§ 66-94.1. Responsible sellers exemption. - North Carolina Statutes

§66‑94.1.  Responsible sellers exemption.

(a)        The provisions ofArticle 19 shall not apply to the sale or lease of any products, equipment,supplies or services where:

(1)        The seller has notderived net income from such sales within the State during either of its twoprevious fiscal years, and does not intend to derive net income from such salesduring its current fiscal year; and

(2)        The primarycommercial activity of the seller or its affiliate is substantially differentfrom the sale of the goods or services to the purchaser, and the gross revenuesreceived by the seller from all such sales during the current and each of thetwo previous fiscal years do not exceed ten percent (10%) of the total grossrevenues from all operations for the same period of the seller and any otheraffiliated entity contractually obligated to compensate the purchaser for thepurchaser's business activities arising from the sale; and

(3)        The sale results inan improvement to realty owned or leased by the purchaser which enables thepurchaser to receive goods on consignment from the seller or its affiliate. An"improvement to realty" occurs when a building or other structure isconstructed or when significant improvements to an existing building orstructure are made; and

(4)        The seller haseither a net worth on a consolidated basis, according to its most recentaudited financial statement, of not less than five million dollars ($5,000,000)or has obtained a surety bond from a surety company authorized to do businessin this State in an amount equal to or greater than the gross revenues receivedfrom the sale or lease of products, equipment, supplies or services in thisState during the preceding 12‑month period which enabled the purchaser tostart a business.

(b)        The provisions of Article19 shall not apply to the sale or lease of any products, equipment, supplies,or services where:

(1)        The seller has a networth on a consolidated basis, according to its most recent audited financialstatement, of not less than five million dollars ($5,000,000); and

(2)        The primarycommercial activity of the seller is motor carrier transportation and theseller is subject to the jurisdiction of the Interstate Commerce Commission orany other federal agency that regulates motor carrier transportation.

(c)        Any sellersatisfying the requirements of subsections (a) or (b) of this section shallfile with the Secretary of State two copies of a document signed under oath bythe seller or one authorized to sign on behalf of the seller containing thefollowing information:

(1)        The name of theseller and whether the seller is doing business as an individual, partnership,or corporation;

(2)        The principalbusiness address of the seller;

(3)        A brief descriptionof the products, equipment, supplies, or services being sold or leased by theseller; and

(4)        A statement whichexplains the manner in which each of the requirements of subsections (a) or (b)of this section are met. (1983, c. 421, s. 1; 1987, c. 325.)