Yeast Industry
16 CFR Part 182 · Trade practice rules · in the Code of Federal Regulations 1959-1977 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1977 CFR · Earliest edition: 1959 CFR
Text (1977 edition, OCR)
§ 181.20 $181.20 Discriminatory returns. It is an unfair trade practice for any member of the industry to discriminate in favor of one customer-purchaser against another customer-purchaser of handkerchiefs, bought from such mem- ber of the industry for resale, by offering or permitting such favored purchaser the privilege of returning handkerchiefs so purchased and receiving therefor credit or refund of purchase price: Pr . however, That nothing in §$§181.1 to 181.12 shall prohibit or be used to prevent the return of merchandise by purchaser, for credit or refund of purchase price, when and because such merchandise has been improperly labeled by the seller as to fiber content, or has been otherwise falsely or deceptively labeled or repre- sented, or when and because such merchandise is defective in material, workmanship, or in any other respect is contrary to warranty or purchase con- tract. $181.21 Tie-in sales. The practice of coercing or requiring the purchase of one or more products asa prerequisite or condition to the purchase of one or more other products, where the effect may be to substantially lessen competition or tend to create a monopoly or to unreasonably restrain trade, is an unfair trade practice. GRovur I § 181.101 Record keeping. The industry approves the practice of each seller of handkerchiefs independ- ently keeping an accurate record of all handkerchiefs sold, showing date of sale, make, type, quantity, and price, which record should be kept for a period of not less than two years after date of sale: Provided, however, That such records, or the keeping thereof, shall in no way be used, directly or indirectly, as part of or in connection with any practice, meth- od or plan contrary to § 181.12: And provided further, That nothing in this section shall be construed to limit or to modify the record-keeping requirements of the Wool Products Labeling Act of 1939 and the rules and regulations there- under in respect to, and on the part of manufacturers of, handkerchiefs or other products containing, purporting to con- 88 Title 16—-Commercial Practices tain, or represented as containing, woolen fiber and subject to the act mentioned. $181.102 Forms of contract. The industry records its approval of the preparation and publication, in co- operation with suppliers and customers, of proper and lawful forms of contracte for voluntary use, which forms will leave open for negotiation by the respective parties all terms and conditions thereof, including prices, discounts, and other terms or conditions of sale: And provided further, That such forms, and the use thereof or any action in relation thereto, shall not be in restraint of trade. $181.103 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. § 181.104 Dissemination of credit in- formation. The industry records its approval of the distribution among members of the industry of information cov- ering delinquent and slow credit accounts insofar as such may be lawfully done. § 181.105 Recording of trade-marks. To avoid confusion the industry recommends that each member thereof voluntarily file with some person desig- nated by the industry all trade-marks, trade names, labels, or brands belonging to and used by such member, and that such information be made equally avail- able to all members of the industry and to the public. COMMITTER ON TRADE PRACTICES 8 181.201 Industry committee. The provisions of §16.1 of this sub- chapter shall be applicable to an industry committee established under this part. (21 P. BR. 1174, Feb. 21, 1956} PART 182—YEAST INDUSTRY Sec. 182.0 Definition. Grour I 182.2 Making of gifts, loans, or other special inducements to purchase. 182.2 Commercial bribery. Chapter I—Federal Sec. 1823 Selling below cost. 182.4 Coercing purchase of one product as & prerequisite to the purchase of other products. 182.8 Prohibited discrimination. 162.6 Combination or coercion to fix prices, suppress competition, or restrain trade. 162.7 Enticing away employees of oom- petitors, 182. Inducing breach of contract. 182.9 Procurement of competitor’s confi- dential information by unfair means and wrongful use thereof. 182.10 Defamation of competitors or dis- paragement of their products. 1862.11 False invoicing. 182.12 Walse and misleading price quota- tions, etc. 182.18 Miisrepresentation in general. 182.14 Aiding or ahetting use of unfair trade practices. Grovr II 182.101 Giving of samples. 182.102 Repudiation of contracts, COMMITTEE ON TRADE PRACTICES 182.201 Industry committee. AvTHORITY: The provisions of this Part 182 issued under secs. 6, 6, 88 Stat. 721, 719; 18 U.S.C. 46, 45, unless otherwise noted. Source: The ions of this Part 162 appear at 14 F.R. 3580, June 80, 1949, unless otherwise noted. § 182.0 Definition. (a) As used in the rules in this part the term “Industry Product” means any yeast or yeast product which is sold, of- fered for sale, or distributed, for use as a leavening agent in the making of bread, rolls, cakes, or other baking or food products. (b) Members ef the industry are the persons, firms, and corporations or or- ganizations, engaged in the business of manufacturing or producing, distribut- ing, or placing on the market, any such industry product as defined in paragraph (a) of this section. Grovur I 8182.1 Making of gifts, loans, or other special inducements to purchase. It is an unfair trade practice for any member of the yeast industry te give, lend, or furnish, or to contract to give, lend, or furnish, money or any other thing of value, including samples, fix- Trade Commission § 182.3 tures, or machinery (such as refrigera- tors, baking machinery, scales, etc.), or to afford special credit or other services or facilities or to provide entertainment, for or to any customer or prospective