THE MICHIGAN PENAL CODE (EXCERPT) Act 328 of 1931
750.151 Contracts; conspiracy; penalty. Sec. 151.
All contracts, agreements, understandings, and combinations made, entered into, or knowingly assented to, by and between any parties capable of making a contract or agreement which would be valid at law or in equity, the purpose or object or intent of which shall be to limit, control, or in any manner to restrict or regulate the amount of production or the quantity of any article or commodity to be raised, or produced by mining, manufacture, agriculture, or any other branch of business or labor, or to enhance, control or regulate the market price thereof, or in any manner to prevent or restrict free competition in the production or sale of any such article or commodity, shall be illegal and void, and every such contract, agreement, understanding, and combination shall constitute a criminal conspiracy. And every person who, for himself or herself personally, or as a member, or in the name of a partnership, or as a member, agent, or officer of a corporation, or of any association for business purposes of any kind, who shall enter into or knowingly consent to any such void and illegal contract, agreement, understanding, or combination, shall be deemed a party to such conspiracy. All parties so offending shall be guilty of a misdemeanor punishable by imprisonment in the county jail for not more than 6 months or a fine of not more than $750.00. And the prosecution for offenses under this section may be instituted and the trial had in any county where any of the conspirators become parties to such conspiracy, or in which any 1 of the conspirators shall reside. This section shall in no manner invalidate or affect contracts for what is known and recognized as common law and in equity as contracts for the "good will of a trade or business"; but all such contracts shall be left to stand upon the same terms and within the same limitations recognized at common law and in equity.
History: 1931, Act 328, Eff. Sept. 18, 1931 ;-- CL 1948, 750.1 ;-- Am. 2002, Act 672, Eff. Mar. 31, 2003 Former Law: See section 1 of Act 225 of 1889, being How., § 9354j; CL 1897, § 11377; CL 1915, § 15095; and CL 1929, § 16674.
Understanding Michigan Law on Conspiracy Contracts: Section 750.151 of the Michigan Penal Code Simplified
Section 750.151 of the Michigan Penal Code is about unlawful contracts and agreements that aim to limit or control production, affect market prices, or hinder competition. The punishment for these activities is also described. Here's a simplified explanation:
All contracts, agreements, understandings, and combinations (even if not in writing) made by any parties capable of entering into a legally valid contract are illegal and void if they aim to:
- Limit, control, or regulate the amount of any item or commodity to be produced or mined, manufactured, grown, or created in any other kind of business or labor.
- Enhance, control, or regulate the market price of any such item or commodity.
- In any way, prevent or restrict free competition in the production or sale of any such item or commodity.
These types of contracts are considered to be criminal conspiracies.
Anyone who, either individually or as part of a partnership, corporation, or any business association, enters into or knowingly agrees to such an illegal and void contract is considered to be a party to this conspiracy.
Anyone found guilty of this offense is punishable by up to 6 months in county jail, a fine of up to $750, or both. Prosecution for offenses under this law can be initiated and trial held in any county where any of the conspirators became involved in the conspiracy, or where any of them reside.
This law does not invalidate contracts for what is known at common law and in equity as contracts for the "good will of a trade or business". These contracts are still recognized within the limitations of common law and equity.
In simple terms, this law makes it illegal to make agreements or contracts that control production amounts, manipulate market prices, or hinder free competition. If found guilty, a person can face jail time, a fine, or both. However, it does not affect contracts for the "good will of a trade or business".