Sec. 6631. Charter of guilty corporation to be revoked.-If any corporation, foreign or domestic, authorized to do business in this State, is found guilty of unfair discrimination, within the terms of sections 6626 to 6633, it shall be the duty of the secretary of state to immediately revoke the permit of such corporation to do business in this State. (Id., sec. 3541; id., sec. 2448; id., sec. 19.)

Sec. 6632. Duty of attorney general in case of continued violation. If, after revocation of its permit, such corporation, or any other corporation not having a permit and found guilty of having violated any of the provisions of sections 6626 to 6633, shall continue or attempt to do business in this State, it shall be the duty of the attorney general, by a proper suit in the name of the State of South Carolina, to oust such corporation from all business of every kind and character in this State. (Id., sec. 3442; id., sec. 2449; id., sec. 19.) Sec. 6633. Other law not repealed.-Nothing in sections 6626 to 6633 shall be construed as repealing any other laws, or parts of laws, but the remedies herein provided shall be cumulative to all other remedies provided by law. (Id., sec. 3543; id., sec. 2450; id., sec. 19.)

2. Special Prohibitory Laws

L. 1939, No. 267

Wholesale and Retail Merchandising Act

Section 1. Construction.-For the purpose of construing this act, (a) A wholesale sale shall be one deemed to be made to a person, association of persons, firm or corporation, for the purpose of resale at retail.

(b) A retail sale shall be deemed to be a sale for the purpose of consumption or use.

(c) Where a wholesaler owns controlling interest or stock in a retail establishment or corporation and creates, organizes, or maintains such retail outlet for the purpose of violating this act by making retail sales therefrom at a price that would be in violation of this act if made at retail directly by the wholesaler, such wholesaler shall be liable also for any violation of this act by any such retailer. It is hereby declared a violation of this act for any wholesaler that owns controlling interest or stock in a retail establishment or corporation to create, organize, or maintain such retail outlet for the purpose of violating this act in the way and manner aforesaid.

Sec. 2. Selling retail at wholesale prices. It is hereby declared an unfair trade practice and unlawful in this State for any person, firm, or corporation, who is in both the wholesale and retail business of selling merchandise, to sell merchandise of like grade and quality

at retail at a price as low as said person, firm, or corporation sells the same merchandise at wholesale in the same town or locality.

Sec. 3. Selling retail at prices lower than wholesale.-It is hereby declared an unfair trade practice and unlawful in this State for any person, firm, or corporation, who is in both the wholesale and retail business of selling merchandise, to sell merchandise of like grade and quality at retail at a lower price than said person, firm, or corporation sells the same merchandise at wholesale in the same town or locality.

Sec. 4. Exceptions.—No part of this act shall be construed to prohibit the sale at wholesale to hotels, restaurants, colleges, bona fide licensed contractors, farmers buying for his plantation, including labor on his own farm, boarding houses, cooperative purchases for redistribution among farmers, religious institutions, or county, city. Federal or State institutions or departments. Provided, further, Retail sales of merchandise of like grade and quality at a price to meet existing competition at any time in any town or locality are exempt from the provisions of this act: Provided, however, That, if such competition is created by any person, firm, or corporation in violation of this act, or when any two or more persons, firms, or corporations contend that they are meeting the competition of the other and all would be making retail sales in violation of this act, except for the above provision allowing existing competition to be met, then any retailer affected thereby shall have the right to enjoin all in such category from continuing such practices in any court of competent jurisdiction in this State.

Sec. 5. Penalties.—Each and every sale in violation of the terms of this act shall be declared a separate offense, and the penalty for each violation of same shall be a fine of not more than one hundred ($100.00) dollars, or imprisonment for not more than thirty (30) days in the discretion of the court.

Sec. 6. Constitutionality. If any part of this act shall be held unconstitutional, the part which is held unconstitutional shall not affect any other part of this act.

Sec. 7. Effective date. This act shall take effect upon its approval by the Governor. Approved June 15, 1939.

SOUTH DAKOTA

REGULATION OF PRICE COMPETITION

A. RESALE PRICE MAINTENANCE

Comp. Laws (1939)

Sec. 54.0401. Definitions.-Terms used in this chapter unless the content otherwise plainly requires are defined as follows:

(1) "Commodity" means any subject of commerce;

(2) "Producer" means any grower, baker, maker, manufacturer, bottler, packer, converter, processor, or publisher;

(3) "Wholesaler" means any person selling a commodity other than a producer or retailer;

(4) "Retailer" means any person selling a commodity to consumers for use;

(5) "Person" means an individual, a corporation, a partnership, an association, a joint-stock company, a business trust, or any unincorporated organization. (L. 1937, c. 126, sec. 1.)