customer : (a) As an inducement to purchase or contract to purchase or on the condition that the customer or prospective cus- temer purchase exclusively the products of the industry member furnishing such inducement or refrain from purchasing or contracting to purchase the products of a competitor, where the effect thereof may be to substantially lessen competi- tion or tend to create a monopoly; or (b) Where the effect of such practice is to bring about a discrimination in price, services, or facilities contrary tc the provisions of the Robinson-Patman Act and of § 182.5. § 182.2 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 principals, as an inducement to influence their employers or principals to pur- chase, or contract to purchase, products manufactured or sold by such industry member 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 contracting to deal with competitors. § 182.3 Selling 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 to substantially lessen competition or tend to create a monopoly or unreason- ably restrain trade is an unfair trade practice. All elements recognized by good accounting practice as proper ele- ments of such cost shall be included in determining cost under this section. The costs, however, which are referred to in the section, are actual costs of the respective selier and not some other figure or average costs in the industry 89 § 182.4 determined by an industry cost survey or otherwise. § 182.4 Coercing purchase of one prod- uct as a prerequisite to the purchase of other products. The practice of coercing the purchase of one or more products as a prerequisite to the purchase of one or more other products, where the effect may be to sub- stantially lessen competition or tend to create a monopoly or to unreasonably restrain trade, is an unfair trade practice. § 182.5 Prohibited discrimination.’ (a) Prohibited discriminatory prices, or rebates, refunds, discounts, credits, etc., which effect unlawful price discrim- ination. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such com- merce, to grant or allow, secretiy or openly, directly or indirectly, any rebate, refund, discount, credit, or other form of price differential (whether in the guise of samples, or so-called free deals, or other- wise), where such rebate, refund, dis- count, credit, or other form of price dif- ferential, effects a discrimination in price between different purchasers of gocds of Nke grade and quality, where either or any of the purchases involved therein are in commerce, and where the effect there- of may be substantially to lessen compe- tition or tend to create a monopoly in any line of commerco, 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: Pro- vided, however: (1 That the goods involved in any such transaction are sold for use, con- 3 As used throughout this section, the word “commerce” means “trade or commerce among the several States and with foreign nations, or between the District of Colum- bia or any Territory of the United States and any State, Territory, or foreign nation, or between any insular possessions or other places under the jurisdiction of the United States, or between any such possession or place and any State or Territory of the United States or the District of Columbia or any foreign nation, or within the District of Co- lumbia or any Territory or any insular posses- sion or other place under the Jurisdiction of the United States.” 90 Title 16—Commercial Practices sumption, or resale within any place under the jurisdiction of the United States; (2) That nothing contained in this paragraph shall prevent differentials which make only due allowance for dif- ferences in the cost of manufacture, sale, or delivery resulting from the differing methods or quantities in which such commodities are to such purchasers sold or delivered; (3) That nothing contained in this paragraph 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 tn this paragraph shall prevent price changes from time to time where made in re- sponse to changing conditions affecting either (1) the market for the goods con- cerned, 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. (b) Prohibtted brokerage and commis- sions. 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 indi- rect control, of any party to such trans- action other than the person by whom such compensation is so granted or pald. (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 adver- tising or promotional 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 compensa- tion or in consideration for any services Chapter I—Federal or facilities furnished by or through such customer in connection with the processing, handling, sale, or offering for sale of any products or commodities manufactured, soid, or offered for sale by such member, unless such payment or consideration is available on propor- tionally equal terms to all other cus- tomers competing in the distribution of such products or commodities. (d) Prohibited discriminatory services or facilities. It is an unfair trade prac- tice for any member of the industry to discriminate in favor of one purchaser against another purchaser or purchas- ers of a commodity bought for resale. with or without processing, by contract- ing to furnish or furnishing, or by con- tributing to the furnishing of, any serv- ices or facilities connected with the proc- essing, handling, sale, or offering for sale of such commodity so purchased upon terms not accorded to all pur- chasers on proportionally equal terms. (e) Inducing or recetving an tlegal discrimination in price. