A sale made to a customer engaged in the bulk distribution of
petroleum products will be included in the 25 percent limitation only if
the customer engages in the bulk distribution of petroleum products
``for resale''. Except with respect to a specific exclusion in section
3(n) regarding certain building materials, the word ``resale'' is not
defined in the Act. The common meaning of ``resale'' is the act of
``selling again''. A sale is made for resale when the seller knows or
has reasonable cause to believe that what is sold by him will be resold
by the purchaser in the same or a different form. Where the sale is thus
made for resale, it does not matter what ultimately happens to the
subject of the sale. Thus, the fact that goods sold for resale are
consumed by fire or no market is found for them and they are therefore
never resold does not alter the character of the sale which is made for
resale. In considering whether there is a sale of petroleum products for
resale in any specific situation, the term ``sale'' includes, as defined
in section 3(k) of the Act, ``any sale, exchange, contract to sell,
consignment for sale, shipment for sale, or other disposition.''
