Galaxy Electronics, Inc

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

In THe MATTer oF GALAXY ELECTRONICS, INC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF SECS. 2(a) AND 2(d) OF THE CLAYTON ACT Docket O-1895. Complaint, Apr. 6, 1971—Decision, Apr. 6, 1971 - Consent order requiring a Council Bluffs, Iowa, manufacturer and distributor of assembled amateur radio equipment to cease discriminating in the price of its products by selling to certain purchasers at new prices higher than it sells to other competing purchasers, and. furnishing certain services and facilities to some customers and not to competing customers on pro- -portionally equal terms. :

ComPLaIntT The Federal Trade. Commission, having reason to believe that Galaxy Electronics, Inc., a corporation, has violated and is now violating the provisions of subsections (a) and (d) of Section 2 of the Clayton Act, as amended (15 U.S.C. Sec. 18), hereby issues its complaint stating its charges with respect thereto as follows: Menem treat, LINU. VvId 598 : Complaint COUNT I Charging a violation of subsection (a) of Section 2 of the aforesaid Clayton Act, as amended, the Commission alleges: Paracrapy 1. Respondent, Galaxy Electronics, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Nebraska with its headquarters and principal place of business located at 10 South 34th Street, Council Bluffs, Iowa.

Par. 2. Respondent is now, and for some time last past has been a manufacturer, distributor and seller of assembled amateur radio equipment, including, but not limited to transmitters, receivers and transceivers. Respondent manufactures its said products at its plant located at Council Bluffs, Iowa. ;

Respondent distributes and sells its products of like grade and quality to a large number of purchasers located throughout many States of the United States for use and resale therein. Respondent’s sales of its products are substantial, exceeding $800,000 for the fiscal year 1970.

Par. 3. Respondent sells and causes its products to be transported from its principal place of business in the State of Iowa to purchasers located in other States of the United States. There is now, . and for some time last past has been, a continuous course of trade in said products in commerce, as “commerce” is defined in the Clayton Act, as amended. 7 Par. 4. In the course and conduct of its business in commerce, respondent sells its products of like grade and quality to purchasers who are in substantial competition with each other in the resale and distribution of respondent’s like products. Par. 5. In the course and conduct of its business in commerce, respondent has been, and is now discriminating in price between different purchasers of its products of like grade and quality by selling said products to some purchasers at higher and less favorable prices than the prices charged competing purchasers for such products of like grade and quality. , For example, respondent is now using, and for some time last past has used the following rebate schedule in connection with its sales of its amateur radio equipment of like grade and quality which it sells to retail dealers, many of whom compete with each other in the resale of such equipment, said schedule being based upon the semiannual volume of purchases of such dealers: . 470-536—73—_39 ‘600 FEDERAL’ ‘TRADE . COMMISSION _DECISIONS Complaint 78 FEC.

