KRS 365.020: Price discrimination between localities prohibited -- Exceptions.

(1) No person doing business in this state and engaged in the production, manufacture,

distribution or sale of any commodity or product, or service or output of a service

trade, of general use or consumption, or the product or service of any public utility,

with the intent to destroy the competition of any regular established dealer in such

commodity, product or service, or to prevent the competition of any person who in

good faith intends and attempts to become such dealer, shall discriminate between

different sections, communities or cities, or portions thereof or locations therein, in

this state, by selling or furnishing such commodity, product or service at a lower

rate in one section, community or city, or any portion thereof or location therein,

than in an other, after making allowance for difference, if any, in the grade or

quality, and in the actual cost of transportation from the point of production, if a

raw product or commodity, or from the point of manufacture, if a manufactured

product or commodity. T he inhibition against locality discrimination shall embrace

any scheme of special rebates, collateral contracts or any device of any nature

whereby such discrimination is, in substance or fact, effected in violation of the

spirit and intent of this section.

(2) Motion picture films when delivered and under a lease to motion picture houses

shall not be deemed a commodity or product of general use or consumption under

this section. This section is not intended to prohibit the meeting in good faith of a

competitive rate, or to prevent a reasonable classification of service by public

utilities for the purpose of establishing rates.