Section 3(n) of the Act, as amended, excludes from the category of
sales for resale ``the sale of goods to be used in residential or farm
building construction, repair or maintenance: Provided, That the sale is
recognized as a bona fide retail sale in the industry.'' Under this
section a sale of building materials to a building contractor or a
builder for use in residential or farm building, repair or maintenance
is not a sale for resale, provided, the sale is otherwise recognized as
a bona fide retail sale in the industry. If the sale is not so
recognized it will be considered a sale for resale. Thus, only bona fide
retail sales of building materials to a building contractor or a builder
for the uses described would be taken out of the category of sales for
resale. (Sucrs. De A. Mayol & Co. v. Mitchell, 280 F. 2d 477 (CA-1);
Elder v. Phillips & Buttroff Mfg. Co., 23 L.C. Par. 67,524 (Tenn.,
1958).) The legislative history of the amendment indicates that it is
not the intent of its sponsors to remove from the category of sales for
resale such sales, for example, as sales of lumber to
a contractor to build a whole residential subdivision. (See 95 Cong.
Rec. 12533-12535; Sen. St. ibid; 14877.)