Percent . 0, Semi-annual purchases: rebate $20,000... --------- == nnn eee nee 5 1 4 1 2 2 752 730 855 37 0.000000 §15,000.._.---.-----------------2------5 1 4 1 2 3 1469 714 139 57 0.000000 eo5 1 4 1 2 4 1612 719 276 44 0.000000 eheeeeteeenecle4 1 4 1 3 0 753 770 1153 39 -1 5 1 4 1 3 1 753 773 910 36 23.188614 $10,000_._..--.------------5 1 4 1 3 2 1254 753 75 60 0.000000 ==5 1 4 1 3 3 1339 753 125 60 9.634079 einen5 1 4 1 3 4 1469 753 50 60 29.589317 eee5 1 4 1 3 5 1534 753 75 60 33.742088 eee5 1 4 1 3 6 1624 753 133 60 17.588196 eee5 1 4 1 3 7 1764 783 86 7 35.309219 eee5 1 4 1 3 8 1852 770 54 23 0.000000 a2 1 5 0 0 0 751 512 1252 315 -1 3 1 5 1 0 0 751 512 1252 315 -1 4 1 5 1 1 0 751 653 17 27 -1 5 1 5 1 1 1 751 653 17 27 85.252007 A4 1 5 1 2 0 770 654 16 24 -1 5 1 5 1 2 1 770 654 16 24 32.792732 iS)4 1 5 1 3 0 789 653 24 31 -1 5 1 5 1 3 1 789 653 24 31 21.731277 ot4 1 5 1 4 0 817 653 18 24 -1 5 1 5 1 4 1 817 653 18 24 57.126942 f=]4 1 5 1 5 0 837 653 16 24 -1 5 1 5 1 5 1 837 653 16 24 28.785332 So4 1 5 1 6 0 855 653 29 24 -1 5 1 5 1 6 1 855 653 29 24 28.262947 -4 1 5 1 7 0 889 674 9 3 -1 5 1 5 1 7 1 889 674 9 3 63.829273 14 1 5 1 8 0 904 674 12 3 -1 5 1 5 1 8 1 904 674 12 3 13.380692 '4 1 5 1 9 0 923 673 12 3 -1 5 1 5 1 9 1 923 673 12 3 0.000000 ‘4 1 5 1 10 0 942 673 11 3 -1 5 1 5 1 10 1 942 673 11 3 58.578308 t4 1 5 1 11 0 961 672 11 3 -1 5 1 5 1 11 1 961 672 11 3 61.548737 14 1 5 1 12 0 979 672 12 3 -1 5 1 5 1 12 1 979 672 12 3 69.230682 14 1 5 1 13 0 998 672 12 3 -1 5 1 5 1 13 1 998 672 12 3 81.498070 14 1 5 1 14 0 1017 671 11 4 -1 5 1 5 1 14 1 1017 671 11 4 73.176941 t4 1 5 1 15 0 1035 671 11 3 -1 5 1 5 1 15 1 1035 671 11 3 34.380257 14 1 5 1 16 0 1054 670 12 4 -1 5 1 5 1 16 1 1054 670 12 4 23.352394 44 1 5 1 17 0 1072 671 12 3 -1 5 1 5 1 17 1 1072 671 12 3 59.895432 '4 1 5 1 18 0 1091 671 12 3 -1 5 1 5 1 18 1 1091 671 12 3 62.074818 14 1 5 1 19 0 1111 670 10 4 -1 5 1 5 1 19 1 1111 670 10 4 85.086922 t4 1 5 1 20 0 1129 670 12 3 -1 5 1 5 1 20 1 1129 670 12 3 62.245640 '4 1 5 1 21 0 1148 670 12 3 -1 5 1 5 1 21 1 1148 670 12 3 74.877609 14 1 5 1 22 0 1167 670 11 3 -1 5 1 5 1 22 1 1167 670 11 3 27.971252 t4 1 5 1 23 0 1185 669 11 3 -1 5 1 5 1 23 1 1185 669 11 3 39.156532 14 1 5 1 24 0 1204 669 11 3 -1 5 1 5 1 24 1 1204 669 11 3 65.223000 14 1 5 1 25 0 1223 669 11 3 -1 5 1 5 1 25 1 1223 669 11 3 55.340519 14 1 5 1 26 0 1242 669 11 3 -1 5 1 5 1 26 1 1242 669 11 3 60.336624 14 1 5 1 27 0 1260 668 12 4 -1 5 1 5 1 27 1 1260 668 12 4 28.698563 !4 1 5 1 28 0 1279 668 11 4 -1 5 1 5 1 28 1 1279 668 11 4 6.646957 '4 1 5 1 29 0 1298 668 11 3 -1 5 1 5 1 29 1 1298 668 11 3 38.615013 14 1 5 1 30 0 1316 668 12 3 -1 5 1 5 1 30 1 1316 668 12 3 46.640884 14 1 5 1 31 0 1335 668 11 3 -1 5 1 5 1 31 1 1335 668 11 3 47.994251 '4 1 5 1 32 0 1354 668 11 3 -1 5 1 5 1 32 1 1354 668 11 3 14.040176 '4 1 5 1 33 0 1372 667 12 4 -1 5 1 5 1 33 1 1372 667 12 4 86.440910 t4 1 5 1 34 0 1390 668 13 3 -1 5 1 5 1 34 1 1390 668 13 3 0.000000 l4 1 5 1 35 0 1410 667 11 3 -1 5 1 5 1 35 1 1410 667 11 3 79.748390 14 1 5 1 36 0 1429 667 11 3 -1 5 1 5 1 36 1 1429 667 11 3 60.323692 14 1 5 1 37 0 1447 667 12 3 -1 5 1 5 1 37 1 1447 667 12 3 13.515411 i4 1 5 1 38 0 1466 666 12 4 -1 5 1 5 1 38 1 1466 666 12 4 0.000000 '4 1 5 1 39 0 1485 665 11 4 -1 5 1 5 1 39 1 1485 665 11 4 38.594704 '4 1 5 1 40 0 1504 666 10 3 -1 5 1 5 1 40 1 1504 666 10 3 52.806702 14 1 5 1 41 0 1522 665 11 3 -1 5 1 5 1 41 1 1522 665 11 3 51.079403 '4 1 5 1 42 0 1541 665 11 3 -1 5 1 5 1 42 1 1541 665 11 3 52.448769 ‘4 1 5 1 43 0 1559 665 11 