Assembling Branch Of The Cheese Industry

16 CFR Part 56 · 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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)

Chapter I—Federal Trade Commission

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 competing purchasers on
proportionally equal terms.

Nore: See subsection (b) of section 2 of
the Clayton Act as amended, which is set
forth in the note following paragraph (f)
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 section.

Note: Paragraph (f) of this section is a
restatement of section 2 (f) of the Ciayton
Act as amended. In a complaint proceeding
under this section in order to make out a
prima facie violation, the Commisslon must
show that the favored buyer induced or
received the lower price knowing, or knowing
facts from which he should have known, that
such price was violative of section 2 (a) of
said act and not justified under subpara-
graph (2), (4), or (5) of paragraph (a) of
this section. When, in any such proceedings,
the issue is limited to the question of
whether the price differential involved made
only due allowance for differences in cost of
manufacture, sale, or delivery resulting from
the differing methods or quantities in which
the goods were sold and delivered, the Com-
mission 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 sold 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 is 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 compet-
ing 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 specified as to justify the price
differential.

Note: Section 50.19 is based on the provi-
sions of section 2 of the Clayton Act as
amended by the Robinson-Patman Act.

Subsection (b) of section 2 of the Clayton
Act as amended, which reads as follows, is in
amplification of the note to subparagraph

§ 58.201

(5) of paragraph (a) of this section and of
the note to paragraph (e) of this section:
“Upon proof being made, at any hearing
on a complaint under this section, that there
has been discrimination tn price or services
of facilities furnished, the burden of rebut-
ting the prima facie case thus made by show-

. ing justification shall be upon the person

charged with a violation of this section, and
unless justification shall be affirmatively
shown, the Commission is authorized to issue
an order terminating the discrimination:
Provided, however, That nothing herein con-
tained shall prevent a seller rebutting the
prima facie case thus made by showing that
his 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 competitor, or the services or
facilities furnished by a competitor.”

§ 50.20 Aiding or abetting use of un-
fair trade practices. It is an unfair trade
practice for any person, firm, or corpora-
tion to aid, abet, coerce, or induce an-
other, directly or indirectly, to use or
promote the use of any unfair trade prac-
tice specified in this part.

Part 53—Interior Marble Industry

COMMITTEE ON TRADE PRACTICES [ADDED]

‘Bec.

53.201 Industry committee.

§ 53.201 Industry committee. The
provisions of § 16.1 of this subchapter
shall be aplicable to an industry com-
mittee established under this part.

(Sec. 6, 38 Stat. 721; 15 U.8.C.46) [21 PF. R.
1174, Feb. 21, 1956]

Part 56—Assembling Branch of
the Cheese Industry [Revoked]

CODIFICATION: Part 56 was revoked, 19 F. R.
2463, Apr. 28, 1954.

Part 57—Lightning Rod Industry
[Revoked]

CovIFIcaTIon: Part 57 was revoked, 19 F. R.
2561, May 4, 1954.

Part 58—Gelf, Baseball,
Athletic Goods Industries
COMMITTEE ON TRADE PRACTICES [ADDED]

and

Sec.
58.201 Industry committee.
§58.201 Industry committee. The

provisions of § 16.1 of this subcliapter

Page 267