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Section 9916 specifically exempts labor organizations from the operation of the antitrust laws. Smythe Neon Sign Co. v. Local Union No. 405, etc., Iowa -, 284 N. W. 126 (1939). Iowa,

An agricultural marketing cooperative requiring members to sell exclusively through it was held illegal, both at common law and under the terms of sections 9915 and 9917 to 9919. Reeves v. Decorah Farmers' Cooperative Society, 160 Iowa 194, 140 N. W. 844 (1913). Ludewese v. Farmers' Mut. Coop. Co., 164 Iowa 197, 145 N. W. 475 (1914). However, since the adoption of the Cooperative Marketing Act, 8512.01-.60, cooperatives organized under the act are exempt from the antitrust laws. The exemption was held constitutional in Clear Lake Co-op. Live Stock Shippers' Ass'n. v. Weir, 200 Iowa 1293, 206 N. W. 297 (1925).

Under a statute similar to sections 9885 to 9887, except that it applied to petroleum only, price discrimination per se was not illegal. The gist of an offense lies not in the fact that prices charged in one county are higher than in another but in the extent of injury to competitors. State v. Standard Oil Co. of Indiana, 150 Iowa 46, 129 N. W. 336 (1911).

An agreement to stifle competition and fix prices is not illegal per se. The burden of proof that the combination is an illegal one is on the defendant when raising this question as a defense in a suit for an accounting between partners. Willson v. Morse, 117 Iowa 581, 91 N. W. 823 (1902).

B. EXCEPTIONS TO GENERAL ANTITRUST LAWS

Code (1939)

Resale Price Maintenance

Sections 9884.1 to 9884.5 validate contracts fixing the resale price of branded commodities. The statute is expressly inapplicable to horizontal agreements between producers, between wholesalers, or between retailers as to sale or resale prices. See Vol. State Price Control Legislation: Resale Price Maintenance.

Cooperatives

Section 8512.11 provides that no association organized under sections 8512.01 to 8512.60 shall be deemed a conspiracy or combination in restraint of trade or an illegal monopoly. Any law conflicting with this act shall be construed as not applicable to associations formed thereunder. See Tying Contracts and Exclusive Dealing Arrangements, infra. See also Cooperatives in projected study.

Labor Unions

Section 9916 provides that it shall not be unlawful for men and women to organize themselves into unions for the purpose, by lawful means, of lessening the hours of labor or increasing wages. For text of section 9916, see General Antitrust laws, supra.

Sales Tax Agreements

Section 6943.079 provides that agreements between competing retailers to provide uniform methods for adding the sales tax to the price of goods and which do not involve price-fixing agreements otherwise unlawful are not in violation of the antitrust laws of the state.

C. SPECIAL ANTITRUST LAWS

1. Special Industry Antitrust Acts

Code (1939)
Carriers

Sections 8050 to 8053 provide that it shall be unlawful for a common carrier to enter into a combination with any other common carrier for the pooling of freight of different and competing railroads, or to divide the proceeds of the earnings of such railroads; or to prevent the through carriage of freight. The common carriers shall be liable for treble damages at the suit of the person injured. Violation of the statute shall be deemed a misdemeanor punishable by fine of not more than $5,000 nor less than $500 for each offense.

Hydraulic or Hydroelectric Power

Section 7781 provides that the state may take possession by receivership proceedings of any dam controlled by an unlawful combination or trust, or that forms the subject of an agreement to limit the output of any hydraulic or hydroelectric power derived there from for the purpose of price fixing.

Insurance Other Than Life

Sections 9010 to 9015 provide that it shall be unlawful for two or more insurance companies (other than life insurance) to enter any combination or agreement relating to rates to be charged for insurance, commissions to be allowed agents, or manner of transacting the insurance business within this state. Violation shall be a misdemeanor. The Commissioner of Insurance may examine officers, agents, and employees of such companies, and may enforce the act by revocation of the company's authority to transact business in the state. Such decision may be appealed to the district court.

210235°-40-vol. 1-18

Grain

Sections 9924 to 9927 provide that it shall be unlawful for any person owning or operating a grain elevator, or any grain dealer or transporter, to enter any combination or agreement to fix prices of grain, or to divide net proceeds of earnings, or to participate in any trust, pool, or combination to prevent full and free competition among buyers, sellers, or dealers in grain. Violation of statute shall be a misdemeanor punishable by fine or imprisonment in the county jail for a period not exceeding six months, or both. Any person damaged by violation of statute may recover full amount of damages sustained in consequence thereof.

Pittsburgh Plus Plan

Section 9929 creates a committee to protect the state of Iowa against "the steel trade practice known as Pittsburgh plus and other similar trade practices." See State Price Control Legislation: Antidiscrimination Legislation.

Railroad Extensions Beyond the State

Section 7927 provides that any Iowa railroad may acquire, control, or operate any connecting extension, not parallel or competing, in any other state.

