Reliance by retailer on guaranty provided by supplier--Knowledge of falsity--Liability of supplier.

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37-2-17. Reliance by retailer on guaranty provided by supplier--Knowledge of falsity--Liability of supplier.

No retail dealer shall be prosecuted under the provisions of §§37-2-5 to 37-2-24, inclusive, so far as they relate to the labeling and quality of any petroleum product if he can establish a guaranty, signed by the wholesaler, jobber, manufacturer, or other person from whom he purchased such product, to the effect that the product and the barrels, casks, or other containers in which the same was purchased and all brands, stencils, or other forms of labels on the same were in full compliance with the provisions of those sections as to tests, quality, and labeling, unless he shall have knowledge or notice of the falsity of such guaranty, and unless he shall, after receiving such product, efface or change in any manner the brands, stencils, or other labels of such barrels, casks, or other containers or shall dilute, mix, manipulate, or change in any manner such product, but the person making such guaranty shall be subject to the fines and penalties which otherwise would attach to such dealer. Such guaranty to afford protection shall contain the name and post-office address of the person making the sale of such products.

Source: SDC 1939, §22.1518; SDCL, §39-21-26.


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