International Homes, Inc.

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

IN THE MATTER OF INTERNATIONAL HO!'IES , INC., ET AI.

CONSE;:-T OIH).!:R, ETC" IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO.':vISSION ACT Docket 7S24. Conlplaint, Dec. 19S8-Decision, AJJ , 1959 Consent order requiring- Lyndhurst, distributors of house siding ma terial to cease representing- falsely, pl'incipaJJy by sales talks, that homes of purchasers of their siding would be used as demonstration homes to seJl the products and the commission paid for such use would cover the cost of the siding; that purchasers would receive commissions on other alcs made in their vicinity; that the cash price shown on contracts was the total price to be paid; that a blank promissory note, among other papers required to be sig"ned, ,vas fat the purpose of credit checking' only; that sig"ning of the contract was required by law and that the attached note was a formality; that the siding and installation were "Guaranteed for 25 Years; and that a cash bonus would be given the purchaser when the installation was completed.

Mr'. John W. B1'ookfield, Jr. for the Commission. Mr. Morris Bromley, of Newark, N. , for respondents. Il-lTIAL DECISION BY EARL J. KOLB, HEARING EXAMINER The complaint in this proceedinp; issued December 9, 1958 charges the respondents with violation of the Federal Trade Commission Act in the sale and distribution of house or building siding material.

Respondent International Homes, Inc. , is a corporation org-anized, existinp; and doing business under the laws of the State New Jersey, with its offce and principal place of business located at 601 Ridge Road, Lyndhurst, N.

Respondent Harold Schreier is an individual and president of the corporate respondent, and respondent Alton Walclstein is an individual and manager of the corporate respondent. The offce and principal place of business of said individual respondents is the same as that of the corporate respondent. After the issuance of the complaint, respondents entered into an agreement containing consent order to cease and desist with counsel in support of the complaint, disposing of all the issues as to an parties in this proceeding, which agreement was duly approved by the director and assistant director of the Bureau of Litigation.

Order 55 F.

It was expressly provided in said agreement that the signing thereof is tor settlement purposes only and does not constitute an admission by pondents that they have violated the law as alleged in the complaint.

By the terms of said agreement, the respondents admitted all the jurisdictional tacts alleged in the complaint and agreed that the record herein may be taken as if the Commission had made findings of jurisdictional facts in accordance with the allegations. By said agreement, the parties expressly waived any further procedural steps before the hearing examiner and the Commission; the making of findings of fact or conclusions of law; and all the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with the agreement.

Respondents further ag-reed that the order to cease and desist issued in accordance \'with said agreement, shall have the same lorce and effect as if made alter a full hearing. It was further provided that said agreement, together with the complaint, shall constitute the entire record herein; that the complaint herein may be used in c:onstruing the terms of the order issued pursuant to said agreement; and that said order may be altered, modified or set aside in the manner prescribed by the statute lor orders of the Commission. 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 is ordered filed upon becoming part of the Commission s decision in accordance with Sections 3.21 and 3.25 of the Rules 01 Practice, and, in consonance with the terms of said agreement, the hearing examiner finds that the Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents named herein, that this proceeding is in the interest of the public, and issues the following order:

ORDER It is orde?'cl That respondents International Homes, Inc. , a corporation, and its otTcers, and Harold Schreier, individually and as an offcer of said corporate respondent, and Alton Waldstein individually, and respondents ' agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of ., INTERNATIONAL HOMES, INC., ET AL. 1613 1611 Decision inhouse or building siding material, or any similar product, commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or indirectly, that:

1. The homes of purchasers of their siding material wil be used as model or demonstration houses or buildings to advertise or sell the aforesaid products.

2. Commissions wil be paid the purchasers of such products or that commissions paid to the owners of homes who purchase respondents' products will be suffcient to cover the cost of respondents' products and their installation. 3. Purchasers of respondents' products will receive commissions or fees on other sales made in their vicinity or area. 4. The cash price shown on contracts for the sale of respondents' products is the total to be paid for such products. 5. Documents required to be signed by purchasers of respondents' products are for credit checking purposes only, when in fact such documents include promissory notes or other evidence.: of debt.

6. Respondents' siding and the installation thereof are "guaranteed" unless the terms of such "guarantee" are fully set forth. 7. Purchasers of respondents' siding will be paid a cash bonus or payment unless it is revealed that such payment is included in the price charged for such product.

DECISION OF THE COMMISSION 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 shall, on the 2d day of April 1959, become the decision of the Commission: and accordingly:

It is o1'dered 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.

Decision 55 F.