Bond Liquor Store, Inc. v. Alcoholic Beverages Control Commission

142 N.E.2d 372, 336 Mass. 70, 1957 Mass. LEXIS 589
CourtMassachusetts Supreme Judicial Court
DecidedMay 10, 1957
StatusPublished
Cited by6 cases

This text of 142 N.E.2d 372 (Bond Liquor Store, Inc. v. Alcoholic Beverages Control Commission) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bond Liquor Store, Inc. v. Alcoholic Beverages Control Commission, 142 N.E.2d 372, 336 Mass. 70, 1957 Mass. LEXIS 589 (Mass. 1957).

Opinion

Whittemore, J.

This is an appeal from an order for judgment in the Superior Court to dismiss a petition for a writ of certiorari. G. L. (Ter. Ed.) c. 231, § 96. Mayor of Beverly v. First District Court of Essex, 327 Mass. 56, 58.

The writ was sought in order to quash the action of the alcoholic beverages control commission (hereinafter, the commission), under G. L. (Ter. Ed.) c. 138, § 23A, inserted by St. 1945, c. 215, as amended by St. 1950, c. 780, in suspending for six days in December, 1952, after notice and hearing, the petitioner’s license to sell alcoholic beverages for violation of G. L. (Ter. Ed.) c. 93, §§ 14A-14K. Sec-[71]*71tians 14A to 14C, inclusive, constitute the so called “Fair Trade Law” and §§ 14E to 14K are the “Unfair Sales Act.”

There was evidence before the commission of the sale on November 25, 1952, of two “fifths” of whiskey at below the fair trade price as fixed by a contract to which the petitioner was not a party (c. 93, § 14B, inserted by St. 1937, c. 398, as amended by St. 1939, c. 313). The commission acted on the complaint of Massachusetts Package Stores Association, Inc., and John Gilbert, Jr., Co., who were allowed to intervene in this ease.

The case is not moot for, pursuant to stipulation, the temporary restraining order entered in the Superior Court was continued pending final determination of the case, with the proviso that the suspension would take effect thereafter if the order of the commission should be affirmed.

The State administrative procedure act (G. L. [[Ter. Ed.] c. 30A) took effect July 1, 1955, and did not apply to the proceedings in this case at any stage. St. 1954, c. 681, § 22.

The order for dismissal of the petition was error.

The policy of the Commonwealth on November 25, 1952, in respect of control of the sale prices of alcoholic beverages is to be found in the preamble of St. 1945, c. 215, which inserted c. 138, § 23A, and such modification of the policy there stated as resulted from the enactment of St. 1952, c. 385, discussed below. The preamble of St. 1945, c. 215, reads as follows: “Whereas, The practice of price cutting and loss-leader selling, so-called, results in unfair competition and other trade abuses; and Whereas, Such practice results in creating undue stimulation of sales of alcoholic beverages and contributes to a disorderly distribution and sale of alcoholic beverages and is detrimental to the proper regulation of the sale of alcoholic beverages; Therefore, It is hereby declared to be against the public welfare and public policy of the commonwealth to permit price cutting and loss-leader selling, so-called, in connection with the sale of alcoholic beverages in the commonwealth.”

From the enactment of St. 1945, c. 215, until August 29, [72]*721952, this policy was implemented only in the provisions of § 23A1 of c. 138, which that statute inserted, requiring that the commission suspend a license or permit for stated periods for first, second and subsequent offences whenever it found a violation of any of the provisions of either the fair trade law or the unfair sales act.

The relevant provisions of the fair trade law are found in § 14B providing a forfeit of $50 through civil process for “Wilfully and knowingly” making sales or offerings below a fair trade price. The relevant provisions of the unfair sales act are in § 14F providing criminal penalties for certain sales below cost.

On May 21, 1951, the case of Schwegmann Brothers v. Calvert Distillers Corp. 341 U. S. 384, was decided, holding that the Miller-Tydings act, U. S. C. (1946 ed.) Title 15, § 1, did not exempt from the Sherman act contracts or agreements which prescribe the minimum resale price for non-contracting competitors of retailers who had signed such contracts, notwithstanding a State statute similar to G. L. (Ter. Ed.) c. 93, § 14B, which in terms made fair trade contracts applicable to nonsigners. This virtually destroyed for the time the effectiveness of § 23A as a regulation of the liquor traffic,2 although it did not wipe it out as an existing statute, General Electric Co. v. Kimball Jewelers, Inc. 333 Mass. 665, 678, and doubtless led to the introduction in the next Legislature of the bill which became St. 1952, c. 385, enacted May 31, 1952.

[73]*73The new statute1 took effect August 29, 1952. It provides for a significantly different regulation of liquor prices. This statute (c. 138, § 25C) applies to all alcoholic beverages other than malt beverages, prohibits the sale of all such beverages until after the commission has approved the filed minimum prices therefor as not being excessive, inadequate or unfairly discriminatory, and provides that no licensee shall sell or offer at less than the minimum price then in effect unless pursuant to written permission of the commission. There is a material difference in the penalties from those provided in § 23A.

1. It is urged that § 23A is unconstitutional, apart from the effect of § 25C, on several grounds including the following: (1) there is an improper delegation to distributors of alcoholic beverages of the power to determine, by the making or nonmaking of fair trade contracts, whether and to what extent the policy of the Commonwealth takes effect (see Levine v. O’Connell, 275 App. Div. [N. Y.] 217, affirmed 300 N. Y. 658; contra Gaine v. Burnett, 122 N. J. L. 39, affirmed on opinion below 123 N. J. L. 317, Reeves v. Simons, 289 Ky. 793); (2) its effectiveness is conjectural as it depends upon the extent to which the trade generally has resort to fair trade contracts (see Schwegmann Brothers v. Louisiana Board of Alcoholic Beverage Control, 216 La. 148); and (3) it is a support of a restraint of trade of a kind not [74]*74within the exception which the McGuire act creates to the general policy against restraint of trade. (See Schwegmann Brothers v. Calvert Distillers Corp. 341 U. S. 384, 386; U. S. C. [1952 ed.] Title 15, § 45 [a] [2] [5].) As to delegation under our Constitution see Scannell v. State Ballot Law Commission, 324 Mass. 494, 501; Opinion of the Justices, 330 Mass. 713, 719; Commonwealth v. Hudson, 315 Mass. 335, 341; Opinion of the Justices, 239 Mass. 606. And see J. W. Hampton, Jr., & Co. v. United States, 276 U. S. 394, 406-407; Panama Refining Co. v. Ryan, 293 U. S. 388, 420-430; A. L. A. Schechter Poultry Corp. v. United States, 295 U. S. 495, 530, 537; United States v. Rock Royal Co-operative, Inc. 307 U. S. 533, 577; Nilva v. United States, 212 Fed. (2d) 115, 119-120. We do not reach these points.

2. The scope of the new section, 25C, which is constitutional, Supreme Malt Products Co. Inc. v.

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Bluebook (online)
142 N.E.2d 372, 336 Mass. 70, 1957 Mass. LEXIS 589, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bond-liquor-store-inc-v-alcoholic-beverages-control-commission-mass-1957.