10 UNIT NINE: GOVERNMENT REGULATION
another person, or for any firm or corporation, or any corporation who or which shall violate any of the
provisions of this subchapter is guilty of a misdemeanor for each single violation and upon conviction shall be
punished by a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000)
or by imprisonment not exceeding six (6) months, or by both a fine and imprisonment in the discretion of the
4-75-205 Forfeiture of charter, rights, etc. -- Proceedings.
(a) Upon the third violation of any of the provisions of this subchapter by any corporation, it shall be the duty
of the Attorney General to institute proper suits or quo warranto proceedings in any court of competent
jurisdiction for the forfeiture of its charter, rights, franchises, or privileges and powers exercised by the
corporation, and to permanently enjoin it from transacting business in this state.
(b) If in such action the court finds that the corporation is violating or has violated any of the provisions of this
subchapter, it must enjoin the corporation from doing business in this state permanently or for such time as
the court shall order, or must annul the charter or revoke the franchise of the corporation.
4-75-206 Contracts violating subchapter illegal.
Any contract, express or implied, made by any person, firm, or corporation in violation of any of the
provisions of this subchapter is declared to be an illegal contract and no recovery thereon shall be had.
4-75-207 Destruction of competition by price discrimination prohibited.
(a) It shall be unlawful for any person, firm, or corporation doing business in the State of Arkansas and
engaged in the production, manufacture, distribution, or sale of any commodity or product or of service or
output of a service trade of general use or consumption or of the product or service of any public utility with
the intent to destroy the competition of any regular established dealer in the commodity, product, or service,
or to prevent the competition of any person, firm, private corporation, or municipal or other public corporation
who or which in good faith intends and attempts to become a dealer to discriminate between different
sections, communities, or cities or portions thereof, or between different locations in the sections,
communities, cities, or portions thereof in this state, by selling or furnishing the commodity, product, or
service at a lower rate in one section, community, or city or any portion thereof, or in one location in the
section, community, or city or any portion thereof, than in another, after making allowance for difference, if
any, in the grade, quality, or quantity and in the actual cost of transportation from the point of production, if a
raw product or commodity, or from the point of manufacture, if a manufactured product or commodity.
(b) The inhibition of this section against locality discrimination shall include any scheme of special rebates,
collateral contracts, or any device of any nature whereby such discrimination is, in substance or fact, effected
in violation of the spirit and intent of this subchapter.
(c) This subchapter shall not be construed to prohibit the meeting in good faith of a competitive rate, or to
prevent a reasonable classification of service by public utilities for the purpose of establishing rates.
4-75-208 Secret payments or allowance of rebates, refunds, etc. -- Penalty.
(a) The secret payment or allowance of rebates, refunds, commissions, or unearned discounts, whether in
the form of money or otherwise, or secretly extending to certain purchasers special services or privileges not
extended to all purchasers purchasing upon like terms and conditions, to the injury of a competitor and
where the payment or allowance tends to destroy competition, is an unfair trade practice.
(b) Any person, firm, partnership, corporation, or association resorting to such trade practice shall be