Consumer Law Library

Walnut Wood Industry

16 CFR Part 54 · Trade practice rules · in the Code of Federal Regulations 1938-1978 (15 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1978 CFR · Earliest edition: 1938 CFR

Text (1978 edition, OCR)

§ 46.19

any other thing of value to or for the
benefit of a customer of such member
in the course of such commerce as
compensation or in consideration for
any services or facilities furnished by
or through such customer in connec-
tion with the processing, handling,
sale, or offering for sale of any prod-
ucts or commodities manufactured,
sold, or offered for sale by such
member, unless such payment or con-
sideration is available on proportional-
ly equal terms to all other customers
competing in the distribution of such
products or commodities.

Nore 1: Industry members _ giving
allowances for advertising or sales promo-
tlon must, in addition to according same to
all competing customers on proportionally
equal terms, exercise precautlon and dili-
gence in seeing that all such allowances are
used by the customers for such purpose.
Customers receiving such allowances must
not use same for any other purpose.

When an allowance is made ostensiby for
advertising or sales promotion of products
and is not in fact used for that purpose the
practice may constitute a price discrimina-
tion. In such case, the party giving the
allowance may violate paragraph (a) of this
section and the party receiving same may
violate paragraph (f) of this section.

Nore 2: When an industry member gives
allowances to competing customers for ad-
vertising in a newspaper or periodical, the
fact that a lower advertising rate for equiv-
alent space is avallable to one or more, but
not all, such customers, is not to be regard-
ed by the industry member as warranting
the retention by such customer or custom-
ers of any portion of the allowance for his
or their personal use or benefit.

(e) Prohibited discriminatory ser-
-vices of facilities. It is an unfair trade
practice for any member of the indus-
try engaged in commerce to discrimi-
nate in favor of one purchaser against
another purchaser or purchasers of a
commodity bought for resale, with or
without processing, by contracting to
furnish or furnishing, or by contribut-
ing to the furnishing of, any services
or facilities connected with the pro-
cessing, handling, sale, or offering for
sale of such commodity so purchased
upon terms not accorded to all com-
peting purchasers on proportionally
equal terms.

Note 1: See subsection (b) of section 2 of
the Clayton Act, as amended, which is set

Title 16—Cammercial Practices

forth in Note 1 to paragraph (a)(5) of this
section.

Note 2: Among the practices inhibited by
section V of this rule is that of an industry
member according to one or more customers
the privilege of returning for credit or
refund any or all of the goods purchased by
them and failing to accord the same privi-
lege to another or other competing custom-
ers on proportionally equal terms. In this
connection see also NoTE 2 under cost justi-
fication proviso (2) (paragraph (a)(2) of this
section.)

(f) Inducing or receiving an illegal
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 fore-
going provisions of this rule.

Norte: Section 46.18 is based on the provi-
sions of section 2 of the Clayton Act as
amended by the Robinson-Patman Act.

§46.19 Aiding or abetting use of unfair
trade practices.

It is an unfair trade practice for any
person, firm or corporation to aid,
abet, coerce, or induce another, direct-
ly or indirectly, to use or promote the
use of any unfair trade practice speci-
fied in the foregoing sections.

PART 54—WALNUT WOOD
INDUSTRY

Group I

Sec.
54.1 Misuse of word “walnut.”

Grovor II
54.101 Standards of nomenclature.

Source: Trade practice rules, Walnut
Wood Industry, FTC, Sept. 12, 1931, unless
otherwise noted.

Group I

§ 54.1 Misuse of word “walnut.”

The false use of the term “walnut”,
either alone or in conjunction with
other words, as applied to wood other
than the wood of the tree of the bo-
tanical wainut family, or the genus
Juglans, with the tendency and capac-
ity to deceive or mislead purchasers or
prospective purchasers, is an unfair
trade practice.

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Chapter I—Federal Trade Cammission

(Secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C.
46(g), 45.)

Group II

§ 54.101 Standards of nomenclature.

The present commercially used spe-
cies of “walnut” should be designated
with a qualifying adjective indicating
the species, variety or place of origin,
and the following names shall be the
accepted trade names for use in the
United States:

Juglans nigra, to be called “American
Walnut” or “Black Walnut”.

Juglans cinerea, to be called “White
Walnut” or “Butternut”.

Juglans regia, to be called “Royal” or
“Persian Walnut”.

From England, to be called “English
Walnut”.

From France, to be called “French
Walnut”.

From Italy,
Walnut”.

From Turkey, to be called “Turkish
Walnut”.

From Russia, to be called ‘‘Russian
Walnut”, or “Caucasian Walnut”
or “Circassian Walnut”’.

From Spain, to be called “Spanish
Walnut”.

Juglans sieboldiana, to be called ‘“‘Jap-
anese Walnut”.

Juglans boliviana, to be called ‘“Boliv-
ian Walnut”.

(Secs. 6(g), 5, 38 Stat. 722, 719; 15 U.S.C.
46(g), 45.)

to be called “Italian

PART 56-—-PLEASURE BOAT
INDUSTRY

Sec.
56.0
56.1
56.2
56.3
56.4
56.5
56.6
56.7

The industry and its products defined.

Deception (general).

Deception as to length.

Deceptive speed claims.

Deception as to maintenance.

Deceptive use of wood names.

Deceptive pricing.

Guarantees, warranties, etc.

56.8 Exclusive deals.

56.9 Prohibited forms of trade restraints
(unlawful price fixing, etc.).

56.10 Defamation of competitors or false
disparagement of their products.

56.11 Prohibited discrimination.

AvurHority: Secs. 6, 5, 38 Stat. 721, 719; 15
U.S.C. 46(g), 45, unless otherwise noted.

§ 56.2

Source: 26 FR 7012, Aug. 4, 1961, unless
otherwise noted.

§56.0 The industry and its products de-
fined.

Members of this industry are per-
sons, firms, corporations, and organi-
zations engaged in the manufacture,
sale or distribution of pleasure boats.
Products of the industry consists of
pleasure boats of all types (row boats,
motor boats, sail boats, etc.), the
length of which does not exceed 65
feet, and equipment therefor, such as
engines, propellers, rigging and tanks,
which are installed on such boats
when the boats are sold or offered for
sale. Such equipment, when not in-
stalled on pleasure boats is not to be
considered a product of the industry.

§ 56.1 Deception (general).

Boats and equipment thereof, shall
not be sold or offered for sale by an in-
dustry member under any representa-
tion or circumstance (including failure
to adequately disclose relevant facts)
having the capacity and tendency or
effect of misleading or deceiving pur-
chasers or prospective purchasers with
respect to size, weight, accommoda-
tions, load capacity, speed, horsepow-
er, durability, maintenance, construc-
tion, proof against, or resistance to,
leakage, resistance or immunity to fire
or flame, flotation, safety, or fuel con-
sumption; or having the capacity and
tendency or effect of misteading or de-
ceiving purchasers or prospective pur-
chasers in any other material respect.

Note: Among the practices to which the
prohibitions of this section are applicable,
are pictorial and other representations,
either direct or indirect, which create a false
impression as to the safe passenger and/or
property load capacity of a boat, and/or the
maximum weight and horsepower of motor
or motors with which it may be safely
equipped.

{Rule 1)

§ 56.2 Deception as to length.

Any representation as to the length
of a boat, either direct, or indirect as
by the use of model numbers suggest-
ing length, or otherwise, must state
the exact distance measured end to
end over the deck of such boat, exclud-
ing sheer. If in addition a representa-

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