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce, knowingly to induce or receive a discrimination in price which is prohibited by the provi- sions in paragraphs (a) to (d) of this section. (f) Purchases by schools, colleges, uni- versities, public libraries, churches, hos- pitals, and charitable institutions not op- erated for profit. The foregoing pro- visions of this section relate to practices within the purview of the Robinson-Pat- man Antidiscrimination Act, which act and the application thereunder of this section are subject to the limitations ex- pressed in the amendment to such Robin- son-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, sec~ ond session), known as the Robinson-Patman Antidiscrimination Act, shall apply to pur- chases of their supplies for their own use by schools, colleges, universities, public H- braries, churches, hospitals, and charitable institutions not operated for profit (52 Stat. 446; United States Codes, 1940 edition, Title 15, Sec. 18c.) 91 Trade Commission § 182.8 (g) Purchases by U.S. Government, applicability of Robinson-Patman Anti- discrimination Act to same. In an opin- ion submitted to the Secretary of War under date of December 28, 1936, the U.S. Attorney General advised that the Robinson - Patman Antidiscrimination Act “is not applicable to Government contracts for supplies.” (38 Opinions, Attorney General 539.) § 182.6 Combination or coercion to fix prices, suppress competition, or re- strain trade. It is an unfair trade practice for a member of the industry or other person: (a) To use, directly or indirectly, any form of threat, intimidation, or coercion against any member of the industry or other person unlawfully to fix, maintain, or enhance prices, suppress competition, or restrain trade; or (b) To enter into or take part in, di- rectly or indirectly, any agreement, un- derstanding, combination, conspiracy, or concerted action with one or more mem- bers of the industry, or with one or more other persons, unlawfully to fix, maintain, or enhance prices, suppress competition, or restrain trade. § 182.7 Enticing away employees competitors. It is an unfair trade practice for any member of the industry wilfully to en- tice away employees of competitors with the intent and effect of thereby unduly hampering or injuring competi- tors in their business and destroying or substantially lessening competition: Provided, That nothing in this section shall be construed as prohibiting em- ployees or agents from seeking or ob- taining more favorable employment. § 182.8 Inducing breach of contract. Inducing or attempting to induce the breach of existing lawful contracts be- tween competitors and their customers or their suppliers by any faise or decep- tive means whatsover, or 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 competitors in their business is an unfair trade practice. of § 182.9 § 182.9 Procurement of competitor's confidential information by unfair 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 employee 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 means, and to use the information so obtained in such manner as to injure said com- petitor in his business or to suppress comptition or unreasonably restrain trade. § 182.10 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 the grade, quality, quan- tity, substance, character, nature, origin, size, or preparation of any product of competitors, or of their business meth- ods, selling prices, values, credit terms, policies, or services, is an unfair trade practice. § 182,11 False invoicing. It is an unfair trade practice to with- hold from or insert in invoices any statement or information by reason of which omission or insertion a false rec- ord is made, wholly or in part, of the transaction or transactions represented on the face of such invoices, with the purpose or effect of thereby misleading or deceiving purchasers or prospective purchasers, § 182.12 False and misleading price quotations, etc. The publishing or circulating by any member of the industry of false or mis- leading price quotations, price lists, or terms or conditions of sale, with the ca- pacity and tendency or effect of thereby misleading or deceiving purchasers or prospective purchasers, is an unfair trade practice. § 182.13 Misrepresentation in general. It is an unfair trade practice for any industry member to make or cause to be made, directly or indirectiy, in newspaper or periodical advertisements, sales pro- 92 Title 16—Commercial Practices motional literature, on the radio, or otherwise, or in connection with any demonstration or course of instruction, any false, misleading, or deceptive state- ment or representation concerning the quality, quantity, price, value, composi- tion, ingredients, nutritional value, freshness, use, effectiveness, preparation, manufacture, or distribution of any in- dustry product; or to misrepresent any such product in any other material respect. Nore: Among the inhibitions of this seo- tion te “false advertisement”, as defined in section 15 of the Federal Trade Commission Act, of any “food” or other product within the scope of such section. Furthermore, nothing in the rules in this part is to be con- strued as relloving anyone of the necessity of complying with the provisions of the Food, Drug and Cosmetic Act in respect to labeling or any otber matter coming within the pur- view of that act. § 182.14 Aiding or abetting use of un- fair trade practices. It is an unfair trade practice for any industry member to aid, abet, coerce, or induce another, directly or indirectly, to use or promote the use of any unfair trade practice specified in §§ 182.1 to 182.13. Group I § 182.101 Giving of samples. The industry disapproves the practice of giving samples except when and to the extent necessary to acquaint prospective new customers with the quality or prop- erties of the product offered for sale or to acquaint present customers with a new type of product, and where the giving of such samples would not be con- trary to any of the provisions of § 182.1 or § 182.5. § 182.102 Repndiation 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. COMMITTEE ON TRADE PRACTICES § 182.201 Industry committee. The provisions of §16.1 of this sub- chapter shall be applicable to an indus- try committee established under this part. [21 FP. B. 1174, Feb. 21, 1956]