(a) A commercial stationer's establishment may qualify as an exempt
retail or service establishment under section 13(a)(2) of the Act if it
meets all the requirements of that exemption. Where the establishment
meets these requirements all employees employed by the establishment
will be exempt, except any employees who are engaged in the making or
processing of goods, such as printing and engraving. The commercial
stationer ordinarily has a store on the street level located in the
shopping section of the community where other stores are located and
many people pass by. He has store clerks who sell over the counter to
the consuming public and may have outside salesmen who sell to offices.
He makes very few, if any, sales to other dealers for resale. He keeps
in stock and displays the various items sold over the counter and by
outside salesmen. The number of items in stock typically ranges from
5,000 to 15,000. Primarily, items sold are stationery, pens, pencils,
blotters, briefcases, calendars, clocks, greeting cards, thumbtacks,
typewriter ribbons, carbon paper, paper clips, ink, commercial envelopes
and typewriter paper, filing supplies and similar items. In addition he
may also sell filing cabinets, office desks and chairs, other items of
office furniture and supplies and equipment generally, as well as
standard and portable typewriters and certain other small office
machines.
(b) In determining whether, under the 13(a)(2) exemption, 75 percent
of the establishment's sales are recognized as retail sales, in the case
of commercial stationery establishments which in general operate as
described in Sec. 779.367(a), the sales made which are of ``Retailable''
items and are not for resale will be recognized as retail if they meet
the requirements for such classification as previously explained in this
subpart. The following position is
adopted for enforcement purposes: All sales other than for resale of
stationery, office supplies and equipment, office furniture and office
machinery commonly stocked by commercial stationers for sale to
individual consumers as well as businesses, including typewriters,
adding machines, small duplicating machines, checkwriters, and the like,
will be considered to be retail except for the sales set out below:
(1) Sales made on a competitive bid basis. This term covers sales
made pursuant to an invitation to bid, particularly sales to Federal,
State, and local governments; sales made in a like manner to commercial
and industrial concerns and institutions are also included.
(2) Sales made pursuant to a requirements contract or other
contractual arrangement involving the sale of a large quantity of goods
over a period of time with a substantially lower price structure for the
individual deliveries than would prevail for the usual sales of the
quantities delivered.
(3) Sales made at quantity discount of 30 percent or more from the
price of the ordinary unit of sale.
(4) Sales of school supplies to municipalities, boards of education,
or schools in the same manner as the sales of school supply
distributors.
(5) Sales of job printing and engraving other than (i) sales of
social printing and engraving and (ii) sales of printing and engraving
of business envelopes, letterheads, and calling cards.
(6) Sales of specialized machinery and equipment.
