Nursing Home (hereinafter the Nursing Home) which is also a not-forprofit corporation

ADVISORY OPINIONS 691

Nursing Home (hereinafter the Nursing Home) which is also a not-forprofit corporation. The Hospital and the Nursing Home are completely separate corprate entities, but both are sponsored and control1ed by different Orders of ReEgious Women under the canonical jurisdiction of the Bishop of the Roman Catholic Diocese of Albany. In this regard the Hospital is sponsored by the Religious Sisters of Mercy, Albany, and the ursing Home is sponsored by the Sisters of A!!egheny. The Hospital would like to se!! its pharmaceuticals to the Nursing Home for the same reduced cost that the Hospital receives from its supplier. The Nursing Home does not have its own pharmacy and it is currently being supplied by local retail druggists. Is this a permissible sale undcr the not-for-profit exemption contained in the RobinsonPatman Act? If it is not a sale deemed to be for the Hospital's " own use " can it be justified on the grounds that the Nursing Home would itself be entitled to the preferential price treatment if it elected to operate its own pharmacy The second question concerning which I am seeking guidance relates to the impact of a medicaid strike being conducted by certain retail pharmacies in New York State. If needed pharmaceuticals are not available or difficult to obtain because of such a strike, is it permissible for the Hospital to sel1 these items to the general public

Very truly yours
DeGRAFF, FOY, CONWAY and
HOLT-HARRIS

/s/ Robert H. Iseman 692 FEDERAL TRADE COM:.ISSION DECISIONS

89 F.

General audience fim featuring, in the period-setting of contemporaneous news events, selections from the first 25 years of television commercials (File No. 773 7012).

Opinion LetWT
May 27, 1977
Dear Mr. Sweda:

This is in response to your request for advice concerning production by your company of a general audience film to feature , in the periodsetting of contemporaneous news events, selections from the first 25 years of television commercials.

The selections, as your request appears to presuppose, might include television ads involving advertising methods or representations against which in the course of corrective enforcement actions, the Commission has issued inhibiting orders (e. order proscriptions involving the use of deceptive mock-ups, misleading demonstrations, camera tricks that magnify, minimize or distort, cigarette advertising not appropriately disclosing the prescribed health warning, or the like). Your request, in substance, seeks pre-clearance from the Commission for use of any such television commercials in the context of the proposed film. You have reported that no sponsoring relationship exists between the film and any product or service supplier whose past television commercials may be subject to selection for the film. The Commission desires to assure you that, as to matters within its jurisdiction, it has no objection to the proposed feature film project. Please be advised, however, that this Commission assumes no position respecting possible applicability of any laws or regulations not "ithin its enforcement authority.

Because the Commission may have taken enforcement action against and prohibited some of the advertisements which "ill be included in your feature film , the Commission hopes that you wi!! consider including in the film a short, general disclosure to that effect. By direction of the Commission.

SupplemEntal. LeU€" Relative to Request