47-25-602 - Definitions.

47-25-602. Definitions.

As used in this part, unless the context otherwise requires:

     (1)  “Cost to the retailer” means the sum of:

          (A)  The lower of:

                (i)  The purchase price of petroleum distillates to the retailer, less all trade discounts, allowances, or rebates actually granted to the retailer; or

                (ii)  The replacement cost of petroleum distillates at the time of retail sale in the quantity last purchased by the retailer;

          (B)  The cost of transportation of petroleum distillates from the point of purchase by the retailer to the retail location;

          (C)  All applicable federal, state, or local motor fuel or sales taxes not already included in the purchase price to the retailer; and

          (D)  The reasonable cost of overhead for petroleum distillates at that location;

     (2)  “Dealer” means any person, firm, corporation, or partnership engaged in the sale of petroleum products to the public at retail;

     (3)  “Distributor” means any person, firm, partnership, or corporation engaged in the sale of petroleum or related products at wholesale to dealers;

     (4)  “Exempt” means those sales at retail exempt by § 47-25-204;

     (5)  (A)  “Franchise” means a contract or agreement between a dealer and a distributor or producer of petroleum products or other related products which grants to the dealer the right and authority to sell or use in connection with the sale of petroleum products, motor fuel, or related products, such as tires, batteries, etc., a petroleum trademark, trade name, service mark, or other identifying symbol or name.

          (B)  “Franchise” includes a contract or agreement under which such dealer is granted authority to occupy premises owned, leased, or in any way controlled by a producer or distributor, which premises are to be employed for the sale or distribution of petroleum or related products under the producer or distributor's petroleum trademark, trade name, service mark, or other identifying symbol or name which is controlled by the distributor or producer.

          (C)  “Franchise” does not include contracts and agreements with persons employed directly by a producer or distributor of petroleum and related products to manage, operate, run, or administer the retail sale of such products to the consuming public on premises owned or leased by the producer or distributor;

     (6)  “Petroleum or related products” means all petroleum distillates including, but not limited to, gasoline, motor fuels, and lubricants and those products generally sold at retail outlets in connection with such petroleum products under a trademark, trade name, or symbol including, but not limited to, tires, batteries, and other motor vehicle accessories. Each separate grade or blend of a petroleum distillate shall be considered an individual item, product, and commodity;

     (7)  “Producer” means any person, firm, partnership or corporation engaged in the drilling, pumping, importing, refining, or wholesaling of petroleum and related products under a trademark, trade name, service mark, or other identifying symbol or name whether or not such organization distributes such products to dealers;

     (8)  “Retailer” means a dealer, as defined in this section;

     (9)  “Sale at retail,” “sales at retail” or “retail sale” means sale at retail, sales at retail, or retail sale, as defined in § 47-25-202(4);

     (10)  “Vertical integration” means the ownership or control of all phases of the production of petroleum products including the drilling, pumping, refining, distribution, and resale of such petroleum products by a person, firm, partnership or corporation or from the well to the gasoline pump; and

     (11)  “Vertically integrated producer” means a producer controlling all phases of petroleum production and sale from the well through distribution to dealers as defined herein.

[Acts 1975, ch. 232, § 1; T.C.A., § 69-702; Acts 1988, ch. 1033, §§ 1, 2.]