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GOLD BOND STAMP v. MACDONALD STAMP

17 A.D.2d 17 (1962)

Gold Bond Stamp Company of New York, Appellant, v. E. F. MacDonald Stamp Company et al., Respondents

Appellate Division of the Supreme Court of the State of New York, First Department.

As Republished July 13, 1962.

Attorney(s) appearing for the Case

William L. Lynch of counsel (Joseph Chase, Arthur Elfenbein and Dennis J. Kenny with him on the brief; Cleary, Gottlieb & Steen, attorneys), for appellant.

Lawrence E. Walsh of counsel (Richard E. Nolan, Roland W. Donnem and T. Richard Brown with him on the brief; Davis Polk Wardwell Sunderland & Kiendl, attorneys), for respondents.

McNALLY and EAGER, JJ., concur with STEUER, J.; VALENTE, J. P., dissents in opinion.

STEUER, J.

Plaintiff and defendant MacDonald Stamp Company are competitors in the trading stamp business. The business operates in this way: The company contracts with retail merchants to sell them trading stamps which the merchants give as a bonus to their customers in proportion to the amount of the latter's purchases. The customer can use the stamps to acquire merchandise at stores maintained by the company...

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