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42.11.421    BAILMENT LIMITS

(1) Products listed as "regular," must be maintained in the bailment warehouse in an amount above the minimum level and below the maximum level.

(2) The minimum bailment level for "regular" products is a three-week supply based on past sales history.

(3) Vendors will be charged a space reservation fee of $1 per case per day for each case below minimum for any product for which the department is unable to fill store orders. A space reservation fee will not be charged if the unavailability of supply is due to an incident beyond the vendor's control for which it has no recourse against any other party. Vendors will also be charged the costs incurred by the department when there is insufficient product to fill orders during sales periods.

(4) The maximum bailment level for "regular" products is an eight-week supply based on warehouse space. The maximum bailment level may be exceeded from time to time if a vendor demonstrates that a larger amount is needed to obtain an economical shipment and the department agrees.

(5) Fees and charges will be offset against department payments for products.

History: Sec. 16-1-103 and 16-1-303, MCA; IMP, Sec. 16-1-103, 16-1-104, and 16-1-302, MCA; NEW, 1990 MAR p. 1839, Eff. 9/28/90; AMD, 2001 MAR p. 348, Eff. 2/23/01; AMD, 2003 MAR p. 2899, Eff. 12/25/03.

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