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C. SPECIAL ANTITRUST LAWS

1. Special Industry Antitrust Acts

Rev. Stat. (1939)

Railroads

Section 190.06 provides that no railroad corporation shall consolidate with or in any way own or control any other corporation which owns or controls a parallel and competing railroad.

Hydraulic and Hydroelectric Power

Section 31.22 provides that if any dam maintained under a permit is used as part of an unlawful combination, or is controlled by any combination in the form of an unlawful trust, or forms the subject of a conspiracy to limit the output of hydraulic or hydroelectric power derived therefrom, or to restrain unlawfully trade in the distribution of such power, the state may take possession by receivership proceedings.

Swiss Cheese Dealers

Section 100.05 provides that swiss cheese dealers shall have their license to purchase swiss cheese revoked if found to be engaged in any practice or agreement in restraint of trade.

Fire Insurance

Section 203.23 provides that no fire, fire and marine, or marine and inland insurance company shall enter into any agreement, combination, or compact for the purpose of establishing and maintaining rates; except such agreements as are authorized by statute, or such as may be filed with and approved by the commissioner of insurance.

Warehouses

Section 126.37 provides that it shall be unlawful for any public warehouseman to enter into any contract, understanding, or combination with a railroad or other person or corporation by which the property of any person is to be delivered to any public warehouse for storage, or other purpose contrary to the direction of the owner.

Liquor

Section 176.17 (1)-(6) provides: (1) No manufacturer, rectifier. or wholesaler shall hold the ownership, directly or indirectly, of any interest in any license to sell products of the industry for consumption on the premises covered by such license;

(2) No manufacturer, rectifier, or wholesaler shall furnish, give, or lend any money or thing of value, directly or indirectly or through

a subsidiary or affiliate, or by any officer, director, or firm member of the industry, to any person engaged in selling products of the industry for consumption on the premises where sold, or to any person for the use, benefit, or relief of said person engaged in selling as above; or to guarantee the repayment of any loan or the fulfillment of any financial obligation of any person engaged in selling as above. Nothing herein contained shall affect the extension of usual and ordinary commercial credits for the products of the industry sold and delivered. No person licensed to sell intoxicating liquors for consumption on the premises where sold shall receive, or be the beneficiary of, any of the benefits hereby prohibited;

(3) No manufacturer, rectifier, or wholesaler shall furnish, give. rent, lend, or sell any equipment, fixtures, or supplies, directly or indirectly, or through a subsidiary or affiliate, or by any officer, director, or firm member of the industry, to any person engaged in selling products of the industry for consumption on the premises where sold. No person licensed to sell products of the industry shall receive, or be the beneficiary of, any of the benefits hereby prohibited; (4) No manufacturer, rectifier, or wholesaler shall furnish, give, lend, or rent any interior decorations other than signs, or furnish, give, lend, or rent any sign or signs, for inside or outside use, costing collectively more than twenty-five dollars in any one calendar year, to any person licensed to sell intoxicating liquors for consumption on the premises where sold, either directly or indirectly, or through a subsidiary or affiliate, or by any officer, director, or firm member of any such manufacturer, rectifier or wholesaler. No person licensed to sell products of the industry shall receive, or be the beneficiary of, any of the benefits hereby prohibited;

(5) No manufacturer, rectifier, or wholesaler shall hold any interest in any premises hereafter acquired in which intoxicating liquors are sold at retail for consumption on the premises where sold;

(6) The violation of any provision of this section by any manufacturer, rectifier, wholesaler, retailer, or other licensee shall be sufficient cause for the revocation of the license of the manufacturer, rectifier, or wholesaler if such license shall be required, or of the licensee receiving the benefit from the prohibited act.

Section 176.41 provides that any person who shall violate any of the provisions of this chapter for which a specific penalty is not herein provided shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be punished by a fine of not more than $500, or by imprisonment in the county jail or house of correction for not more than ninety days, or by both, and any license issued to him

shall be subject to revocation by the court in its discretion. In the event that any such person shall be convicted of a second offense, such offender, in addition to the penalties herein provided, shall forthwith forfeit the right to purchase any stamps from the State treasurer, and any license which may have been issued to him by any city, village, or town shall without notice be forthwith forfeited.

Malt Beverages

Section 66.05 (10c) (1) provides that no brewer, bottler, wholesaler, or corporation a majority of whose stock is owned by any of the above, shall supply, furnish, lease, give, pay for, or take any chattel mortgage on any furniture, fixtures, fittings or equipment used in or about any place which shall require a class B license for the retail sale of fermented malt beverages to be consumed on or off the premises where sold; nor shall they lease any real estate acquired after the effective date of this subsection to any person for the purpose of conducting therein any business requiring such a class B license: Provided, however, That this prohibition as to leasing of real estate shall not apply to a hotel, or to a restaurant in a part of or located in or upon the premises of any mercantile establishment, or to a bona fide club, society, or lodge that shall have been in existence for not less than six months prior to the date of granting such license; nor shall they advance, pay, or furnish money or any license fees or taxes which may be required to be paid by any retailer or be otherwise financially interested, directly or indirectly, in any class B license. However, an exception to the above restrictions allows a brewer to furnish, maintain, and operate in and upon the brewery premises a place for the sale of fermented malt beverages for which a class B license is required. Any licensee who shall be a party to any violation of this subdivision or shall receive the benefits thereof shall be equally guilty of a violation of the provisions thereof.

