[Code of Federal Regulations]
[Title 29, Volume 3]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR794.134]

[Page 755]
 
                             TITLE 29--LABOR
 
         CHAPTER V--WAGE AND HOUR DIVISION, DEPARTMENT OF LABOR
 
PART 794_PARTIAL OVERTIME EXEMPTION FOR EMPLOYEES OF WHOLESALE OR BULK 
 
Subpart B_Exemption From Overtime Pay Requirements Under Section 7(b)(3) 
                               of the Act
 
Sec. 794.134  Distribution ``for resale.''

    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.''

                  Application of Exemption to Employees