Curtiss-Wright Corporation

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IN THE :NIATTER OF CURTISS.WRIGHT CORPORATION miler, ETC., IN REGAR TO THE ALLEGED 'VOLATION 01' Tile FEDERAL TRADE CO:rDIISSIOK ACT Docket 8072. Comphlint, Aug. 1960-Decision, Jan. , 1961 Order dismissing without prejudice-for the reason that respondent sold the part of its business concerned-complaint charging a manufacturer with making false soundproofing and noise control claims for its "Cnron accoustical ,"'lull covering.

Jfr. John W. Brookfield, Jr. for the Commission. JJr. Rogel' W. Mullin, Jr. of 'Wood.Ridge, K. J. , and D e ()ey, Ballantine, Bushby, Palmer Wood of Xew York, N. , for respondent.

INITIAL DECISION BY \VILLIA f L. PACK, HEARING EXA3IIXER Respondent has moved for dismissal of t.he complaint on the ground that the case is moot by reason of the fact that respondent has sold the entire division of its business to which the complaint rei ates.

It is clear from the motion and supporting papers not only that respondent is no longer engaged in the manufacture or sale of the products \Which form the subject matter of the proceeding, but also that respondent has bound itself not to engage in the manufacture or sale of any similar products for a period of five years. Respondent' s motion is not opposed by Commission counsel a.lthough counsel does express the opinion that if the complaint is dismissed the dismissal should be without prejudice to the right of the Commission to take any further action in the matter in the future which may be warranted.

It is apparent that in the present circumstances no useful purpose ,"ould be served by proceeding further with the case. The dismissal should, however, be without prejudice.

CURTISS-\VRIGH'l' CORP.

Decision ORDER 1 t is therefore ordered. That the complaint be, and it hereby is dismissed, without prejudic.e to t.he right of the Commission to take any further action in the matter in the future which may be warranted by the then existing circumstances. DECISION OF THE C01.DnSSION The Commission having considered the hearing examiner s initial decision, filed N ovember, 1960 , wherein the complaint was dismissed without prejudice in response to a motion to dismiss theretofore fied by the respondent; and It appearing that the basis for such action was the showing ma, in the motion and supporting papers that the respondent, prior t.o the issuance of the complaint, had entered into a contmct for the sale of that part of its business relating to the manufacture and saJe of the products with which this proceeding is concerned; and The Commission being of the opinion that in the circumstances disclosed, dismissal of the complaint without prejudice is appropriate but that the record docs not. support the examiner s unqualified statement that the respondent "is no longer engaged in the manufacture or sllle of the products which form the subject matter of the proceeding; and, accordingly;

It is ordered That the initial decision be, and it hereby is, modified by striking therefrom the second paragraph and substituting the following:

According to the motion and supporting papers, respondent, on August 23, 1960, entered into a contract with Reeves Brothers, Inc. a New York corporation, whereby respondent agreed t.o sell and Reeves Brothers, Inc., agreed to buy that part of respondent's busines having to do with the development, manufacture and sale of certain polyurethane products, including the wall covering product designated "Curon." As of Oet.ober 27, 1960, the date of respondent motion, the terms of the contract hacl not been completely executed but the contemplated transfers of machinery, inventories, trade marks, trade Dames and personnel apparently were being made in orderly sequence, and it seems clear that following the sale respond ent wiJJ have neither the machinery nor the t.eehnicllJJy qualified personnel to engage in any of the ads or practices complained of in the complaint. In addition, respondent has agreed in the contract not to engage in the United States or Ca,nada in t.he business of Decision ,'58 F' manufacturing, processing or selling any polyurethane products or any flexible foam developed by it for a period of five years. It i& further ordered That the initial decision, as so modified, shall on the 11th day of January, 1961, become the decision of the Com-