Section 66.05 (10) (m) (1) provides that any person who violates the provisions of this act shall be deemed guilty of a misdemeanor, and upon conviction shall be punished by a fine of not more than $500, or by imprisonment in the county jail for a term of not more than 90 days, or by both, and such license shall be subject to revocation. Upon conviction for a second offense, in addition to the penalties hereinbefore provided, such person shall forfeit any license issued to him without further notice, and no license shall thereafter be granted to such person for a period of one year from the date of such forfeiture.

2. Public Contract Provisions

Rev. Stat. (1939)
Printing

Section 35.47 provides that the Director of Purchases may reject all bids for certain state printing whenever he is satisfied that any of the bids have been presented pursuant to an agreement, understanding, or combination to prevent free competition. See projected Vol. Governmental Purchasing.

Textbooks

Section 40.28 provides that a person offering textbooks for sale to schools must file a bond to guarantee, among other things, that he will not enter an agreement, contract, understanding, or combination to control prices or restrict competition in sale of school books. See projected Vol. Governmental Purchasing.

Patented Articles

Section 62.15 provides that public works of a city may be done by use of a patented article, materials, or process when the city shall have obtained from the owner of the patent, before advertising for bids, an agreement to furnish to any contractor desiring to bid upon such work as a whole, the right to use the patented article, materials, and processes, and also to furnish to any contractor the patented article itself upon payment of what the authorities letting the contract for such public work shall determine to be a reasonable price. See projected Vol. Governmental Purchasing.

3. Anticoercive Financing Statutes

Rev. Stat. (1939)

Sec. 218.01. Motor vehicle dealers; salesmen; sales finance companies, licenses; fees; regulations; coercion; subsidies; penalties. (1) DEFINITIONS. In this section, unless the context otherwise requires, the following words and terms shall have the following meanings:

(a) "Motor vehicle dealer" means any person, firm, or corporation, not excluded by paragraph (b) of this subsection who:

1. For commission, money, or other thing of value, sells, exchanges, buys, or rents or offers or attempts to negotiate a sale or exchange of an interest in motor vehicles; or,

2. Who is engaged wholly or in part in the business of selling motor vehicles whether or not such motor vehicles are owned by such person, firm, or corporation.

(b) The term "motor vehicle dealer" does not include:

1. Receivers, trustees, administrators, executors, guardians or other persons appointed by or acting under the judgment or order of any court; or

2. Public officers while performing their official duties; or

3. Employes of persons, corporations, or associations enumerated in subdivisions 1 and 2 of this paragraph, when engaged in the specific performance of their duties as such employes.

(c) "Motor vehicle salesman" means any person who is employed as a salesman by a motor vehicle dealer to sell motor vehicles.

(d) "Sales finance company" means and includes any person, firm or corporation engaging in this state in the business, in whole or in part, of acquiring by purchase or by loan on the security thereof, or otherwise, retail instalment contracts from retail sellers in this state, including any motor vehicle dealer who shall carry or retain for more than thirty days any retail instalment contracts acquired by him in his retail sales of motor vehicles.

(e) "Retail instalment contract" or "instalment contract" means and includes every contract to sell one or more motor vehicles at retail, in which the price thereof is payable in one or more instalments over a period of time and in which the seller has either retained title to the goods or has taken or retained a security interest in the goods under a form of contract designated either as a conditional sale, chattel mortgage or otherwise.

(f) "Retail seller" means a person, firm or corporation selling or agreeing to sell one or more motor vehicles under a retail instalment contract to a buyer for the latter's personal use or consumption thereof.

(g) "Retail buyer" means a person, firm or corporation buying or agreeing to buy one or more motor vehicles from a retail seller under a retail instalment contract.

(h) "Cash price" means the retail seller's price in dollars for the sale of the goods, and the transfer of unqualified title thereto, upon payment of such price in cash or the equivalent thereof.

(i) "Finance charge" means that part of the total price in the retail instalment contract of sale in excess of the cash price, and includes, unless otherwise specified, the insurance premium, if any.

(j) The term "commission" means the state banking commission and including any member or members thereof or any duly authorized deputy named or appointed by such commission to perform any function in the administration or enforcement of this section.

(k) "Motor vehicle" means any motor driven vehicle required to be registered under section 85.01.

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