MISSISSIPPI

REGULATION OF PRICE COMPETITION

A. RESALE PRICE MAINTENANCE

Code Ann. (Supp., 1938)

Section 478.1. Certain sales contracts declared lawful.-Be it enacted by the legislature of the State of Mississippi, That no contract relating to the sale or resale of a commodity which bears, or the label or content of which bears, 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 Mississippi 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. Sec. 478.2. Sales below contract price prohibited.-Wilfully and knowingly advertising, offering for sale or selling any commodity at less than the price stipulated in any prior existing contract entered into pursuant to the provisions of section 1 of this act, whether the person so advertising, offering for sale, or selling is or is not a

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party to such contract, is unfair competition and is actionable at the suit of any person damaged thereby.

Sec. 478.3. 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.

Sec. 478.4. 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.

Sec. 478.5. Constitutionality.-If any provisions of this act are 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. (1938, ch. 48.)

Sec. 478.6. Short title.-This act may be known and cited as "Fair Trade Act." (1938, ch. 348.)

B. PROHIBITION OF SALES BELOW COST

No provisions.

C. ANTIDISCRIMINATION LEGISLATION

1. General Prohibitory Laws

Code Ann. (1930)

Sec. 3437. Additional contracts or combinations not allowed by law. Any corporation, domestic or foreign, or individual, partnership, or association of persons whatsoever, who, with intent to accomplish the results herein prohibited or without such intent, shall accomplish such results to a degree inimicable to public welfare, and shall thus:

(a) Restrain or attempt to restrain the freedom of trade or production.

(b) Or shall monopolize or attempt to monopolize the production, control or sale of any commodity, or the prosecution, management or control of any kind, class, or description of business.

(c) Or shall engross or forestall or shall attempt to engross or forestall any commodity.

(d) Or shall destroy or attempt to destroy competition in the manufacture or sale of a commodity, by selling or offering the same for sale at a lower price at one place in the State than another or buying or offering to buy a commodity at a higher price at one place in the State than another, differences of freight and other necessary expenses of sale and delivery considered;

(e) Or shall destroy or attempt to destroy competition by rendering any service or manipulating, handling, or storing any commodity for a less price in one locality than in another, the differences in the necessary expenses of carrying on the business considered, shall be deemed and held a trust and combine within the meaning and purpose of this section, and shall be liable to the pains, penalties, fines, forfeitures, judgments, and recoveries denounced against trusts and combines and shall be proceeded against in manner and form herein provided, as in case of other trusts and combines. And it shall be sufficient to make out a prima facie case of a violation of this subdivision of this section to show lower charge for the service therein mentioned in one locality than another, or to show a higher price paid for a commodity in one locality than another, differences of freight and other necessary expenses of operating business considered. (1926, ch. 182; 3283; 1908, ch. 119; 5002; 4437.)1

2. Special Prohibitory Laws

Code Ann. (1930)

Dairies and Creameries

Sec. 4291. Unfair discrimination-Penalty.-(a) Any person doing business in the State of Mississippi and engaged in the production, manufacture, sale, or distribution of any dairy products, that shall, for the purpose of destroying the business of a competitor, in any locality, or creating a monopoly, discriminate between different sections, localities, communities, cities or towns of the State, by selling such commodity at a lower rate or price in one section, locality, community, city, or town, than such commodity is sold by such person in any other section, locality, community, city, or town, after making due allowance for the difference, if any, in the grade or quality and in the actual cost of the transportation from the point of production or purchase, if a raw product, to the place of sale, storage or distribution, shall be deemed guilty of unfair discrimination, which is hereby prohibited and declared unlawful; Provided, however, That prices made to meet competition in such section, locality, community, city, or town shall not be in violation of this section.

(b) Any person doing business in the State of Mississippi, and engaged in the business of purchasing for manufacture, storage, sale or distribution, any dairy product, that shall for the purpose of destroying the business of a competitor or creating a monopoly, discriminate between different sections, localities, communities, cities

'See LVH MARKETING LAWS SURVEY vol.: State Antitrust Laws: General Antitrust Laws.

or towns in the State, by purchasing such commodity at a higher rate or price in one section, locality, community, city, or town, than is paid for such commodity by such person in any other section, locality, community, city, or town, after making due allowance for the difference, if any, in the grade or quality, and in the actual cost of transportation from the point of purchase to the point of manufacture, sale or distribution or storage, shall be deemed guilty of unfair discrimination, which is hereby porhibited and declared to be unlawful; provided, however, that prices made to meet competition in such locality, section, community, city, or town shall not be a violation hereof.

(c) Any person convicted of a violation of this section, shall be fined not less than $500.00 nor more than $5,000.00 or be imprisoned in jail not more than twelve months, or both. (1928, ch. 296.)

Cotton Ginners

Sec. 4812. Certain combinations of cotton ginners in restraint of trade prohibited. It shall be unlawful for chain operators of cotton gins, operating gins in two or more places within the State of Mississippi, to discriminate in prices paid for cottonseed or in the prices charged for ginning services; the necessary operating expenses, freight rates, and other proper elements affecting prices being considered, and the effect of which would be to destroy or attempt to destroy competition at either or any of said places in which said. gins shall be operated: Provided, however, That a reduction in the charge for the service herein mentioned made in any locality for the purpose of meeting legitimate competition, or a higher price paid for seed in any locality, when such higher price paid for seed is paid in meeting legitimate competition, shall not constitute a violation of this chapter. And it shall be sufficient to make out a prima facie case of a violation to show a lower charge for the service herein mentioned in one locality than another, or to show a higher price paid for said seed in one locality than another, differences of freight and other necessary expenses of operating business considered. (1928, ch. 305.)

Sec. 4813. Penalties.-On conviction of violating next preceding section such operator of chain gins shall be fined in the sum of $100.00 per bale for the first five bales, and $10.00 for each successive bale ginned a day in pursuance of such discriminatory practices; or the said penalty may be recovered by appropriate proceedings in the name of the State, instituted by the attorney general or any district attorney, with the consent of the attorney general, in either the chancery or the circuit courts of the State, and relief may be granted