Consumer Law Library

Concrete Burial Vault Manufacturing Industry

16 CFR Part 122 · Trade practice rules · in the Code of Federal Regulations 1938-1976 (14 annual editions)

Scanned CFR pages, OCR text may contain errors; the linked Library of Congress PDF is the authority. Not legal advice; not affiliated with the FTC. These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.

Latest edition: Library of Congress, 1976 CFR · Earliest edition: 1938 CFR

Text (1976 edition, OCR)

Chapter I—-Federal Trade Commission

spective purchasers or the consuming
public, is an unfair trade practice.

§ 121.7 Inducing breach of contract.

Willfully inducing or attempting to in-
duce the breach of an existing contract
or contracts between competitors and
their customers or their suppliers by
any false or deceptive means whatso-
ever, or willfully interfering with or ob-
structing the performance of any such
contractual duties or services by any
such means, with the purpose and effect
of unduly hampering, injuring, or preju-
dicing competitors in their businesses,
is an unfair trade practice.

§ 121.8 False marking or branding.

The false or deceptive marking or
branding of products of the industry,
with the tendency, capacity or effect of
misleading or deceiving purchasers, pro-
spective purchasers or the consuming
public with respect to the grade, quality,
quantity, use, size, material, content,
origin, preparation, manufacture or dis-
tribution of such products, or in any
other material respect, is an unfair trade
practice.

§ 121.9 Misrepresentation in general.

The inaking, or causing or permitting
to be made or published, any false, untrue
or deceptive statement or representation,
by way of advertisement or otherwise,
concerning the grade, quality, quantity,
use, size, material, content, origin, prepa-
ratlon, manufacture or distribution of
any industry products, or in any other
material respect, with the tendency, ca-
pacity or effect of misleading or deceiving
purchasers, prospective purchasers or the
consuming public, is an unfair trade
practice.

§ 121.10 Commercial hrihery.

It is an unfair trade practice for a
meinber of the industry directly or in-
directly to give or offer to give, or permit
or cause to be given, inoney or anything
of value to agents, employees or repre-
sentatives of customers or prospective
customers, or to agents, employees or
representatlves of competitors’ custom-
ers or prospective customers, without the
knowledge of their employers or prin-
cipals, as an inducement to influence
their employers or principals to purchase
or contract to purchase products manu-
factured or sold by such industry mem-
ber or the maker of such gift or offer, or
to influence such employers or principals
to refrain from dealing in the products

§ 121.102

of competitors, or from dealing or con-
tracting to deal with competitors.

Group II
§ 121.101 Publication of price lists and

terms of sale.

The industry approves the practice of
each individual member of the industry
independently publishing and circulating
to the purchasing trade his own price
lists fully setting forth his terms of sale.

§ 121.102 Free samples for experimen-
tation.

The industry approves the giving of
free samples of wet ground mica in suf-
ficient quantity for experimental pur-
poses and to acquaint purchasers or pro-
spective purchasers with the grade or
quality of the product offered for sale,
where the giving of such free mica by any
member of the industry is not, however,
practiced or accomplished in such way or
to such extent as to effectuate an illegal
discrimination in price contrary to sec-
tion 2 of the Clayton Act as amended by
the act of Congress approved June 19,
1936 (Pub. Law 692, 74th Cong., Robin-
son-Patman Act).

PART 122—-CONCRETE BURIAL VAULT
MANUFACTURING INDUSTRY

Group I
Sec.
122.1 Commercial bribery.
122.2. Inducing breach of contract.
122.3 Defamation of competitors.
122.4 Enticing empioyees.
122.5 Imitation of trade-marks, trade
names, brands, etc.
122.6 Substitution.
122.7 Espionage.
122.8 Faise-marking or branding.
122.9 Misrepresentation in general.
122.10 False invoicing.
122.11 Saies below cost.
122.12 Consignment selling.
122.138 Discrimination.
Group II
122.101 Publication of price lists and terms
of sale.

