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GE v. WALDMAN

January 16, 1958

GENERAL ELECTRIC COMPANY, a New York Corporation, Plaintiff,
v.
Morris A. WALDMAN, individually and trading and doing business as Belmont Supply Company, Defendant



The opinion of the court was delivered by: MARSH

Upon motion of plaintiff, General Electric Company, for a rule upon the defendant, Morris A. Waldman, individually, and trading and doing business as Belmont Supply Company, to show cause why he should not be required to pay the balance of the $ 1,000 fine imposed by the court on January 9, 1957, and to show cause why he should not be held in further contempt, a hearing was held and briefs submitted. The court makes the following.

Findings of Fact

 1. On December 20, 1954, after hearing, this court entered an order restraining and enjoining until further order of court, the defendant above named, his agents and employees, from knowingly advertising, offering for sale or selling, at retail, in the Commonwealth of Pennsylvania, any of the commodities manufactured by plaintiff which bears the trade-mark, brand or name of plaintiff, at prices which are less than the stipulated minimum retail resale prices established therefor by plaintiff pursuant to agreements between plaintiff and retailers of its commodities in the Commonwealth of Pennsylvania, except as such sales are permitted under the provisions of Pennsylvania Act of June 5, 1935, P.L. 266, 73 P.S. § 7 et seq.

 2. At all times since December 20, 1954, contracts between plaintiff and retailers of its trade-marked commodities in the Commonwealth of Pennsylvania, under which plaintiff had a right to and did establish stipulated minimum retail prices for said commodities, have been and still are in force and effect.

 3. Since December 20, 1954, defendant has had knowledge of the stipulated minimum retail prices established by plaintiff for plaintiff's said commodities under said agreements.

 4. On June 8, 1955, defendant was adjudged in contempt of court and required to pay a fine by reason of sales of plaintiff's trade-marked products at prices which were less than the fair trade prices for such commodities in violation of the Pennsylvania Fair Trade Act and the order of court dated December 20, 1954, said sales having occurred between December 20, 1954 and June 7, 1955.

 5. On November 15, 1955, defendant was adjudged in contempt of court and required to pay a fine by reason of sales of plaintiff's trade-marked products at prices which were less than the fair trade prices for such commodities in violation of the Pennsylvania Fair Trade Act and the order of court dated December 20, 1954, said sales having occurred between June 7, 1955 and November 15, 1955.

 6. On January 9, 1957, defendant was adjudged in contempt of court for the third time and was fined in the sum of $ 1,000, 'said fine to be paid to and for the benefit of plaintiff, General Electric Company', of which $ 250 was to be paid forthwith and the balance of $ 750 was suspended on condition that if any further violation by defendant of the order of this court dated December 20, 1954, was thereafter found to have occurred within one year after the date of the order, said balance was to be immediately due and payable.

 7. The terms and conditions of the order of January 9, 1957, imposing the fine for the third contempt were drafted by, and pursuant to the consent and agreement of, plaintiff and defendant.

 8. The violations resulting in the third adjudication of contempt were committed by or under the direction of one William Erbstein, the manager of the defendant's store located on Fifth Avenue, Pittsburgh, Pennsylvania, who had personal knowledge of the injunction of December 20, 1954. The defendant knew that his manager was responsible for these violations.

 9. Subsequently, on July 2, 1957, the said William Erbstein, the manager of defendant's Fifth Avenue store, acting within the course and scope of his employment, and with knowledge of the injunction and coercive fine, exhibited, offered to sell and sold, one of the plaintiff's trade-marked irons, model No. F-60, the Fair Trade price of which was $ 15.95, for $ 12.75.

 10. Again, on July 9, 1957, the said William Erbstein, the manager of defendant's Fifth Avenue store, acting with the knowledge as aforesaid, exhibited, offered to sell and sold, one of the plaintiff's trade-marked irons, model No. F-43, the Fair Trade price of which was $ 12.95 for $ 10.25.

 11. Said sales were not for the purpose of closing out defendant's stock of said commodities or because said commodities were damaged or deteriorated in quality, and such sales were not made by an officer under the orders ...


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