3 -1 5 1 5 1 43 1 1559 665 11 3 29.359444 14 1 5 1 44 0 1577 665 12 3 -1 5 1 5 1 44 1 1577 665 12 3 0.000000 '4 1 5 1 45 0 1597 665 10 3 -1 5 1 5 1 45 1 1597 665 10 3 5.844055 t4 1 5 1 46 0 1615 664 10 4 -1 5 1 5 1 46 1 1615 664 10 4 15.800003 i4 1 5 1 47 0 1633 664 11 3 -1 5 1 5 1 47 1 1633 664 11 3 81.870667 14 1 5 1 48 0 1651 662 11 5 -1 5 1 5 1 48 1 1651 662 11 5 75.906288 t4 1 5 1 49 0 1669 663 12 3 -1 5 1 5 1 49 1 1669 663 12 3 2.261894 '4 1 5 1 50 0 1688 663 12 3 -1 5 1 5 1 50 1 1688 663 12 3 61.672417 '4 1 5 1 51 0 1707 662 11 4 -1 5 1 5 1 51 1 1707 662 11 4 44.636330 '4 1 5 1 52 0 1726 662 11 3 -1 5 1 5 1 52 1 1726 662 11 3 41.410755 '4 1 5 1 53 0 1744 662 11 3 -1 5 1 5 1 53 1 1744 662 11 3 20.449982 ’4 1 5 1 54 0 1763 662 12 3 -1 5 1 5 1 54 1 1763 662 12 3 33.066254 '4 1 5 1 55 0 1782 662 11 3 -1 5 1 5 1 55 1 1782 662 11 3 0.000000 (4 1 5 1 56 0 1800 661 12 4 -1 5 1 5 1 56 1 1800 661 12 4 55.468613 ‘4 1 5 1 57 0 1819 661 12 3 -1 5 1 5 1 57 1 1819 661 12 3 50.364304 14 1 5 1 58 0 1838 661 11 3 -1 5 1 5 1 58 1 1838 661 11 3 38.029522 t4 1 5 1 59 0 1857 660 11 3 -1 5 1 5 1 59 1 1857 660 11 3 40.928719 14 1 5 1 60 0 1876 659 12 4 -1 5 1 5 1 60 1 1876 659 12 4 70.910370 '4 1 5 1 61 0 1984 512 19 315 -1 5 1 5 1 61 1 1985 761 18 66 50.124207 BN5 1 5 1 61 2 1985 678 18 60 24.706978 WP5 1 5 1 61 3 1984 512 19 150 24.706978 ODN5 1 5 1 61 4 1980 508 32 27 32.606331 OO2 1 6 0 0 0 681 880 1323 806 -1 3 1 6 1 0 0 682 880 1321 310 -1 4 1 6 1 1 0 727 880 1275 48 -1 5 1 6 1 1 1 727 896 175 31 96.558121 Pursuant5 1 6 1 1 2 925 896 36 29 96.303894 to5 1 6 1 1 3 985 892 83 33 96.562790 such5 1 6 1 1 4 1092 890 115 34 96.393715 rebates 1 6 1 1 5 1231 889 168 39 96.820663 schedule,5 1 6 1 1 6 1423 898 92 22 96.223534 some5 1 6 1 1 7 1539 884 98 34 95.965767 retails 1 6 1 1 8 1661 883 116 33 96.815262 dealers 1 6 1 1 9 1799 880 203 43 96.501678 purchasers4 1 6 1 2 0 682 929 1320 55 -1 5 1 6 1 2 1 682 945 86 33 96.427711 have5 1 6 1 2 2 788 944 80 36 96.427711 been5 1 6 1 2 3 894 943 149 41 96.523941 charged5 1 6 1 2 4 1063 941 124 42 96.534828 higher5 1 6 1 2 5 1208 941 69 36 96.929985 ands 1 6 1 2 6 1297 940 65 31 96.125870 less5 1 6 1 2 7 1383 937 178 33 96.521858 favorable5 1 6 1 2 8 1579 935 109 42 96.893448 prices5 1 6 1 2 9 1709 934 85 31 96.684494 than5 1 6 1 2 10 1806 932 72 36 96.684494 thes 1 6 1 2 11 1892 929 110 43 96.830116 prices4 1 6 1 3 0 687 977 1316 60 -1 5 1 6 1 3 1 687 995 149 42 95.249924 charged5 1 6 1 3 2 863 992 195 43 95.249924 competing5 1 6 1 3 3 1084 991 101 32 96.360863 retails 1 6 1 3 4 1213 989 115 33 96.694321 dealers 1 6 1 3 5 1354 987 202 42 95.437881 purchasers5 1 6 1 3 6 1584 986 56 31 96.488091 for5 1 6 1 3 7 1665 983 83 37 96.630470 such5 1 6 1 3 8 1774 980 163 43 96.170280 products5 1 6 1 3 9 1964 977 39 33 96.743378 of4 1 6 1 4 0 687 1031 1314 56 -1 5 1 6 1 4 1 687 1046 69 32 96.128601 likes 1 6 1 4 2 779 1045 107 42 95.907539 grades 1 6 1 4 3 909 1043 68 32 96.357887 ands 1 6 1 4 4 1002 1042 143 42 96.578934 quality,5 1 6 1 4 5 1171 1040 37 33 96.328903 in5 1 6 1 4 6 1231 1040 78 31 96.142090 that5 1 6 1 4 7 1332 1038 92 33 96.142090 theirs 1 6 1 4 8 1449 1034 224 35 96.123398 semi-annual5 1 6 1 4 9 1699 1033 138 32 96.601608 volumes 1 6 1 4 10 1858 1031 48 32 93.164597 of.5 1 6 1 4 11 1921 1040 80 31 91.959991 pur-4 1 6 1 5 0 682 1082 1319 58 -1 5 1 6 1 5 1 682 1097 119 31 95.455963 chases5 1 6 1 5 2 820 1095 63 45 96.386581 has5 1 6 1 5 3 901 1094 84 32 94.647911 been5 1 6 1 5 4 1004 1091 201 34 94.647911 insufficient5 1 6 1 5 5 1226 1094 