The invalidation and consequent abandonment of the N.I.R.A. did not bring to an end the trends of which it was, in fact, merely a manifestation rather than a cause. Section 7a had its precursors in the Railway Labor Act of 1926, the Norris Anti-Injunction Act of 1932, and similar state laws, and has been carried over in the National Labor Relations Act. The price maintenance provisions of the codes were the result of years of effort on the part of the American Fair Trade League to legalize resale price maintenance contracts. Today, various state Fair Trade Acts go much farther than the codes dared to go in establishing resale price maintenance even apart from privity of contract. Trade associations have continued their efforts to “rationalize” industry through the collection of statistics on capacity, production, sales, and prices, trusting that the courts will permit this to be done through a more liberal interpretation of the anti-trust laws. Pending further national legislation to be built upon the broader interpretation of the commerce power enunciated in the Labor Relations Act decisions, business efforts to set minimum prices have been carried on under a mantle of state and local legislation. Various trades and professions, desiring to carry forward their efforts to standardize minimum working conditions and professional practices in their fields, have also sought the aid of the states and of their local governments. Consequently, much of the work of the state courts during the year 1936–37 concerned the validity of these undertakings. There was also the normal run of cases in the various fields of state constitutional law. As last year (see this Review, Aug., 1936, pp. 692–712), the decisions will be discussed under the following headings: (1) separation and delegation of powers; (2) inter-governmental relations; (3) individual rights: procedural; (4) individual rights: substantive; and (5) fiscal powers. However, the nature of the material has necessitated a complete rearrangement of the subject-matter within each heading.
Antitrust: Resale Price Maintenance: Legality of Fair Trade Contracts Made by Integrated Firm