Read's Drug Store v. Hessig-Ellis Drug Co.

125 S.W. 434, 93 Ark. 497, 1910 Ark. LEXIS 341
CourtSupreme Court of Arkansas
DecidedJanuary 31, 1910
StatusPublished
Cited by16 cases

This text of 125 S.W. 434 (Read's Drug Store v. Hessig-Ellis Drug 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
Read's Drug Store v. Hessig-Ellis Drug Co., 125 S.W. 434, 93 Ark. 497, 1910 Ark. LEXIS 341 (Ark. 1910).

Opinion

Hart, J.

On the 12th day of January, 1909, the Hessig-Ellis Drug Company brought suit in the Pulaski Circuit Court against Read’s Drug Store for $580.56 for goods sold on account. Both parties to the suit are corporations.

The defendant admitted the purchase of the goods, but denied that it was indebted to the plaintiff in said sum or in any other sum whatever. It pleaded:

First. That it had entered into a written contract" with the plaintiff on the 18th day of December, 1907, whereby it purchased $672 worth of Muco-Solvent, and that it was provided in said contract, among other things, that defendant should have the right to return to plaintiff all Muco-Solvent which it might have on hand twelve months after the delivery of said Muco-Solvent to defendant, at the invoice price thereof; and that it had on hand and unsold $623.67 worth of said Muco-Solvent. That it had tendered said goods to plaintiff, but plaintiff had refused to accept or receive the same and repay the defendant the invoice price therefor; and that plaintiff was therefore indebted to defendant on said Muco-Solvent contract in the said sum of $623.67.

Second. That at the time defendant purchased the bill of staple goods, to wit, on May 1, 1908, it was agreed between plaintiff and defendant that plaintiff should carry defendant’s account for staple goods to the amount of the Muco-Solvent purchased until the time matured when defendant could return said Muco-Solvent and receive back the purchase price therefor, and that defendant should have credit on the bill for staple goods by the amount of Muco-Solvent which it had on hand.

The facts are as follows:

The Hessig-Ellis Drug Company, by a written contract, sold to Read’s Drug Store a certain quantity of a medical preparation known to the trade as Muco-Solvent. The goods were delivered on January 12, 1908. The contract contained a provision that the Hessig-Ellis Drug Company should take back all goods unsold remaining in the hands of Read’s Drug Store at the expiration of the Arkansas advertising contracts. It also contained another clause whereby the Hessig-Ellis Drug Company agreed to do a certain amount of -advertising in the Arkansas .Gazette or Arkansas Democrat, or both, papers published in the city of Little Rock, where Read’s Drug Store carried on its business. The advertising was to be done during the twelve months following the date of the delivery of the goods to Read’s Drug Store. By the terms of the contract, the Muco-Solvent was to be paid for in 30, 60, 90 and 120 days from the date of the contract.

A. C. Read, who owned a controlling interest in the stock of Read’s Drug Store, says that “we put the Muco-Solvent on sale in four drug stores in the city of Little Rock, and tried to push the sale of it, but found it to be unsalable. Read’s Drug Store paid for the Muco-Solvent according to the terms of the contract; but complained to the Hessig-Ellis Drug Company that the preparation was worthless and could not be sold. Mr. A. C. Read notified the Hessig-Ellis Drug Company that he expected to return the goods unsold at the expiration of the year and get back their purchase price. The Hessig-Ellis Drug Company replied that they had other contracts in the State of Arkansas, and claimed that, as long as they were in force, and advertising was done in the State of Arkansas, Read’s Drug Store had no right to return the goods. Mr. A. C. Read continued to claim that he had a right to return the unsold goods at the expiration of the time for advertising under the terms of the contract above referred to. Read also continued to complain that he could not sell the goods, and on that account would be out the use of the purchase price of the goods until the end of the year, the date of the expiration of the advertising contracts provided by his contract. A. C. Read proposed to A. M. Brown, a salesmajn of. the Hessig-Ellis Drug Company, that he would buy about $3,000 of staple goods from his company provided that company would carry about $675, the amount paid for the Muco-Solvent, until the Muco-Solvent transaction was settled. Brown did not think any amount should be specified, as he hoped to make Read’s Drug Store a regular and permanent customer of his house for staple drugs. Brown made a proposition to Read, which is embodied in the following letter:

. “Tittle Rock, May 16, 1908.
"‘Hessig-Ellis Drug Company, Memphis, Tenn.
“Dear Sirs: Regarding our proposed negotiations with Mr. A. C. Read, this city, beg to advise that I have made Mr. Read the following proposition: The amount of business to be given us by him I deem it, however, expedient to leave out. ‘In consideration of his business, or that part of it which we can handle, we agree to carry his account on our books for the amount of his purchase of Muco-Solvent until such time as the Muco-Solvent has been disposed of to his satisfaction.’ Mr. Read assures us of quite a good deal of business, but I did not consider it good policy to state the amount required, as he would be much more liable to continue his business with us under other circumstances. I wish you would either .write me or Mr. Read a confirmation of this agreement and greatly oblige,
“Yours truly,
“A. M. Brown.”

The letter was shown to Mr. Read, who acceded to the terms of it. The letter was then sent to the Hessig-Ellis Drug Company for its approval, which was obtained. Read’s Drug Store bought from the Hessig-Ellis Drug Company between May 1 and June 1, 1908, a miscellaneous bill of drugs, to the amount of $580.56. Because Read’s Drug Store failed to purchase any more goods, the Hessig-Ellis Drug Company demanded payment of this bill, and, upon payment being refused on the ground that it was not due until the expiration of the Muco-Solvent -contract, the account was placed in the hands of a lawyer for collection. Read’s- Drug Store offered to return the Muco-Solvent in payment of the account. The attorney for the Hessig-Ellis Drug' Company declined to receive it -on the ground that he had no authority to do so, but said he would notify his clients of the offer, which he did.

On the 12th day of January, 1909, one year after the delivery of the Muco-Solvent preparation to Read’s Drug Store, the Hessig-Ellis Drug Company brought this -suit. On May 21, 1909, the day of the trial of this cause in the lower court, an offer was again made to return the unsold Muco-Solvent, which offer was refused.

Upon a trial before a jury, a verdict was rendered in favor the Hessig-Ellis Drug Company for the amount -sued for, and Read’s Drug Store has appealed from the judgment rendered against it.

It seems plain to us that,-under the terms of the contract of sale, Read’s Drug Store had the right to return the unsold Muco-Solvent at full invoice price at the expiration of one year from the date of the delivery"of the goods. The contract in express terms gives the right wat the expiration of the Arkansas advertising contracts.”- The clause just quoted evidently refers to the advertising to be, done under the terms of the contract between the parties, and does not mean advertising to be done under other and different "contracts not in anywise referred to and not having any connection whatever with the contract under consideration.

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Bluebook (online)
125 S.W. 434, 93 Ark. 497, 1910 Ark. LEXIS 341, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reads-drug-store-v-hessig-ellis-drug-co-ark-1910.