Consumer Law Library

Resistance Welder Manufacturing Industry

16 CFR Part 149 · Trade practice rules · in the Code of Federal Regulations 1943-1977 (13 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1977 CFR · Earliest edition: 1943 CFR

Text (1977 edition, OCR)

Chapter I—Federal

§ 146.22 Unlawful interference with raw
material purchases.

It is an unfair trade practice for any
member of the industry, by means of any
monopolistic practices or through combi-
nation, conspiracy, coercion, boycott,
threats, or any other unlawful means,
directly or indirectly, to interfere with a
competitor’s right to purchase his raw
materials and supplies from whomsoever
he chooses, or to sell his product to
whomsoever he chooses.

§ 146.23 Aiding or abetting use of un-
fair trade practices.

It is an unfair trade practice for any
Person, firm, or corporation to aid, abet,
coerce, or induce another, directly or in-
directly, to use or promote the use of
any unfair trade practice specified in
this part. . 7

Grove IT
§ 146.101 Cost records.

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

§ 146.102 Repudiation or cancellation
of contracts.

Lawful contracts are business obliga-
tions which should be performed in letter
and in spirit. The repudiation or can-
cellation of contracts by sellers on a ris-
ing market or by buyers on a declining
market is condemned by the industry.

COMMITTEE ON TRADE PRACTICES
§ 146.201 Industry committee.

The provisions of § 16.1 of this sub-
chapter shall be applicable to an indus-
wry committee established under this
Part.

[21 F.R. 1174, Feb. 21, 1956]

PART 149-—RESISTANCE WELDER
MANUFACTURING INDUSTRY

Group I

Bec.

148.1 Misrepresentation of industry prod-
ucts.

148.2 Misbranding.

149.38 False invoicing.

149.4 Deception as to rebuilt or second-
hand, products.

149.5 Misrepresentation as to character of
business,

148.6 Imitation of trade-marks, trade
names, etc,

149.7 Inducing breach of contract.

149.8 Substitution of products.

Trade Commission § 149.3

Sec.

148.9 Defamation of competitors or dis-
paragement of their products.

148.10 Procurement of competitors’ confi-
dential information by unfair
means and wrongful use thereof.

149.11 Commercial bribery.

149.12 Enticing away employees of com-
petitors.

149.13 Consignment distribution.

149.14 Discrimination,

149.15 Aiding or abetting use of unfair

trade practices.
Group It
149.101 Repudiation of contracts.

AutTHoRITY: The provisions of this Part 149
issued under secs. 6(g), 5, 88 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.

Source: The provisions of this Part 149
appear at 5 F.R. 2877, Aug. 17 1940, unless
otherwise noted.

Group I

$149.1 Misrepresentation of
products.

It is an unfair trade practice to make
or publish, or cause to be made or pub-
lished, directly or indirectly, any false,
misleading, or deceptive statement or
representation, by way of advertisement
or otherwise, concerning the size, style,
strength of union effected, circuit
requirements, performance, equipment,
character, durability, finish, material,
origin, construction, manufacture, or
distribution of any products of the in-
dustry or concerning any component of
such products, or in any other material
respect.

§ 149.2 Misbranding.

It is an unfair trade practice to falsely
or deceptively mark, brand, or label weld-
ing machines or other products of the
industry with any word, phrase, name,
mark, label, picture, design, device, or
other representation with respect to the
size, style, strength of union effected, cir-
cult requirements, performance, equip-
ment, character, durability, finish, mate-
rial, origin, construction, manufacture,
or distribution of any such products of
the industry, or concerning any com-
ponent of such products, or in any other
material respect.

§ 149.3 False invoicing.

It ts an unfair trade practice to with-
hold from or insert in invoices any state-
ments or information by reason of which
omission or tnsertion a false record is
made, wholly or in part, of the trans-
actions, represented on the face of such

industry

555


$149.4

invoices, with the effect of thereby mis-
leading or deceiving purchasers or pro-
spective purchasers.

$149.4 Deception as to rebuilt or sec-
ond-hand products.

(a) It is an unfair trade practice for
any member of the industry to sell, offer
for sale, advertise, or otherwise repre-
sent any welding machine, part therefor,
or other product of the industry, as being
new when such is not true in fact.

(b) In the marketing of rebulit or
second-hand welding machines, welding
machine parts, or welding machines con-
taining rebuilt or second-hand parts, it is
an unfair trade practice to fail or refuse
to make full and nondeceptive disclosure,
by tag or label attached to the product, of
the fact that such welding machines or
parts are not new but are used, rebuilt, or
second-hand, as the case may be, such
failure or refusal to disclose having the
capacity and tendency or effect of mis-
leading or deceiving purchasers or pro-
spective purchasers.

§ 149.5 Misrepresentation as to charae-
ter of business.

It is an unfair trade practice for any
person, firm, or corporation to represent,
directly or indirectly, that he or it is a
welding machine manufacturer, or that
he or it owns or controis a factory en-
gaged in the manufacture of welding
machines, when such is not the fact, or
in any other manner to misrepresent the
character, extent, or type of his or its
business.

§ 149.6 Imitation of trade-marks, trade
names, etc.

The imitation of simulation of the
trade-marks, trade names, brands, or
labels of competitors, with the capacity
and tendency or effect of misleading or
deceiving purchasers or prospective pur-
chasers, is an unfair trade practice.

§ 149.7 Indncing breach of contract.

It is an unfair trade practice to induce
or attempt to induce the breach of exist-
ing lawful contracts between competitors
and their customers, or their suppliers,
by any false or deceptive means whatso-
ever, or to interfere with or obstruct 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.

Title 16——-Commercial Practices

§ 149.8 Substitution of products.

