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Abstract

Plaintiff, owner of the exclusive right to sell certain popular trade-marked cosmetics in California, entered into a large number of contracts with wholesalers and retailers of that state, fixing the price at which those branded articles were to resell. Thereafter, pursuant to the provisions of the state Fair Trade Act, he brought suit to enjoin defendant, a retail druggist who had refused to make any such agreements and who, from sources unknown, had acquired such trade-marked articles, from reselling at less than the price stipulated in the contracts with others. A demurrer to the complaint was sustained, but on appeal it was held (Justices Shenk and Thompson dissenting) that the state Fair Trade Act was constitutional and the defendant was bound by the stipulated price. Max Factor & Co. v. Kunsman, (Cal. 1936) 55 P. (2d) 177.

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