The statutory definition of the term ``retail or service establishment'' found in section 13(a)(2), clearly provides that an establishment to be a ``retail or service establishment'': (a) Must engage in the making of sales of goods or services; and (b) 75 percent of its sales of goods or services, or of both, must be recognized as retail in the particular industry; and (c) not over 25 percent of its sales of goods or services, or of both, may be sales for resale. These requirements are discussed below in Sec. Sec. 779.314 through 779.341.
Making Sales of Goods and Services ``Recognized as Retail'' Sec. 779.314 ``Goods'' and ``services'' defined.
The term ``goods'' is defined in section 3(i) of the Act and has been discussed above in Sec. 779.14. The Act, however, does not define the term ``services.'' The term ``services,'' therefore, must be given a meaning consistent with its usage in ordinary speech, with the context in which it appears and with the legislative history of the exemption as it explains the scope, the purposes and the objectives of the exemption. Although in a very general sense every business might be said to perform a service it is clear from the context and the legislative history that all business establishments are not making sales of ``services'' of the type contemplated in the Act; that is, services rendered by establishments which are traditionally regarded as local retail service establishments such as the restaurants, hotels, barber shops, repair shops, etc. (See Sec. Sec. 779.315 through 779.320.) It is to these latter services only that the term ``service'' refers.