TRADE RESTRAINTS - FAIR TRADE STATUTES - VALIDITY OF STATUTE FORBIDDING THE GIVING OF A PREMIUM TO PROMOTE THE SALE OF GASOLINE WITH AN INTENT TO INJURE COMPETITION

Defendant operated an independent gasoline station. He gave to each cash customer purchasing five gallons of gasoline at the generally prevailing prices a drinking glass worth less than five cents. For this act he was charged with violating a statute prohibiting the giving away of any commodity for the purpose of promoting the sale of any other commodity. Defendant moved that the information be quashed and a verdict be directed of not guilty on the ground that the statute was unconstitutional.

From an order denying the motion and finding him guilty, defendant appeals. Held, that the giving of a premium with the sale of gasoline was a legitimate business practice. Its prohibition has no reasonable relationship to the protection of the public health, morals, safety or welfare. A statute purporting to do so results. in a deprivation of property and liberty without due process of law in violation of the Michigan Constitution.

People v. Victor, 287 Mich. 506, 283 N. W. 666 (1939).