C. ANTIDISCRIMINATION LEGISLATION 1. General Prohibitory Laws Stat. Ann. (Baldwin's Carroll, 1936) Sec. 4748h-1. Unlawful practices.2-It shall be unlawful for any person, firm, or corporation, doing business in the State of Kentucky and engaged in the production, manufacture, distribution, or sale of any commodity, or product, or service or output of a service trade, of general use or consumption, or the product or service of any public utility, with the intent to destroy the competition of any regular established dealer in such commodity, product, or service, or to prevent the competition of any person, firm, private corporation, or municipal or other public corporation, who or which in good faith, intends and attempts to become such dealer, to discriminate between different sections, communities or cities or portions thereof, or between different locations in such sections, communities, cities or portions thereof in this State, by selling or furnishing such commodity, product or service at a lower rate in one section, community, or city, or any portion thereof, or in one location in such section, community, or city or any portion thereof than in another after making allowance for difference, if any, in the grade or quality, and in the actual cost of transportation from the point of production, if a raw product or commodity, or from the point of manufacture, if a manufactured product or commodity. Motion-picture films when delivered and under a lease to motion-picture houses shall not be deemed to be a commodity or product of general use, or consumption, under this act. This act shall not be construed to prohibit the meeting in good faith of a competitive rate, or to prevent a reasonable classification of service by public utilities for the purpose of establishing rates. The inhibition hereof against locality discrimination shall embrace any scheme of special rebates, collateral contracts or any device of any nature whereby such discrimination is, in substance or fact, effected in violation of the spirit and intent of this act. No provisions. 2. Special Prohibitory Laws 'For procedural and penalty provisions, see Prohibition of Sales Below Cost, supra. LOUISIANA REGULATION OF PRICE COMPETITION A. RESALE PRICE MAINTENANCE Gen. Stat. Ann. (Dart, 1939) Sec. 9809.1. Contracts relating to sale of articles.-Be it enacted by the legislature of Louisiana, That no contract relating to the sale or resale of a commodity which bears, or the label or content of which bear, the trade-mark, brand, or name of the producer or owner of such commodity and which is in fair and open competition with commodities of the same general class produced by others shall be deemed in violation of any law of the State of Louisiana by reason of any of the following provisions which may be contained in such contract: 1. That the buyer will not resell such commodity except at the price stipulated by the vendor. 2. That the vendee or producer require in delivery to whom he may resell such commodity to agree that he will not, in turn, resell except at the price stipulated by such vendor or by such vendee. Such provisions in any contract shall be deemed to contain or imply conditions that such commodity may be resold without reference to such agreement in the following cases: 1. In closing out the owner's stock for the purpose of discontinuing delivering any such commodity. 2. When the goods are damaged or deteriorated in quality, and notice is given to the public thereof. 3. By any officer acting under the orders of any court. (Acts 1936, No. 13 sec. 1.) Sec. 9809.2. Acts deemed a violation.-Wilfully and knowingly advertising, offering for sale, or selling any commodity at less than the price stipulated in any contract entered into pursuant to the provision of section 1 of this act, whether the person so advertising, offering for sale or selling is or is not party to such contract, is unfair competition and is actionable at the suit of any person damaged thereby. (Id. sec. 2.) Sec. 9809.3. Exception.-This act shall not apply to any contract or agreement between producers or between wholesalers or between retailers as to sale or resale prices. (Id., sec. 3.) Sec. 9809.4. Definitions.-The following terms, as used in this act, are hereby defined as follows: "Producer" means grower, baker, maker, manufacturer or pub lisher. "Commodity" means any subject of commerce. (Id. sec. 4.) Sec. 9809.5. Invalidity of part.-If any provision of this act is declared unconstitutional it is the intent of the legislature that the remaining portions thereof shall not be affected but that such remaining portions remain in full force and effect. (Id. sec. 5.) Sec. 9809.6. Citation.-This act may be known and cited as "Fair Trade Act." (Id. sec. 6.) B. PROHIBITION OF SALES BELOW COST Gen. Stat. Ann. (Dart. 1939) Drugs and Cosmetics-Fair Practice Act Sec. 3316.1. Definitions.