36 37 94.970215 to5 1 6 1 5 6 1282 1088 136 43 96.736023 qualify5 1 6 1 5 7 1438 1087 94 32 96.636581 them5 1 6 1 5 8 1553 1085 57 32 96.730522 for5 1 6 1 5 9 1629 1085 57 31 96.142929 thes 1 6 1 5 10 1705 1082 124 43 93.279839 higher5 1 6 1 5 11 1849 1082 152 41 92.568558 percent-4 1 6 1 6 0 684 1136 971 54 -1 5 1 6 1 6 1 684 1157 83 31 96.587029 ages5 1 6 1 6 2 784 1145 38 32 96.914787 of5 1 6 1 6 3 840 1144 114 46 96.381500 rebates 1 6 1 6 4 973 1139 154 47 96.271301 attained5 1 6 1 6 5 1140 1141 50 42 96.961487 by5 1 6 1 6 6 1208 1140 59 40 97.015259 thes 1 6 1 6 7 1285 1138 144 45 96.373367 favored5 1 6 1 6 8 1447 1136 208 43 95.970924 purchasers.3 1 6 2 0 0 681 1178 1323 359 -1 4 1 6 2 1 0 731 1178 1271 59 -1 5 1 6 2 1 1 731 1196 83 41 94.361534 Par.5 1 6 2 1 2 838 1196 28 31 96.604446 6.5 1 6 2 1 3 888 1187 76 39 96.606750 Thes 1 6 2 1 4 985 1190 161 43 95.512383 effects 1 6 2 1 5 1104 1183 44 58 11.543381 of5 1 6 2 1 6 1170 1190 93 39 96.742424 such.5 1 6 2 1 7 1275 1182 348 49 96.762772 discriminations5 1 6 2 1 8 1576 1177 45 58 32.581230 ‘in5 1 6 2 1 9 1634 1181 105 48 60.269524 prices 1 6 2 1 10 1757 1178 104 49 95.435051 made5 1 6 2 1 11 1882 1180 46 42 93.226624 by5 1 6 2 1 12 1952 1190 50 22 91.694328 re-4 1 6 2 2 0 681 1226 1323 63 -1 5 1 6 2 2 1 681 1243 177 46 92.727257 spondents 1 6 2 2 2 872 1244 37 32 95.691940 in5 1 6 2 2 3 923 1244 60 31 95.691940 thes 1 6 2 2 4 996 1243 71 32 95.923378 sales 1 6 2 2 5 1080 1241 38 33 97.001854 of5 1 6 2 2 6 1132 1241 46 31 96.916054 its5 1 6 2 2 7 1192 1239 176 42 96.050369 products,5 1 6 2 2 8 1382 1232 39 37 96.050369 as5 1 6 2 2 9 1432 1227 235 42 96.790405 hereinbefore5 1 6 2 2 10 1681 1228 54 38 96.815468 sets 1 6 2 2 11 1747 1226 106 51 96.815468 forth,5 1 6 2 2 12 1870 1233 78 39 97.001656 may5 1 6 2 2 13 1962 1230 42 31 97.001656 be4 1 6 2 3 0 685 1280 1319 55 -1 5 1 6 2 3 1 685 1295 245 40 96.668785 substantially5 1 6 2 3 2 951 1297 35 29 96.943604 to5 1 6 2 3 3 1007 1293 108 31 96.535843 lessens 1 6 2 3 4 1134 1289 222 42 96.528961 competitions 1 6 2 3 5 1376 1299 40 21 96.528961 or5 1 6 2 3 6 1436 1287 81 33 96.920601 tends 1 6 2 3 7 1538 1287 35 30 96.998428 to5 1 6 2 3 8 1591 1288 111 29 96.629250 creates 1 6 2 3 9 1723 1295 20 20 96.725281 a5 1 6 2 3 10 1763 1281 183 42 96.830467 monopoly5 1 6 2 3 11 1966 1280 38 32 96.756523 in4 1 6 2 4 0 690 1331 1313 54 -1 5 1 6 2 4 1 690 1347 59 32 96.997963 thes 1 6 2 4 2 761 1346 85 32 96.982712 lines5 1 6 2 4 3 862 1344 37 33 96.991882 of5 1 6 2 4 4 913 1353 183 32 96.394218 commerce5 1 6 2 4 5 1111 1340 37 33 96.984154 in5 1 6 2 4 6 1162 1340 112 31 96.627243 which5 1 6 2 4 7 1288 1339 58 32 95.996910 thes 1 6 2 4 8 1360 1337 144 33 95.996910 favored5 1 6 2 4 9 1519 1335 199 42 96.615219 purchasers5 1 6 2 4 10 1734 1334 91 31 96.543510 from5 1 6 2 4 11 1842 1331 161 42 91.998398 respond-4 1 6 2 5 0 685 1379 1319 56 -1 5 1 6 2 5 1 685 1401 63 28 96.603333 ents 1 6 2 5 2 769 1396 57 32 96.694534 ares 1 6 2 5 3 845 1393 165 42 96.491280 engaged,5 1 6 2 5 4 1030 1404 40 20 96.547714 or5 1 6 2 5 5 1090 1395 37 28 96.741531 to5 1 6 2 5 6 1149 1390 124 41 96.714645 injure,5 1 6 2 5 7 1295 1389 137 39 96.482063 destroys 1 6 2 5 8 1453 1398 40 21 96.996346 or5 1 6 2 5 9 1513 1379 141 48 96.106689 prevents 1 6 2 5 10 1677 1382 221 42 96.128952 competitions 1 6 2 5 11 1919 1380 85 32 96.605133 with4 1 6 2 6 0 686 1431 1317 54 -1 5 1 6 2 6 1 686 1447 61 32 96.368118 thes 1 6 2 6 2 763 1445 144 33 96.568466 favored5 1 6 2 6 3 925 1443 201 42 96.460129 purchasers5 1 