Texas Attorney General Opinion: WW-1043 Page: 3 of 5
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Heon. Bill Hollowell, page 3 (WW- 1043)
evidence of the purpose or intent to injure
competitors or destroy competition. "
It is contended that the above quoted Section of the bill creates
an unconstitutional evidentiary presumption and violates due process of
law provided in Article 1, Section 19 of the Texas Constitution and the
14th Amendment of the United States Constitution.
"It is competent for a legislative body to pro-
vide by statute or ordinance that proof of cer-
tain facts shall be prima facie presumptive
evidence of other facts, if there is a natural
and rational evidentiary relation between the
facts proved and those presumed; such statutes
or ordinances are within the well settled power
of the legislature to change the rules of evid-
ence and do not infringe upon the rights of the
judiciary nor violate the provisions of the Fed-
eral or State Constitution. " People v. Fitzgerald
(1936), 14 Cal. App. 2d 180, 58P2d 718 (writ of
certiorari denied 1936) 299 U.S. 593, 81 L. Ed.
437.
We are unable to find any law enacted in the several states having
laws covering unfair trade practices that contains a provision identical to
Section 5 of the bill under consideration.
The California statutes dealing with unfair sales practices contain
a somewhat similar provision to Section 5 of the proposed Sales Limitation
Act.
Section 5 [ California Act] provides that in all
actions brought under the provisions of the
statute the proof of one or more acts of selling
below cost, together with proof of the injurious
effect of such acts, "shall be presumptive evi-
dence of the purpose or intent to injure com-
petitors or destroy competition. "
The Supreme Court of California in People v. Pay Less Drug
Store, 153 P. 2d 9, upheld their Act, and particularly Section 5 thereof,
and on page 13, stated,
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Texas. Attorney-General's Office. Texas Attorney General Opinion: WW-1043, text, May 1, 1961; (https://texashistory.unt.edu/ark:/67531/metapth267655/m1/3/: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.