Code of Federal Regulations (alpha)

CFR /  Title 29  /  Part 794  /  Sec. 794.106 Statutory definition of ``enterprise.''

The term ``enterprise'' is defined in section 3(r) of the Act. That definition (insofar as it affects a wholesale or bulk petroleum distributor) is as follows:

``Enterprise'' means the related activities performed (either through unified operation or common control) by any person or persons for a common business purpose, and includes all such activities whether performed in one or more establishments or by one or more corporate or other organizational units including departments of an establishment operated through leasing arrangements, but shall not include the related activities performed for such enterprise by an independent contractor: Provided, That within the meaning of this subsection, a retail or service establishment which is under independent ownership shall not be deemed to be so operated or controlled as to be other than a separate and distinct enterprise by reason of any arrangement, which includes, but is not necessarily limited to, an agreement (1) that it will sell, or sell only, certain goods specified by a particular manufacturer, distributor, or advertiser, or (2) that it will join with other such establishments in the same industry for the purpose of collective purchasing, or (3) that it will have the exclusive right to sell the goods or use the brand name of a manufacturer, distributor, or advertiser within a specified area, or by reason of the fact that it occupies premises leased to it by a person who also leases premises to other retail or service establishments. Sec. 794.107 ``Establishment'' distinguished.

The ``enterprise'' referred to in the section 7(b)(3) exemption is to be distinguished from an ``establishment''. As used in the Act, the term ``establishment'', which is not specially defined therein, refers to a ``distinct physical place of business'' rather than to ``an entire business or enterprise'' which may include several separate places of business. (See Phillips v. Walling, 324 U.S. 490; Mitchell v. Bekins Van & Storage Co., 352 U.S. 1027; 95 Congressional Record 12505, 12579, 14877; H. Rept. No. 1453, 81st Cong., first session, p. 25.) It will be noted from the definition of ``enterprise'' in section 3(r), as set forth in Sec. 794.106, that the activities of the enterprise may be ``performed in one or more establishments,'' and section 7(b)(3) specifies that the enterprises to which its exemption requirements are applicable will include ``an enterprise with more than one bulk storage establishment.''