6 2 6 4 1145 1440 92 32 96.744080 from5 1 6 2 6 5 1253 1438 207 41 94.086166 respondents 1 6 2 6 6 1477 1437 76 31 96.918236 who5 1 6 2 6 7 1570 1434 127 33 95.789955 receives 1 6 2 6 8 1714 1434 58 31 96.923454 thes 1 6 2 6 9 1790 1431 213 45 91.827103 discrimina-4 1 6 2 7 0 689 1480 1252 57 -1 5 1 6 2 7 1 689 1501 78 36 96.879547 tory5 1 6 2 7 2 790 1497 104 30 96.418579 lowers 1 6 2 7 3 916 1494 119 40 96.490669 prices.5 1 6 2 7 4 1795 1480 146 47 4.910439 oo3 1 6 3 0 0 686 1531 1318 155 -1 4 1 6 3 1 0 733 1531 1271 48 -1 5 1 6 3 1 1 733 1548 83 30 95.355431 Par.5 1 6 3 1 2 838 1545 30 32 93.978981 7.5 1 6 3 1 3 891 1545 74 31 96.580063 Thes 1 6 3 1 4 986 1539 291 36 96.471634 discriminations5 1 6 3 1 5 1300 1539 36 31 96.872421 in5 1 6 3 1 6 1358 1537 95 42 96.112411 prices 1 6 3 1 7 1474 1536 99 32 96.071251 made5 1 6 3 1 8 1592 1535 45 40 96.071251 by5 1 6 3 1 9 1660 1533 205 42 96.025589 respondents 1 6 3 1 10 1888 1531 37 32 96.025589 in5 1 6 3 1 11 1945 1531 59 38 96.520546 thea 1 6 3 2 0 686 1581 1317 54 -1 5 1 6 3 2 1 686 1597 73 32 96.989281 sales 1 6 3 2 2 778 1596 37 32 96.934647 of5 1 6 3 2 3 832 1594 46 32 96.993279 its5 1 6 3 2 4 896 1593 173 42 96.783440 products,5 1 6 3 2 5 1088 1602 36 21 97.007820 as5 1 6 3 2 6 1142 1589 237 43 96.965233 hereinbefore5 1 6 3 2 7 1398 1587 143 41 96.768509 alleged,5 1 6 3 2 8 1559 1596 56 21 96.973724 ares 1 6 3 2 9 1633 1584 36 33 96.947220 in5 1 6 3 2 10 1685 1582 168 44 96.638885 violations 1 6 3 2 11 1872 1581 38 33 93.250671 of5 1 6 3 2 12 1927 1581 76 32 92.524239 sub-4 1 6 3 3 0 686 1634 1113 52 -1 5 1 6 3 3 1 686 1646 131 33 96.838585 sections 1 6 3 3 2 841 1644 53 42 95.349785 (a)5 1 6 3 3 3 921 1644 38 31 96.673836 of5 1 6 3 3 4 979 1642 137 34 96.787971 Sections 1 6 3 3 5 1135 1644 19 28 96.402832 25 1 6 3 3 6 1172 1640 39 32 96.618111 of5 1 6 3 3 7 1229 1640 58 31 96.860352 thes 1 6 3 3 8 1306 1638 149 41 96.991280 Clayton5 1 6 3 3 9 1474 1637 77 39 96.752533 Act,5 1 6 3 3 10 1571 1646 36 21 96.841408 as5 1 6 3 3 11 1625 1634 174 44 96.836884 amended.2 1 7 0 0 0 1242 1725 190 29 -1 3 1 7 1 0 0 1242 1725 190 29 -1 4 1 7 1 1 0 1242 1725 190 29 -1 5 1 7 1 1 1 1242 1732 2 2 0.000000 ’5 1 7 1 1 2 1267 1725 117 29 91.689911 COUNTS 1 7 1 1 3 1403 1731 29 21 84.453369 II2 1 8 0 0 0 668 1789 1371 749 -1 3 1 8 1 0 0 686 1789 1318 104 -1 4 1 8 1 1 0 734 1789 1270 56 -1 5 1 8 1 1 1 734 1798 179 47 96.838013 Charging5 1 8 1 1 2 932 1813 19 20 96.939270 a5 1 8 1 1 3 970 1800 167 33 96.513428 violations 1 8 1 1 4 1156 1798 37 32 96.646103 of5 1 8 1 1 5 1211 1796 191 46 88.938583 subsections 1 8 1 1 6 1428 1795 56 41 30.279610 (a)5 1 8 1 1 7 1510 1794 37 33 96.551102 of5 1 8 1 1 8 1554 1792 149 45 96.846222 Sections 1 8 1 1 9 1720 1794 21 29 96.910347 25 1 8 1 1 10 1759 1791 39 33 96.507317 of5 1 8 1 1 11 1817 1790 59 32 93.180046 thes 1 8 1 1 12 1895 1789 109 32 92.801369 afore-4 1 8 1 2 0 686 1843 1074 50 -1 5 1 8 1 2 1 686 1854 80 33 94.978195 said5 1 8 1 2 2 784 1854 150 39 96.090363 Clayton5 1 8 1 2 3 949 1852 79 38 96.775749 Act,5 1 8 1 2 4 1048 1860 36 21 96.775749 as5 1 8 1 2 5 1104 1848 175 39 96.485367 amended,5 1 8 1 2 6 1298 1847 58 31 96.637131 thes 1 8 1 2 7 1375 1844 225 35 95.926071 Commissions 1 8 1 2 8 1620 1843 140 41 94.861732 alleges:3 1 8 2 0 0 688 1889 1318 149 -1 4 1 8 2 1 0 735 1889 1270 53 -1 5 1 8 2 1 1 735 1905 83 31 95.451347 Par.5 1 8 2 1 2 834 1905 28 30 95.989471 8.5 1 8 2 1 3 886 1900 222 42 96.356606 Paragraphs5 1 8 2 1 4 1124 1898 75 34 96.059258 Ones 1 8 2 1 5 1213 1896 151 42 96.059258 