N.M. Const. art. IV, § 38 – [Monopolies.]

The legislature shall enact laws to prevent trusts, monopolies and combinations in restraint of trade.

ANNOTATIONS

Cross references. — For restraints of trade, see 57-1-1 to 57-1-6 NMSA 1978.

For monopolies, restraints of trade and the like in the motion picture business, see 57-5-1 to 57-5-22 NMSA 1978.

For Unfair Practices Act, see 57-12-1 NMSA 1978 et seq.

For Price Discrimination Act, see 57-14-1 to 57-14-9 NMSA 1978.

For trade practices and frauds, see Article 16 of Chapter 59A NMSA 1978.

For improper trade practices in the sale of alcoholic beverages, see Article 8A of Chapter 60 NMSA 1978.

Comparable provisions. — Idaho Const., art. XI, § 18.

Utah Const., art. XII, § 20.

Wyoming Const., art. X, § 8.

Purpose. — The constitutional prohibition contained in this section is aimed at preventing such monopolies and combinations as would, in effect, result in a practically complete destruction of competition. Skaggs Drug Center v. General Elec. Co., 1957-NMSC-083, 63 N.M. 215, 315 P.2d 967.

"Price control". — The makers of the constitution did not intend to include the words "price control" in this section. Skaggs Drug Center v. General Elec. Co., 1957-NMSC-083, 63 N.M. 215, 315 P.2d 967.

Exercise of police power over business or profession. — While language of this section enjoins legislation tending to create monopolies, it must yield to the more important consideration of reasonably exercising the police power over a business or profession having a vital relation to public welfare and health; former 61-17-37 NMSA 1978, fixing a minimum price for barber work, had a direct relation to public health and did not violate this section. Arnold v. Board of Barber Exam'rs, 1941-NMSC-003, 45 N.M. 57, 109 P.2d 779.

Former Fair Trade Act. — The Fair Trade Act (former Section 49-2-4, 1953 Comp.) did not violate this section of the state constitution. Skaggs Drug Center v. General Elec. Co., 1957-NMSC-083, 63 N.M. 215, 315 P.2d 967.

Restrictions in townsite deeds on sale of alcohol. — This section is not violated by restricted deeds of an improvement company establishing a townsite and restricting forever the sale of intoxicating liquor in the town to one block, by such persons as are designated by the company, such restriction being for the benefit of the community and without intent to create a monopoly. Alamogordo Imp. Co. v. Prendergast, 1940-NMSC-075, 45 N.M. 40, 109 P.2d 254.

Law reviews. — For article, "New Mexico Restraint of Trade Statutes - A Legislative Proposal," see 9 N.M. L. Rev. 1 (1978-79).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 54A Am. Jur. 2d Monopolies, Restraints of Trade and Unfair Trade Practices § 781 et seq.

Interstate transaction, applicability of state antitrust act to, 24 A.L.R. 787.

Constitutionality of statutes making certain facts presumptive evidence of violation of regulations, 51 A.L.R. 1169, 86 A.L.R. 179, 162 A.L.R. 495.

Statute prohibiting buyer or seller of commodities from fixing prices in one locality higher or lower than in another, 67 A.L.R.3d 26.

Reputation or repute, constitutionality of statute relating to combinations in restraint of trade which predicates criminality upon, 92 A.L.R. 1235.

Application of state "fair trade" law to nonsigning reseller as violation of federal anti-trust laws, 19 A.L.R.2d 1139.

Filling stations: restrictive agreement or covenant in respect of purchase or handling of petroleum products by operator of filling station as in restraint of trade or in violation of antitrust statute, 26 A.L.R.2d 219.

Validity, under state constitutions, of nonsigner provisions of Fair Trade Laws, 60 A.L.R.2d 420.

Public utilities: validity of contract between public utilities, other than carriers, dividing territory and customers, 70 A.L.R.2d 1326.

Banks: application to banks and banking institutions of antimonopoly or antitrust laws, 83 A.L.R.2d 374.

Validity, construction and effect of real estate broker's multiple listing agreement, 45 A.L.R.3d 190.

Propriety, under state law, of manufacturer's or supplier's refusal to sell medical product to individual physician, hospital, or clinic, 45 A.L.R.4th 1006.

58 C.J.S. Monopolies § 27.