HOUSE JOINT MEMORIAL 76

46th legislature - STATE OF NEW MEXICO - first session, 2003

INTRODUCED BY

George J. Hanosh









A JOINT MEMORIAL

REQUESTING THE ECONOMIC DEVELOPMENT DEPARTMENT TO STUDY THE EFFECTS OF BELOW-COST SALES ON NEW MEXICO SMALL BUSINESSES.



WHEREAS, fair and healthy competition in the marketplace provides maximum benefits to New Mexico's small businesses and citizens; and

WHEREAS, certain marketing practices impair competition and are contrary to the public interest; and

WHEREAS, advertising, offers to sell or sales of commodities at below cost by retailers or wholesalers, with the intent of inducing the sale of the commodities and of unfairly diverting trade from a competitor or otherwise injuring a competitor, impair or prevent fair competition, slow economic development and are not in the best interest of the public; and

WHEREAS, any person who is engaged in the production, manufacture or distribution of a below-cost commodity for the purpose of damaging the competition of an established seller, or a person who intends to sell such a commodity, is engaging in an activity against the public interest; and

WHEREAS, the practice of selling merchandise below cost in order to attract patronage is generally a form of unfair competition, and such practice causes commercial dislocations, indirectly burdens and obstructs commerce and diverts business from dealers who maintain fair prices; and

WHEREAS, such practice can cause bankruptcies and business failures, which result in unemployment, disruption of leases, nonpayment of taxes and loans, and contribute to undesirable consequences, including economic depression;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the economic development department be requested to study the impact of below-cost sales on small businesses in New Mexico; and

BE IT FURTHER RESOLVED that the economic development department report its findings to the appropriate interim legislative committee no later than October 31, 2003; and

BE IT FURTHER RESOLVED that a copy of this memorial be transmitted to the economic development department.

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