through5 1 8 2 1 6 1380 1896 94 44 96.713722 Four5 1 8 2 1 7 1488 1894 39 44 96.030998 of5 1 8 2 1 8 1532 1894 123 43 96.690941 Counts 1 8 2 1 9 1670 1893 17 31 88.973381 I5 1 8 2 1 10 1694 1890 133 45 88.973381 hereof5 1 8 2 1 11 1840 1901 58 21 93.208801 ares 1 8 2 1 12 1912 1889 93 31 93.150818 here-4 1 8 2 2 0 688 1939 1318 57 -1 5 1 8 2 2 1 688 1952 49 44 95.622597 by5 1 8 2 2 2 753 1958 52 29 96.779968 sets 1 8 2 2 3 823 1953 97 32 96.358917 forth5 1 8 2 2 4 938 1952 45 41 96.358917 by5 1 8 2 2 5 1001 1950 172 32 96.718765 references 1 8 2 2 6 1191 1947 65 33 96.297043 ands 1 8 2 2 7 1278 1935 77 55 96.399284 made5 1 8 2 2 8 1393 1939 22 39 96.885460 a5 1 8 2 2 9 1429 1948 82 38 96.495117 parts 1 8 2 2 10 1528 1944 38 32 96.374771 of5 1 8 2 2 11 1582 1943 69 32 96.374771 this5 1 8 2 2 12 1668 1943 116 38 96.373444 Counts 1 8 2 2 13 1801 1941 40 32 77.788544 II5 1 8 2 2 14 1859 1950 38 22 94.650467 as5 1 8 2 2 15 1915 1939 91 41 96.960045 fully4 1 8 2 3 0 694 1992 1006 46 -1 5 1 8 2 3 1 694 2005 67 33 96.670967 ands 1 8 2 3 2 778 2003 85 32 96.670967 with5 1 8 2 3 3 880 2002 58 32 96.726547 thes 1 8 2 3 4 955 1996 97 37 67.876785 same.5 1 8 2 3 5 1064 2000 98 32 67.876785 effects 1 8 2 3 6 1178 2009 39 21 96.735596 as5 1 8 2 3 7 1235 1998 31 31 96.403763 if5 1 8 2 3 8 1284 1996 125 42 96.403763 quoted5 1 8 2 3 9 1427 1996 80 31 96.575706 here5 1 8 2 3 10 1524 1992 176 34 96.570602 verbatim.3 1 8 3 0 0 690 2043 1349 253 -1 4 1 8 3 1 0 735 2043 1272 44 -1 5 1 8 3 1 1 735 2055 83 31 96.081764 Par.5 1 8 3 1 2 838 2055 28 30 96.869698 9.5 1 8 3 1 3 889 2053 46 30 95.932724 In5 1 8 3 1 4 951 2052 60 31 96.632034 thes 1 8 3 1 5 1030 2060 117 22 96.101318 courses 1 8 3 1 6 1168 2048 68 32 96.502281 ands 1 8 3 1 7 1254 2043 147 36 96.294708 conducts 1 8 3 1 8 1420 2045 38 32 96.294708 of5 1 8 3 1 9 1478 2045 44 32 96.884201 its5 1 8 3 1 10 1540 2043 151 44 96.197594 business5 1 8 3 1 11 1711 2043 36 31 96.185814 in5 1 8 3 1 12 1767 2051 183 29 96.003418 commerce5 1 8 3 1 13 1970 2049 37 22 96.265907 as4 1 8 3 2 0 690 2091 1317 52 -1 5 1 8 3 2 1 690 2103 187 40 96.587303 aforesaid,5 1 8 3 2 2 901 2100 207 42 96.516708 respondents 1 8 3 2 3 1134 2098 62 32 96.782700 has5 1 8 3 2 4 1222 2097 84 42 96.045609 paid5 1 8 3 2 5 1333 2107 39 21 96.663254 or5 1 8 3 2 6 1398 2094 199 43 96.383537 authorized5 1 8 3 2 7 1618 2095 173 42 96.383537 payment.5 1 8 3 2 8 1810 2091 39 42 94.416817 of5 1 8 3 2 9 1868 2100 139 35 96.428291 money,4 1 8 3 3 0 691 2132 1348 65 -1 5 1 8 3 3 1 691 2154 109 43 96.974510 goods5 1 8 3 3 2 822 2164 38 21 96.868767 or5 1 8 3 3 3 880 2151 98 33 96.611282 others 1 8 3 3 4 998 2149 118 42 96.670349 things5 1 8 3 3 5 1138 2148 38 32 96.714706 of5 1 8 3 3 6 1195 2148 101 31 96.714706 values 1 8 3 3 7 1316 2149 36 29 96.810143 to5 1 8 3 3 8 1372 2157 38 20 96.863876 or5 1 8 3 3 9 1432 2145 65 32 59.884113 for5 1 8 3 3 10 1510 2145 58 43 59.884113 thes 1 8 3 3 11 1587 2143 123 33 95.833130 benefits 1 8 3 3 12 1732 2142 37 32 95.833130 of5 1 8 3 3 13 1790 2136 91 43 96.741600 some5 1 8 3 3 14 1903 2139 37 33 96.056870 of5 1 8 3 3 15 1962 2132 45 38 75.803726 its5 1 8 3 3 16 2037 2141 2 2 0.000000 —4 1 8 3 4 0 696 2188 1312 54 -1 5 1 8 3 4 1 696 2199 183 39 96.572937 customers5 1 8 3 4 2 897 2213 37 21 96.664902 as5 1 8 3 4 3 951 2198 255 44 96.116440 compensations 1 8 3 4 4 1224 2208 39 21 96.971848 or5 1 8 3 4 5 1279 2196 38 32 96.583405 in5 1 8 3 4 6 1334 2194 251 37 96.583405 considerations 1 8 3 4 7 1598 2193 60 32 96.658829 for5 1 8 3 4 8 1676 2192 