The Republican. [volume] (Oakland, Md.) 1877-current, 1937-10-28


CHAPTER 2S9
AN ACT to repeal Chapter 212 of the
Acts of 1885, cOdified as Sections 105.
JOG. 107, los. 100 and 40, respectively,
of Article So of Flack's 1885 Supple
ment to the Annotated Code of Pub
lie General Laws of Maryland, title
"Sales and Notices.. subtitle Fair
Trade Act, and to substitute there
for, for the purpose of correcting,
clarifying and simplifying the Act so
repealed, ten Q0) sections, to be added
to said Article and bear the same sub
title, to follow Immediately after Sec
tion 104. and to he known as Sections
105 10G, 107, 10S, 100, ITO, Ill, 112,
113 and ia, respectively, to protect
trade mark owners, producers. dis
tributors and the general public
against injurious and uneconOmic
practices in the distribution of COM
petitive commodities bearing a distin-
gushing trademark, brand or name,
through the use of voluntary con-
tracts establishing minimum resale
prices and providing for refusal to
sell unless such minimum resale prices
are observed
Section /. Be it enacted by the Gen.
eral Assembly of Maryland, That Chap
ter ?12 of the Acts of 1885. eodifed as
Sections 105, 106, 107, los. 100 and ITO,
respectively, Of Article SO of Flack's
1885 Supplement to the Annotated Code
of Public General Laws of Maryland,
title "Sales and Notices., subtitle
Fair Trade Act, be, and the same is
hereby, repealed.
Sec. 2. And be it further enacted,
That ten Q0) new sections be, and the
same are hereby, added to Article SO of
Flack's 1885 Supplement to the Ammo
tated Code of Public General Laws Of
Maryland, title Sales and Notices..
subtitle Fair Trade Act, to follow
Immediately after Section 104, and to
be known as Sections 105. 1906 107, 108,
109 ITO, Ill, 112, 113 and ia. respec-
lively, said new sections to read as
follows:
10j. The following terms, as used in
this Act, are hereby defined as follows:
(A) Commodity" means any subject
of commerce.
OBJ producer" means any grower,
baker, maker, manufacturer, bother,
packer, converter, professor or publisher.
(C) "WhOlesaler" means any person
selling a commodity other than pro-
duccr or retailer.
CD Retailer" means any person
selling a commodity to consumers for
use.
(E) Person" means az individual,
corporation, partnership, an associa-
ton, & jointStOck company, business
trust or any unincorporated organiza-
ton.
JOG. No contract relating to the sale
or resale of a commodity which bears,
or the label or container of Which bears,
the trade mark, brand, or name Of the
producer or distributor of such COM
modify and which commodity is in
free and open competition with COM
mOdities of the same general class pro-
duced or distributed by Others shall be
deemed in violation of any law of the
State of Maryland by reason of any of
the following provisions which may be
contained in such contract:
(A) That the buyer will not resell
such commodity at less than the mini
mum price stipulated by the seller.
OBJ That the buyer will require Of
any dealer to whom he may resell such
commodity an agreement that he will
not, in turn, resell at less than the
minimum price stipulated by the seller.
(C) That the seller will not sell such
commodity:
a. to any wholesaler, unless such
wholesaler will agree not to resell the
same to any retailer unless the retailer
will in turn agree not to resell the same
except to consumers for use and at not
less than the stipulated minimum 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 any
wholesaler or retailer to 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.
107. For the purpose of preventing
evasion of the resale price restrictions
imposed in respect of any commodity
by any contract entered into pursuant
to the provisions of this Act Except
TO the extent authorized by the said
contract:
(a) The Offering or giving of any arti-
Gle Of value in connection with the sale
of such commodity;
CD The Offering or the making of any
concession of any kind whatsoever
whether by the giving of coupons or
otherwise) in connection with any such
sale; or
(c) The sale or offering for sale of
such commodity in combination with
any other commodity, shall be deemed
violation of such resale price restric-
ton, for which the remedies prescribed
by Section 40 of this Act shall be avail
able.
los. No minimum resale price shall
he established for any commodity, I'M
der any contract entered into pursuant
to the provisions 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 dis
lish said price by the owner of such
trade mark, brand or name.
109. No contract containing any of
the provisions enumerated in Section
JOG of this Act shall be deemed to pre-
clude the resale of any commodity COW
cred thereby without reference to such
contract in the following cases:
(Al In closing out the owners stock
for the bona fide purpose of discontinue
ing 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 dis
tributor of such commodity prompt and
reasonable notice in writing of his in
tention to close out said stock, and an
opportunity to purchase such stock at
the original invoice price;
OBJ When the goods are altered, Sec
ond-hand, damaged, defaced or deteri-
GRATED and plain notice Of the fact is
given to the public in the advertisement
and sale thereof, such notice to be con-
spicuously displayed in all advertise
ments and to be affixed to the COM
modify;
(C By any officer acting under an
order of court.
ITO. Wilfully and knowingly adver-
Using, offering for sale or selling any
commodity at less than the price stipu-
lated in any contract entered into pur-
Suant to the provisions of this Act,
whetner the person so advertising, offer-
ing for sale or selling is or is not
party to such contract, is unfair compe-
tition and is actiOnable at the suit of
any person damaged thereby.
Ill. This Act shall not apply to any
contract or agreement between or
among producers or distributors or, ex-
cept as provided in subdivision (C) of
Section 1O6 of this Act between or
among wholesalers, or between or
e among retailers, as to sale or. resale
prices.
112. If any provision of this Act. or
the application thereof to any person
or circumstance, is held invalid, the re-