Code (1935)
Liquor (Beer)

Section 1921.097 provides for three classes of permits: "A" permit allows the holder to manufacture and/or sell at wholesale; "B" permit allows the holder to sell at retail beer for consumption on or off the premises; "C" permit allows the holder to sell at retail for consumption off the premises. Section 1921-f101 provides that it shall be unlawful for any person to be either directly or indirectly interested in more than one class of permit.

Section 1921.117 provides that no person engaged in the business of manufacturing, bottling, or wholesaling beer, nor any jobber or agent of such person, shall directly or indirectly supply, furnish, give, or pay for any furnishings, fixtures, or equipment used in the storage, handling, serving, or dispensing of beer or food within the place of business of a retail permittee; nor directly or indirectly pay for any such permit; not directly or indirectly be interested in the ownership, conduct, or operation of the business of another such retail permittee. Any permittee who shall permit or assent or be a party in any way to any such violation or infringement of the provisions of this act shall be deemed guilty of a violation of its provisions.

Section 1921.132 provides that any person who violates any of the provisions of this act shall be punished by a fine of not less than

$300 nor mare than $1,000, or by imprisonment in the county jail for not less than three months nor more than one year, or both.

2. Public Contract Provisions

Code (1939)
General

Section 9928 provides that every contract between private persons and the state or its subdivisions shall be deemed to have a clause in it stating that there was no collusive bidding nor any agreement tending to lessen free competition involved in obtaining the contract. See projected Vol., Governmental Purchasing.

Printing

Section 196 provides that bids on contracts for state printing presented pursuant to a combination to prevent free competition shall be rejected. See projected Vol., Governmental Purchasing.

3. Anticoercive Financing Statutes

Code (1939)

Section 5039.01 provides for the administration of this act, which is vested in the Commissioner of Public Safety.

Sec. 5039.02. Definitions. As used in this act and unless a different meaning appears from the context:

1. "Person" includes any individual, firm, corporation, copartnership, joint adventure, or association, and the plural as well as the singular number.

2. "Department" means the Department of Public Safety.

3. "Selling" includes bartering, exchanging, or otherwise dealing in. 4. “At retail" means to dispose of a motor vehicle to a person who may devote it to a consumer use.

5. "Place of business" means a designated location wherein people and adequate facilities shall be maintained for displaying either new or used cars.

Sec. 5039.03, subsections 1 to 3 provide for the licensing of retail dealers in motor vehicles. The section proceeds:

4. No person, who is engaged in the business of selling at retail motor vehicles, shall enter into any contract, agreement, or understanding, express or implied, with any manufacturer or distributor of any such motor vehicles that he will sell, assign, or transfer any retail installment contracts arising from the retail installment sale of such motor vehicles or any one or more thereof only to a designated person or class of persons. Any such condition, agreement, or understanding

between any manufacturer or distributor and a motor vehicle dealer in this state is hereby declared to be against the public policy of this state and to be unlawful and void.

5. No manufacturer or distributor of motor vehicles or any agent of such manufacturer or distributor, shall terminate or threaten to terminate any contract, agreement or understanding for the sale of new motor vehicles to any motor vehicle dealer in this state, before the expiration date of such contract, agreement, or understanding, without just, reasonable, and lawful cause there for or because such motor vehicle dealer failed to sell, assign, or transfer any retail instalment contract arising from the retail sale of such motor vehicles or any one or more of them to a person or a class of persons designated by such manufacturer or distributor.

Secs. 5039.04 and 5039.05 set forth the formal requirements for the application for license.

Sec. 5039.06. Denial of license. The department shall deny the application of any person for a license as a motor vehicle dealer and refuse to issue a license to him as such, if, after reasonable notice and a hearing, the department determines that such applicant:

1. has made a material false statement in his application for the license; or

2. has not complied with the provisions of this act; or

3. is of bad business repute; or

4. has been guilty of a fraudulent act in connection with selling, bartering, or otherwise dealing in motor vehicles; or

5. is about to engage in any practice in connection with the sale, barter, or otherwise dealing in motor vehicles, which is fraudulent or in violation of the law; or

6. has entered into contract or agreement or is about to enter into a contract or agreement with any manufacturer or distributor of motor vehicles which is contrary to any provision of this act; or

7. has a contract or agreement with any manufacturer or distributor of motor vehicles or is about to enter into a contract or agreement with any manufacturer or distributor of motor vehicles, who without just, reasonable and lawful cause therefor, has terminated within ninety days from the date of application of a contract or agreement with a motor vehicle dealer in any county of the state in which the applicant proposes to engage in business.

Subsections 8 and 9 provide for additional reasons for denying

license.

Subsection 9 provides in part:

It shall be sufficient cause for refusal or revocation of a license as a motor vehicle dealer in the case of a partnership or corporation

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