122.102 Cost accounting.
122.103 Arbitration.

COMMITTEE ON TRADE PRACTICES
122.201 Industry committee.

AurHoriry: Secs. 6(g), 5, 88 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.

Source: Trade practice rules, Concrete
Burial Vault Manufacturing Industry, FTC,
July 10, 1937, unless otherwise noted.

561


§ 122.1

Group I
§ 122.1 Commercial bribery.

It is an unfair trade practice for a
member of the industry directly or in-
directly to give or offer to give, or permit
or cause to be given, money or anything
of value to agents, employees or repre-
sentatives of customers or prospective
customers, or to agents employees or
representatives of competitors’ custom-
ers or prospective customers, without the
knowledge of their employers or prin-
cipals, as an inducement to influence
their employers or principals to purchase
or contract to purchase products manu-~
factured or sold by such industry mem-
ber or the maker of such gift or offer, or
to influence such employers or principals
to refrain from dealing in the products
of competitors, or from dealing or con-
tracting to deal with competitors.

§ 122.2 Inducing breach of contract.

Wiillfully inducing or attempting to in-
duce the breach of existing contract or
contracts between competitors and their
customers or their suppliers by any false
or deceptive means whatsoever, or will-
fully interfering with or obstructing the
performance of any such contractual
duties or services by any such means,
with the purpose and effect of unduly
hampering, injuring or prejudicing com-
Petitors in their business, is an unfair
trade practice. :

§ 122.3. Defamation of competitors.

The defamation of competitors by
falsely imputing to them dishonorable
conduct, inability to perform contracts,
or questionable credit standing, or by
other false representations, or the false
disparagement of the grade, quality, com-
position, material, construction, durabil-
ity, or process of manufacture of the
products of competitors, or of their busi-
mess methods, selling prices, values,
credit terms, polices or services, or con-
ditions of employment, with the tend-
ency, capacity or effect of misleading or
deceiving any purchasers or prospective
purchasers of burial vaults, ls an unfair
trade practice.

§ 122.4 Enticing employees.

Willfully enticing away the employees
of competitors, with the purpose and ef-
fect of unduly hampering, injuring or

Title 16—-Commercial Practices

embarrassing competitors in their busi-
nesses, is an unfair trade practice.

§122.5 Imitation of trade-marks, trade
names, brands, etc.

The imitation of the trade-marks, trade
names, brands, labels or other marks of
identification of competitors, with the
tendency, capacity or effect of mislead-
ing or deceiving any purchasers or pro-
spective purchasers of burial vaults, is
an unfair trade practice.

§ 122.6 Substitution.

The practice of shipping or delivering
products which do not conform to repre-
sentations made prior to or at the time
of securing an order, or the substitution
of products inferior in quality to the kind
ordered, without the consent of the pur-
chaser to such substitution and with the
effect of misleading or deceiving any
purchasers or prospective purchasers of
burial vaults, is an unfair trade practice.

§ 122.7 Espionage.

Securing information from competitors
concerning their businesses by false or
misleading statements or representatives
or by false impersonation of one in au-
thority, and the wrongful use thereof to
unduly hinder or stifle the competition of
such competitors, is an unfair trade
practice.

§ 122.8 False marking or branding.

The false or deceptive marking, brand-
ing or labeling of concrete burial vaults
for the purpose or with the tendency, ca-
pacity of effect of misleading or deceiving
purchasers or prospective purchasers
concerning the grade, quality, composi-
tion, material, construction, durability,
or process of manufacture of such vaults,
or in any other material respect, or the
marking, branding or labeling of such
vaults by representatives, statements, as-
sertions or claims concerning the capac-
ity, property or ability of such vaults to
remain airtight, waterproof or sweat-
proof when such representations, state-
ments, assertions or claims are not true
in fact, or are misleading, or are not
known to be true, is an unfair trade prac-
tice.

