Engrossing
Encyclopedia
Engrossing, forestalling and regrating were marketing offences in English common law
. The terms were used to describe unacceptable methods of influencing the market, sometimes by creating a local monopoly for a certain good, usually food. The terms were often used together, and with overlapping meanings. They are obsolete.
Blackstone’s Commentaries described them as offences against public trade:
forestalling - the buying or contracting for any merchandise or victual coming in the way of the market; or dissuading persons from bringing their goods or provisions there; or persuading them to enhance the price, when there; any of which practices make the market dearer to the fair trader.
regrating - the buying of corn or other dead victual, in any market, and selling it again at the same market, or within four miles of the place. For this also enhances the prices of the provisions, as every successive seller must have a successive profit.
engrossing - the getting into one’s possession, or buying up, large quantities of corn, or other dead victuals, with intent to sell them again. This must of course be injurious to the public, by putting it in the power of one or two rich men to raise the price of provisions at their own discretion.
Blackstone described a monopoly
as “the same offence in other branches of trade”, i.e., not food.
offence. The derivation does not come from setting up a stall in front of another but buying before the goods got to a stall in open market. Typically, forestalling referred to the practice of intercepting sellers on their way to a market
, buying up their stock, then taking it to the market and marking it up, which appears to be a type of arbitrage
. It could also mean the creation of partnerships or agreements under which goods would not be brought to market. Forestalling is often used and understood as a catch all clause for marketing offences.
The Domesday Book
recorded that "foresteel" (i.e. forestalling, the practice of buying up goods before they reach market and then inflating the prices) was one of three forfeiture
s that King Edward the Confessor could carry out through England. As early as 1321 the practice of forestalling was recognised as a specific offence and was regulated in London
in the early twelfth century, and in other cities and towns, including goods coming by land or seaii. However, originally the word itself was not used. In the laws of Henry I of England
forestalling was the crime of assault on the highway
an offence against the King's Peace
. It acquired the meaning of the marketing offence through the distribution of the regulations of the Marshalsea
whose officers were empowered by Edward I of England
to regulate trade in the shires. In time these regulations became known as the Statute of Forestallers, though probably never passed by any formal process. The laws provided for heavy penalties against foretsalling. In practice the normal penalty was a fine, or, for repeated cases, exposure in the pillory
.
The Act excluded from the penalties it imposed the purchase and sale “in open Fair or Market” of “corn, Fish, Butter or Cheese, by any such badger
, Lader, Kidder, or Carrier” as was granted a licence by three Justices of the Peace from the County in which he dwelt.
(5 Elizabeth I, c 12)iv. The Act recited that “such a great Number of Persons seeking only to live easily, and to leave their honest Labour, have and do daily seek to be allowed and licensed . . . being most unfit and unmet for those Purposes . . . diminishing the Number of good and necessary Husbandmen”.
Under this Act a licence could only be granted under strict conditions. Badgers had to be male, resident in the shire for 3 years, householders, (have been) married, and 30 years of age, or more. Household servants or Retainers could not apply. In addition to buy corn or grain out of market or fair to sell again, the licence had to contain “express words” allowing this. Licences could only be granted at Quarter Sessions, and by three Justices, of whom one had to be of the Quorum
. Each one had to sign and seal the Licence. The Licence could be granted for no more than a year, and all licences expired on 1 May unless expressed to last longer. The Justices were entitled, but not required, to require a “bond or surety” by recognisance from or for the Badger. This could be up to £5, the maximum penalty for a first offence against the Act. The Clerk of the Peace, or Deputy Clerk, but no lesser officer, had to write out the Licence, which cost 12 pence, and to enter the terms of licences in a register, which had to be produced at the Quarter Sessions.
The Act was written in very detailed terms. The stringent technical requirements suggest that the legislature were concerned not only that markets were being threatened by competition from unregulated traders but also that Licences were too freely available, either legitimately because the Justices did not know how many were being granted, but also that they were being obtained illegally, perhaps from corrupt court officials, or counterfeiters. Counterfeit licences for vagabonds and others were a constant problem. In practice licences were granted outside these conditions, including to women.
Although Badgers, in common with most travellers in medieval and Elizabethan times, were required to have a Licence, and presumably carried it with them and produced it if challenged, there was no requirement in the legislation for them to wear a badge. There is anecdoctal reference to it, and it is possible that in practice there was a custom or habit for them to do so, or be required to do so at some markets, (e.g., Smithfield Market).
English law
English law is the legal system of England and Wales, and is the basis of common law legal systems used in most Commonwealth countries and the United States except Louisiana...
. The terms were used to describe unacceptable methods of influencing the market, sometimes by creating a local monopoly for a certain good, usually food. The terms were often used together, and with overlapping meanings. They are obsolete.
Blackstone’s Commentaries described them as offences against public trade:
forestalling - the buying or contracting for any merchandise or victual coming in the way of the market; or dissuading persons from bringing their goods or provisions there; or persuading them to enhance the price, when there; any of which practices make the market dearer to the fair trader.
regrating - the buying of corn or other dead victual, in any market, and selling it again at the same market, or within four miles of the place. For this also enhances the prices of the provisions, as every successive seller must have a successive profit.
engrossing - the getting into one’s possession, or buying up, large quantities of corn, or other dead victuals, with intent to sell them again. This must of course be injurious to the public, by putting it in the power of one or two rich men to raise the price of provisions at their own discretion.
Blackstone described a monopoly
Monopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
as “the same offence in other branches of trade”, i.e., not food.
Forstalling
Blackstone says that this was a common lawCommon law
Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...
offence. The derivation does not come from setting up a stall in front of another but buying before the goods got to a stall in open market. Typically, forestalling referred to the practice of intercepting sellers on their way to a market
Market town
Market town or market right is a legal term, originating in the medieval period, for a European settlement that has the right to host markets, distinguishing it from a village and city...
, buying up their stock, then taking it to the market and marking it up, which appears to be a type of arbitrage
Arbitrage
In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices...
. It could also mean the creation of partnerships or agreements under which goods would not be brought to market. Forestalling is often used and understood as a catch all clause for marketing offences.
The Domesday Book
Domesday Book
Domesday Book , now held at The National Archives, Kew, Richmond upon Thames in South West London, is the record of the great survey of much of England and parts of Wales completed in 1086...
recorded that "foresteel" (i.e. forestalling, the practice of buying up goods before they reach market and then inflating the prices) was one of three forfeiture
Asset forfeiture
Asset forfeiture is confiscation, by the State, of assets which are either the alleged proceeds of crime or the alleged instrumentalities of crime, and more recently, alleged terrorism. Instrumentalities of crime are property that was allegedly used to facilitate crime, for example cars...
s that King Edward the Confessor could carry out through England. As early as 1321 the practice of forestalling was recognised as a specific offence and was regulated in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
in the early twelfth century, and in other cities and towns, including goods coming by land or seaii. However, originally the word itself was not used. In the laws of Henry I of England
Henry I of England
Henry I was the fourth son of William I of England. He succeeded his elder brother William II as King of England in 1100 and defeated his eldest brother, Robert Curthose, to become Duke of Normandy in 1106...
forestalling was the crime of assault on the highway
Highway
A highway is any public road. In American English, the term is common and almost always designates major roads. In British English, the term designates any road open to the public. Any interconnected set of highways can be variously referred to as a "highway system", a "highway network", or a...
an offence against the King's Peace
King's peace
King's peace may refer to:*a term in Anglo-Saxon law*the Queen's peace in contemporary English law*Peace of Antalcidas, between Ancient Greek city-states and Persia*The King's Peace, a fantasy novel by Jo Walton...