-Be it enacted by the legislature of Louisiana, That for the purpose of this act: (a) "Retail Drug Trade" shall mean the selling to the consumer, not for the purpose of resale, of any form of drugs, medicines, cosmetics, toilet preparations, drug sundries, or allied articles, but shall not include the sale of damaged merchandise if advertised, marked, and sold as such, nor merchandise sold during the final liquidation of any business, or sold, or donated for charitable purposes or to unemployment relief agencies, or to physicians, dentists, veterinarians, or hospitals. (b) "Drug Retailer" shall mean any individual, firm, or corporation engaged wholly or partially in the retail drug trade; (c) "Retail Drug Establishment" shall mean any store or department of a store engaged in the retail drug trade; (d) "Cost" shall mean the manufacturer's wholesale list price per dozen or per customary unit plus a percentage to be arrived at arbitrarily, as hereinafter provided and to be subject to amendment from time to time as dictated by accumulating experience. (e) "Drug" shall mean any substance or preparation intended for external or internal use in the care, mitigation, treatment, remedy, or prevention of disease or ailment in man or any other animal, and any substance or preparation intended to affect the structure or function of the body of man or any other animal, not including food, but including medicinal or quasimedicinal preparations; (f) "Cosmetics" and "Toilet Preparations" shall mean toilet articles and perfumes, toilet waters, face powders, creams, lotions, rouges, shaving creams, dentifrices, bath salts, and all other similar preparations and substances, designed and intended for application to the person for the purpose of cleansing, improving, or changing in any way the appearance of the person, or of refreshing or preserving the person; (g) "Drug Sundries" shall mean such articles as are used in conjunction with, but not included in, drugs, cosmetics, or toilet preparations. (Act 1936, No. 152, sec. 1.) Sec. 3316.2. False or deceptive advertising prohibited-prohibited acts of dealers.-(a) No drug retailer shall use advertising whether printed, radio, or display, or of any other nature which is intentionally inaccurate in any material particular or misrepresents merchandise in respect to its use, trade-mark, grade, quality, quantity, size, origin, material, content, or preparation; nor use advertising or selling methods which tend to deceive or mislead the customer, or which refers inaccurately, in any material particular to any competitor or his merchandise, prices, values, credit terms, policies, or services; nor use advertising which lays claim to a policy or a continuing practice of generally underselling competitors. (b) No drug retailer shall secretly give anything of value to a customer or to the employee or agent of a customer for the purpose of influencing a sale or, in furtherance of a sale, render a bill or statement of account to the employee, agent, or customer which is inaccurate in any material particular; nor sell or offer for sale any merchandise at less than cost or upon a condition which involves a lottery, gamble, or other element of chance; nor permit any demonstrator or sales employee whose salary is wholly or partially paid by a manufacturer or distributor to work in his establishment, unless such demonstrator or sales employee is clearly and openly identified as the agent of such manufacturer or distributor. (Id., sec. 2.) Sec. 3316.3. Enforcement-Rules and regulations.-The Louisiana State Board of Pharmacy is authorized and empowered to supervise, adjust, arbitrate, and enforce the provisions of this act and to make and publish reasonable rules and regulations not inconsistent with this act or other laws or the Constitution of this State or of the United States. (Id., sec. 3.) Sec. 3316.4. Penalty for violation.-Willful violation of this act shall be a misdemeanor, punishable upon conviction by a fine of not less than ten ($10.00) dollars, nor more than five hundred ($500.00) dollars. (Id., sec. 4.) Sec. 3316.5. Short title.-This act may be known and cited as the "Fair Practice Act." (Id., sec. 5.) Sec. 3316.6. Constitutionality-Repealing clause. If any provision of this act is declared unconstitutional, it is the intent of the legislature that the remaining portions thereof shall not be affected, but that such remaining portions remain in full force and effect. All laws or parts of laws in conflict herewith are hereby repealed. (Id., sec. 6.) C. ANTIDISCRIMINATION LEGISLATION 1. General Prohibitory Laws Gen. Stat. Ann. (Dart, 1939) Sec. 4932. Unfair discrimination.-Any person, firm, company, association, or corporation, foreign or domestic, doing business in the State of Louisiana, and engaged in the production, manufacture, or distribution of any commodity in general use, that shall, intentionally, for the purpose of injuring or destroying the business of a competitor in any locality, discriminating between different sections, communities, cities, or localities in the State of Louisiana, by selling such commodity at a lower rate in one section, community, city, or locality, than is charged for such commodity by said person, firm, company, association, or corporation in another section, community, city, or locality, after making due allowance for the difference, if any, in the grade or quality of such commodity and in the actual cost of transportation of same from the point of production, if a raw product, or from the point of manufacture, if a manufactured product, shall be guilty of unfair discrimination, which is hereby prohibited and declared unlawful and to be a misdemeanor; and all sales so made shall be taken and considered as prima facie evidence of unfair discrimination. (Acts 1908, No. 128, sec. 1.) Sec. 4933. Penalties.-Any person, firm, company, association, or corporation violating any of the provisions of the preceding section, any officer, agent, or receiver of any firm, company, association, or corporation, or any member of the same, or any individual found guilty of a violation thereof, shall be fined not less than five hundred dollars ($500.00), nor more than five thousand dollars ($5,000.00), or be imprisoned in the parish jail for not less than one year, nor more than two years, or both, at the discretion of the court. (Id. sec. 2.) Sec. 4934. Contracts in violation of act void.-All contracts or agreements made in violation of any of the provisions of the two preceding sections shall be void. (Id. sec. 3.) |