144 41 96.948212 services5 1 8 3 4 9 1838 2202 40 21 97.009468 or5 1 8 3 4 10 1897 2188 111 34 90.656410 facili-4 1 8 3 5 0 692 2234 1315 62 -1 5 1 8 3 5 1 692 2249 67 45 96.759583 ties5 1 8 3 5 2 783 2247 182 39 96.902794 furnished5 1 8 3 5 3 985 2262 43 34 96.946030 or5 1 8 3 5 4 1050 2249 124 42 96.472984 agreed5 1 8 3 5 5 1197 2252 36 28 96.951965 to5 1 8 3 5 6 1256 2247 42 32 96.755875 be5 1 8 3 5 7 1320 2245 183 33 96.923645 furnished5 1 8 3 5 8 1525 2244 45 41 88.786713 by5 1 8 3 5 9 1579 2244 52 44 88.786713 or5 1 8 3 5 10 1654 2242 152 42 96.428848 through5 1 8 3 5 11 1828 2241 85 42 93.055389 such5 1 8 3 5 12 1933 2234 74 38 93.055389 cus-3 1 8 4 0 0 668 2289 1342 249 -1 4 1 8 4 1 0 668 2289 1341 60 -1 5 1 8 4 1 1 668 2309 150 40 0.384033 tomers5 1 8 4 1 2 838 2304 37 31 96.677460 in5 1 8 4 1 3 892 2301 199 33 96.501030 connections 1 8 4 1 4 1111 2298 85 33 96.814766 with5 1 8 4 1 5 1216 2298 58 31 96.978119 thes 1 8 4 1 6 1292 2295 180 42 96.901405 handling,5 1 8 4 1 7 1492 2295 70 32 96.998001 sales 1 8 4 1 8 1579 2305 40 21 96.940323 or5 1 8 4 1 9 1638 2292 147 45 96.389946 offerings 1 8 4 1 10 1804 2291 58 32 96.997925 for5 1 8 4 1 11 1878 2290 72 32 96.468964 sales 1 8 4 1 12 1970 2289 39 43 96.474762 of4 1 8 4 2 0 692 2341 1317 55 -1 5 1 8 4 2 1 692 2353 235 43 92.398651 respondent’s5 1 8 4 2 2 951 2347 163 49 96.714890 products5 1 8 4 2 3 1140 2348 68 32 96.676003 ands 1 8 4 2 4 1234 2346 205 42 96.622887 respondents 1 8 4 2 5 1465 2345 61 32 94.210426 has5 1 8 4 2 6 1550 2347 59 41 94.210426 not5 1 8 4 2 7 1633 2343 128 41 96.033989 offered5 1 8 4 2 8 1786 2346 36 28 95.727135 to5 1 8 4 2 9 1847 2341 99 40 96.306648 makes 1 8 4 2 10 1971 2350 38 21 96.579437 or4 1 8 4 3 0 694 2391 1315 53 -1 5 1 8 4 3 1 694 2406 99 31 96.246101 made5 1 8 4 3 2 812 2403 83 33 96.682030 such5 1 8 4 3 3 916 2403 189 41 96.539543 payments,5 1 8 4 3 4 1127 2399 199 45 96.539543 allowances5 1 8 4 3 5 1346 2407 39 21 96.155548 or5 1 8 4 3 6 1406 2393 249 35 96.696106 considerations 1 8 4 3 7 1673 2391 179 45 91.241508 available5 1 8 4 3 8 1866 2402 55 31 61.995041 on.5 1 8 4 3 9 1935 2401 74 33 61.995041 pro-4 1 8 4 4 0 692 2439 1318 59 -1 5 1 8 4 4 1 692 2454 213 44 91.987358 portionally5 1 8 4 4 2 922 2452 99 42 96.892395 equals 1 8 4 4 3 1038 2455 104 27 96.959862 terms5 1 8 4 4 4 1160 2452 36 29 96.377823 to5 1 8 4 4 5 1216 2448 46 32 96.377823 all5 1 8 4 4 6 1279 2447 38 32 96.822723 of5 1 8 4 4 7 1336 2446 45 33 96.990143 its5 1 8 4 4 8 1399 2446 97 32 96.985443 others 1 8 4 4 9 1513 2445 183 41 96.748322 customers5 1 8 4 4 10 1712 2441 195 42 96.753281 competing5 1 8 4 4 11 1925 2439 85 33 96.199173 with4 1 8 4 5 0 691 2491 1318 47 -1 5 1 8 4 5 1 691 2506 64 32 57.958355 thes 1 8 4 5 2 770 2508 183 29 96.784111 customers5 1 8 4 5 3 970 2513 36 21 96.912155 so5 1 8 4 5 4 1023 2500 145 33 96.469719 favored5 1 8 4 5 5 1183 2498 37 32 95.433723 in5 1 8 4 5 6 1237 2498 58 32 96.476166 thes 1 8 4 5 7 1311 2497 69 32 96.938721 sales 1 8 4 5 8 1398 2497 68 31 96.435326 ands 1 8 4 5 9 1483 2494 220 33 96.435326 distributions 1 8 4 5 10 1719 2493 38 33 96.845757 of5 1 8 4 5 11 1774 2492 46 32 96.964409 its5 1 8 4 5 12 1837 2491 172 42 96.797607 products. LOM opti meta etree tetera: wy 598: Decision and. Order -For example, respondent is now using, and for several years last past, has used, an advertising announcement which it has devised, in which respondent. has stated: = ae CO-OP ADVERTISING ..°. sure .; . and very liberal, Just contact me, and we will negotiate; or: ves :

