It does not follow from the principles discussed in Sec. 779.305
that leased departments engaged in the retail sale of goods or services
in a departmentalized store are separate establishments. To the
contrary, it is only in rare instances that such leased departments
would be separate establishments for purposes of the exemptions. For
example, take a situation where the departmentalized retail store,
having leased departments, controls the space location, determines the
type of goods that may be sold, determines the pricing policy, bills the
customers, passes on customers' credit, receives payments due, handles
complaints, determines the personnel policies, and performs other
functions as well. In such situations the leased department is an
integral part of the retail store and considered to be such by the
customers. It is clear that such departments are not
separate establishments but rather a part of the retail store
establishment and will be considered as such for purposes of the
exemptions. The same result may follow in the case of leased departments
engaged in the retail sale of goods or services in a departmentalized
store where all or most of the departments are leased or otherwise
individually owned, but which operate under one common trade name and
hold themselves out to the public as one integrated business unit.
