The Waterbury Democrat., 1937-06-23

Waterbury Chamber of Commerce.
 The measure stipulates that goods cannot be advertised or sold for less than the minimum price. Such a violation is held to be unfair com- petition and is actionable at law.
 Druggists and tavern owners of the state were among those who gave strong support to the bill when it was introduced. Local retail druggists were strongly in favor of the measure, which they said would eliminate underselling by chain stores.
 The act eliminates the giving of premiums or gifts to retailers when they give in an order. It has been a practice to give an extra dozen articles with every gross ordered, or to give the retailer a gift for large order, and so on.
 The text of the act follows:
 Fair Trade Act
 Section l. The following terms, as used in this act, shall have the following meanings, unless the con- text shall otherwise indicate: (A commodity" shall mean any sub- feet of commerce; (B) producer" shall mean any grower, baker, mak- CT, manufacturer, bottler, packer, converter, processor or publisher, co wholesaler" shall mean any person selling commodity other than a producer or retailer; CD retailer" shall mean any person selling a commodity to consumers for use, and (E) person" shall mean an individual, corporation, a partnership, an association, a joint stock company, a business trust or any unincorporated organization.
 Section 2. No contract relating to the sale or resale of commodity which bears, or the label or contain CT of which bears, the trademark, brand or name of the producer or distributor of such commodity and which commodity is in free and open competition with commodities of the same general class produced or distributed by others shall be construed to violate any provision of the general statutes 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 minimum price stipulated by the seller; (B) that the buyer will require from any dealer to whom he may resell such commod- ity an agreement that he will not, in turn, resell at less than the min- imum price stipulated 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 retail CT unless the retailer will in turn agrse 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 CD to any retailer, unless the retail CT will agree not to resell the same except to consumers for use and at not less than the stipulated mini mum price. ...~.
 Section 3. For the purpose of preventing evasion of the resale price restrictions imposed in re- spect to any commodity by any con- tract entered into pursuant to the provisions of this act, except to the extent authorized by such contract, (a) the offering or giving of any article of value in connection with the sale of such commodity; (b) the offering or the making of any con- cession of any kind, whether by the giving of coupons or otherwise, in connection with any such sale or Co the sale or offering for sale of such commodity in combination with any other commodity, shall be deemed a violation of such resale price restric- ton, for which the remedies pre- scribed by section six 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 provi- sions of this act, by any person oth- CT than the owner of the trade mark, brand or name used in con- nection with such commodity or by a distributor specifically authorized to establish such price by the own- CT of such trademark, brand or name.
 Section 5. No contract contain ing any of the provisions enumer- ated in section two of this act shall be deemed to preclude the resale of any. commodity covered thereby without reference to such contract in the following described cases: (A) In closing out the owners stock for the bona fide purpose of discontin- uing dealing in any such commodity when plain notice of such fact shall have been given to the public, pro- vided the owner of such stock shall give the producer or distributor of such commodity prompt and reason able notice in writing of his inten- ton to close out>su stock and an opportunity to purchase such stock at the Original invoice price; (B) when the trademark, brand or name shall have been removed or wholly obliterated from the com- modity and shall not be used or directly or indirectly referred to in the advertisement or sale thereof i; co when the goods shall be altered, second hand, damaged, defaced or deteriorated and plain notice of the fact shall be given to the public in the advertisement and sale there of, such notice to be conspicuously displayed in all advertisements and to be affixed to the commodity; CD by any officer acting under an or- der of court.
 Section 6. Wilfully and knowing ly advertising, offering for sale or selling any commodity at less than the price stipulated in any contract entered into pursuant to the provis- ions of this act, whether the person 50 advertising, offering for sale or selling is or Is not a party to such contract. IS unfair competition and