Medical Gas Industry

16 CFR Part 41 · Trade practice rules · in the Code of Federal Regulations 1938-1959 (4 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1959 CFR · Earliest edition: 1938 CFR

Text (1959 edition, OCR)

§ 40.15

accorded to all competing purchasers on
proportionally equa] terms. .

Note: See subsection (b) of section 2 of
the Ciayton Act as amended, which is set
forth in the note foliowing paragraph (e)
of this section.

(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 fore-
going provisions of this section.

Note: Paragraph (e) of this section is a
re-statement of section 2 (f) of the Clayton
Act as amended. In a complaint proceeding
under this section, in order to make out a
prima facie violation, the Commisison must
show that the favored buyer induced or re-
ceived the lower price knowning, or know-
ing facts from which he should have known,
that such price was vioiative of section 2 (a)
of said act and not justified under subpara-
graphs (2), (4) or (5) of paragraph (a) of
this section.

When, in any such proceeding, the issue is
iimited to the question of whether the price
differential Involved made only due ailow-
ance for differences in cost of manufacture,
sale, or delivery resuiting from the differing
methods or quantities in which the goods
were sold and delivered, the Commission may
establish a prima facie case in a number of
ways, including:

(1) By showing that the buyer paying the
lower price knew that the methods by, and
quantities in, which the goods were soid and
delivered to him by the seller, were the same
as in the case of the competing buyer or
buyers paying the higher price or prices; or

(2) By showing, when there its a difference
in the methods or quantities in which the
goods were sold and delivered by the seller to
the buyer than in the case of the competing
buyer or buyers paying the higher price or
prices, that the buyer paying the lower price
or prices knew the nature and extent of such
differences and knew or should have known
that they could not have resulted in sufficient
cost savings of the kind and character speci-
fied as to justify the price differential.

Note: Section 40.14 is based on the provi-
sions of sectlon 2 of the Clayton Act as
amended by the Robinson-Patman Act.

Subsection (b) of section 2 of the Clay-
ton Act as amended, which reads as follows,
is in amplification of the note to subpara-
graph (5) of paragraph (a) of this section
and of the note to paragraph (d) of § 40.14:

“Upon proof being made, at any hearing
an a complaint under this section, that there
has been discrimination in price or services
or faciiities furnished, the burden of re-
butting the prima facie case thus made by
showing justification shall be upon the
person charged with a vioiation of this sec-

Page 240

Title 16—Commercial Practices

tion, and uniess justification shall be af-
firmatively shown, the Commission is
authorized to issue an order terminating the
discrimination: Provided, however, That
nothing herein contained shall prevent a
seller rebutting the prima facie case thus
made by showing that the lower price or the
furnishing of services or facilities to any
purchaser or purchasers was made in good
faith to meet an equally low price of a compe-
titor, or the services or facilities furnished
by a competitor.

§ 40.15 Exclusive deals. It isan unfair
trade practice for any member of the
industry to contract to sell or sell any
industry equipment, or fix a price
charged therefor, or discount from, or
rebate upon, such price, upon the condi-
tion, agreement, or understanding that
the purchaser thereof shall not use or
deal in the equipment of a competitor or
competitors of such industry member,
where the effect of such sale or contract
for sale, or of such condition, agreement,
or understanding, may be substantially
to lessen competition or tend to create a
monopoly in any line of commerce.

§ 40.16 Aiding or abetting use of un-
fair trade practices. Itis an unfair trade
practice for any person, firm, or corpo-
ration to aid, abet, coerce, or induce
another, directly or indirectly, to use or
promote the use of any unfair trade prac-
tice specified in the rules in this part.

COMMITTEE ON TRADE PRACTICES

§ 40.201 Industry committee. The
provisions of § 16.1 of this subchapter
shall be applicable to ah industry com-
mittee established under this part.

Part 41—Medical Gas Industry
[Revoked]

CopIFICATION: Part 41 was revoked, 20
BP. R. 2704, Apr. 23, 1956.

Part 41—Metal Awning Industry

[Added]
Sec.
41.0 Definitions.
41.1 Deception in general.
412 Misuse of term “windproof,” etc.
41.3 Misuse of the term “stormproof,” etc.
41.4 Misuse of the term “rustproof,” etc.
41.5 Deception as to temperature reduction
or control resulting from use of
industry products.
41.6 Deceptive pricing.
41.7 Bait advertising.
418 Misuse of terms “close-outs,” “discon-

tinued lines,” “special bargains,”
etc,