Shulton, Inc. v. Apex, Inc.

Decision Date15 November 1967
Docket NumberNos. 61-A,s. 61-A
Citation235 A.2d 88,103 R.I. 131
CourtRhode Island Supreme Court
PartiesSHULTON, INC. v. APEX, INCORPORATED. SHULTON, INC. v. ANN & HOPE FACTORY OUTLET INC. et al. ppeal, 62-Appeal.
OPINION

JOSLIN, Justice.

The defendants, operators of large retail establishments, appeal from a superior court summary judgment enjoining them from knowingly and wilfully advertising, offering for sale and selling any products bearing the plaintiff's trade marks at less than the minimum prices stipulated in the fair-trade contracts which the plaintiff had duly entered into with other retailers doing business in this state.

Heretofore one of these defendants unsuccessfully challenged the constitutionality of our Fair Trade Act, G.L.1956, chap. 12 of title 6, as applied to nonsigners of price maintenance contracts. United States Time Corp. v. Ann & Hope Factory Outlet, Inc., 98 R.I. 503, 205 A.2d 125. In this case defendants do not challenge the act nor do they deny that they knowingly and wilfully sold plaintiff's fair-traded products at less than their minimum stipulated resale prices. Instead, they assert that plaintiff, by reason of having incorporated a so-called 3 per cent provision in its fair-trade contract, has waived the right either to compel them to abide by the price restrictions or to recover damages for their noncompliance. The 3 per cent provision permits a retailer selling plaintiff's commodities, to allow its customers a concession from the minimum stipulated resale prices "*** in the form of a cash discount, trading stamps, cash register receipts or other device, provided that such concession shall be extended to all sales by the 'Retailer' (excepting tobacco products and alcoholic beverages) and further provided that the amount or value of such concession shall not exceed three per cent of the said minimum retail prices."

The defendants recognize, as of course they must, that the issuance of redeemable trading stamps or other similar devices by a merchant to his customers is presently an accepted practice in retail merchandising. They argue, however, that giving such concessions, even though a commonly accepted practice, is price cutting in disguise, and that plaintiff, by its consent as embodied in the 3 per cent clause, has thereby waived the enforcement rights which the act would otherwise make available. The question, however, is not whether plaintiff has authorized an indirect means by which some retailers may elect to evade price restrictions, but whether plaintiff, by including the 3 per cent clause, has thereby forfeited its enforcement rights under the statute. The answer to that question turns on how we read our statute.

Some fair-trade acts specifically forbid the giving of redeemable trading stamps, or coupons, or other like devices on a fair-traded product if the price paid by the customer, less the redemption value of the received trading stamps, results in a sale price which is below the stipulated minimum. Our statute contains no such prohibition nor does it specifically provide, as do some acts, that giving such concessions, if authorized by a fair-trade contract is permissible. 1 1 It provides only that a fair-traded commodity may not be resold "*** at less than the minimum price stipulated by the vendor." Section 6-12-3.

That language, rather than being self-declaratory or susceptible to but a single meaning, is instead obscure and open to interpretation. In searching for its meaning, we seek to ascertain the legislative intent from a consideration of the legislation read in its entirety and viewed in the light of the purposes which motivated its enactment. Mason v....

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8 cases
  • Chase v. Blackstone Distributing Co.
    • United States
    • Rhode Island Supreme Court
    • 21 Agosto 1972
    ...98 R.I. 503, 205 A.2d 125 (1964), a divided court upheld the constitutionality of the Fair Trade Act. Later, in Shulton, Inc. v. Apex, Inc., 103 R.I. 131, 235 A.2d 88 (1967), we rejected a contention made by Ann & Hope and anothers retailer that the issuance of stamps and other similar devi......
  • Malinou v. Board of Elections
    • United States
    • Rhode Island Supreme Court
    • 21 Diciembre 1970
    ...legislation in its entirety and by viewing it in the light of the purpose which motivated its enactment. Shulton, Inc. v. Apex, Inc., 103 R.I. 131, 134, 235 A.2d 88, 90. I am aware that G.L.1956 (1969 Reenactment) § 17-14-8 tells the voter who signs a nomination paper to '* * * sign in pers......
  • Brennan v. Kirby
    • United States
    • Rhode Island Supreme Court
    • 28 Julio 1987
    ...in its entirety and by viewing it in light of circumstances and purposes that motivated its passage. Shulton, Inc. v. Apex, Inc., 103 R.I. 131, 134, 235 A.2d 88, 90 (1967). A statute or enactment may not be construed in a way that would attribute to the Legislature an intent that would resu......
  • Allstate Ins. Co. v. Russo
    • United States
    • Rhode Island Supreme Court
    • 25 Mayo 1994
    ...and wills. See Berthiaume v. School Committee of Woonsocket, 121 R.I. 243, 248, 397 A.2d 889, 893 (1979); Shulton, Inc. v. Apex, Inc., 103 R.I. 131, 135, 235 A.2d 88, 91 (1967); Sefsick, 92 R.I. at 100, 166 A.2d at 420-21; Rhode Island Hospital Trust Co. v. Babbitt, 22 R.I. 113, 115, 46 A. ......
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