State v. McKenney

105 So. 2d 439, 268 Ala. 165, 1958 Ala. LEXIS 461
CourtSupreme Court of Alabama
DecidedJuly 24, 1958
Docket6 Div. 30
StatusPublished
Cited by9 cases

This text of 105 So. 2d 439 (State v. McKenney) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. McKenney, 105 So. 2d 439, 268 Ala. 165, 1958 Ala. LEXIS 461 (Ala. 1958).

Opinions

COLEMAN, Justice.

The single question in this case is whether or not the appellee is a “merchandise broker” within the meaning of § 493 of Title 51, Code 1940, which was amended by Act No. 418, approved July 12, 1943, to read as follows:

“Each commission merchant or merchandise broker shall pay one State license of Twenty-five ($25.00) Dollars and one county license of Twelve and 50/100 ($12.50) Dollars. Such payment shall be made in the county in which such commission merchant or merchandise broker maintains his principal place of business. Such license shall authorize such commission merchant or merchandise broker to do business in any county of the State without the payment of any further State or county license. The payment of the license in one county of the State as evidenced by the license certificate of the Probate Judge shall be sufficient.” General Acts 1943, Regular Session, page 384.

It appears that § 493 of Title 51 was originally enacted as a part of the General Revenue Act of 1935. See § 348, Schedule 29 of that act on page 450 of 1935 General Acts, Regular Session. Schedule 29 was carried into the Code of 1940 as § 493 of Title 51 without substantial change, and as codified reads as follows:

“§ 493. Commission merchants.— For each commission merchant or merchandise broker in cities of fifty thousand inhabitants or over, fifty dollars; in cities and towns of twenty-five thousand and less than fifty thousand inhabitants, thirty-five dollars; in cities [167]*167and towns of ten thousand and less than twenty-five thousand inhabitants, twenty-five dollars; in cities and towns of five thousand and less than ten thousand inhabitants, fifteen dollars; in cities and towns under five thousand inhabitants, whether incorporated or not, ten dollars.”

The State Department of Revenue assessed the appellee for license tax as a merchandise broker for the period beginning- October 1, 1952, and ending September 30, 1955. Appellee appealed to the Circuit Court of Jefferson County, Alabama, In Equity, as provided by law. That court, after taking testimony ore tenus, reversed the Department of Revenue and adjudged and decreed that the appellee is not a “commission merchant or merchandise broker” within the meaning of § 493, Title 51, Code 1940. From that decree of the circuit court, the State has appealed to the Supreme Court.

As we read the record, there is no conflict of any consequence as to the facts. The dispute between appellant and appellee appears to be a conflict as to the correct conclusion to be drawn from the facts.

The appellee at his own expense maintained an office in the city of Birmingham. He was engaged in soliciting orders for merchandise manufactured by several principals and sold to retailers within and without the State of Alabama. We understand that certain of these principals were residents of the State of Alabama and that certain others were nonresidents. Appellant states in brief that no question of interstate commerce is involved and we have so considered the case inasmuch as appellee does not contend to the contrary.

The appellee makes the following statement of facts:

“The appellee has been what is commonly known as a Manufacturer’s Agent for a comparatively short period of time. He was formerly employed by the Birmingham Range Company and in 1945 he resigned his position with the Birmingham Range Company to become a Manufacturer’s Agent. His first and largest account was offered him in 1945, the year in which he began operation, by Mr. Martin of the Martin factories. The Martin factories consist of three separate corporations who operate as a unit for distribution purposes for stoves and heaters. He was assigned as a Martin salesman in Georgia and all of Alabama except the northwest corner of Alabama. He was originally on a salary basis with Martin but later, and during the period of time covered by the assessment, he was on a commission basis. At the time of the hearing before the Circuit Court of Jefferson County, Alabama he represented five manufacturers as their agent. However, as pointed out in Appellant’s brief he did in an effort to build up his income and establish some stability to his business represent certain other manufacturers as their selling agent all of whom sold none competing products.” (Emphasis supplied.)

Appellant’s brief states:

“ * * * In this connection, the appellee represented some ten or more principals at one time or another during the period involved in this case, for whom he solicited orders for the sale of their products from said buyers located in this State. * * * ”

Continuing further, appellee says:

“When appellee first began as a manufacturer’s agent he operated from his home but later on he established an office in the Comer Building- which office had a sign designating the occupant thereof as W. E. McKenney Manufacturer’s Agent. About half of appellee’s time is spent in the Birmingham area and about half of his time is spent working his territory in other parts of Alabama and in part of Georgia. The appellee employs one person in his office to answer the phone [168]*168and write letters. Copies of correspondence sent out and received from his manufacturers are kept in his office along with invoices received showing his commission statements.
“Appellee works under the complete jurisdiction of the factories he represents and is furnished advertising material by the manufacturers and envelopes and must conform to their sales policy. (T. pp. 24, 25, 57.)
“If an inquiry is received by one of the manufacturers from a customer in the territory assigned to appellee the manufacturer would write the customer a letter with a carbon copy to appellee advising the customer that Mr. McKenney would call upon them in the near future (T. p. 25). Thereupon the appellee would contact the customer and solicit an order. Appellee was not engaged in the business of negotiating contracts but was engaged in the business of soliciting orders for his manufacturer’s products at the price established by the manufacturers (T. p. 45).
“If the appellee’s solicitations resulted in the procurement of an order the order was then forwarded to the factory where it was subject to their approval for credit purposes and upon filling the order appellee was paid a commission as previously agreed on between the appellee and the manufacturer. Appellee was the exclusive representative of the factories in the territory assigned to him and was paid a commission on all merchandise shipped in his territory whether he personally solicited the order or not. If the order was sent directly from the customer to the factory the appellee was nevertheless paid his commission on such shipment even though he knew nothing about such shipment. After appellee has secured an order for merchandise he often holds sales meetings with the dealer to whom the merchandise was sold. At such sales meetings he was usually accompanied by the sales manager of the factory and at such sales meetings the appellee together with the sales manager of the factory would point out the advantages and proper function and design of the product sold (T. p. 24).

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State v. McKenney
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Bluebook (online)
105 So. 2d 439, 268 Ala. 165, 1958 Ala. LEXIS 461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-mckenney-ala-1958.