Untitled Texas Attorney General Opinion

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN Honorable Bert Ford, Atilnietmtor Atilnietrator Texas Liquor Control Boasd Austin 1, Texas Dear sir: lh quote from a p or aotlon from ttm Tour Branerr Instituter th8 utmost oo- law0 aad wartime 0s OQvommont an4 of 1,approdiatlonof to pnvm inria- a4 publlo, we tlm 10~ serve4 the ato, herein glvo notloe that uoh to oontinuo or naintain a dlstrl- lth any bear distributorrho 8011s I!lxoom of oailln4 prices estab- loo oi Price Abminietration. It "(a) Dlreotly or lndiremtlp oharges mom than the wholerralaoellln4 prioe fixed by the Offlaa of for the bran4 of bear he ~0118; Prloe Adrainlstratlon 292 Bon. Bert lord, Page & *lb) I? a dlatrlbutor in making dalivaries favora or permits the b4yar to maka any *aid+ paymenta’ or bonur paymants to himself, an agent, amploya*, or any other parson aa an Induoemantto obtain auoh dalivaries. Vaoh of us will rafuae to oontlnuo or maintain a distributing nlatlon with may dls- tributorwho sails beer to any parson for raeah in violation of law la the dry areas of Tarns as dellaad by tha laws of this Stata. vhoh o? ~8 will ratuse to ooatlnua or maintain a dlstrlbutlngralatlon with l ay dls- trlbutor who solis baer ?ouad by tha Texas LIquac Control Board to ba of a quality ooadomnad by the laws 0r this state. "The foregoing polloy will ba adhatad to In our r.osprrtite boslnars tnasaotions for so long a tlmo a8 tha Oorernment of the Walt04 States amp 4eam lt neooaaary to eatabllah an4 maintain prloa oontrolr as a prt of thr Hation*a war effort. It 1s raoognIee4 that than ara ?ar distributor8who msIm$aIn nr anoauraga thr preiotloor against whloh thf8 doolara$lona? pollay 18 4Ireoto4,aul wa oon814rr tlmt it 1s our 4uty to adopt 8ny reason- able mean8 to incurs that our nrprotlva prodUOt8 will not reach tha oonsumer through those diatrf- butora who may be nagllgaat or lndiftorenttoward the war afrorta of their gorarnmant and tha Paople In gaaar81." " In oonaeotlonwlth this pro,osal you State that You aooapt the soprasahtatlons"aa bafsx 9mado) in 4oo4 iaith an4 motivated by a daalr$ to pravaat tbs 401olO~nt Of Praatiaaa la violation of Btate aad Tedaral law*." You wish to ba adYlse4r “A. -#ould tha signing and ldharonoa to the pmposrd daalaration by se~6ral brewerlss oouatltuto a rlolatlon of thS 'PSXSSLiquor Co+ trol Act? Hon. Bert Ford, ta~a 3 ”6. ~Xvuldthe exlatence ana adherence to the a@ead polloy by several breweries conatl- tUte a ViOhtioSJ Of the Anti-Tru6t laws of tbls State or any other State law?” This office reoently he& ocoasim to represent the ToiiaaLiquor Cortrul Board in a oatsawhere the aoaatltutlonelity of the Zmergena~ Eric6 Control Aat of 1948 waa direotly In issue. United States Dlstriot Judge,,%. A. Keeling aaid, “in this oaae the Court 1s of the oplnlon that Con&rear he4 the luthorlty to enaot the Rmurgenoy Prloi Control dot- of 1.0~3, in tb taoa of the existing lmer g a of no y the war, and that tha Act Is within the Constibutionelpoware of the Con4resa.* Sfnca the oourt waa lmmedlatel oonaernad with tlm Office of Price AdalnlrtMtion*s power to f fx prloaa a,nd praotloss In mapoot to beer an4 liquor, the court*6 opinion Is prouliarlyapplloab1e here. See Brown, (idmlnfstrator, ~8. lores Liquor Control Board, et al, Ro. 192, Auatin Dlvlslon, YSmateraCIatriot of Taxaa, United States Dla- trict Court, not yet reported. Sudga Keeling ?ollomd the ml- ing ot the Suprem Court of the palted Stat00 in Xl&land vs. Ruaaall Car atSnow Plow Co., 879 0. E. 601: 73 L. Sd. 688, peasing upon the LoFor Aot of World War f. In addition to tha Pe4oral E;tatutea,t!:eso-oallea entI-truat.lawaor Tatsa ara alraotly ~otolved. Artiolo 74Ex5 defines and srohlblts tntats, and,partloularlyprice fislng. an4 