Sec. 54.0402. Contracts relating to sale of trade-marked articles. No contract relating to the sale or resale of a commodity which bears, or the label or container 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 deemed in violation of any law of the State of South Dakota by reason of any of the following provisions which may be contained in such contract:

(1) That the buyer will not resell such commodity at less than the minimum price stipulated by the seller;

(2) That the buyer will require of any dealer to whom he may resel! such commodity an agreement that he will not, in turn, resell at less than the minimum price stipulated by the seller;

(3) 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

(b) 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. (Id., sec. 2.)

Sec. 54.0403. Acts deemed a violation.-For the purpose of preventing evasion of the resale price restrictions imposed in respect to any commodity by any contract entered into pursuant to the provisions of this chapter, except to the extent authorized by said contract, any of the following shall be deemed a violation of such resale price restriction, for which the remedies prescribed by section 54.0406 shall be available:

(1) The offering or giving of any article of value in connection with the sale of such commodity;

(2) 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

(3) The sale or offering for sale of such commodity in combination with any other commodity. (Id., sec. 3.)

Sec. 54.0404. Only owners of trade-marks to establish resale prices. No minimum resale price shall be established for any commodity, under any contract entered into pursuant to the provisions of this chapter, by any person other than the owner of the trade-mark, brand, or name used in connection with such commodity or by a distributor specifically authorized to establish said price by the owner of such trade-mark, brand, or name. (Id., sec. 4.)

Sec. 54.0405. Contract relating to sale or resale.-No contract containing any of the provisions enumerated in section 54.0402 of this chapter shall be deemed to preclude the resale of any commodity covered thereby without reference to such contract in the following

cases:

(1) In closing out the owner's stock for the bona fide purpose of discontinuing 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 distributor of such commodity prompt and reasonable notice in writing of his intention to close out said stock, and an opportunity to purchase such stock at the original invoice price;

(2) When the trade-mark, brand, or name is removed or wholly obliterated from the commodity and is not used or directly or indirectly referred to in the advertisement or sale thereof;

(3) When the goods are altered, secondhand, damaged, or deteriorated and plain notice of the fact is given to the public in the advertisement and sale thereof, such notice to be conspicuously displayed in all advertisements and to be affixed to the commodity; (4) By any officer acting under an order of court. (Id., sec 5.) Sec. 54.0406. Unfair competition.-Willfully and knowingly advertising, offering for sale, or selling any commodity at less than the price stipulated in any contract entered into pursuant to the provisions of this chapter, whether the person so advertising, offering for sale, or selling is or is not a party to such contract, is unfair competition and is actionable at the suit of any person damaged thereby. (Id., sec. 6.)

Sec. 54.0407. Exemptions.-This chapter shall not apply to any contract or agreement between or among producers or distributors or between or among wholesalers or between or among retailers as to sale or resale prices. (Id., sec. 7.)

B. PROHIBITION OF SALES BELOW COST

No provisions.

C. ANTIDISCRIMINATION LEGISLATION

1. General Prohibitory Laws

Comp. Laws (1939)

Sec. 13.1803. Discrimination in selling: defined.-Any person doing business in this State, and engaged in the production, manufacture, or distribution of any commodity in general use, who intentionally, for the purpose of destroying the competition of any regular established dealer in such commodity or to prevent the competition of any person who in good faith intends and attempts to become such dealer, shall discriminate between different sections, communities, or cities of this State by selling such commodity at a lower rate in one section, community, or city, or any portion thereof than such person or corporation charges for such commodity in another

1

1A former statute dealing with discriminations in buying and selling was held constitutional as a valid exercise of the police power of the State. The statute, requiring an intent to injure competition for a violation thereof, is not a denial of the equal protection and due process clauses of the Federal Constitution. Central Lumber Co. v. State of South Dakota, 226 U. S. 157, 33 Sup. Ct. 66, 57 L. Ed. 164 (1912), aff'g, 24 S. D. 136, 123 N. W. 504 (1909).