Metal Clad Door And Accessories Manufacturing Industry
16 CFR Part 127 · Trade practice rules · in the Code of Federal Regulations 1938-1976 (12 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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)
§ 126.105 sellers on a rising market or by buyers on a declining market is condemned by the industry. § 126.105 Accurate information regard- ing washability, color fastness, and shrinkage properties. The industry recommends that truth- ful and accurate descriptions of the washability. color fastness, and shrink- age properties of fabrics used be at- tached to the dress or frock or be printed on the labels used by members of the industry on such dresses or frocks. PART 127—-METAL CLAD DOOR AND ACCESSORIES MANUFACTURING INDUSTRY Group I Bec. 127.1 Commercial bribery. 1272 Inducing breach of contract. 127.3 Enticing employees. 127.4 Misrepresentation in general. 127.6 False branding or marking. 127.6 Defamation of competitors. 127.7. Discrimination. 127.8 Sales below cost. 127.9 Misrepresenting products as con- forming to standard. $7.10 Deceptive selling methods. 127.11 Substitution. Group IT 127.101 Repudiation of contracts. 127.102 Fictitious bids. 127.108 ‘Blind blds.” Auruoriry: Secs. 6(g), 5, 88 Stat. 722, 719; 15 U.S.C. 46(g), 45, unless otherwise noted. Sougce: Trade practice rules, Metal Clad Door and Accessories Manufacturing Indus- try, FTC, Jan. 20, 1938, unless otherwise noted. Group I §127.1 Commercial bribery. Directly or Indirectly to give, or permit to be given, or offer to give, money or anything of value to agents, employees or representatives of customers or pro- spective customers, or to agents, employ- ees or representatives of competitors’ customers or prospective customers, without the knowledge of their employers or principals, as an inducement to in- fluence their employers or principals to purchase or contract to purchase indus- ‘try products from the maker of such gift or offer, or to influence such employers or principals to refrain from dealing or contracting to deal with competitors, is an unfair trade practice. Title 16—Commercial Practices § 127.2 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 whatsoever, or willfully 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 businesses, is an unfair trade practice. § 127.3 Enticing employees. Willfully enticing away the employees of competitors with the purpose and ef- fect of unduly hampering, injuring or embarrassing competitors in their busi- ness, is an unfair trade practice. § 127.4 Misrepresentation in general. It is an unfair trade practice for any inember of the industry to make or pub- lish or cause to be made or published, di- rectly or indirectly, any false, misleading or deceptive statement or representation, by way of advertisement, guarantee, war- ranty, adjustment, policy, or otherwise, concerning the grade, quality, quantity, substance, use, character, nature, origin, size, manufacture or distribution of any product of the industry, or concerning the life or service of such product, or in any other material respect. § 127.5 False branding or marking. 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. § 127.6 Defamation of competitors. The defamation of competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, questionable credit standing, or by other false representations, or the false dispar- agement of the grade, quality or manu- facture of the products of competitors, or of their business methods, selling prices, values, credit terms, policies or services, with the tendency, capacity-or effect of misleading or deceiving purchasers, pro- 572 Chapter I—Federal Trade Commission spective purchasers or the consuming public, is an unfair trade practice. § 127.7 Discrimination. (a) Prohibited discriminatory rebates, refunds, discounts, credits and other price differentials. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce, to grant or allow, secret- ly or openly, directly or indirectly, any rebates, refunds, discounts, credits or other price differentials, where such re- bates, refunds, discounts, credits or other price differentiais effect a discrimination in price between different purchasers of goods of like grade and quality and where either or any of the purchases in- volved therein are in commerce and where the effect thereof may be substan- tially to lessen competition or tend to create a monopoly in any line of com- merce or to injure, destroy or prevent competition with any person 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, consumption or resale within any place under the jurisdiction of the United States; (2) That nothing contained in this section shall prevent differentiais which make only due aliowance for differences in the cost of manufacture, sale or deliv- ery resulting from the differing methods or quantities in which such commodities are to such purchasers sold or delivered; (3) That nothing contained in this section shall prevent persons engaged in sellmg 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 Gi) the marketability of the goods, such as, but not limited to, actual or imminent deterioration of perishable goods, ob- solescence of seasoned goods, distress sales under court process, or sales in good faith in discontinuance of business in the goods concerned. . (b) Prohibited brokerages and com- missions. It is an unfair trade practice for any meinber 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 commis- § 127.7 ‘sion, brokerage, or other compensation, 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 inter- mediary therein where such intermediary is acting in fact for or