Electro Music

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

In rue MaArrer or ELECTRO MUSIC ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7431. Complaint, Mar, 11, 1959—Decision, May 26, 1960 Consent order requiring a Pasadena, Calif., manufacturer of Joud speakers and accessories for use with electric organs to cease entering into, in State Decision 56 F.T.C.

where such pacts were not lawful, resale price maintenance agreements with its retailer customers by which the latter agreed to sell its goods only at the prices it set out on its “suggested retail price list.” Mr. Lynn C. Paulson supporting the complaint. Flam ond Flam and Chase Rotchford Downen & Drukker by Mr. fichard T. Drukker of Los Angeles, Calif., for respondents. Iniriau Decision sy Joun B. Pornpvexver, Heartne Examiner The complaint in this proceeding alleges that the above-named respondents in the course and conduct of their business have violated Section 5 of the Federal Trade Commission Act by conspiring illegally with many of its retailers to hinder and restrain price competition.

After issuance and service of the complaint, the above-named respondents, their attorney, and counsel supporting the complaint entered into an agreement for a consent order. The agreement has been approved by the Director and the Associate Director of the Bureau of Litigation. The agreement disposes of the matters complained about.

The pertinent provisions of said agreement are as follows: Respondents admit all jurisdictional facts; the complaint may be used in construing the terms of the order; the order shall have the same force and effect as if entered after a full hearing and the said agreement shall not become a part of the official record of the proceeding unless and until it becomes a part of the decision of the Commission; the record herein shall consist solely of the complaint. and the agreement; respondents waive the requirement that the decision must contain a statement of findings of fact and conclusions of law; respondents waive further procedural steps before the hearing examiner and the Commission, and the order may be altered, modified, or set aside in the manner provided by statute for other orders; respondents waive any right to challenge or contest the validity of the order entered in accordance with the agreement. and the signing of said 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. The undersigned hearing examiner having considered the agreement and proposed order hereby accepts such agreement, makes the following jurisdictional findings, and issues the following order: JURISDICTIONAL FINDINGS 1. Respondent Electro Music is a corporation organized, existing and doing business under and by virtue of the laws of the State of ELECTRO MUSIC ET AL. 1463 1461 Decision California with its office and principal place of business located at 318 South Fair Oaks Avenue, Pasadena, California. 2. Respondent Donald J. Leslie is president of the corporate respondent with his office and principal place of business located at the same address as the corporate respondent. 8. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents hereinabove named and the proceeding is in the public interest. ORDER It ts ordered, That respondents Electro Music, a corporation, and its officers, and Donald J. Leslie, individually and as an officer of said corporation, 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 loud speaker units, or any other similar products, in commerce, as “commerce” is defined in the Federal Trade Commission Act, (U.S.C. Title 15, Sec. 45) do cease and desist from: Entering into, continuing, cooperating in or carrying out any planned course of action, agreement, understanding, combination or conspiracy with customer retailers of said respondents or with any other customer of said respondents engaged in the sale of said product or with any other person, whereby the resale price of respondents’ loud speaker units or other similar products is established, fixed or agreed upon unless such contracts or agreements of that description are lawful as applied to intrastate transactions under any statute, law, or public policy now or hereafter in effect in any State, Territory, or the District of Columbia in which such resale is to be made, or to which the commodity is to be transported for such resale.

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 26th day of May, 1960, become the decision of the Commission; and, accordingly :

It is ordered, 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 56 F.T.C.