No provisions. 2. Public Contract Provisions 3. Anticoercive Financing Statutes L. 1937, c. 96 Sections 1 to 14 are identical in text with the Colorado statute except that: (1) in sections 1, 2, and 3 the word "wholesale" precedes the word "distribution" wherever used (cf. Colo., secs. 407, 408, 409); (2) section 9 provides that a violation of the act shall constitute a misdemeanor rather than a felony and lowers the maximum fine from $5,000 to $1,000 (cf. Colo., sec. 415). See Colo. Stat. Ann. (Michie, Supp. 1938) c. 16, secs. 407 to 419, set forth in full at pp 72-76. II. CONTRACTS NOT TO COMPETE No statutory provisions. III. TYING CONTRACTS AND EXCLUSIVE DEALING ARRANGEMENTS Code Ann. (1932) Section 22-2017 provides that cooperative marketing associations authorized by sections 22-2001 to 22-2028 may enter into marketing contracts with its members requiring the members to sell their agricultural products exclusively to or through the association for a maximum period of ten years. It also provides that the contract may fix liquidated damages for breach of the contract by the members. The association is also given the right to equitable relief. Section 22-2020 provides that any provisions of law which are in conflict with this chapter shall not be construed as applying to the association herein provided for. Liquor Laws 1935, c. 132, section 6 (9) provides that it shall be unlawful for any dealer, brewer, or wholesaler, or any person financially interested, directly or indirectly, in such business, to enter into any contract to control the product or products handled by licensed retailers. See Special Antitrust Laws: Liquor. 210235°-40-vol. 1-14 Tying Contracts. Judicial Decisions A wholesaler leased a gasoline pump and certain equipment to a dealer, agreeing to pay the dealer $60 a month in return for his undertaking to sell the wholesaler's gasoline and oil exclusively for 3 years. The contract further provided that the dealer could terminate the agreement at any time prior to the expiration date by purchasing the pump and equipment. The agreement was held valid. Independent Gas & Oil Co. v. T. B. Smith Co., 51 Idaho 710, 10 Pac. (2d) 317 (1932). Exclusive Dealing Arrangements. A contract creating an exclusive agency for the sale of a given commodity on commission in a specified territory, binding the agent not to sell goods of any other manufacturer, is not within the condemnation either of the common law or of section 47-104. Independent Gas & Oil Company v. T. B. Smith Co., supra. The contract in the above case also contained provisions for the lease of certain advertising facilities by the dealer to a wholesale distributor of gasoline and lubricants for 3 years, at $30 a month, and provided that the dealer should purchase gasoline and oil exclusively from the wholesaler for a similar period. The court declared it would take judicial notice of the population of a community and of the number of competing concerns, in order to determine the likelihood of monopoly. The court further held that even if the $30 a month were considered a rebate, that fact in itself would not invalidate the agreement. Ibid. ILLINOIS I. TRUSTS, COMBINATIONS, AND MONOPOLIES A. GENERAL ANTITRUST LAWS CONSTITUTIONAL PROVISIONS Const. 1870, art. IV, sec. 22. The general assembly shall not pass local or special laws in any of the following enumerated cases, granting to any corporation, association, or individual the right to lay down railroad tracks, or amending existing charters for such purpose; granting to any corporation, association, or individual any special or exclusive privilege, immunity, or franchise whatever. Const. 1870, art. XI, sec. 1. No corporation shall be created by special laws, or its charter extended, changed or amended, except those for charitable, educational, penal, or reformatory purposes which are to be and remain under the patronage and control of the State, but the general assembly shall provide, by general laws, for the organization of all corporations hereafter to be created. STATUTORY PROVISIONS Rev. Stat. (Smith-Hurd, 1937) Sec. 569. Trust, or combination to fix the price, or limit quantity of any article, etc.—If any corporation organized under the laws of this or any other state or county, for transacting or conducting any kind of business in this state, or any partnership or individual or other association of persons whosoever, shall create, enter into, become a member of or a party to any pool, trust, agreement, combination, confederation, or understanding with any other corporation, partnership, individual, or any other person or association of persons, to regulate or fix the price of any article of merchandise or commodity, or shall enter into, become a member of or a party to any pool, agreement, contract, combination, or confederation to fix or limit the amount or quantity of any article, commodity, or merchandise to be manufactured, mined, produced or sold in this state, such corpora tion, partnership, or individual or other association of persons shall be deemed and adjudged guilty of a conspiracy to defraud, and be subject to indictment and punishment, as provided in this act. June 11, Laws 1891, p. 206, sec. 1.) (1891, Sec. 570. Trust certificates and