in behalf, or is subject to the direct or indirect control, of any party to such transaction other than the person by whom such compen- sation 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 promotional allowances or any other thing of value to or for the benefit of a customer of such nember 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, han- dling, sale or offering for sale of any products or commodities manufactured, sold, or offered for sale by such member, unless such payment or consideratlon 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 en- gaged in commerce to discriminate in favor of one purchaser against another purchaser or purchasers of a commodity bought for resale, with or without proc- cessing, by contracting to furnish or by furnishing, or by contributing to the furnishing of, any services or facillties connected with the processing, handiing, sale or offering for saie of such commod-~ ity so purchased upon terms not ac- corded to all purchasers on proportion- ally equal terms. (e) Illegal price discrimination. It is an unfair trade practlce for any mem- ber of the industry or other person en- gaged in commerce, in the course of such commerce, to discriminate in price in any other respect contrary to section 2 of the Clayton Act as amended by the act of Congress approved June 19, 1936, or knowingiy to induce or receive a discrim- ination in price which is prohibited by such sectlon as amended. (Sec. 2, 38 Stat. 730, as amended, secs. 2, 3, 4, 49 Stat. 1527, 1528; 15 U.S.C. 18, 13a, 13b, 21a) e 573 ' § 197.8 § 127.8 Sales below cost. The practice of selling goods below the seller’s cost with the intent and with the effect of injuring a competitor and where the effect may be to substantially lessen competition or tend to create a monopoly or unreasonably restrain trade is an unfair trade practice; all elements recognized in good accounting practice as proper elements of such cost shall be in- cluded in determining cost under this section. § 127.9 Misrepresenting products as conforming to standard. Representing, through advertising or otherwise, that any products of the in- dustry conform to a standard recognized in or applicable to the industry when such js not the fact, with the tendency, capacity or effect of misleading or de- ceiving purchasers, prospective pur- chasers or the consuming public, is an unfair trade practice. § 127.10 Deceptive selling methods. The sale or offering for sale of any product of the industry by any false or deceptive means or device which has the tendency, capacity or effect of misleading or deceiving purchasers, pro- spective purchasers or the consuming public as to the grade, quality, quantity, substance, use, character, nature, origin, size or preparation of such product, or in any other material respect, is an un- ’ fair trade practice. § 127.11 Substitution. The practice of using or substituting any product of the industry inferior in grade or quality to, less in quantity than, or of a different design or type from, that specified by the purchaser, without the consent of sald purchaser to such use or substitution and with the tendency, ca- pacity or effect of misleading or deceiving purchasers, prospective purchasers or the consuming public, is an unfair trade practice. Group It § 127.101 Repudiatiou of contracts. Contracts are business obligations which should be performed in letter and in spirit. The repudiation of contracts by sellers on a rising market or by buyers on a declining market is condemned by the industry. § 127.102 Fictitious bids. The industry condemns fake or ficti- tious bids made for the purpose of deceiv- ing competitors and securing undue ad- vantage. If plans and specifications are changed and new bids called for after the original bids have been submitted Title 16—Cemmercial Practices * and opened, the same fairness should obtain as with the original bid § 127.103 “Blind bids.” In cases of competitive bidding, the practice of receiving or making so-called “blind bids”, which discount the lowest competitive bid regardless of the amount, tends to destroy competitive bidding, and is condemned by the industry. PART 129—CARBON DIOXIDE MAN- UFACTURING INDUSTRY Group I Sec. 129.1 129.2 129.3 129.4 Inducing breach of contract. Espionage. Defamation of competitors. Interference with competitor’s right of purchase or sale. Imitation of trade-marks, names, etc. False marking or branding. Unauthorized use of containers. Misrepresentation in general. Discrimination. Deceptive selling methods. Consignment sales. Misuse of word “‘free’”’. Commercial bribery. Lottery schemes. Full-lne forcing. False invoicing. Sales below cost. Unlawful combinations in restralnt of trade. Aiding or abetting use of unfair trade practices. Group IT Arbitration. Repudiation of contracts. Unwarranted return of merchandise. Differentiating between wholesale and retail transactions. Coercive sales. Adherence to safety requirements. Dissemination of credit informa- tion, etc. 129.108 Agreement as to place of delivery. AvurHoritr: Secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C. 46 (g), 45, unless otherwise noted. Source: ‘Trade practice rules, Carbon Dioxide Manufacturing Industry, FTC, _Mar. 19, 1988, unless otherwise noted. Grourt § 129.1 Inducing breach of contract. Willfully inducing or attempting to in- duce, by any false or deceptive means whatsoever, the breach of any lawful contract or contracts existing between competitors and their customers or their 129.5 trade 129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15 129.16 129.17 129.18 129.19 129.101 129.102 129.103 129.104 129.105 129.106 129.107 574