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Kern Limerick, Inc. v. Scurlock, 347 U.S. 110 (1954)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Kern Limerick, Inc. v. Scurlock, 347 U.S. 110 (1954)
Kern Limerick, Inc. v. Scurlock No. 115 Argued January 4, 1954 Decided February 8, 1954 347 U.S. 110
APPEAL FROM THE SUPREME COURT OF ARKANSAS
Syllabus
The Arkansas Gross Receipts Tax Law of 1941, which levies on sellers an excise tax of 2% on the gross receipts from all sales in the State, held unconstitutional as applied to the transactions here involved, whereby private contractors procured in Arkansas two tractors for use in constructing a naval ammunition depot for the United States under a cost plus fixed fee contract entered into with the Navy Department under §§ 2(c)(10) and 4(b) of the Armed Services Procurement Act of 1947, and providing that, in procuring articles required for accomplishment of the work, the contractor should act as purchasing agent for the Government, title to the articles purchased should pass directly from the vendor to the Government, and the Government should be directly liable to the vendor for payment of the purchase price. Pp. 111-123.
(a) The Procurement Act authorized the purchase of this machinery by the Navy for the construction of an ammunition depot. P. 114.
(b) Under the Procurement Act, the Navy Department has power to negotiate contracts which provide for private purchasing agents for supplies and materials. Pp. 114-116.
(c) The restrictions in § 7(b) on delegations of authority are not applicable to actions under § 2(c)(10). Pp. 115-116.
(d) Under the contract here involved, the United States was the real purchaser; the naming of the Government as purchaser was not merely colorable, and did not leave the contractor the real purchaser. Alabama v. King & Boozer, 314 U.S. 1, distinguished. Pp. 116-122.
(e) The drafting of the contract by the Navy Department to conserve Government funds, if that was the purpose, does not change the character of the transaction. Pp. 122-123.
221 Ark. 439, 254 S.W.2d 454, reversed.
The Supreme Court of Arkansas held the Arkansas Gross Receipts Tax Law of 1941, Ark. Stat., 1947, § 81901 et seq., applicable to the sale of certain machinery in Arkansas for use in the construction of a naval ammunition depot for the United States. 221 Ark. 439, 254 S.W.2d 454. On appeal, to this Court, reversed, p. 123.
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Chicago: U.S. Supreme Court, "Syllabus," Kern Limerick, Inc. v. Scurlock, 347 U.S. 110 (1954) in 347 U.S. 110 347 U.S. 111. Original Sources, accessed November 22, 2024, http://originalsources.com/Document.aspx?DocID=7X789N9VJMMCRBL.
MLA: U.S. Supreme Court. "Syllabus." Kern Limerick, Inc. v. Scurlock, 347 U.S. 110 (1954), in 347 U.S. 110, page 347 U.S. 111. Original Sources. 22 Nov. 2024. http://originalsources.com/Document.aspx?DocID=7X789N9VJMMCRBL.
Harvard: U.S. Supreme Court, 'Syllabus' in Kern Limerick, Inc. v. Scurlock, 347 U.S. 110 (1954). cited in 1954, 347 U.S. 110, pp.347 U.S. 111. Original Sources, retrieved 22 November 2024, from http://originalsources.com/Document.aspx?DocID=7X789N9VJMMCRBL.
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