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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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