Gretzinger v. Wynne Wholesale Grocer Co.

35 S.W.2d 604, 183 Ark. 303, 1931 Ark. LEXIS 384
CourtSupreme Court of Arkansas
DecidedFebruary 23, 1931
StatusPublished
Cited by2 cases

This text of 35 S.W.2d 604 (Gretzinger v. Wynne Wholesale Grocer 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
Gretzinger v. Wynne Wholesale Grocer Co., 35 S.W.2d 604, 183 Ark. 303, 1931 Ark. LEXIS 384 (Ark. 1931).

Opinion

Mehaffy, J.

On October 25, 1929,, the Wynne Wholesale Grocery Company, C. E. Martin and Morris Packing Company, commenced this action against S. C. Gretzinger, Robert Kirby and Dewey Sellers, alleging that Gretzinger and Kirby were owners and operators of a bakery at Wynne, consisting of an oven, mixer, engines, pans, cooking utensils, vessels and complete bakery outfit of the value of $3,500. Kirby had charge of and operated the bakery business and bought and sold all goods, wares, and merchandise and equipment used in the business.

S'. O. Gretzinger and Robert Kirby were partners and they became indebted to the Wynne Wholesale Grocery Company and others. Prior to the time that Gretzinger and Kirby became partners, Gretzinger owned the property and Luther Beck managed it. They rented the building, both of them signing the rental contract. Whether Gretzinger and Beck were partners is immaterial.

While Beck was managing the business, it was operated as the “Wynne Bakery.” After Kirby and Gretzinger formed a partnership it was operated as “Kirby’s Hot Shop.”

The stock of goods was bought by Kirby in the firm name, and it consisted of bakers’ supplies, flour, sugar, yeast, fuel, etc. The firm had a truck which it used to distribute the products. The daily amount of stock on hand averaged around $200 or $250. The bakery purchased raw material and made bread, cakes, cookies, pastries, etc., and sold these products at wholesale and retail. The fixtures consisted of show cases, wrapping counter, cash register, desk, chair, bread mixer, molding machine, baking utensils, and equipment. Gretzinger and Kirby sold to Dewey Sellers the fixtures and all property and good will for $3,000, $1,000 cash, $1,000 due in six months, and $1,000 due in one year, evidenced by two promissory notes, bearing six per cent, interest per annum.

The chancellor found that Gretzinger and Kirby, while operating the business as partners, contracted the debts sued for, and gave judgment against Gretzinger and Kirby for the amount of the debts. He also found that the sale by Gretzinger and Kirby to Sellers was in violation of the Bulk Sales Act, and that the said purchaser, Dewey Sellers, was liable as receiver, for all the goods, wares, and merchandise, together with the fixtures and equipment purchased from Gretzinger and Kirby, and restrained' Sellers from paying over to Kirby and Gretzinger any of the remaining $2,000 and impounded the notes in the First National Bank, and also held that the proceeds, when paid, be applied to the payment of debts proved against the Wynne Bakery and Kirby’s Hot Shop.

The undisputed proof shows that Gretzinger and Kirby owed the debts, and the chancellor ivas therefore correct in rendering judgment against them.

The important question in the case, however, is whether the sale by Gretzinger and Kirby to Sellers was in violation of the 'Bulk Sales Act.

This sale was made on October '23, 1929. The Bulk Sales Act, the violation of which is alleged by the appellees is act 23 of the Acts of the General Assembly of 1929, approved February 19, 1929. Among other things this act provides: ‘ ‘ The sale, transfer, mortgage or assignment in bulk of any part of or the whole of a stock of merchandise, or merchandise and fixtures pertaining to the conduct of any such business, otherwise than in the ordinary course of trade and in the regular prosecution of the business of the seller, transferrer, or assignor, shall be void against the creditors of the seller, transferrer, mortgagor or assignor, unless the seller, transferrer, mortgagor or assignor and the purchaser, transferrer and assignor shall, at least ten days before the sale or the giving of the said mortgage, make a full, detailed inventory and preserve the same, etc.”

It is conceded that this act was not complied with. The contention of the appellant, however, is that a bakery is not included within the prohibition of the act; that the Bulk Sales Act does not apply to such a transaction.

Appellants call attention to and rely on Ramey-Milburn Co. v. Sevick, 159 Ark. 358, 252 S. W. 20. In that case the court said: “It is clear from the language used that the purpose was to regulate bulk sales of merchandise as a part of the stock of a mercantile establishment. It has no application to a manufacturing plant which sells its product merely as an incident to the business.” The court further said: “Other courts have so interpreted similar or identical statutes.” Citing numerous authorities.

In that case the merchantable property consisted of logs and lumber of small value compared to the aggregate value of all of the property conveyed. The property consisted of several small manufacturing plants in White County, one a veneer mill at Higginson, and four sawmill plants, one at Walker, one at Higginson, one at Crosby, and another at West Point.

It appears from that case that there was no stock of merchandise sold except some logs and lumber which were of small value. Certainly the manufacturing plants and real estate that were sold could not be said to be a stock of merchandise.

Another case cited and relied on was the Fisk Rubber Co. v. Hinson Auto Co., 168 Ark. 418, 270 S. W. 605. The court said in that case: “A stock of merchandise might, of course, consist solely or largely of automobile parts and accessories, but we have concluded that the finding of the court below that there was no sale of a stock of merchandise is not clearly against the preponderance of the evidence. The business sold was primarily and essentially a repair shop, including an agency for the sale of cars, but it is not contended that any automobiles were included in the sale. To carry on this business it was essential that various parts be kept in stock, but such parts were kept ordinarily for use in repairing cars, and the articles were usually adjusted to the cars of the purchaser.”

The sale of the property above described was not within the Bulk Sales Act.

In the case of Root Refineries v. Gay Oil Co., 171 Ark. 129, 284 S. W. 26, 46 A. L. R. 979, the cases relied on by appellant, Ramey-Milburn Co. v. Sevick and Fisk Rubber Co. v. Hinson Auto Co., were considered and the court said: “In this connection it may be stated that in Ramey-Milburn Co. v. Sevick, 159 Ark. 358, 292 S. W. 20, it was held that a person operating a veneer mill and sawmills, at which logs were manufactured into lumber and then sold, is not within the purview of our Bulk Sales statute, though he sells substantially all the lumber he has on hand at a particular time. The reason is that the sale of the lumber was only an incident to the operation of the manufacturing plant.

“On the other hand, if the main business of Seviok had been to operate a lumber yard, the sale in the bulk of his lumber and trade fixtures would have fallen under the ban of the statute, although he might have operated a sawmill and a veneer mill for the purpose of supplying, in whole or in part, stock for his lumber yard.

“Merchandise means something that is sold every day, and is constantly going out of the store and being replaced by other goods.”

The court in the last case quoted from, cited Boise Association of Credit Men v. Ellis, 26 Idaho 438, 144 Pac. 6, 6 L. R. A.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Wright v. Aaron
215 S.W.2d 725 (Supreme Court of Arkansas, 1948)
Barker v. City of Cincinnati
30 Ohio N.P. (n.s.) 363 (Court of Common Pleas of Ohio, Hamilton County, 1933)

Cite This Page — Counsel Stack

Bluebook (online)
35 S.W.2d 604, 183 Ark. 303, 1931 Ark. LEXIS 384, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gretzinger-v-wynne-wholesale-grocer-co-ark-1931.