The practice of shipping or delivering
products which do not conform to sam-
ples submitted, to specifications upon
which the sale is consummated, or to
representations made prior to securing
the order, without the consent of the
purchasers to such substitutions, or with
the capacity and tendency or effect of
misleading or decelving purchasers or
prospective purchasers, is an unfatr trade
practice.

§ 149.9 Defamation of competitors or
disparagement of their products.

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 dis-
paragement of competitors’ products in.
any respect, or of their business methods,
selling prices, values, credit terms, pol-
icles, or services, is an unfair trade prac-
tice.

§ 149.10 Procurement of competitors®
confidential information by nnfair
means and wrongful use thereof.

It is an unfair trade practice for any
member of the industry to obtain infor-
mation concerning the business of a
competitor by bribery of an employer or
agent of such competitor, by false or
misleading statements or representa-
tions, by the impersonation of one in
authority, or by any other unfair meaus,
and to use the information so obtained
in such manner as to injure said com-
petitor in his business or to suppress
competition or unreasonably restrain

e.

§ 149.11 Commercial bribery. .

It ls 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’ customers
or prospective customers, without the
knowledge of their employers or princi-
pals, as an inducement to influence thelr
employers or principals to purchase or
contract to purchase products manufac-
tured or sold by such industry member or
the maker of such gift or offer, or to in-
fluence such employers or principals to
refrain from dealing in the products of

556


Chapter |—Federal

competitors or from dealing or contract-
ing to deal with competitors.

§ 149.12 Enticing away employees of
competitors.

It is an unfair trade practice to will-
fully entice away the employees of com-
petitors with the purpose and effect of
unduly hampering, injuring, or prejudic-
ing competitors in their businesses.

§ 149.13 Consignment distribution.

It is an unfair trade practice for any
member of the industry to employ the
practice of shipping industry products
on consignment or pretended consign-
ment for the purpose and with the effect
of artificially clogging or closing trade
outlets and unduly restricting competi-~
tors’ use of said trade outlets in getting
their products to consumers through reg-
ular channels of distribution, thereby in-
juring, destroying, or preventing com-
petition or tending to create a monopoly
or to unreasonably restrain trade. Noth-
ing in this section shall be construed as
restricting or preventing consignment
shipping or marketing of industry prod-
ucts in good faith where suppression of
competition, restraint of trade, or undue
interference with competitors’ use of the
usual channels of distribution is not
effected.

§ 149.14 Discrimination.

(a) Prohibited discriminatory prices,
or rebates, refunds, discounts, credits,
etc., which effect unlawful price discrim-
ination. It 1s unfair trade practice for
any Member of the industry engaged in
commerce in the course of such com-
merce, to grant or allow, secretly or
openly, directly or indirectly, any rebate,
refund, discount credit, or other form of
price differential, where such rebate, re-
fund, discount, credit, or other form of
price differential effects a discrimination
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 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, consump-
tion, or resale within any place under
the jurisdiction of the United States:

Trade Conimission § 149.14

(2) That nothing contained in this
section shall prevent differentials which
make only due allowance 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
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 ()
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, obso-
lescence of seasonal goods, distress sales
under court process, or sales in good faith
in discontinuance of business in the
goods concerned.

(b) Prohibited brokerage and commis-
ston. 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 commis-
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 in-
termediary therein where such inter-
mediary 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
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 promotioual allowances or any other
thing of vaiue to or for the benefit of
customer of such member in the course
of such commerce as compensation or in
consideration for any services or facili-
ties furnished by or through such cus-
tomer in connection with the processing,
handling, sale, or offering for sale, of any
products or commodities manufactured,
sold, or offered for sale by such member,
unless such payment or consideration ts
available on proportionally equal terms
to ail other customers competing in the

557


§ 149.15

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-
essing, by contracting to furnish or
furnishing, or by contributing to the
furnishing of, any services or facilities
connected 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 terms.

(e) Inducing or receiving an illegal
discrimination in price. It is an unfair
trade practice for any member of the in-
dustry engaged in commerce, in the
course of such commerce, knowingly to
induce or receive a discrimination in
price which is prohibited by the forego-
ing provisions of this section.

(f) Purchases by schools, colleges,
universities, public libraries, churches,
hospitals, and charitable institutions not
operated for profit. The foregoing pro-
visions of this section relate to practices
within the purview of the Robinson-
Patman Antidiscrimination Act, which
act and the application thereunder of
this section are subject to the limitations

Title 16—Commercial Practices

expressed in the amendment to such
Robinson-Patman Antidiscrimination
Act, which amendment was approved
May 26, 1938, and reads as follows:

Be it enacted by the Senate and House of
Representatives of the United States of
America in Congress assembled, That noth-
ing in the Act approved June 19, 1936 (Public
Numbered 692, Seventy-fourth Congress,
second session), known as the Robinson-
Patman Antidiscrimination Act, shall apply
to purchases of thelr supplies for thelr own
use by schools, colleges, universities, public
Iibrarles, churches, hospitals, and charitable
institutions not operated for profit.

(Sec. 2, 88 Stat. 730, as amended, secs. 2, 3, 4,
49 Stat. 1527, 1528, ch. 288, 52 Stat. 446; 15
U.S.C. 13, 13a, 13b, 18c, 21a)

§ 149.15 Aiding or abetting use of un-
fair trade practices.

It is an unfair trade practice for any
person, firm, or corporation to aid, abet,
coerce, or induce another, directly or
indirectly, to use or promote the use of
any unfair trade practice specified in this
part.

Grove I

§ 149.101 Repudiation of contracts.

Lawful contracts are business obliga-
tions which should be performed in letter
and in spirit. The repudiation of con-
tracts by sellers on a rising market or by
buyers on a declining market is con-
demned by the industry.

558