Askov American., 1937-05-06
CHAPTER Ills. F. No. 65
A BILL

o"hSASs PAONa>Ss
butors and the general public
against injurious and uneconOmic
practices in the distribution of
competitive commodities bearing
distinguishing ira d EN- r k,
brand or name, through the use
of voluntary contracts establish
ing minimum resale prices and
providing for refusal to sell un-
less such minimum resale prices
are observed.
Be it enacted by the Legislature Of
the State of Minnesota:
Section l. The following terms,
as used in this Act, are hereby
defined as follows:
(A) Commodity means any sub
ject of commerce.
(B) Producer means any grow
er. baker. maker, manufacturer,
bother, packer, converter, process
sor or publisher.
Co Wholesaler means any per-
son selling commodity other than
a producer or retailer.
CD Retailer means any person
selling a commodity to consumers
for use.
(E) Person means an individual,
a corporation. a partnership. an as
ISOLATION, a joint-stock company, a
business trust or any unincor-
porated organization.
Section 2. No contract relating to
the sale or resale Of a commodity
which bears, or the label or con-
tainer of which bears, the trade
mark, brand, or name of the pro-
ducer or distributor Of such COM
modify and which commodity is 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 Minne-
sofa by reason of any Of the follow
ing provisions which may be con-
tanned in such contract:
(A) That the buyer will not re-
sell such commodity at less than
the minimum price stipulated by
the seller.
OBJ That the buyer will require
Of any dealer to whom he may re-
sell such commodity an agreement
that he will not, in turn, resell at
less than the minimum price stlpu-
lated by the seller.
Co That the seller will not sell
such commodity:
Cd to any wholesaler, unless
such wholesaler will agree not to
resell the same to any retailer
unless the retailer vi in turn
agree not to resell the same eX.
cept to consumers for use and at
not less than the stipulated mimi
mum 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
anv wholesaler or retailer 10
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.
Section 3. For the purpose OF pre-
venting evasion of the resale price
restrictions imposed in respect OF
anv commodity by any contract en-
tered into pursuant to the proW-
sions of this Act Except to the eX-
tent authorized by the said con-
tract:
(a) The offering or giving OF
any article of value in connec-
ton with the sale Of such COM
modify;
(b) The offering or the making
OF any concession of any kind
whatsoever (whether by the Civ
ing of coupons or otherwise in
connection. with any such sale; or
Co The sale or offering for sale
of such commodity in combina-
ton with any other commodity,
shall be deemed violation OF
such resale price restriction, Tor
which the remedies prescribed by
Section of this Act shall be
available.
Section 4. No minimum resale
price shall be established for any
commodity, under any contract en-
tered into pursuant to the proVl-
sions of this Act, by any person
other than the owner OF the trade
mark, brand or name used in con-
nection with such commodity or a
distributor specifically authorized
to establish said price by the owner
of such trademark, brand or name.
Section 5. No contract containing
any of the provisions enumerated
in Section 2 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 owners
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 opportun-
ity to purchase such stock at the
original invoice price;
(B) When the goods are al
tered, secondhand, damaged, de-
faced 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 ad-
vertisements and to be affixed to
the commodity;
Co BY any officer acting un-
der an order of court.
Section 6. Wilfully and knowing
" advertising, offering for sale or