People v. Austin

3 N.W.2d 841, 301 Mich. 456, 1942 Mich. LEXIS 559
CourtMichigan Supreme Court
DecidedMay 18, 1942
DocketCalendar No. 40,655.
StatusPublished
Cited by26 cases

This text of 3 N.W.2d 841 (People v. Austin) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People v. Austin, 3 N.W.2d 841, 301 Mich. 456, 1942 Mich. LEXIS 559 (Mich. 1942).

Opinion

North, J.

These defendants were arraigned in the recorder’s court of Detroit on an information charging violation of sections 33 and 555 of the 1931 Michigan penal code. See Act No. 328, §§ 33, 555, Pub. Acts 1931 (Comp. Laws Snpp. 1940, §§ 17115-33, 17115-555, Stat. Ann. §§28.222, 28.823). Defendant’s motion to quash on grounds hereinafter noted was denied. The trial court granted a stay, and leave having been obtained, defendants have appealed.

*459 In so far as the charge against defendants is laid under section 33 of the Michigan penal code, which penalizes false advertising, appellants’ counsel contends that advertising “Joy Gasoline” sold by appellants as “Grade number one gasoline” — “Save four cents” was not in violation of the statute “because no standard or grade criterion is established by law.” We quote the material portion of the information :

“(Defendants) being engaged in the distribution and sale of petroleum products, to-wit: gasoline, known as Joy gasoline, did make, publish, disseminate, circulate and place before the public, certain posters, signs and advertisements regarding certain merchandise, namely, gasoline more particularly known as Joy gasoline, offered for sale, by them, the said Charles E. Austin Company, a Michigan corporation, and Margret Austin, to the public in the city of Detroit, county of Wayne and State of Michigan, as follows: ‘ Grade number one gasoline’ — ‘ Save four cents,’ which posters, signs and advertisements contained assertions, representations and statements that were untrue, deceptive and misleading, in that the said gasoline was not grade one gasoline and the public did not save four cents on grade one gasoline, because said gasoline wa‘s not grade one gasoline; contrary to the form of the statute in such case made and provided, and against the peace and dignity of the people of the State of Michigan (citing Michigan penal code [Act No. 328, § 33, Pub. Acts 1931]).”

The testimony taken before the examining magistrate is in the record on this appeal. An expert witness testified that for the purpose of determining its grade he had made tests of the “Joy Gasoline;” and after testifying that, as established throughout the United States by the Bureau of Standards, gasoline is classified as (1) Grade A-l or premium gasoline, (2) Second-grade or regular gasoline, and (3) a *460 Third-grade gasoline, this expert testified that his laboratory test “put this (Joy) gasoline in the bracket of the third class.”

We cannot accept the contention in appellants’ brief that by advertising “Joy Gasoline ’ ’ in the manner noted there was merely an attempt at “puffing” the product sold; and since that is no offense it is asserted the charge in this respect should have been dismissed. Instead, we think it was a question of fact for trial determination whether the advertising statements used were so used with the intent to deceive the purchasing public as to the grade of “Joy Gasoline ’ ’ as tested by standards commonly applied to gasoline and the standards on the basis of which gasolines are listed in the Jobber’s Manual. As We held in Jasnowski v. Judge of Recorder’s Court of the City of Detroit, 192 Mich. 139:

“In any given case it would be a question of fact whether the representation of fact in the advertisement was untrue, deceptive, or misleading.”

It is not essential to prosecutions under this statute that a standard or grade criterion should be established by law. It is sufficient if in fact there are established standards or grades commonly known to the trade in the particular commodity; and this record contains testimony to that effect. The examination before the magistrate was sufficient to justify binding defendants over for trial, and the information aptly charges violation of the statute which penalizes false advertising.

Appellants strenuously urge that section 555 of the Michigan penal code is unconstitutional. The pertinent portion of this section reads:

“Sec. 555. Unfair discrimination in sale of petroleum products. Any person doing business in the State, and engaged in the production, manufacture *461 or distribution of any petroleum products, who shall intentionally, for the purpose of destroying the business of a competitor in any locality, discriminate between different sections, communities or cities of this State, by selling such commodity at a lower rate in one section, community or city, than is charged for said commodity by said party in another section, community or city, after making due allowance for the difference, if any, in the grade or quality and in the actual cost of transportation from the point of production, if a raw product, or from the point of manufacture, if a manufactured product, shall be guilty of a misdemeanor. ’ ’

The phase of the information charging an offense under the above-quoted section sets forth that defendants being engaged in the distribution and sale of petroleum products, to-wit: gasoline known as Joy gasoline, did intentionally, for the purpose of destroying the business of a competitor in the city of Detroit, discriminate between different sections and communities by selling such gasoline at a lower rate in one section or community than they charged for the same gasoline in another section or community, by selling to John Mulligan nine gallons of Joy gasoline for $1 at 8951 Woodward Avenue, eight gallons of Joy gasoline for $1 at 9901 Grand' River avenue, and seven gallons of Joy gasoline for $1 at 3641 Grand River avenue, all of the stated places being in the city of Detroit, Wayne county, Michigan. Appellants contend that the above-quoted statute, as well as the information, by charging sales of the same gasoline at varying prices in ‘ different sections and different communities” does not under the facts of this case validly charge defendants with a commission of any offense. In this particular they rely upon State v. Texas Co., 136 S. C. 200 (134 S. E. 211), wherein the court passing upon a statute expressed in like words held that the reference to sec *462 tions and communities meant sections and communities outside of a given city, and did not apply to different sections or communities within the same city. In a later decision of the supreme court of South Carolina a statute of like character was held unconstitutional on the ground that in its essential terms it was indefinite and uncertain. See State v. Standard Oil Company of New Jersey, 195 S. C. 267 (10 S.E. [2d] 778).

The statute involved in this later case in part reads:

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Bluebook (online)
3 N.W.2d 841, 301 Mich. 456, 1942 Mich. LEXIS 559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-v-austin-mich-1942.