Source: https://www.legalcrystal.com/case/91732/sioux-remedy-co-vs-cope
Timestamp: 2019-04-26 08:16:29+00:00

Document:
actions to enforce contracts directly arising out of and connected with interstate commerce equally with actions having no relation to such commerce, and, after so construing the statute, the court held it to be a reasonable exercise of the police power of the state and in no wise repugnant to the commerce clause of the Constitution of the United States. In two earlier cases, the court had taken a different view of the statute ( Rex Buggy Co. v. Dinneen, 23 S.D. 474; Sioux Remedy Co. v. Lindgren, 27 S.D. 123), but, in the opinion rendered in this case, they were disapproved.
Through a long series of decisions dealing with the scope and effect of the commerce clause, it has come to be well settled that a state, while possessing power to adopt reasonable measures to promote and protect the health, safety, morals, and welfare of its people, even though interstate commerce be incidentally or indirectly affected, has no power to exclude from its limits foreign corporations or others engaged in interstate commerce, or, by the imposition of conditions, to fetter their right to carry on such commerce, or to subject them in respect to their transactions therein to requirements which are unreasonable or pass beyond the bounds of suitable local protection. Crutcher v. Kentucky, 141 U. S. 47 ; Minnesota Rate Cases, 230 U. S. 352 , 230 U. S. 401 -402, 230 U. S. 410 , and cases cited; Barrett v. New York, 232 U. S. 14 , 232 U. S. 31 , and cases cited. And so the solution of the question here presented lies within narrow lines.
were transactions in interstate commerce, and entirely legitimate notwithstanding the plaintiff's noncompliance with the state statute. International Textbook Co. v. Pigg, 217 U. S. 91 ; Buck Stove Co. v. Vickers, 226 U. S. 205 ; Flint & Walling Mfg. Co. v. McDonald, 21 S.D. 526. After delivery of the merchandise according to the contract, the plaintiff was lawfully entitled to the purchase price. The defendants were likewise obligated to pay it. And, by reason of their refusal, the plaintiff had a right of action on the contract. Thus much was recognized by the supreme court of the state and is now conceded by counsel for the defendants. But it was held by that court, and is here contended, that, while the state could not make noncompliance with the statute a ground for forbidding or invalidating sales in interstate commerce, it could make such noncompliance a ground for preventing the maintenance of any action in the courts of the state based upon such a sale -- in other words, that the state, although unable to condition the right to make the sale or its validity upon a compliance with the statute, could so condition the right to sue for the purchase price in the courts of the state.
purposes of such commerce." Western Union Telegraph Co. v. Kansas, 216 U. S. 1 , 216 U. S. 27 . We think that, when a corporation goes into a state other than that of its origin to collect, according to the usual or prevailing methods, the purchase price of merchandise which it has lawfully sold therein in interstate commerce, it is there for a legitimate purpose of such commerce, and that the state cannot, consistently with the limitation arising from the commerce clause, obstruct or hamper the attainment of that purpose. If it were otherwise, the purpose of the Constitution to secure and maintain the freedom of commerce by whomsoever conducted could be largely thwarted by the states, and the commerce itself seriously crippled.
* At the time of the allowance of the present writ of error, the record had been sent to the Circuit Court of Turner County, and so the writ was directed to that court. See Gelston v. Hoyt, 3 Wheat. 246, 16 U. S. 304 ; Atherton v. Fowler, 91 U. S. 143 , 91 U. S. 146 -149; Polleys v. Black River Co., 113 U. S. 81 ; Lee v. Johnson, 116 U. S. 48 .

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