§ 122.9 Misrepresentation in general,

Making, or causing to be made or pub-
lished, directly or indirectly, any false,
untrue or deceptive statement, repre-
sentation, guarantee, warranty, testi-
monial or endorsement, by way of adver-

562


Chapter I—Federal Trade Commission

tising (through newspapers, magazines,
booklets or other advertising media) or
by radio, oral representation or otherwise,
in connection with the sale or distribu-
tion of concrete burial vaults and con-
cerning the grade, quality, composition,
material, construction, durability or
processes of manufacture of such vaults,
or in any other material respect, or the
making of any representations, state-
ments, assertions or claims, directly or
indirectly, concerning the capacity, prop-
erty or ability of such vaults to remain
airtight, waterproof or sweatproof
when such representations, statements,
assertions or claims are not true in fact,
or are misleading, or are not known to be
true, with the tendency, capacity or ef-
fect of misleading or deceiving any pur-
chasers or prospective purchasers of
burial vaults, is an unfair trade practice.

§ 122.10 False invoicing.

Withholding from or inserting in in-
voices any statements or information by
reason of which omission or insertion a
false record is made, wholly or in part, of
the transactions represented on the face
of such invoices, with the purpose or
effect of thereby misleading or deceiving
any purchasers or prospective purchas-
ers of burial vaults, is an unfair trade
practice.

§ 122.11 Sales below cost.

The practice of selling industry prod-
ucts below the seller’s cost, with the in-
tent and with the effect of injuring a
competitor and where the effect may be

substantially to lessen competition or

tend to create a monopoly or unreason-
ably restrain trade, is an unfair trade
practice; all elements recognized by good
accountmg practice as proper elements
of such cost shall be included in deter-
mining cost under this section.

§ 122.12 Consignment selling.

It is an unfair trade practice for any
member of the industry to use the prac-
tice of shipping goods on consignment or
pretended consigninent for the purpose
and with the effect of artificially clogging
trade outlets and unduly restricting com-
petitors’ use of said trade outlets in get-
ting their goods to consumers through
regular channels of distribution, or with
such purpose to entirely close said trade
outlets to such competitors so as to sub-
stantially lessen competition or tend to
create a monopoly or to unreasonably re-
strain trade: Provided, however, That

§ 122.13

nothing herein shall be construed or used
as restricting or preventing consignment
shipping or marketing of commodities in
good faith and without artificial inter-
ference with competitors’ use of the
usual channels of distribution in such
manner as thereby to suppress competi-
tion or restrain trade.

§ 122.13 Discrimination.

(a) Prohibited discriminatory differ-
entials, rebates, refunds, discounts, cred-
its and other allowances. It is an unfair
trade practice for any member of the in-
dustry engaged in commerce, in the
course of such commerce, to grant or
allow, secretly or openly, directly or in-
directly, any price differentials, rebates,
refunds, discounts, credits or other al-
lowances which effectuate a discrimina-
tion in price between different purchasers
of goods of like grade and quality where
either or any of the purchases involved
therein are in commerce, and where the
effect thereof may be substantially to
lessen competition or tend to create a
monopoly in any line of commerce or to
injure, destroy or prevent competition
with any persons who either grants or
knowingly receives the benefit of such
discrimination or with customers of
either of them: Provided, however, (1)
That the goods involved in any such
transaction are sold for use, consump-
tion or resale within any place under the
jurisdiction of the United States;

(2) That nothing contained in this
section shall prevent differentials which
make only due allowance for differences
in the cost of manufacture, sale or de-
livery resulting from the differing meth-
ods or quantities in which such commod-
ities are to such purchasers sold or
delivered ;

(3) That nothing contained in this
section shall prevent persons engaged in
selling goods, wares or merchandise in
commerce from selecting their own cus-
tomers in bona fide transactions and not
in restraint of trade;

(4) That nothing contained in this
section shall prevent price changes from
time to time where made in response
to changing conditions affecting either
(i) the market for the goods concerned,
or (ii) the marketability of the goods,
such as, but not limited to, actual or
imminent deterioration of perishable
goods, obsolescence of seasonal goods,
distress sales under court process, or sales
in good faith in discontinuance of busi-
ness in the goods concerned.