organization of combinations, etc., prohibited. It shall not be lawful for any corporation to issue or to own trust certificates, or for any corporation, agent, officer, or employes, or the directors or stockholders of any corporation, to enter into any combination, contract, or agreement with any person or persons, corporation or corporations, or with any stockholder or director thereof, the purpose and effect of which combination, contract, or agreement shall be to place the management or control of such combination or combinations, or the manufactured product thereof, in the hands of any trustee or trustees, with the intent to limit or fix the price, or lessen the production and sale of any article of commerce, use or consumption, or to prevent, restrict, or diminish the manufacture or output of any such article. (1891, June 11, Laws 1891, p. 206, sec. 2.) Sec. 571. Penalty. If a corporation or a company, firm, or association shall be found guilty of a violation of this act, it shall be punished by a fine in any sum not less than five hundred dollars ($500), nor more than two thousand dollars ($2,000), for the first offense; and for the second offense not less than two thousand dollars ($2,000), nor more than five thousand dollars ($5,000); and for the third offense not less than five thousand dollars ($5,000), nor more than ten thousand dollars ($10,000); and for every subsequent offense and conviction thereof, shall be liable to a fine of fifteen thousand dollars ($15,000): Provided, That in all cases under this act either party shall have the right of trial by jury. (1891, June 11, Laws 1891, p. 206, sec. 3.) Sec. 572. Officers, etc., violating.-Any president, manager, director or other officer or agent or receiver of any corporation, company, firm, or association, or any member of any company, firm, or association, or any individual, found guilty of a violation of the first section of this act, may be punished by a fine of not less than two hundred dollars ($200), nor to exceed one thousand dollars ($1,000), or be punished by confinement in the county jail not to exceed one year, or both, in the discretion of the court before which such conviction may be had. (1891, June 11, Laws 1891, p. 206, sec. 4.) Sec. 573. Contracts in violation of act.-Any contract or agreement in violation of any provision of the preceding sections of this act shall be absolutely void. (1891, June 11, Laws 1891, p. 206, sec. 5.) Sec. 574. Purchasers of commodities produced in violation of act not liable for price.—Any purchaser of any article or commodity from any individual, company, or corporation transacting business contrary to any provision of the preceding sections of this act1 shall not be liable for the price or payment of such article or commodity, and may plead this act as a defense to any suit for such price or payment. (1891, June 11, Laws 1891, p. 206, sec. 6.) Sec. 575. Fines.-The fines herein before provided for may be recovered in an appropriate civil action, in the name of the People of the State of Illinois. If, upon the trial of any cause instituted under this act to recover the penalties as provided for in section three, the jury shall find for the people, and that the defendant has been before convicted of a violation of the provisions of this act, they shall return such finding with their verdict, stating the number of times they find defendant so convicted, and shall assess and return with their verdict, the amount of the fine to be imposed upon the defendant in accordance with said section three: Provided, That in all cases under the provisions of this act, a preponderance of evidence in favor of the people shall be sufficient to authorize a verdict and judgment for the people. (1891, June 11, Laws 1891, p. 206, sec. 7, as amended by act approved June 28, 1935. L. 1935, p. 718.) Sec. 576. Duties of officers enforcing act-Informer's compensation-Fines, disposition. It shall be the duty of the prosecuting attorneys in their respective jurisdiction, and the Attorney General, to enforce the foregoing provisions of this act, and any prosecuting attorney of any county, securing a conviction under the provisions of this act, shall be entitled to such fee or salary as by law he is allowed for such prosecution. When there is a conviction under this act the informer shall be entitled to one-fifth of the fine recovered, which shall be paid him when the same is collected. All fines recovered under the provisions of this act shall be paid into the county treasury of the county in which the suit is tried, by the person collecting the same in the manner now provided by law to be used for county purposes. (1891, June 11, Laws 1891, p. 206, sec. 8.) Sec. 577. Destroying food to influence price.-Any person who shall willfully destroy or permit to waste any food fit for human or animal consumption, of the original value of twenty-five dollars ($25) or more, so that such food becomes unfit for such use, with the intent to cause scarcity or to increase, control, maintain, or influence the market price of such food, shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not less than twenty-five dollars ($25) or more than five hundred dollars ($500) or by im 'Sec. 569-573, ante. 'Sec. 571, ante. |