W. T. Rawleigh Medical Co. v. Walker
W. T. Rawleigh Medical Co. v. Walker
Opinion of the Court
Plaintiff and one S. S. Walker entered into a contract which the defendants guaranteed, the contract and guaranty being as follows:
“Whereas S. S. Walker, of Cullman, Alabama, desires to purchase of tbe W. T. Rawleigh Medical Company of Freeport, Illinois, on credit and at wholesale prices to sell again to consumers, medicines, extracts, spices, soaps, toilet articles, perfumes, polishes, stock dip and disinfectant, stock preparations and poultry supplies and other goods manufactured and put up by it, paying his account for such goods in installments as hereafter provided.
“Therefore, be hereby agrees to sell no other goods than those sold him by said company, to sell all such goods at regular retail prices to be indicated by it, and to have no other business or employment.
“He further agrees to pay said company for all goods purchased under this contract the current wholesale prices of such goods by remitting in cash each week to said company an amount equal to at least one-half tbe receipts from his business until his account is balanced, and for that purpose as evidence of good faith he shall submit to said company weekly reports of his business; provided, however, if he pays his account in full on or before the tenth day of each month he is to be allowed a discount of three per cent. (3) from current wholesale prices. When the sale or purchase of goods under this contract shall be permanently discontinued for any reason or upon notice given by either party, he further agrees to settle in cash, within a reasonable length of time, the balance due said company on account.
“Unless prevented by strikes, fires, accidents or capses beyond its control said company agrees to fill and deliver on board cars at place of shipment, his reasonable orders, provided his account is in satisfactory condition, and to charge all goods shipped him under this contract to his account at current wholesale; also to notify him promptly of any change in wholesale or retail prices.
“Said company further agrees to furnish him free of charge on board cars at place of shipment, a reasonable amount of first-class advertising matter, report and order blanks, and printed return envelopes for his use in conducting his business; also to give him, free of charge after he has begun work, suggestions and advice, through letters, bulletins, and booklets, as to the best methods of selling its products to consumers.
“This contract is subject to acceptance of the home office of the company and is to continue in force only so long as his account and the amount of his purchases are satisfactory to said company; provided, however, that said S. S. Walker or his guarantors may be released from this contract at any time by paying iu cash the balance due said company on account.
“The W. T. Rawleigh Medical Company,
“By W. T. Rawleigh, President. [Seal.]
“Accepted Dec. 10, 1910, at Freeport, Illinois.
“S. S. Walker.
“In consideration of the W. T. Rawleigh Company extending credit to the above-named person, we hereby guarantee to it, jointly and severally, the honest and faithful performance of the said contract by him, waiving acceptance and all notice, and agree that any extension of time or change of territory shall not release us frpm liability hereon.
Names - Oceupa- P. O. Address tion
W. T.Walker Farming Logan, Ala., No. 1. O. W. Peinhardt Farming Cullman, “ No. 1. J. S. York ■ Farming Cullman, “ No. 1.
“The above guarantors are entitled upon request at any time to a statement of salesman’s account.”
Walker received under this contract $1,-181.87 worth of goods, and failed to pay $701.12 of the amount. It is alleged that Walker is insolvent.
This brings us to a consideration of the questions raised by grounds of demurrer A, B, C, and D, which in effect challenge, tbe validity of the contract on the ground of public policy; it being contended by the defendants that the contract was made for the purpose of stifling competition in articles nec *234 essary or useful to life, that it is an unreasonable restraint of trade, that it was for the purpose of increasing the price at which tlie. goods therein agreed to be sold would be sold to the ponsumer, and to paralyze and hamper the industries of S. S. Walker. If it were not for the clause in the contract to the effect that Walker agreed to sell no other goods than those sold Mm by the company, to, sell all such goods at regular retail prices to be indicated by the company, and to have no other business or employment, there could be no pretense that either ground of demurrer was well taken. The court is unaided by appellee’s counsel in arriving at the contention of appellqe, no brief for it having come to the bands of the court; but we conclude that the principal insistence is that the contract is in unreasonable restraint of trade, and that it places an unnecessary burden upon the alienation of personal property.
It therefore follows that the defendant’s demurrers to the complaint should have been overruled, and the court erred in failing to do so. The judgment of nonsuit is set aside, the case is reinstated, the judgment of the lower court is reversed, and the cause is remanded.
Reversed and remanded.
Reference
- Full Case Name
- W. T. RAWLEIGH MEDICAL CO. v. WALKER Et Al.
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- Published