Pennsylvania Act 1941-343 — UNFAIR SALES TO EMPLOYEES PROHIBITED

Act text

UNFAIR SALES TO EMPLOYEES PROHIBITED
                 Act of Aug. 11, 1941, P.L. 898, No. 343              Cl. 43
                                  AN ACT

     Prohibiting employers from directly or indirectly offering for
        sale, selling, procuring for sale, having in possession or
        under control for sale to employes or others any merchandise,
        not produced by employers, not handled in the regular course
        of employer's business or not connected or related to his or
        its business; providing exceptions thereto; declaring such
        prohibited sales to be unfair competition, and repealing
        prior inconsistent legislation.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Reason and Purpose.--(a)  The legislature hereby
     finds that the existence in the Commonwealth of Pennsylvania of
     the practice whereby employers sell or procure for sale to
     employes or other persons any merchandise, not of the employer's
     own production, not handled in the regular course of the
     employer's business, or not connected with or related to his or
     its trade or business, is detrimental to the convenience and
     general well-being of the public engaged in retail business in
     that such practice (1) interferes with and diverts the proper
     and normal flow of trade and commerce from persons engaged in
     retail business and (2) constitutes an unfair method of
     competition by such employers against others engaged in commerce
     as retail merchants.
        (b)  It is hereby declared to be the policy of this act
     through the exercise by the legislature of its police powers to
     correct and to eliminate the conditions referred to above,
     declaring certain sales to constitute unfair competition and
     prohibiting same.
        Section 2.  No person, partnership, corporation or
     association engaged in any business or trade in this
     Commonwealth shall by any method or procedure, directly or
     indirectly, by itself or through a subsidiary agency, sell or
     procure for sale or have in its possession or under its control
     for sale to its employes or to any other person any article,
     material, product or merchandise of whatever nature, not of his
     or its own production, not handled in his or its regular course
     of trade or business, or not connected with or related to his or
     its trade or business: Provided, That this section shall not
     apply to the sale or distribution of (1) meals, candy,
     beverages, cigarettes, cigars, tobacco, (2) tools and material
     used or worn by employes in such trade or business or appliances
     and products which are used and worn by employes and are or may
     be beneficial to the safety, health and working conditions of
     such employes, (3) equipment or machinery which has previously
     been used by such person, partnership, corporation or
     association in the conduct of his or its business, or (4) goods
     of use in the furtherance of his or its trade or business or
     connected therewith or related thereto: And provided further,
     That the provisions of this act shall not apply to co-operative
     associations organized under the laws of this Commonwealth: And
     provided further, That nothing herein contained shall be
     construed to prohibit or prevent any person, firm or corporation
     engaged in any industry other than a retail business or trade
     from owning and operating, either directly by itself, or through
     any agency or subsidiary, a bona fide store or stores for the
     sale of goods at retail to his or its employes and others under
     the provisions of this section.
        The doing of any of the acts as prohibited above shall
     constitute unfair competition to any retail store operator or
     owner dealing in the same kind, type, nature or class of
     merchandise as that so sold as aforesaid within the same city or
     county in which such above prohibited sale occurs.
        Section 3.  Remedy.--Wilfully and knowingly selling or
     procuring for sale or having in possession or under control for
     sale, directly or indirectly, by any person, partnership or
     corporation or subsidiary agency to his or its employes any
     article, material, product or merchandise of whatever nature,
     not of his or its own production, not handled in his or its
     regular course of trade or business, or not connected with or
     related to his or its trade or business, is unfair competition
     and is actionable at the suit of any person damaged thereby.
     Such action shall be in equity by injunction only, and no
     damages shall be assessed.
        Section 4.  Constitutionality.--If any clause, sentence,
     paragraph or part of this act, or the application thereof to any
     person or circumstances, shall for any reason be adjudged by a
     court of competent jurisdiction to be invalid, such judgment
     shall not affect, impair or invalidate the remainder of this act
     and the application of such provision to other persons or
     circumstances, but such decision shall be confined in its
     operation to the clause, sentence, paragraph, or part thereof,
     directly involved in the controversy in which such judgment
     shall have been rendered and to the person or circumstances
     involved. It is hereby declared to be the legislative intent
     that this act would have been adopted had such invalid
     provisions not been included herein.
        Section 5.  Repealing Clauses.--All acts and parts of acts
     inconsistent with the provisions of this act are hereby
     repealed.
        Section 6.  Effective Date.--This act shall become effective
     immediately upon final enactment.