CHAPTER 259

An Act to permit any producer or distributor to prescribe minimum re-
sale prices of a commodity which bears, or the label or container of
which bears, the trade-mark, brand or name of the producer or dis-
tributor of such commodity, and which is in free and open competition
with commodities of the same general class produced or distributed
by others with certain exceptions; to define terms; to provide for the
giving of notice of such minimum resale prices; to declare that wilful
and knowing violation by a party who has received notice of such
minimum resale prices is unfair competition, and a wrongful inter-
ference with property rights; to provide for the relief thereof, and
thereby to foster the preservation of small business, to protect the
goodwill of trade-marks amd trade names, to further competition, to
prevent monopoly and to promote the public welfare. CH 323]

Approved March 8, 1958

Be it enacted by the General Assembly of Virginia:

1. § 1. This act may be known and cited as the “Fair Trade Act”.
a5 § 2. The following terms, as used in this act, are hereby defined as
ollows:

(1) “Commodity” means any subject of commerce, except meat and
meat products, meal, flour, bakery products, fresh and canned fish, sea
food, fresh and canned fruits and vegetables, coffee, tea, ice, sugar and
wearing apparel.

(2) “Wearing apparel” means the finished product or article and
does not include any material, ingredient, or component out of which
wearing apparel is made, altered, or repaired.

(8) “Producer”? means any grower, baker, maker, manufacturer,
bottler, packer, converter, processor or publisher.

(4) “Distributor” means any person who identifies a commodity dis-
tributed by him by the use of his trade-mark or trade name.

(5) “Wholesaler” means any person who buys a commodity for the
purpose of resale.

‘ (6) “Retailer” means any person selling a commodity to a consumer
or use.
(7) “Trade-mark” means any word, name, symbol or device, or any
combination thereof used by a producer or distributor to identify his
commodity and distinguish it from that produced or distributed by others.

(8) “Trade name” means personal names, and any word, words,
symbol, or symbols used by producers or distributors to identify their
companies, firms or corporations. .

(9) “Person” means an individual, a corporation, a partnership, an
association, a joint-stock company, a business trust or any unincorporated
organization.

(10) “Contract” means any agreement, written or verbal, or actual
notice imparted by mail or attached to the commodity or containers thereof.

The acceptance of a commodity for resale, after notice imparted by
mail or attached to the commodity or containers thereof, shall be prima
facie evidence of actual notice of the terms of the “contract”. Acceptance
for resale with actual notice shall be deemed to be assent to the terms of
the “contract”. ; .

§ 8. No contract relating to the sale or resale of a commodity which
bears, or the label or container of which bears, the trade-mark or trade
name of the producer or distributor of such commodity and which com-
modity is in free and open competition with commodities of the same
general class produced or distributed by others shall be deemed in violation
of any law of the State by reason of any of the following provisions which
may be contained in such contract:

(a) That the buyer will not resell such commodity at less than the
minimum price stipulated by the seller;

(b) That the buyer will require of any dealer to whom he may resell
such commodity a contract that he will not, in turn, resell at less than the
minimum price stipulated by the seller;

Provided, however, that no such contract shall be permitted unless it
further contains the provisions that the seller will not sell such commodity
in this State:

(1) To any wholesaler, unless such wholesaler will agree not to resell
the same to any retailer unless the retailer will in turn agree not to resell
the same except to consumers for use and at not less than the stipulated
minimum price, and such wholesaler will likewise agree not to resell the
same to any other wholesaler unless such other wholesaler will make the
same agreement with any wholesaler or retailer to whom he may resell; or

To any retailer, unless the retailer will agree not to resell the
same except to consumers for use and at not less than the stipulated
minimum price.

. . For the purpose of preventing evasion of the resale price re-
strictions imposed in respect of any commodity by any contract, except
to the extent authorized by the contract, the following instances shall be
deemed a violation of such resale price restriction, for which the remedies
prescribed by § 7 shall be available:

(a) The offering or giving of any article of value in connection with
the sale of such commodity;

(b) The offering or the making of any concession of any kind what-
soever, whether by the giving of coupons or otherwise, in connection with
any such sale; or

: (c) The sale or offering for sale of such commodity in combination
with any other commodity.

Nothing contained in this section shall be construed as prohibiting
the giving of “premium stamps”, the furnishing, supplying or use of which
may be taxed under Article 10.1, Chapter 7, Title 58, of the Code of
Virginia, as amended.

No minimum resale price shall be established for any commodity
by any person other than the owner of the trade-mark or trade name used
in connection with such commodity or a wholesaler specifically authorized
to establish such price by the owner of such trade-mark or trade name.
6. No contract containing any of the provisions enumerated in
§ 8 shall be deemed to preclude the resale of any commodity covered
thereby without reference to such contract in the following cases:

(a) In closing out the owner’s stock for the bona fide purpose of dis-
continuing dealing in such commodity and plain notice of the fact is given
to the public; provided the owner of such stock shall give to the producer,
distributor, or wholesaler, as the case may be, of such commodity prompt
and reasonable notice in writing of his intention to close out such stock, and
an opportunity to purchase such stock at the original invoice price;

(b) When the goods are altered, second-hand, damaged, defaced or
deteriorated and plain notice of the fact is given to the public in the ad-
vertisement and sale thereof, such notice to be conspicuously displayed in
all advertisements and to be affixed to the commodity;

(c) By any officer acting under an order of court.

§ 7. Wilfully and knowingly advertising, offering for sale or selling
any commodity at less than the price stipulated in any contract is unfair
competition and is actionable at the suit of any person damaged thereby.

§ 8. This act shall not apply to any contract, agreement, or under-
standing between or among producers or distributors or, except as provid-
ed in subdivision (b)'(1) of § 3, between or among wholesalers, or between
or among retailers, as to sale or resale prices. Nor shall this act apply to
any sale of a commodity to the Commonwealth of Virginia, or an agency
thereof, a political subdivision, a county, city or town, or a religious,
charitable or educational institution.

§ 9. This act is enacted in the exercise of the police powers of the
Commonwealth, and its purposes are generally to protect and preserve
small business, to safeguard the goodwill of trade-marks and trade names,
to further wholesome competition, to prevent monopoly, and to promote
the public welfare by securing wider distribution of commodities and an
increase in the production thereof, and thereby reducing production and
distribution costs, protecting and increasing gainful employment in
manufacturing, wholesaling and retailing, all for the benefit of the con-
sumer and the well-being of the citizens of the Commonwealth.

§ 10. If any one or more sections, paragraphs, sentences, clauses,
phrases or parts of this act, or the application thereof to any person or cir-
cumstance, shall be adjudged invalid, such judgment shall not affect, im-
pair or invalidate the remaining applications or provisions thereof, but
shall be confined in its operation to the specific provision or application
held invalid, and the inapplicability or invalidity of any section, paragraph,
sentence, clause, phrase or provision of this act in one or more instances
or circumstances shall not be taken to affect or prejudice in any way its
applicability or validity in any other instance.