We will be glad to consider requests: for one-time or unusual Ad requirements:on an individual basis.

Pursuant to said announcement, respondent has granted advertising allowances to some of its retail dealer customers, which allowances. were not made available on proportionally equal terms: to all of its other retail dealer customers competing with the customers so favored in the sale and distribution of its products. Par. 10. The acts and practices of respondent as alleged herein, are in violation of subsection (d) of Section 2 of the Clayton Act, as amended by the Robinson- Patman Act.

DeEcIsION AND. ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft of complaint which the Bureau of Competition proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with violation of subsections (a) and (d)’ of Section 2 of the Clayton Act.; as amended.’ The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated, as alleged in such complaint, and waivers and other provisions as required by the Commission’s Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondent has violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon. accepted the executed consent agreement and placed such agreement on the. public record for a period of thirty (30) days, now in further conformity with the procedure prescribed in § 2.34(b) of its Rules, the Commission hereby i issues its complaint, makes the follow! ing jurisdictional findings, and enters the following order:

Decision and Order 78 F.T.C.

1. Respondent, Galaxy Electronics, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Nebraska, with its office and principal place of business located at 10 South 34th Street, Council Bluffs, Iowa. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent. ORDER .

It is ordered, That respondent Galaxy Electronics, Inc., a corporation, its officers, employees, agents and representatives, directly or through any corporate or other device, i in or in connection with the sale of its amateur radio equipment in commerce, as “commerce” is defined in the Clayton Act, as amended, forthwith cease and desist from dscriminating directly or indirectly, in the price of such amateur radio equipment of like grade and quality, by selling to any purchaser at net prices higher than the net prices charged any other purhcaser competing in fact with such unfavored purchaser in the resale and distribution of such amateur radio equipment. It is further ordered, 'That respondent Galaxy Electronics, Inc.,-a corporation, its officers, employees, agents and representatives, directly or through any corporate device, in or in connection with the sale of its amateur radio equipment. in commerce, as “commerce” is defined in the aforesaid Clayton Act, as amended, do forthwith cease and desist from making or contracting to make to or for the benefit of any customer, any payment of anything of value as com- _ pensation or in consideration for any advertising or any other services or facilities furnished by or through such customer, in connection with the handling, offering for resale, or resale of respondent’s amateur radio equipment, unless such payment is in fact made avail-_ able on proportionally equal terms to all other customers competing in the distribution of such products.

It is further ordered, That respondent herein shall notify the Commission at least 30 days prior to any proposed change in the . corporate respondent such as dissolution, assignment or sale resulting in the emergence of a successor cor poration, the creation or dissolution of subsidiaries or any other change in the corporation which may affect compliance obligations arising out of the order. It is further ordered, That respondent herein shall, within sixty (60) days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with this order. It is further ordered, That within thirty (80) days after service HOWARD-GIBCO CORP. 603 598 Complaint upon it of this order respondent herein shall deliver to all persons purchasing its amateur radio equipment for resale a letter to such persons describing the manner and form of respondent’s compliance with this order.

It is further ordered, That the respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions.