Advisory opinion letter

Letter of RequR.st
Aug. , 1974.
Dear Sir:

On behalf of Metals and Jewels, Inc., a District of Columbia corporation, I hereby request an advisory opinion with respect to the following proposed course of action:

Background Edward L. Kohr and Seymour Globus conceived an invention consisting of an alloy of 14 karat gold and sterling silver, combined in equal parts. Messrs. Kohrn and Globus have applied for letters patent covering their invention and have assigned such application, and any letters patent which may issue thereon, to Metals and ,Jewels, Inc. Metals and Jewels, Inc. proposes to produce and sell quantitities of the alloy for use in the manufacture of articles of jewelry. Custom and usage in the jewelr industry is such that in order to sell quantities of the alloy to jewelr manufacturers, Metals and ,Jewels, Inc. must provide said manufacturers with assur,mces that articles of jewelr composed of the alloy may be stamped with a quality mark indicating that such article is composed throughout of an alloy of precious metals. ,

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Proposed Coure of Action It is proposed that articles of jewelry manufactured from the alloy described above and composed throughout of the alloy be imprinted with the quality mark" Al10y 1/2 14 K + 1/2 Ster." The quality mark wil1 be of sufficient size type as to be legible to persons of normal vision and shall be so placed as likely to be observed by purchasers or prospective purcha.,ers. There wil1 be no difference in the size of letters or words within the quality mark.

Discussion The general rules applicable to the proposed course of action are set forth in Title 16 of the Code of Federal Regulations paricularly in Sections 23. , 23.23 and 23.25 thereof. Those sections deal with misrepresentations as to the gold and silver content of an aricle of jewelry and the use of quality mark., with respect to the composition of articles composed of precious metals and al10ys thereof. It is submitted that use of the proposed qualty mark wil1 not misrepresent the gold content of the aricle of jewelr, wil not misrepresent the silver content of said article and wil1 not deceive purcbasers or prospective purchasers of the aricle as to the metalic composition of the aricle. Attached is the report of Robert B. Pond, Jr., Ph. , analyzing an assay of the alloy. Dr. Pond concludes that the assay is consistent with the description of the al10y as being composed of equal parts of 14 kat gold and sterling silver. Based on Dr. Pond' s findings, use of the quality mark described above accurately represents the gold and silver content of the alloy and will not in any way deceive a purchaser of an aricle composed of the al10y as to the metallic composition thereof.

Request for Advisory Opinion Metals and Jewels, Inc. hereby requests that the Commssion issue an advisory opinion that the coure of action proposed, on the basis of the facts submitted, wil1 not violate any rue or regulation of the Commission applicable to the jewelry industry. The course of action is not curently being fol1owed by the requesting pary and is not the subject of a pending investigation or other proeeding by the Commission or any other governental agency. If any questions arse concernng this request for an advisory opinion, please call the undersigned at 293-1807 (on the District of Columbia exchange). C A conference is respectfuly requested if the Commission is considering an advisory opinion that the proposed course of action may not be implemented.

Sincerely yours

589-7990- ?h - , ,

1214 FEn,:RAL TRADE COMMISSION DECISIONS

H5 F.
/s/ Howard B. Miller
/s! John J. Ghingher, II

AttachmRnt to Letter of Request
Aug. 2!), 1974
Dear Sirs:

I have examined the report which you furnshed of a "Birmngham assay of a metal alloy allegedly produced by mixing 14kt gold and sterling silver in equal pars by weight.

I intend to show that the assay conflTS that the alloy sample contains gold and silver in quantities consistant with a mixture of 14kt gold and sterling silver in equal pars by weight. 1. Note that the original 14kt gold must have contaned not less than 14/24ths. or 581)/1000 pars gold by weight. 2. The original sterling silver alloy must have contained not less than 921/100 pars silver by weight.

The weight fractions of gold and silver in a mixture of 14kt gold and sterling silver in equal parts by weight would be one hal the original fractions. Therefore the final alloy must be composed of not less than 3. 1/2x585/IOOO 292.5/100 pars gold by weight, and 4. 1/2x925/100 462.5/100 pars silver by weight.

The assay reported:
117.2mg gold
187.93mg silver
390.l)mg total

The weight fraction of gold from the assay is 5. 117.2mg gold/390.l)mg total 300.1/100 parts gold by weight. This IS greater than the nummum gold requiement of 292.5/100( #3).

The weight fraction of silver from the assay is silver by 6. 187.93mg silver/390.5mg total 481.25/100 par weight.

This is greater than the minimum silver requirement of 462.1)/100 (#4).

By these calculations it is evident that the final alloy can be described exactly as being produced by mixing one half l1kt gold and one balf

stirling silver by weight.
Respectfully submitted
/s/ Robert B. Pond Jr., Ph.

ADVISORY OPI:-IONS AKD REQUESTS THEREFOH 1215 !In