Glaser Bros. v. 21st Sales Co.

Plaintiff Glaser Bros., a corporation, brought this action to obtain a temporary restraining order and a preliminary and permanent injunction enjoining defendant 21st Sales Company, a corporation; GEM, a corporation ; Park View Drug Co., a corporation; and Cecil Hill, from advertising, offering for sale, or selling a specified brand of trademarked cigars at less than the minimum prices stipulated therefor in certain fair trade contracts entered into pursuant to the Fair Trade Act (Bus. & Prof. Code, §§ 16900-16905).

Plaintiff, as the exclusive California distributor of Roi-Tan cigars, entered into certain fair trade contracts throughout the state with various retailers and therein stipulated the minimum resale prices at which said cigars could be sold at retail. Plaintiff entered into these contracts with the knowledge, consent, and authority of the manufacturer.

In October 1961, defendant GEM prepared to open a “discount house” in San Jose. Defendant 21st Sales Company, a corporation owned and controlled by defendant Park View Drug Co., was to operate the concession or department of the “discount house” in which cigars were to be sold. On October 20, 1961, Mr. Soule, the…