Bea Wright, Inc.

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IN Tile JUTTER OF BEA WRIGHT, INC., ET AL.

CONSENT ORDER, ETC. , IX REGARD TO THE ALLEGED VlQLATION OF THE PEHERAL TRADE CO)IMISSIO \m Tile FLAlII1IABLE FABRICS ACTS Docket G-79. Complaint, Feb. , 19G2-Decision, Feb. , 1962 Consent order requiring Kew York City manufacturers to cease violating the Flammable Fabrics Act by sellng ladies' dresses which were so highly flammable as to be dangerous when worn, and furnishing their customers with a guaranty that the required tests showed the dresses were not dangerously flammable.

COl\IPL..\IXT Pursuant to the provisions of the Federal Trade Commission .Act and the Flammable Fabrics Act, and by virtue of the authority vested :\ BEA .WRIGHT , r;\Tc' J ET AL. 305 30,1 Complaint in it by said cts, the Federal Trade Commission, having reason to believe that Bea \Vright, Inc., a corporation, Bea Rite Frocks, Inc., a corporation, and Philip Silverman and Louis Levitan, individually and as offcers of said corporations, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Hcgulations promulgated under the Flammable Fabrics Act, and it appearing to the COlmnission that a proceeding by it in respect thereof \yOtdd be in the public interest., hereby issues its complaint, stating its charge in that respect as 10110'\"8:

PARAGRAPH 1. Respondents Bea \Vright, Inc., and Bea Rite Frocks, Inc., are corporations duly organized, existing and doing bllsiness under and by virt.ue of the laws of the State of Xew York. Individual respondents Philip Silverman and Louis Levitan are respectively president and treasurer 01 both corporate respondents and formulate, direct and control the acts, practices and policies of the corporate respondents. The principal place of business of the said corporate respondents is 463 Seventh Avenue, Kew York, N. The address or the individual respondents is the sa.me as the corporate respondents.

PAR. 2. Subsequent to the efl'ccti1'e date of the Flammable Fabrics Act on July 1, 1954, respondents have manufactured for sale, sold and oflered for sale, in commerce; have imported into the Unit.ed States; and have introduced, cle1ivered ior introduction, transported or can sed to be transported in commerce; and h tve transport.eel and caused to be transported for the purpose or sale or dehvery after sale in commerce; as "commerce" is defined in t.he FJamlnah1e Fabrics '\ct articles or we.aring apparel, as the term "article of -wearing apparel" is defined therein, which articles of "caring apparel ' were, under the provisions of Section 4 or the Flammable Fabrics Act, as amended so hjghly flammable as to be dangerous when \Yorn by individuals. Among such art-icles of wearing apparel mentioned above "-ere ladies' dresses.

PAR. 3. Respondents, subsequent to July 1, 1854, the eifective date of the Flammable Fabrics Act, have manubetured for sale, sold and offered for sale, articles or wearing appa.rel made of fabric which was under Section 4 of t.he Act, as amended, so highly flammlLb1e as t.o be dangerous when worn by individuals, and "which fabric, as the term fabric" is defined in the Flammable Fabrics Act, had been shipped and re civcd in commerce.

Among such articles of wearing apparel mentioned llbove "-ere ladies' dresses.

306 FEDERAL TRADE COM:lission DECISIONS Decision and Order 60,' PAIL 4. Respondents subsequent to July 1 , 1954, have furnished their customers with a guaranty with respect to the articles of 'yea1'iug apparel, men60nccl in paragraph 2 hereof, to the effect that reasonable and representative tests made under the procedures provided in Section 4 of the Flammable Fabrics Act, "s amended, "nd the Rules and Regulations promulgated thereunder, show that said articles of , sowcaring apparel are not, in the form delivered by respondents highly flammable under the provisions of the FI"'llnable Fabrics Act as to be dangerous when worn by individuals. There was reason for respondents to believe that the articles of wearing apparel covered by such guaranty might be introduced, sold, or transported in commerce. Said guaranty was false in that with respect to some of said articles of wearing apparel, respondents have not made such reasonable and representative tests.

PAR. 5. The aforesaid acts and practices of respondents \yefe and are in violation of the Flammable Fabrics Act and the Rules and Regulations promulgated thereunder, and as such constitute unfair methods of competition and unfair and deceptive acts and practices in commerce, within the intent and meaning of the Federal Trade Commission Act.

DECISION AXD OlilER The Commi& ion having heretofore determined to issue its complaint charging the respondents named in the caption hereof with violation of the Federal Trade Commission Act and the Flammnble Fabrics Act, and the respondents having been served with notice of said determination and with a copy of the complaint the Commission intended to issue, together with a proposed form of order; and The respondents and counsel for t11e Commission hnying thereafter executed an agreement containing a consent order an admission by respondents of all the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the hnv has been violated as set forth ill such complaint, and waivcrs and provisions as required by the Comlni sion rules; and The Commission, ha,v-ing considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said ngTeement, makes the following jurisc1ictionaJ findings, and enters the following order:

1. Respondents Bea "\Vright, Inc. and Bea R.ite Froc.ks, Inc. are corporations organized, existing and doing business l1lH1er and by ",ith their offces and "iriue of the laws of the State of New York, BEA WRIGHT, INC., ET AL. 307 30,1 Decision and Order principal place of business located at 463 Seventh A venue, in tbe cit.y of Kew York, State of New York.

