HRS §481-4
Buying goods at forced or bankruptcy sales
This section says how businesses may price goods bought at forced, bankruptcy, or closeout sales. They cannot use that low invoice cost to justify selling below replacement cost unless they keep those goods separate and clearly advertise them as such, including the purchase conditions and quantity.
businesses
The statute, as written — Purchase at forced or bankrupt sales
In establishing the cost of a given article or product to the distributor and vendor, the invoice cost of the article or product purchased at a forced, bankrupt, closeout sale or other sale outside of the ordinary channels of trade may not be used as a basis for justifying a price lower than one based upon the replacement costs as of date of the sale of the article or product replaced through the ordinary channels of trade, unless the article or product is kept separate from goods purchased in the ordinary channels of trade and unless the article or product is advertised and sold as merchandise purchased at a forced, bankrupt, closeout sale, or by means other than through the ordinary channels of trade, and the advertising shall state the conditions under which the goods were so purchased, and the quantity of the merchandise to be sold or offered for sale.
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