern, Inc. v. Ark. Tobacco Control Bd., 2010 Ark. 498, 375 S.W.3d 628 (2010).

Cited: McLane Co. v. Weiss, 332 Ark. 284, 965 S.W.2d 109 (1998).

Notes of Decisions
Cited in 3 cases, 1998–2010 · leading case: McLane S., Inc. v. Arkansas Tobacco Control Bd., 2010 Ark. 498, 375 S.W.3d 628.
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McLane S., Inc. v. Arkansas Tobacco Control Bd., 2010 Ark. 498, 375 S.W.3d 628. · cites it 22× “1, the Board advised, in pertinent part: h[Y]ou pose this question: “Under the provisions of the Unfair Cigarette Sales Act which allows retailers to meet the price of competitors, Ark.Code Ann. § 4-75-704, ... May a retailer that is located outside of the border zone (i.”
McLane S., Inc. v. Davis, 233 S.W.3d 674 (Ark. 2006). “In addition, § 4-75-704 exempts sales below cost made to meet a competitor’s prices.”
McLane Co. v. Weiss, 965 S.W.2d 109 (Ark. 1998). “In addition, § 4-75-704 exempts sales below cost made to meet a competitor’s prices.”
Ark. Code Ann. § 4-75-704(a)(1): 1 case
McLane S., Inc. v. Arkansas Tobacco Control Bd., 2010 Ark. 498, 375 S.W.3d 628. “1, the Board advised, in pertinent part: h[Y]ou pose this question: “Under the provisions of the Unfair Cigarette Sales Act which allows retailers to meet the price of competitors, Ark.Code Ann. § 4-75-704, ... May a retailer that is located outside of the border zone (i.”
Ark. Code Ann. § 4-75-704(a)(2): 1 case
McLane S., Inc. v. Arkansas Tobacco Control Bd., 2010 Ark. 498, 375 S.W.3d 628. “1, the Board advised, in pertinent part: h[Y]ou pose this question: “Under the provisions of the Unfair Cigarette Sales Act which allows retailers to meet the price of competitors, Ark.Code Ann. § 4-75-704, ... May a retailer that is located outside of the border zone (i.”
Ark. Code Ann. § 4-75-704(a)(l): 1 case
McLane S., Inc. v. Arkansas Tobacco Control Bd., 2010 Ark. 498, 375 S.W.3d 628. “1, the Board advised, in pertinent part: h[Y]ou pose this question: “Under the provisions of the Unfair Cigarette Sales Act which allows retailers to meet the price of competitors, Ark.Code Ann. § 4-75-704, ... May a retailer that is located outside of the border zone (i.”
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