Respondents Philip Silverman and Louis Levitan are offcers or said corporations and their address is the same as that of said corporations.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered That the respondents Dca 'Wright, Inc., and Bea Rite Frocks, Inc., corporations, and their offcers, and Philip Silvermfl1 and Louis Levitan, individually and as offcers of said corporations and respondents' representatives, agents and employees, directly or through any corporate or other device, do fortlnrith cease and desist from:

1. (a) Importing into the United States; or (b) :NIanufacturing for sale, selling, offering for sale, introducing, delivering for introduction, transporting or causing to be transported in commerce, as "commerce" is defined in the Flammable Fabrics Act; (c) Transporting or causing to be transported, for the purpose of sale or delivery after sale in commerce;

any article of wearing apparel which, under the provisions of Section 4 of the said Flammable Fabrics Act, as amended, is so highly flmnmable as to be dangerous when worn by individuals. 2. Manufacturing for sale, selling, or offering for sale any article of wearing apparel made of fabric which has been shipped or rcceived in commerce and which fabric, under Section 4 of the Flammable Fabrics Act, as amended, is so highly flammable as to be dangerous when worn by individuals.

3. Furnishing to any person a gl1a.ranty with resp .t to any article of wearing apparel which respondents, or Rny of them, have reason to believe may be introduced, sold or transported in commerce, which guaranty represents, contrary to fact, that reasona,ble and representative tests made under the procedures provided in Section 4 of the Flammable Fabrics Act, as amended, and the Rules and Re6'1lations promulgated thereunder, show and will show that the artic.e of wearing appa.rel, or the fabric used or contained therein, covered by the guaranty, is not, in the form delivered or to be delivered by the guarantor 80 highly flammable under' the provisions of the Flannnable Fabrics Act as to be dangerous when ''lorn by individuals, provided, however that this prohibit.ion shall not be applicable to a guaranty fllrnisbed 308 FEDERAL TRADE COivllvlISSIOX DECISIONS, Order 60 l".

on the basis of, and in reliance upon, a guaranty to the same effect received by respondents in good fa.ith signed by and containing the name and addre.ss of the person by Wh0111 the article of wearing apparel or fabric ,vas manufactured or from \\h011 it was received. It f1bathe1' oTderecl That the respondents herein shall, within sixty (60) days after servico upon them of this order, file with the Commission a report in writting setting forth in detail the 111anner and form in which they have complied with this order. Ix THE l\1AT'IR OF ASHEVILLE TOBACCO BOARD OF TRADE, INC., ET AL. MODU' IED Order IX REGARD ' 0 THE ALLEGED VIOLATION OF THE :FEDEIL\L I1tade CO flIISSION ACT Docket 6..190. illodIfied order, Jieb. l,f, 1962 Order modifying, in accordance ,yitll the derision of the Fourth Circuit Court of Appeals of Sept. 20, 1961, the Commission s modified order dated Oct. 18 1960 57 F. C. 896.

::IODIFIED ORDER To CEASE AND DESIST Respondents having filed a petition in the lJnited States Court of Appeals for the Fourth Circuit to review the Commission s modified order to cease and desist issued on October 18, 1960, and the Court having on September 20 , 1961, issued its opinion and entered its decre,e modifying the Commission s said modified ordet, affrming the order as so modified and remanding the cause to the Commission for further proceedings consistent ,,-ith the said opinion, and having on October 10 , 1961, entered its order amending its said decree of Sept.embel' 20 , 1961, by requiring the respondents to comply with the Commission s order as modified by the COUft, and the Commission being of the opinion that its order should be modified in accordance with the Court' s decision:

It i8 ordered That respondents Ashevile Tobacco Board of Trade Inc. , a corporation, and J\Iax 1\1. R.obeTts, President and director J. Carlie Adams, Vice President and director, Fred D. CockIield Secretary-Treasurer and director, Jeter P. R.amsey, ex oiIcio Assistant t.o the Secretary, Supervisor of Sales and Genenll Director of the Asheville market, L. G. Hil, director, James :U. Stewart, director and Tames E. \Vl1lker, ltr., director, all inc1ivic1ually and as offcers and directors of Ashevile Tobacco Board of Trade, Inc., and James , .

MODERN :METHODS , INC. , ET AL. 309 308 Syllabus E. Walker J r., and J olm B. vValker, part owners, co-managers and opemtors of nemard- Walker Warehouses; J. CarEe Adams and Luther Hil, co- partners trading under the name and sty Ie of Adams & lIill V warehouses; Farmers Federa60n Cooperative, Inc., a corporation, leasing and operating Carolina Varehouse; Fred D. Cockfeld and James 1\1: Stewart, co-partners trading under the name and style of Planters TVarehonses; Sherrod K. Landon, J. TV. Moore, E. G. Anderson, J. E. Godwin, Beverly G. C011l01', ,V. G. Maples, members of Asheville Tobaeco Board of Trade, Inc., individually and as offcers directly or through any corporate or other device, in connection with procuring, purchasing, offering to purchase, selling or offering for sale leaf tobacco, in conunerce, as "commerce :' is c1eJ-nec1 in the Federal Trade Commission Act, do forthwith cease and desist frolll devising, adopting, using, adhering to, maintaining or cooperating in the carrying out of any plan, system, method, policy or practice which:

1. Allots selling time to new entrant warehouses on the Asheville tobacco market on any basis or in any manner which refuses to give any credit to the size and capacity of a new eutra,nt in excess of the average size and capacity of all the n-warehouses in the market; 2. Limits the possible gain or loss in selling time allotted to any ,\yarehouse for anyone selling season to h% of the selling time allotted to such warehouse for the preceding selling season; or 3. lias the purpose or effect of foreclosing or preventing a new entrant warehouse on the Asheville tobacco market, or any other ,varehouse doing business on that market from competing therein. within sixty (60) ft .i8 further ordered That respondents shall, days after service upon them of this modified order to cease and desist, file ,with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied therewith.