Southern Piano Company, Inc.

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

IN THE l\fatter OF SOUTHERN PIANO CO:MPANY, INC. ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF TI-IE FEDERAL TRADE CO)fl\IISSION ACT Docket 6839. Complaint, July 195/-Decision, No.v. , 1957 Consent order requiring se))ers in Salisbury, N. C., to Ct~ase advertising new pianos falsely as bargain repossessed instruments previously sold at prices substantially higher than those at which they were presently offered, 1111' . Brock7nan H OT'ne for the Conmlission. Mr. Grahmn lif. Carlton of Salisbury, N. , for respondants. INITIAL DECISION BY LOREN H. LAUGHLIN , lIEAlUNG EXAl\IINEP. The Federal Trade Commission (sometimes also hereinafter referred to as the Commission) issued its complaint herein charging the above-named respondents, Southern Piano Company, Inc. , a corporation, and Thomas ""V. ",Villis, l\1ildred Ellen ",Villis and Dan Miller Nicholas, individually and as officers of said corporation with having violated the provisions of the Federal Trade Commission Act in certain particulars. The. respondents were duly served with process. The initial heating and subsequent hearings ordered by the hearing examiner were canceled pending negotiations of counsel for a consent agreement.

On October 2, 1957, there "-as submitted to the unclersig)led hearing examiner of the Commission for his consideration and approval an "Agreement Containing Consent Order To Cease And Desist which had been entered into by and behyeen said respondents and by its attorney and Brockman I-Iorne, counsel supporting the complaint, under date of October 1 , 1957, and subject to the approval of the Bureau of Litigation of the Commission. Such agreement had been thereafter duly approyed by that Bureau. On due consideration of the said "Agreement Containing Consent Order To Cease And Desist " the hearing examiner finds that said agreement, both in form and in content, is in accord .with Section 3. of the Commission s Rules of Practice for Adjudicative Proceedings and that by said agreement the parties have speciftcally agreed that: 1. Respondent Southern Pinno Company, Inc., is n corporation existing and doing business under and by virtue of the laws of the State of North Carolina ith its office and princi pal place of business located at 128 East Council Street, Salisbury, X orth Carolina. SOUTHERN PIANO CO. , INC., ET AL. 641 640 Decision . Respondents Thomas ""V. "\ViIEs, l\1:ildred Ellen "\Villis and Dan l\1iller Nicholas were, prior to about January 1 , 1957, President Vice-President, and Secretary-Treasurer, respectively, of said corporation and formulated, directed and controlled its policies, acts and practices. Subsequent to that date Thomas "\Y. Willis and Mildred Ellen "\Villis resigned as officers of said corporation. Their present address is 514 I-Ieilig Avenue, Salisbury, North Carolina. the same time, Dan :Miller Nicholas became President of said corporation and presently formulates, directs and controls its policies acts and practices. His address is the same as that of the corporation.

2. Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on July 15 , 1957, issued its complaint in this proceeding against respondents, and a true copy was thereafter duly served on respondents. 3. Respondents admit all the jurisdictional facts alleged in the complaint and agree that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations.

4. This agreement disposes of all of this proceeding as to all parties.

5. Respondents waive:

(a) Any further procedural steps before the hearing examiner andthe Commission; (b) The making of findings of fact or conclusions of law; and (c) All of the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with this agreement.

6. The record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and this agreement.

7. This agreement shall not become a part of the official record unless and until it becomes a part of the decision of the Commission. 8. This agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated the law' as alleged in the complaint.

Upon due consideration of the complaint filed herein, and the said "Agreement Containing Consent Order To Cease And Desist the latter is hereby approved, accepted and ordered filed, the same not to become a part of the record herein, unless and until it becomes part of the decision of the Commission. The hearing examiner finds from the complaint and the said "Agreement Containing Con- 642 FEDERAL 'T'TRADE COMMISSION DECISIONS Decision 54 F.

sent Order To Cease And Desist " that the Commission has jurisdiction of the subject matter of this proceeding and of the person of the respondents herein; that the complaint states a legal cause for complaint under the Federal Trade Commission Act both generally and in each of the particular charges alleged therein; that this proceeding is in the interest of the public; that the following order as proposed in said agreement is appropriate for the full disposition of all the issues in this proceeding, such order to become final only if and when it becomes the order of the Commission; and that said order, therefore, should be, and hereby is, entered as follows: ORDER It is ordered That respondents Southern Piano Company, Inc. a corporation, and its officers, and Thomas "'V. ",Villis, :Mildred Ellen Willis and Dan ~filler Nicholas, individually and as officers and former officers of said corporation, and respondents' representatives agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of pianos, in commerce as "commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication:

1. That pianos "\which are new and had not been previously sold to others and used by them are repossessed pianos. 2. That pianos have previously been sold at prices higher than those at which they are offered, unless such is the fact. 3. That savings are offered on the purchase of pianos unless based upon the price at which the pianos are customarily and usually sold. 4. That any amount is the price at which respondents sell their pianos when it is in excess of the price at which said pianos are customarily and usually sold by respondents. DECISION OF THE CO)IMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner did on the 23rd day of November, 1957 become the decision of the Commission; and accordingly:

It is ordered That respondents Southern Piano Company, Inc. a corporation, and its officers, and Thomas ",V. ",Villis, ~fildred Ellen ",Villis and Dan :Miller Nicholas, individually and as officers and former officers of said corporation, 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. UNIVERSAL SE"\VING SERVICE , INC., ET AL. 643 Decision