prohIblta monopoller. krtlole 7428, Articla 74p7 d.afi~nes defining an4 prohibltlrg? oonspir4mIaa a¬ trade, partloular- 1~ aenounoesagr*aswnts to rsfuae to ~aellto ear particular pnraon. :iequote hrtlole 7428: *zither 01:any or tha following acta *hall conat~itute a conapIraoyin rsatraint of trade. “1. Shire any Wo or more persona, firma, eoxpomtlona or associations of paraona, who axe engaeea In buylu& or aeillng any artiola Of mer- obandlae, produce or any oorwPodItyenter into en agreement or understandingto refuse to buy from or sell to any peraou, Tim, 0orPOntIon 02 assoaia- tlon of persona, any crrtiole of morohanalae, proauoa or comlnodlty. Hon. Bert ford, Pees 4 *z. aware any two or more pereon8, iirma, Oorprratiozs or asao0latlona or persons, aball a&Tee to boycott or threaten to refuse to buy from or Eel1 to any ~crp~on, firm, oorporatlon 0r @seoOiatiOn of person6 for buying from or salliw, to any other person, firm, eorporatton or aesooia- tfon or persona.* Thla state rtatuta praeaatr a altuatlon where a parson ie broadlY prohibited tram agreeing not to sell a lawrul Oomodlty to any partioular person. Opposed to thie stat@ law 16 an order of a oompetant Pador agenoy acting In pureuenoa of 8 valid Aot of the Congress in affect owandlng the sale of a lawful oommo4ltY Of 001~r0a in all legal an4 valid ohannals, but pruh.lbitlng suoh sale at a prioe above that,fixedby the appropriate Federal auanoy or to persona not authorized to pur- ohme the 6ame. Your ragout alllo preoenta the queetlon ðer, under Artiolaa 74.26,74Z7 or 74i?S,an agrawnt aot'to tiolata the law8 oi the Unit04 Btatecl,even thou&h in tarmu Oontrary to state law, 0~14 form tha baaia of an enfor?aabIa rtste action, altbar orlmlnal or oltili~ This department recently tilad tb,t'uhere pr$oae are fired by the crri00 or I-z-100 A&nlnlrtrrtloa,~ Lt 3r: not a tlola- tion or the &ate anti-trust laws for a doalar Sd bear or liquor to adhere strlotly to arch prioas an4 to adiatifaa the 8ama, 80 low as ha holds himself free or innooant of dny agreement to fix prl006 within the m~xlmum range iIre by the Federal. e.&enoY. Sea Opinion 2~0.O-5811 and authoritlea there cited, anolosad hara*ith. trink that th.a aolcnowla4ga4 ?:::~a supremacy 0r Illetlonal law with l-gferenoe to commodity ptioss ~0~14, be .aqUallY appllcabla fn principle t0 the o.ontraots and relatione between persona deal- bne in *uch co~odit~ss so long as euoh mea~ure8 are 4aama4 neOef+. gery or asaantlsl. by the Federal a%flnOy tc effeOtuat@ its aUWFW war powers. A* re v~sn the propoeed aa.raement , ite did 1s that those jl.‘h~,si.ga the same: Eon. Bert ford, Pago S (a) WI11 not 8011 to a dlatrlbutor who n- 86118 la 6x0.0080 Of th8 mXiaum priaaa rim& by the orrio ot Prioa Adasiniatratloa~ (b) Will not dolate tha rnulmum prioa IWgUiatiOO8 Or t&e OfflCimOf Pm0 Adninlat~tlon~ (0) Will mt aall to a Uatributor who in- diroofly by ~ai40-pay6entaw bonuaaa or othondaa vlelatoa aaxi6vm prloi ragdationag (d) WI11 not aall $0 a dl8trlbutOrwho 80118 tha HI* to persona purohaab& it ror ra-aalr in dry area8 Oz tlm Stata of Tans in vlolathn of its larrg (0,) Will not aall to a distributor who rolla bear fouM by the Tuaa Liquor Oontrol Board to be or a qlullty pvehibitod by law. Thla, upoa It8 raoo, la both UI agrrurnt to obey and not to riolata tbr lawa or Toraa and oi thr Unitad 6taka. Sinoe you rtda that JOU 8ooopttha aama “88 bolag in good faith' In oan ihd no ruma te wmdaam tk we under the lawa ei Tam*. It must be boraa ira tied, howOver, that #a propor ruuaf r 0a mt k mid ww 0~ h~a l=8pt a- th 0~28 7 80 or tbr mrgmo~ war p&war8 o? tha ?Odarrl gey*N@nt. mt;.:ttf thoaa amrrgwmf war pewara aspita or lra remld trust law8 of Taxas will oparata ag@aiato pmhibfi the Oono@rta4 lotion propoa04. Your8 wry truly imro