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[Utah Administrative Code Table of Contents]
[Title R152. Table of Contents]
R152-16-1 Purpose and Authority.
The purpose of this rule is to clarify the requirements of Title 13, Chapter 16, Motor Fuel Marketing Act. This rule is authorized by Subsection 13-5-2 (1) and Section 13-16-12.
R152-16-2 Definitions.
The following definitions shall be used in construing Title 13, Chapter 16 and this rule.
(1) "Allowances" means any reduction in the invoice or transfer price of motor fuel to compensate the buyer for:
(a) a shortage in the volume of motor fuel actually delivered and billed for in a prior transaction involving the same seller; or
(b) fuel previously delivered by the same seller which was not of the grade and quality ordered by the buyer.
(2) "Commerce in this state" means any sale of motor fuel within this state at any level of distribution.
(3) "Competitor" means any retail outlet in this state selling motor fuel of like grade and quality directly to members of the driving public.
(4) "Division" means the Division of Consumer Protection of the Utah Department of Commerce.
(5) "Freight charges" means the cost of transporting motor fuel from a refinery or storage facility to a retail outlet. Freight charges are determined by:
(a) the actual cost of transportation to the retail outlet; or
(b) in the absence of reliable information about actual transportation costs, the division shall estimate the cost based upon prevailing motor fuel transportation rates.
(6) "Invoice cost" means the price charged a retail outlet for motor fuel by an independent wholesaler.
(7) "Like grade" means motor fuel of the same type -- i.e., gasoline, gasohol, diesel, etc.
(8) "Like quality" applies only to gasoline and diesel. As applied to these two types of motor fuel, the term means:
(a) gasoline of the same octane; or
(b) diesel of the same sulphur content (i.e., high or low).
(9) "Marketing level" means the following three levels:
(a) the refinery level at which motor fuel is refined from crude oil;
(b) the wholesale level at which motor fuel is purchased from a refinery for the purpose of resale to a retail outlet; and
(c) the retail outlet level at which motor fuel is sold directly to members of the driving public.
(10) "Tied sale" means a transaction in which a member of the driving public:
(a) is given goods or services for purchasing a specified amount of motor fuel; or
(b) is given the opportunity to purchase goods or services at a certain price in return for purchasing a specified amount of motor fuel.
(11) "Rebate" means any discount in the regular price of motor fuel to induce its purchase at a same or lower marketing level.
(12) "Trade discount" means a reduction in the selling price of motor fuel if the buyer:
(a) takes delivery of a specified volume of motor fuel;
(b) tenders payment within a specified time frame; or
(c) tendered payment in a specified form.
(13) "Transfer price" means the price an affiliate charges its retail outlet for motor fuel.
R152-16-3 Computing Cost.
(1) For purposes of computing cost under Subsection 13-16-2 (2), the division shall use the following equation: Cost = (L - D) + F + T + B. In this equation:
(a) "L" represents "last invoice cost," "lowest invoice cost," or "lowest transfer price," as the case may be;
(b) "D" represents "trade discounts, allowances, or rebates";
(c) "F" represents "freight charges," as applicable;
(d) "T" represents "federal, state, and local taxes," as applicable; and
(e) "B" represents "reasonable cost of doing business".
(2) Freight charges and federal, state and local taxes shall be included in the equation of subsection (1) only to the extent they are not already reflected in the invoice cost or transfer price, as the case may be.
(3) The division shall determine cost solely on the formula set forth in this rule. No sale below cost may be justified by a seller based upon the value of a tied sale made by a competitor unless the tied sale actually reduces the amount of money a member of the driving public must pay for motor fuel.
R152-16-4 Reporting Requirements.
The records required under Section 13-16-10 shall be executed on a form authorized by the division.
[Indexing]
KEY: fuel prices, motor vehicles, consumer protection
1994
[Editor's note: Below are references
to the Utah Code that are listed by the
agency making this rule as authority
for the rule.]
13-2-5
(1)
13-16-12
Notice of Continuation July 29, 1999
