General Electric Company v. Wender

151 F. Supp. 621, 1957 U.S. Dist. LEXIS 3597, 1957 Trade Cas. (CCH) 68,718
CourtDistrict Court, S.D. West Virginia
DecidedMay 6, 1957
DocketCiv. A. 1868
StatusPublished
Cited by4 cases

This text of 151 F. Supp. 621 (General Electric Company v. Wender) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Electric Company v. Wender, 151 F. Supp. 621, 1957 U.S. Dist. LEXIS 3597, 1957 Trade Cas. (CCH) 68,718 (S.D.W. Va. 1957).

Opinion

MOORE, Chief Judge.

This is a civil action instituted by plaintiff for the purpose of obtaining an injunction against defendant to prevent retail sales by defendant of plaintiff’s trade-marked products at less than the resale prices fixed by plaintiff in contracts with other retailers.

Plaintiff must prevail if at all by reason of the provisions of West Virginia’s so-called “Fair Trade Act.”

Defendant’s answer raises the question of whether or not the West Virginia Statute is constitutional. It is further alleged that defendant has no standing in a court of equity because of its having in various ways allegedly permitted to be made, and connived with other dealers in making other sales of its products in West Virginia at cut rates. This defense is of course factual and needs to be inquired into only if the vital constitutional issue is decided adversely to defendant.

*622 The title of the West Virginia Fair Trade Act which the legislature had before it when the act was passed is as follows:

“An Act ‘to protect trade-mark owners, producers, distributors and the general public against injurious and uneconomic practices in the distribution of competitive commodities bearing a distinguishing trade-mark, brand, or name, through the' use of voluntary contracts es-stablishing minimum resale prices and providing for refusal to sell unless such minimum resale prices are observed.” W.Va.Laws 1937. c. 123.

This title is followed by the text of the act, which reads;......

“Section 1. * * * The following terms, as used in this act, are hereby defined as follows:
“(a) ‘Commodity’ means any subject of commerce.
. “(b) ‘Producer’, means any grow-nr, baker, maker; manufacturer,' bottler, packer, converter or proces- • sor.
“(e) ‘Wholesaler means any person selling a commodity other than a producer or retailer.
“(d) ‘Retailer’ means any person selling a commodity to consumers for use.
“(e) ‘Person’ means an individual, a corporation, a partnership, an association, a joint-stock company, a business trust or any unincorporated organization.
“Sec. 2. ’* * * No contract relating to" the sale or resale of a commodity which bears, of the label or container of which bears, the trade-mark, brand, or name of the producer or distributor of such commodity and which commodity in free and open competition with commodities of the same ’general class produced or distributed by others shall be deemed in violation of any-law of the state of West-Virginia by reason of any of the following provisions which may be contained in such contract:
“(a) That the buyer will not resell such commodity at less than the minimum price stipulated by the, "seller.
“(b) That the buyer will require of any dealer to whom he may resell such commodity an agreement that he will'not, in turn, resell at less than the minimum price stipulated by the seller.
“(c) That the séller will not sell such commodity:
“(1) to any wholesaler, unless wholesaler will-agree not to resell the same to any retailer unless the retailer will in turn agree not to resell the same except to consumers for use- and at-not less than the stipulated minimum price, and such wholesaler will likewise agree not to resell the same to any other wholesaler unless such other wholesaler will make the same agreement with any wholesaler or retailer to whom he' may resell; or
“(2) to any retailer, unless'the retailer will agree, not to resell the. same except to consumers for use and at not less than the stipulated minimum price.
“ Sec. 3. * * * For the purpose of preventing evasion of the resale price restrictions imposed in respect of any commodity by any contract entered into pursuant to the provisions,of. this act (except to the extent authorized by the said contract):
“(a) The offering or giving of any article of value in connection -• with the-sale of such commodity;
“(b) The offering or the making of any concession of any kind whatsoever (whether by the giving of coupons or otherwise) in connection with any such sale; or
“(c) The sale or offering for sale of such commodity in combination *623 with any other commodity, shall be deemed a violation of such resale price restriction, for which the remedies prescribed by section six of this act shall be available.
“Sec. 4. * * * No minimum resale price shall be established for any commodity, under any contract entered into pursuant to the provisions of this act, by any person other than the owner of the trademark, brand or name used in connection with such commodity or by a distributor specifically authorized to establish said price by the owner of such trade-mark, brand or name.
“Sec. 5. * * * No contract containing any of the provisions enumerated in section two of this act shall be deemed to preclude the resale of any commodity covered thereby without reference to such contract in the following cases:
“(a) In closing out the owner’s stock for the bona fide purpose of discontinuing dealing in any such commodity and plain notice of the fact is given to the public; provided the owner of such stock shall give to the producer or distributor of such commodity prompt and reasonable notice in writing of his intention to close out said stock, and an opportunity to purchase such stock' at the original invoice price, plus any transportation, storage or -other legitimate or regular costs.
“(b) When the trade-mark, brand •or name is removed or wholly obliterated from the commodity and is not used or directly or indirectly referred to in the advertisement or sale thereof;
“(c) When the goods are altered, second-hand, damaged, defaced, or deteriorated and plain notice of the fact is given to the public in the advertisement and sale thereof, •such ' notice to be conspicuously displayed in all advertisements and to be affixed to the commodity;
“(d) But nothing contained in this article shall apply to sales by executors, administrators, receivers or assignees under a voluntary assignment for the benefit of creditors, trustees in bankruptcy or by any one acting under judicial process.
“Sec. 6. * * * Wilfully and knowingly advertising, offering for sale or selling any commodity at less than the price stipulated in any contract entered into pursuant to the provisions of this act,- whether the person so advertising, offering for sale or selling is or is not a party to such contract, is unfair competition and is actionable at the suit of any person damaged thereby.
“Sec. 7.

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Bluebook (online)
151 F. Supp. 621, 1957 U.S. Dist. LEXIS 3597, 1957 Trade Cas. (CCH) 68,718, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-electric-company-v-wender-wvsd-1957.