Hiram B. Hundley doing business as Ben Hundley

Text (OCR of the scan at left; may contain errors)

IN THE ~latter HIRAl\1 B. I-IUNDLEY DOING BUSINESS AS BEN I-IUNDLEY CONSENT ORDER , ETC. , IN REG.ARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO:l\BIISSION ACT Docket 6815. Coli/plaint, June l.9;J"(* Dccision Nov. 13, 1957 Consent order requiring a seller in \Ynshington, D. , to tense advertising falsely in newspaper1"s that autolnobile and truck tires into which he hall cut allc1itionnl grooves to give the appearnnce of snow tires, were blanc1 ne\y, factor~' built, 100 level, first line snow and slush tires, and that the District of Columbia law required chnins 01' sno\y tires on -vehicles driving on certain ~tl'eets when the wenther warrantec1 them. .:.lit. ;liichael J. V.itale for the Commission. .111.. nderick StohlnUl:n. of ,Yashington, D. , for respondents. , I-IE~\RING EX..'B:IINEH Ixrru.L DECISION BY J.DIES A. PURCELL The. complaint in this proceeding, issued June 7, 1957, charges the respondent I-liram B. I-Iundley, an individual, trading and doing business as Ben Tlundley, ,with violation of the Federal Trade Commission Act in connection with the sellin!!: and distributino- of new and used automobile and truck tires. Thereafter, on August 28 1957 , this I-Iearing Examiner issued an order amending the complaint by removing as respondent said individual, and substituting in lieu thereof Ben I-IundJey Tires, Inc., a corporation, existing and doing business under and by virtue of the laws of the District of Columbia, and I-liram B. I-Iundley, individually and as principal officer of said corporate respondent. The office and principal place , N. ,iv.of business of both respondents is located at 3446 14th Street ,Yashington, D.

Subsequently, on September 6 , 1 D57, respondents entered into an agreement for consent order with counsel in support of the comp)aint, disposing of all of the issues in this proceeding, ,which agreement "T as dul~T approved by the Director of the Bureau of Litigation. It ,,'as expressly provided in said agreement that the sigl1ing thereof js for settlement. purposes only and does not .constitute an admission as alleged in theby respondents that they hate violated the law complaint.

By the terms of said agreement, the respondents admitted all the jl1risc1ietional allegations of the .complaint, as amended, and agreed that the record herein may be taken as though the Commission had * Amcat(licl Allg. ~8, ID57.

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570 FEDERAL 'I'TRADE COMMISSION DECISIONS . Order 54 F. T.

made findings of jurisdictional facts in accordance with such allegations. By said agreement, the parties expressly waived a hearing before the I-Iearing Examiner or the Commission, the making of findings of fact or conclusions of law by the Hearing Examiner or the Commission, the filing of exceptions and oral argument before the Commission, and all further and other procedure before the I-Iearing Examiner and the Commission to which respondents may be entitled under the Federal Trade Commission Act or the Rules of Practice of the Commission.

By said agreement, respondents further agreed that the order to cease and desist issued in accordance with said agreement shall have the same force and effect as if made after a full hearing, presentation of evidence and findings and conclusions the.reon, and specifically waived any and all right, power or privilege to challenge or contest the validity of such order.

It was further provided that said agreement, together with the complaint, as amended, shall constitute the entire record herein; tl~at the complaint herein, as amended, may be used in construing the terms of the order issued pursuant to said agreement; and that the said order may be altered, modified or set aside in the manner provided by statute for other orders of the Comm.ission. Said agreement recites that respondent Ben I-Iundley Tires, Inc. is a corporation existing under and by virtue of the laws of the District of Columbin ,,'ith its office and principal place of business located at 3"1,:1:6 14th Street, N.,V.~ ,Vashington, D. , and respondent Hiram B. :Hundley is the principal officer of said corporation. His address is the same as that of the corporate respondent. The Hearing Examiner has considered such agreement and the order therein contained, and, it appearing that said agreement and order provides for an appropriate disposition of this proceeding, the same is hereby accepted and, without further notice to respondents, is ordered filed upon becoming part of the Commission s decision in accordance with Sections 3.21 and 3.25 of the Rules of Practice, and in consonance with the terms of said agreement, the I-Iearing Examiner finds that the Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents named herein, and that this proceeding is in the interest of the public, and issues the following order: ORDER t is orde?' That respondent Ben I-Iundley Tires, Inc., a corporation, and its officers, and I-liram B. Hundley, individually and as an officer of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, in , .

BEN HUNDLEY 571 569 Decision connection with the offering for sale, sale or distribution of new and used automobile and truck tires or any other merchandise commerce, as "commerce" is defined in the Federal Trade Commission Act, do forth"ith cease and desist from representing, directly or by implication:

1. That a specified tire is a factory-built snow and slush tire, unless such is the fact.

2. That a snow and slush tire or any other type of tire, is of a certain kind, line, quality, or level, unless such is the fact.. 3. That the law in the District of Columbia requires snow and slush tires to be used at certain times.

DECISION OF THE COl\Il\IISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Sec. 3.21 of the Commission s Rules of Practice, the initial decision of the hearing examiner shall, on the 13th day of November Ig57 become the decision of the Commission; and ac.cordingly :

It is o1Ylered That the respondents herein shall within sixty (60) days after service upon them of this order, file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist.

ii2S577-60- /(!!. .

572 ;FEDERAL TRADE COMMISSION DECISIONS Decision 54 F.