Legal Definitions - mark up

The term "mark up" has several distinct meanings, particularly within business, legislative, and judicial contexts.

• To increase the price of goods or services: This refers to the common business practice of adding a percentage or amount to the cost of a product or service to determine its selling price, covering overhead and generating profit.
• To revise or amend a legislative bill or rule: In a legislative or regulatory setting, "mark up" describes the process where a committee or working group reviews a proposed bill, regulation, or rule, making changes, additions, or deletions to its text before it is presented for a vote or final approval.
• To place a case on the trial calendar: In court proceedings, "mark up" can refer to the administrative action of formally scheduling a specific case for trial, assigning it a date and time on the court's calendar.

Examples:

• Example 1 (Price Increase): A small, independent bookstore purchases a new release novel from its distributor for $15. To cover its operating expenses, such as rent and staff salaries, and to generate a profit, the owner decides to mark up the price by 50%, selling the book to customers for $22.50.

  Explanation: This illustrates the first meaning, where the bookstore increases the initial cost of the product to arrive at a final selling price for consumers.

• Example 2 (Legislative Revision): A congressional committee is tasked with reviewing a proposed bill designed to update federal cybersecurity standards. During a series of public hearings and closed-door sessions, committee members debate various clauses, propose amendments, and ultimately decide to mark up the bill by adding new requirements for data encryption and removing certain provisions related to private sector reporting, before advancing it to the full House for a vote.

  Explanation: Here, "mark up" refers to the committee's process of revising and amending the text of the legislative bill, making specific changes to its content before it moves forward in the legislative process.

• Example 3 (Scheduling a Trial): After several months of pre-trial discovery and negotiations in a personal injury lawsuit, the parties inform the court that they are unable to reach a settlement. The judge then instructs the court clerk to mark up the case, which involves officially assigning it a specific start date and time on the court's busy trial calendar, typically several months in the future, allowing both sides to prepare for court proceedings.

  Explanation: In this context, "mark up" signifies the administrative act of formally scheduling the trial, placing it onto the court's official calendar for proceedings.