IOWA REGULATION OF PRICE COMPETITION A. RESALE PRICE MAINTENANCE Code (1939) Sec. 9884.1. Contracts as to selling price.-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 Iowa 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. (C. 35, sec. 9884–g1.) Sec. 9884.2. Implied exceptions.-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 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. (Id., sec. 9884-g2.) Referred to in section 9884.3. Sec. 9884.3. Actions for damages.-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 provisions of sections 9884.1 and 9884.2, 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. 9884-g3.) Sec. 9884.4. Nonapplicability. This chapter shall not apply to any contract or agreement between producers or between wholesalers or between retailers as to sale or resale prices. (Id., sec. 9884-g4.) Sec. 9884.5. Definitions.-The following terms, as used in this chapter, are hereby defined as follows: "Producer" means grower, baker, maker, manufacturer, or publisher. "Commodity” means any subject of commerce. (Id., sec. 9884—g5.) Common Law. Judicial Decisions Where a contract provided for resale prices to be established by the vendor upon commodities sold to the vendee, arranged credit terms, provided for the exclusive selling of the vendor's product by the vendee, and stipulated for payments in installments by the vendee, the court in a dictum stated that at common law these restrictions were valid as security necessary to insure payment for the purchase price. Rawleigh Medical Co. v. Osborne, 177 Ia. 208, 158 N. W. 566 (1916). B. PROHIBITION OF SALES BELOW COST C. ANTIDISCRIMINATION LEGISLATION 1. General Prohibitory Laws Sec. 9885. Unfair discrimination in sales.-Any person, firm, company, association, or corporation, foreign or domestic, doing business in the State, and engaged in the production, manufacture, sale, or distribution of any commodity of commerce or commercial services excepting those, the rate of which is now subject to control of cities or towns or other governmental agency, 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 this State, by selling such commodity or commercial services excepting those, the rate of which is now subject to control of cities or towns or other governmental agency at a lower price or rate in one section, locality, community, city, or town than such commodity or commercial services excepting those, the rate of which is now subject to control of cities or towns or other governmental agency is sold for by said person, firm, association, company, or corporation, in another section, locality, community, city, or town, after making due allowance in case of telephone service for the difference in the cost of furnishing service in different localities, and in the case of commodities and commercial services other than telephone service, for the difference, if any, in the grade or quality, and in the actual cost of transportation from the point of production or purchase, if a raw product, or from the point of manufacture, if a manufactured product, to a place of sale, storage, or distribution shall be deemed guilty of unfair discrimination, which is hereby prohibited and declared to be 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. (S 13, sec. 5028-b; C24, 27, 31, 35, sec. 9885.) Sec. 9886. Unfair discrimination in purchases.-Any person, firm, association, company, or corporation, foreign or domestic, doing business in the State, and engaged in the business of purchasing for manufacture, storage, sale, or distribution, any commodity of commerce that shall, for the purpose of destroying the business of a competitor or creating a monopoly, discriminate between different sections, localities, communities, cities, or towns, in this 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 party in another 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, distribution, or storage, shall be deemed guilty of unfair discrimination, which is hereby prohibited and declared to be 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. (Id., sec. 9886.) Sec. 9887. Violation.-Any person, firm, association, company, or corporation, or any officer, agent, or member of any such firm, company, association, or corporation, found guilty of unfair discrimination as defined in sections 9885 and 9886, shall be punished as provided in section 9888. (Id., sec. 9887.) Sec. 9888. Penalty.-Any person, firm, company, association, or corporation violating any of the provisions of sections 9885 and 9886, and 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 nor more than five thousand dollars, or be imprisoned in the county jail not to exceed one year, or suffer both penalties. (Id. sec. 9888.) Sec. 9889. Contracts or agreements.-All contracts or agreements made in violation of any of the provisions of sections 9885 and 9886 shall be void. (S13, sec. 5028-d; C24, 27, 31, sec. 9889.) Sec. 9890. Enforcement.-It shall be the duty of the county attorneys, in their counties, and the attorney general, to enforce the provisions of sections 9885 to 9889, inclusive, by appropriate actions in courts of competent jurisdiction. (Id., sec. 9890.) Sec. 9891. Complaint.-If complaint shall be made to the secretary of state that any corporation authorized to do business in this State is guilty of unfair discrimination, within the terms of sections 9885 and 9886, it shall be the duty of the secretary of state to refer the matter to the attorney general who may, if the facts justify it in his judgment, institute proceedings in the courts against such corporation. (Id., sec. 9891.) Sec. 9892. Revocation.-If any corporation, foreign or domestic, authorized to do business in this State, is found guilty of unfair discrimination, within the terms of sections 9885 and 9886, 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. 9892.) Sec. 9893. Injunctive relief.-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 9885 and 9886, 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 Iowa, to enjoin such corporation from transacting all business of every kind and character in said State. (Id., sec. 9893.) Sec. 9894. Cumulative remedies.-Nothing in this chapter shall be construed as repealing any other act, or part of act, but the remedies herein provided shall be cumulative to all other remedies provided by law. (Id., sec. 9894.) Constitutionality. Judicial Decisions This statute when first enacted was applicable only to the purchase of milk, cream, butterfat, poultry, grain, and eggs. The act was held constitutional as a valid exercise of the police power of the State, in State v. Fairmont Creamery Co. of Nebraska, 153 Ia. 702, 133 N. W. 895 (1911). The court stated that the classification of |