. It acquired the meaning of the marketing offence through the distribution of the regulations of the Marshalsea
Marshalsea
The Marshalsea was a prison on the south bank of the River Thames in Southwark, now part of London. From the 14th century until it closed in 1842, it housed men under court martial for crimes at sea, including those accused of "unnatural crimes", political figures and intellectuals accused of...
whose officers were empowered by Edward I of England
Edward I of England
Edward I , also known as Edward Longshanks and the Hammer of the Scots, was King of England from 1272 to 1307. The first son of Henry III, Edward was involved early in the political intrigues of his father's reign, which included an outright rebellion by the English barons...
to regulate trade in the shires. In time these regulations became known as the Statute of Forestallers, though probably never passed by any formal process. The laws provided for heavy penalties against foretsalling. In practice the normal penalty was a fine, or, for repeated cases, exposure in the pillory
Pillory
The pillory was a device made of a wooden or metal framework erected on a post, with holes for securing the head and hands, formerly used for punishment by public humiliation and often further physical abuse, sometimes lethal...
.
The Act against Regrators, Forestallers and Ingrossers
In 1552 Edward VI’s Parliament passed an Act to regulate trade, saying in the preamble, as so often, that previous laws had proved inadequate (5&6 Edward VI c.12)iii.The Act excluded from the penalties it imposed the purchase and sale “in open Fair or Market” of “corn, Fish, Butter or Cheese, by any such badger
Badger (person)
A badger was, in English, a term of uncertain derivation for a dealer in food or victuals which he had purchased in one place and carried for sale in another place. The Oxford English Dictionary gives the earliest entry as being from Bristol in 1500, but there were bagergates at York in 1243 and...
, Lader, Kidder, or Carrier” as was granted a licence by three Justices of the Peace from the County in which he dwelt.
The Act touching Badgers of Corn and Drovers of Cattle, to be licensed
Like its precursors this Act was perceived to be inadequate, in 1562 the Parliament of Elizabeth I passed a further Act, tightening the regulation of badgers and droversDroving
Droving is the practice of moving livestock over large distances by walking them "on the hoof".Droving stock to market, usually on foot and often with the aid of dogs, has a very long history in the old world...
(5 Elizabeth I, c 12)iv. The Act recited that “such a great Number of Persons seeking only to live easily, and to leave their honest Labour, have and do daily seek to be allowed and licensed . . . being most unfit and unmet for those Purposes . . . diminishing the Number of good and necessary Husbandmen”.
Under this Act a licence could only be granted under strict conditions. Badgers had to be male, resident in the shire for 3 years, householders, (have been) married, and 30 years of age, or more. Household servants or Retainers could not apply. In addition to buy corn or grain out of market or fair to sell again, the licence had to contain “express words” allowing this. Licences could only be granted at Quarter Sessions, and by three Justices, of whom one had to be of the Quorum
Quorum
A quorum is the minimum number of members of a deliberative assembly necessary to conduct the business of that group...
. Each one had to sign and seal the Licence. The Licence could be granted for no more than a year, and all licences expired on 1 May unless expressed to last longer. The Justices were entitled, but not required, to require a “bond or surety” by recognisance from or for the Badger. This could be up to £5, the maximum penalty for a first offence against the Act. The Clerk of the Peace, or Deputy Clerk, but no lesser officer, had to write out the Licence, which cost 12 pence, and to enter the terms of licences in a register, which had to be produced at the Quarter Sessions.
The Act was written in very detailed terms. The stringent technical requirements suggest that the legislature were concerned not only that markets were being threatened by competition from unregulated traders but also that Licences were too freely available, either legitimately because the Justices did not know how many were being granted, but also that they were being obtained illegally, perhaps from corrupt court officials, or counterfeiters. Counterfeit licences for vagabonds and others were a constant problem. In practice licences were granted outside these conditions, including to women.
Although Badgers, in common with most travellers in medieval and Elizabethan times, were required to have a Licence, and presumably carried it with them and produced it if challenged, there was no requirement in the legislation for them to wear a badge. There is anecdoctal reference to it, and it is possible that in practice there was a custom or habit for them to do so, or be required to do so at some markets, (e.g., Smithfield Market).