United States Supreme Court Cases & Opinions

U.S. Supreme Court

Felt & Tarrant Mfg. Co. v. Gallagher, 306 U.S. 62 (1939)

Felt & Tarrant Manufacturing Co. v. Gallagher

No. 302

Argued December 13, 1938

Decided January 30, 1939

306 U.S. 62

Syllabus

An Illinois corporation, not qualified to do local business in California, solicited orders for its goods from California purchasers through agents for whom it hired offices in that State and who took the orders subject to the vendor's approval. Goods sold were sent by the vendor from outside of California directly to the purchasers or to the agents for distribution to them. Prices were paid to the vendor directly, in Illinois.

Held: that California constitutionally may apply to such nonresident corporation the provision of its Use Tax Act requiring retailers maintaining a place of business in the State, and making sales of tangible personal property for storage, use, or other consumption therein, to collect from the purchasers the taxes imposed. P. 306 U. S. 64.

The Act, so applied, is consistent with the commerce clause, and with the due process clause of the Fourteenth Amendment.

23 F.Supp. 186 affirmed.

Page 306 U. S. 63

Appeal from a District Court of three judges dismissing a bill to enjoin appellees from enforcing a tax act.

Page 306 U. S. 64