Cox v. General Electric Co.

85 S.E.2d 514, 211 Ga. 286, 1955 Ga. LEXIS 300
CourtSupreme Court of Georgia
DecidedJanuary 10, 1955
Docket18791
StatusPublished
Cited by39 cases

This text of 85 S.E.2d 514 (Cox v. General Electric Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cox v. General Electric Co., 85 S.E.2d 514, 211 Ga. 286, 1955 Ga. LEXIS 300 (Ga. 1955).

Opinions

Wyatt, Presiding Justice.

It is contended that the plaintiff in the court below (the defendant in error here) is entitled to the relief sought in so far as counts one and two are concerned irrespective of the Fair Trade Statute for the reason as contended, that the petition seeks to protect property rights, and that the petitioner is entitled to have these property rights protected irrespective of the Fair Trade Act. This contention can not be sustained. The Supreme Court of the United States in Kiefer-Stewart Co. v. Joseph E. Seagram & Sons, 340 U. S. 211, (71 Sup. Ct. 259, 95 L. ed. 219), in dealing with a scheme similar to the one here involved, and certainly controlled by the same legal principles, said: “Under the Sherman Act a combination formed for the purpose and with the effect of raising, depressing, fixing, pegging, or stabilizing the price of a commodity in interstate or foreign commerce is illegal per se.”

In Dr. Miles Medical Co. v. John D. Park & Sons Co., 220 U. S. 373 (31 Sup. Ct. 376, 55 L. ed. 502), where the scheme under consideration was essentially the same as the one here under consideration, and where the contentions of the medical company were in general the' same as those alleged in the petition in the instant case, the Supreme Court of the United States said (at p. 399): “The bill asserts complainant’s ‘right to maintain and preserve the aforesaid system and method of contracts and sales adopted and established by it.’ It is, as we have seen, a system [288]*288of interlocking restrictions by which the complainant seeks to control not merely the prices at which its agents may sell its products, but the prices for all sales by all dealers at wholesale or retail, whether purchasers or sub-purchasers, and thus to fix the amount which the consumer shall pay, eliminating all competition. . . That these agreements restrain trade is obvious.” The court then held the scheme under consideration to be in violation of the Sherman Act.

In the instant case the plaintiffs in error are non-signers, or parties with whom the manufacturer has no contract. Clearly the above rulings as to the violation of the Sherman Act by schemes such as the petition discloses in this case are controlling.

The defendant in error further contends that it is entitled to the relief sought by virtue of a valid act of the General Assembly of the State of Georgia, the so-called “Fair Trade Act.” In view of the above rulings of the Supreme Court of the United States, of course, if plaintiff in the court below is entitled to any relief, it must be by virtue of a valid act of the General Assembly of Georgia. This contention will be dealt with in the following division of the opinion.

Count three of the petition contends that the plaintiff in the court below is entitled to the relief sought by virtue of and under the provisions of the Georgia Fair Trade Act (Ga. L. 1953, Nov.-Dee. Sess., p. 549). As appears from the authorities cited in division one of this opinion, after the Supreme Court of the United States had declared- schemes such as is here under consideration to be in violation of the Sherman Act (26 Stat. 209; 15 U. S. C. A., § 1), the Congress of the United States in the Miller-Tydings Act (50 Stat. 693, 15 U. S. C. A., § 1), attempted to delegate to the States the right to enact these Fair Trade Statutes. The Supreme Court of the United States in construing this act held that it could not be made to apply to persons who had signed no contract or agreement. Schwegmann Brothers v. Calvert Distillers Corporation, 341 U. S. 384 (71 Sup. Ct. 745, 95 L. ed. 1035). Thereafter, the Congress enacted the McGuire Act (66 Stat. 632, 15 U. S. C. A., § 45), attempting to delegate to the States the right to enact Fair Trade Statutes applicable to all dealers or retailers whether they had signed contracts or not.

This attempt by the Congress to delegate to the States this [289]*289power seems to be in the reverse of the power of delegation as we have always understood this subject under our system of government and under the provisions of the Constitution of the United States. However, that is the situation with which we have to deal.

The defendants in the court below had signed no contract or agreement of any kind. We are, therefore, not here concerned with what the situation would have been if there had been a contract between the parties because that question is not now before us. Clearly, it follows, if the scheme here under consideration is valid and if the plaintiff in the court below is entitled to the relief sought, it must be by reason of a valid law of Georgia making legal the scheme of doing business described in the petition under consideration. That the legislature attempted to make legal the scheme and method of doing business described in the petition, is clear from a reading of the act of 1953, supra. The question remains, however, is this law a valid law?

This court has very recently in two cases dealt with the question of fixing prices by statute. In Harris v. Duncan, 208 Ga. 561 (67 S. E. 2d 692), this court was dealing with a statute purporting to give to a board the right to fix the price of milk. We there said (p. 563): “Before the General Assembly can authorize price fixing without violating the due process clause of our Constitution, among other requirements, it must be done in a business or where property involved is ‘affected with a public interest/ and the milk industry does not come within that scope.” Certainly, if milk is not “affected with a public interest,” electrical appliances are not.

Again in the Harris case, supra, we said (p. 564): “The right to contract and for the seller and purchaser to agree upon a price is a property right protected by the due process clause of our Constitution, and unless it is a business ‘affected with a public interest’ the General Assembly is without authority to abridge that right.”

In the Harris case, supra, Chief Justice Duckworth wrote a very full and complete special concurring opinion. All that is said there by the Chief Justice is applicable here. We therefore, without the necessity of copying in this opinion what is there said, adopt that special concurring opinion as a part of this opin[290]*290ion. It is contended that the Harris case, supra, differs from the instant case for the reason that the court was there dealing with the power of the General Assembly to authorize a board to fix prices, while here the court is dealing with an attempt by the legislature to authorize an individual to fix the price of its own product. The clear answer to this contention is that, if the General Assembly can not authorize a board created by the State to fix prices, certainly it can not give this right to an individual.

In Grayson-Robinson Stores, Inc. v. Oneida, Ltd., 209 Ga. 613 (75 S. E. 2d 161), this court was dealing with a situation almost identical with that now under consideration, and there this court said (p. 619): “Moreover, and for the reasons stated in Harris v. Duncan, 208 Ga. 561 (67 S. E.

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Bluebook (online)
85 S.E.2d 514, 211 Ga. 286, 1955 Ga. LEXIS 300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cox-v-general-electric-co-ga-1955.