I worked for the John Deere Landscapes. JD would sell irrigation
fittings/lighting etc at deep discounts, if the items didn't move. They
attempted to move some of their grass seed the same way. One of the
contractors complained to the state agriculture. They came in, cited JD for
selling expired grass seed. JD had to pay a huge fine, and every since
then, threw their seed away.
Doesn't answer your question, but I'm sure the hardware store is unaware
what they opened the door for. They would be better off giving it away,
then trying to make a couple bucks.
Interesting point. Who knows what the various state laws are.
Reminds me of the time about 10 years ago here in NJ when a radio
station ran some kind of promo where they rolled back the price of
gasoline at a certain service station so that it was like half
price. In no time the state regulators were there to enforce some
law from 75 years ago that is on the books which says you can't sell
gas at less than cost.
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