New State Laws for Price Maintenance

Archive Report

Fair Trade Acts Adopted by 1935 Legislatures

Since january 1 of this year, 24 of the 44 state legislatures in session have considered laws to curb excessive price cutting. Eight of the 24—Iowa, Maryland, New Jersey, New York, Oregon, Pennsylvania, Washington and Wisconsin—adopted measures based on the so-called “Fair Trade Act” of California, the only legislation of this kind in force before 1935 A similar bill is pending in Alabama, and a fair trade act passed by the Illinois legislature is awaiting the signature of Governor Horner.1 Without exception these state fair trade acts have two purposes: to legalize contracts between manufacturers and distributors which give the producer the right to dictate the resale price of his branded merchandise; and secondly, to discourage (in the ...

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