Clark v. J. R. Watkins Medical Co.

171 S.W. 136, 115 Ark. 166, 1914 Ark. LEXIS 123
CourtSupreme Court of Arkansas
DecidedNovember 2, 1914
StatusPublished
Cited by21 cases

This text of 171 S.W. 136 (Clark v. J. R. Watkins Medical Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clark v. J. R. Watkins Medical Co., 171 S.W. 136, 115 Ark. 166, 1914 Ark. LEXIS 123 (Ark. 1914).

Opinion

Smith, J.,

(after stating the facts). iSection 2 of the Wingo Act prescribes a fine against any foreign corporation doing business in this State ■which shall fail and refuse to file its articles of incorporation, together with a statement of its assets and liabilities and its capital employed in this State, and a designation of its principal place of business in this State, or which shall fail to file the certificate of its board of directors consenting that service of process upon any agent of such corporation in this State, or upon the Secretary of State of this State, in any action brought or pending in this State, shall be a valid service, and, as an additional penalty, provides that such corporation can not make any contract in this State which can be enforced by it either in law or in equity. Notwithstanding the fact that the third section of the Wingo Act, which attempts to impose upon foreign corporations, as a prerequisite to doing interstate business, the payment of certain fees, based upon the amount of -their capital stock, has been held invalid, the first -section of this act has been held valid. This first section provides for the filing -of the certificates above mentioned. Roberts v. Chatwin, 108 Ark. 562, 158 S. W. 497.

Appellee ladmi-ts that it ha,s not -complied with the terms of the Wingo Act, but -says that it was not required to do so in order to maintain this suit, its position being that the -contract exhibited constituted a sale of goods and that the character of the transaction as a sale is not altered by the fact that it imposed certain conditions upon purchasers -of its goods, -as -a prerequisite to the sale of the goods, and it says that the -correspondence and the literature -emanating from it, which will be later referred to, concerning the conduct of appellant Clark’s sales to consumers were mere suggestions which -from experience it -had found would be helpful to its vendees in -disposing of -their wares.

(1) In -executing the contracts sued on, appellant -signed printed contracts, which had been prepared for that purpose by appellee, and th-e rule is that such contracts are to be construed most strongly against the party preparing them. In -construing a contract we may consider the construction which the parties themselves have placed upon it and the action they have taken in executing its provisions. These rules of construction, however, are not available where the terms of the contract are unambiguous. Where the terms of the contract are unambiguous, it is the province of the court to construe the contract and to declare its purport; and appellee insists that that duty here 'devolved upon the trial court, and that that court correctly construed the contract as one of sale, and not as a mere appointment of an agent.

Counsel have cited and reviewed a great many cases; but there .appears to be no necessity to review these cases in this opinion. It is clear that, if the contract between the parties constitutes a sale of the commodities there mentioned, there can be no doubt that the court correctly directed a verdict in favor of appellee. But the evidence upon that question is not so undisputed that it may be said, as a matter of law, that the contract constituted a sale of goods, and not an agency..

(2) The verdict having been directed in favor of appellee, it is our duty to take that view of the evidence which is most favorable to appellants and if, when it has been viewed in the light most favorable to them, it would justify a reasonable mind to fairly draw the inference from the evidence that the relationship between the parties was that of principal and agent, then the sufficiency of the evidence to sustain that view should have been submitted to the jury for its consideration.

Numerous letters, both personal and circular, together with various advertisements, sent out by appellee, have been offered in evidence and, without setting out all of this matter, it is sufficient to say that from it, in connection with the contracts themselves, the jury might have found the following state of facts: That the first contract executed by the parties appointed Joe Clark to an agency until March 1, 1910, and the second continued him in that capacity for another year. That these contracts required Joe Clark to devote all his time and attention to selling Watkins’ products; to canvass every farm house in his territory at least twice a year; to sell these products at retail prices fixed by the company; to confine his canvassing to bis own territory; to observe such instructions in regard to the conduct of the business as the company might give; to have no other occupation whatever and to sell or handle no other goods whatsoever; to work continuously at the agency so far as weather and health will permit; to furnish team, wagon and outfit for the business; to pay freight on the goods; and to make regular and satisfactory weekly reports to the company; to pay for the goods in one or the other of the ways provided therein; to return all goods by prepaid freight to the company when he quits the business, for credit on his account; to make written reports to the company of all sales, collections, goods on hand; and outstanding accounts; to sell only to actual consumers ; and to keep a complete record of all goods disposed of in said territory. That the company agreed to let him pay for the goods by giving it half of the cash the agency produced each week, or by paying cash for goods within ten days, with 3 per cent discount; and when he quit work, the company agreed to receive all goods on hand (to be returned by prepaid freight) and give him credit on his account at the original price paid for them; and, when a balance was struck, the party who owed the other should pay, on demand, such balance due.

The record contains letters in which appellee expressed its dissatisfaction with appellant Joe Clark’s success in selling the goods, and he was urged in these letters to press his credit sales, and was advised to make sales at every house, and the assurance was contained in these letters that this was the plan through which other agents had succeeded in making money. And on November 1, 1909, appellee wrote a letter containing the following statements: “We regret that your business is not satisfactory to us, and the next few weeks are going to decide whether we retain you as an agent or not. Therefore you will have to show us very soon that you can do business that will be satisfactory to us, otherwise we shall notify your bondsmen and demand a settlement of your account in full by tbe time of expiration of your contract on March 1, 1910.” On February 3, 1910, a letter was written in which it was stated: “It is time now to be building up accounts with your customers and getting ready for the big collection season that comes in the fall. We want you to get around and supply the needs of everyone in your county. See that no one puts you off without a sale.” Other letters were written in which they asked appellant Joe 'Clark to assist in securing agents for certain counties in this State where no agents were operating.

It appears that the indebtedness for which this suit was brought grew out of these credit sales which appellant Clark had made, as he appears to have acted upon appellee’s advice to press his credit sales, but to have been unable to make collections covering such sales.

(3) There can be no question but that appellant Clark was doing business in this State. Simmons-Burks Clo.

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Bluebook (online)
171 S.W. 136, 115 Ark. 166, 1914 Ark. LEXIS 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clark-v-j-r-watkins-medical-co-ark-1914.