563


§ 122.101

(b) Prohibited brokerages and com-
missions. It is an unfair trade practice
for any member of the industry engaged
in commerce, in the course of such com-
merce, to pay or grant, or to receive
or accept, anything of value as a com-
mission, brokerage, or other compensa-
tion, or any allowance or discount in lieu
thereof, except for services rendered in
connection with the sale or purchase of
goods, wares, or merchandise, either to
the other party to such transaction or
to an agent, representative, or other in-
termediary therein where such interme-
diary is acting in fact for or in behalf,
or is subject to the direct or indirect
control, of any party to such transac-
tion other than the person by whom
such compensation is so granted or paid.

(c) Prohibited advertising or promo-
tional allowances, etc. It is an unfair
trade practice for any member of the
industry engaged in commerce to pay or
contract for the payment of advertising
or promotion allowances or any other
thing of value to or for the benefit of a
customer of such member in the course
of such commerce as compensation or in
consideration for any services or facilities
furnished by or through such customer
in connection with the processing, hand-
ling, sale, or offering for sale of any
products or commodities manufactured,
sold, or offered for sale by such member,
unless such payinent or consideration is
available on proportionally equal terms
to all other customers competing in the
distribution of such products or com-
modities.

(d) Prohibited discriminatory services
or facilities. It is an unfair trade prac-
tice for any member of the industry
engaged in commerce to discriminate in
favor of one purchaser against another
purchased or purchasers of a commodity
bought for resale, with or without proc-
essing, by contracting to furnish or by
furnishing, or by contributing to the fur-
nishing of, any services or facilities con-
nected with the processing, handling,
sale, or offering for sale of such com-
modity so purchased upon terms not ac-
corded to all purchasers on proportion-
ally equal terins.

(e) Illegal price discrimination. It is
an unfair trade practice for any member
of the industry or other person engaged
in commerce in the course of such com-
merce to discriminate in price in any

Title 16—Commercial Practices

other respect contrary to section 2 of
the Clayton Act as amended by the act of
Congress approved June 19, 1936, or
knowingly to induce or receive 2 dis-
crimination in price which is prohibited
by such section as amended.

(Sec. 2, 38 Stat. 730, as amended, secs. 2, 3,
4, 49 Stat. 1527, 1528; 15 U.S.C. 13, 18a, 18b,
21a) .

Group II

§ 122.101 Publication of price lists and
terms of sale.

The industry approves the practice of
each individual member of the industry
independently publishing and circulating
to the purchasing trade his own price
lists fully setting forth his terms of sale.

§ 122.102 Cost acconnting.

It is the judgment of the industry that
each member should independently keep
proper and accurate records for deter-
mining his costs.

§ 122.103 Arbitration.

The industry approves the practice of
handling business disputes between
members of the industry and their cus-
tomers in a fair and reasonable manner,
coupled with a spirit of moderation and
good will, and every effort should be
made by the disputants themselves to
compose their differences. If unable to
do so they should, if possible, submit
these disputes to arbitration.

COMMITTEE ON TRADE PRACTICES

§ 122.201 Industry committee. :
The provisions of § 216.1 of this sub-
chapter shall be applicable to an industry

committee established under this part.
(21 F.R. 1174, Feb. 21, 1956]

PART 124-——TOILET BRUSH MANU-
FACTURING INDUSTRY

Group I
Sec.
124.1
124.2

Misbranding.

Misrepresentation or concealment as
to foreign handles or blocks. .
Deceptive advertisements or descrip-

tions.
Misrepresentation as to bristles.
Misrepresentation as to kind of wood
in handle or back.

AutTHoriry: Secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.

124.3

124.4
125.5

564