Electrical Contracting Industry

16 CFR Part 64 · Trade practice rules · in the Code of Federal Regulations 1938-1977 (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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1977 CFR · Earliest edition: 1938 CFR

Text (1977 edition, OCR)

§ 62.3

(4) Disclosure that the product was
rebuilt for the identified manufacturer,
if such is the case, as for example:

Rebuilt
for
XYZ Motors
(Rule 2]

§ 62.3 Misrepresentation as to condition
of products and misuse of the terms
“rebuilt,” “factory rebuilt,” “reman-
ufactured,” ete.

(a) It is an unfair trade practice to
use, or cause or promote the use of, any
statement or representation in advertis-
ing, on containers, on industry products,
or elsewhere, which has the. capacity and
tendency or effect of misleading or de-
ceiving purchasers or prospective pur-
chasers as to the condition of an indus-
try product, or the extent that an
industry product has been repaired or
reconstructed.

(b) It is an unfair trade practice to
use the words “Rebuilt,” “Remanufac-
tured,” or words of similar import, as
descriptive of an industry product which,
since it was last subjected to any use,
has not been dismantled and recon-
structed as necessary, all of its internal
and externai parts cleaned and made
free from rust and corrosion, all im-
paired, defective or substantially worn
parts restored to a sound condition or
replaced with new, rebuilt’ or unim-
paired used parts, all missing parts re-
placed with new, rebuilt’ or unimpaired
used parts, and such rewinding or ma-
chining and other operations performed
as are necessary to put the industry
product in sound working condition.

(c) It is an unfair trade practice to
represent an industry product as “Fac-
tory Rebuilt” unless the product was re~
built as described in paragraph (b) of
this section at a factory generally en-
gaged in the rebuilding of such products.
(See also § 62.2) [Rule 3}

PART 64—ELECTRICAL CONTRACTING

NDUSTRY
Grove I
Sec.
64.1 Inducing breach of contract.
64.2 Enticing employees.
64.3 Defamation of competitors.
64.4 Sales below cost.
64.5 Substitution.
64.6 Substitution in installation.

4In accord with the provisions of this
Paragraph (b).

Titie 14—Commercial Practices

Sec.
64.8 Aiding or abetting use of unfair

practices.
Group II

Regulatory standards.

Solicitation of favors in bidding.

Solicitation of information with a
view to price cutting.

Deception in bidding.

Unethical acquisition of bid infor-
mation.

Fictitious bids.

Bid “shopplIng"”’ condemned.

Standards of calis for bids.

Identical information to all bidders.

Publication of price IMsts and terms
of sale.

Definition.

Cost accounting.

Arbitration.

COMMITTEE ON TRADE PRACTICES
64.201 Industry committee.

AurHoriIty: The provisions of this Part 64
issued under secs. 6(g), 6, 88 Stat. 722, 719;
15 U.S.C. 46, 45, unless otherwise noted.

Source: The provisions of this Part 64
contained in trade practice rules, Electrical
Contracting Industry, FTC, Nov. 28, 1931,
unless otherwise noted.

Grovp I
§ 64.1 Inducing breach of contract.

Willfully inducing or attempting to in-
duce the breach of existing contracts
between competitors and their customers
by any false or deceptive means whatso-
ever, or interfering with or obstructing
the performance of any such contractuai
duties or services by any such means,
with the purpose and effect of unduly
hampering, injuring, or embarrassing
competitors in their businesses, is an
unfair trade practice.

§ 64.2 Enticmg employees.

Willfully enticing away the employees
of competitors with the purpose and
effect of unduly hampering, injuring, or
embarrassmg competitors in their busi-
nesses is an unfair trade practice.

§ 64.3 Defamation of competitors.

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 or quality of
their goods, with the tendency and ca-
pacity to mislead or deceive purchasers
or prospective purchasers and the tend-
ency to injuriously affect the business of

64.101
64.102
64.103

64.104
64.105

64.106
64.107
64.108
64.109
64.110

64.111
64.112
64.113

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Chapter |1—Federal Trade Commission

such competitors, is an unfair trade
practice.

§ 64.4 Sales below cost.

The selling of goods below cost with
the intent 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 to unrea-
sonably restrain trade is an unfair trade
practice.

§ 64.5 Substitution.

The practice of shipping or delivering
products which do not conform to the
samples submitted or representations
made prior to securing the orders, with-
out the consent of the purchasers to such
substitutions, and with the effect of de-
ceiving or misleading purchasers and the
tendency to injuriously affect the busi-
ness of competitors, is an unfair trade
practice.

§ 64.6 Substitution in installation.

The practice of using materials or
methods of installation not in accordance
with the applicable governmental laws,
rules, and regulations obtaining in the
territory affected, with the tendency to
injuriously affect the business of com-
petitors, is an unfair trade practice.

§ 64.8 Aiding or abetting use of unfair
trade practices.

For any person, firm, or corporation
knowingly to aid or abet another in the
use of unfair trade practices is an unfair
trade practice.

Group II
§ 64.101 Regulatory standards.

In electrical installations in territorles
where no governmentai laws, rules, or
regulations prevail, the National Electri-
cal Code, approved by the American
Standards Association, provides the
proper regulations.

§ 64.102 Solicitation of
bidding.

The inducing or attempting to induce
an architect, owner, or builder to reveal
to any bidder on a competitive job in-
formation relative to bids already re-
ceived, which information would give the
favored bidder an advantage in the prep-
aration of his own bid, is condemned by
the industry.

§ 64.103 Solicitation of information
' with a view to price cutting.

To induce or attempt to induce an
architect, owner, or builder to reveal to

favors in

§ 64.108

@ bidder the amounts and conditions of
any bid recelved on a competitive job,
with a view of giving the favored con-
cern an opportunity to meet or cut below
the lowest bid, whether the favored con-
cern was one of the original bidders or
not, is condemned by the industry.

§ 64.104 Deception in bidding.

To mislead or deceive any bidder as to
the amounts and conditions of other bids
or with any other false information for
the purpose of inducing him to cut his
own is condemned by the industry.

§ 64.105 Unethical acquisition of bid
information.

Surreptitiously obtaining information
relative to competitors’ bids in the prep-
aration of one’s own bid is condemned by
the industry.

§ 64.106 Fictitious bids.

The industry approves of the “one-bid”
policy and condemns fake or fictitious
bids made for the purpose of deceiving
competitors and securing undue advan-
tage. If plans and specifications are
changed and new bids called for after
the original bids have been submitted
and opened, the same fairness should
obtain as with the original bid.

§ 64.107 Bid “shopping” condemned.

It is a frequent practice for electrical
contractors to submit bids to general
contractors who in turn use the lowest
acceptable price from the several trades
in making up their bids on a general
contract. Many general contractors
after securing the general contract then
reopen the bidding for the same opera-
tion, commonly known as “shopping”,
which practice involves deception and
misrepresentation, lowering the standard
and quality of electrical installation and
building construction. Such practice
is condemned by the industry.

§ 64.108 Standards of calls for bids.

The industry favors the adoption of
the following rules for calling for bids:

(a) In all cases where competitive bids
are requested, no one should be invited
to bid to whom the contract would not
be willingly awarded in the case his bid
is the most acceptable in itself.

(b) Where accurate estimates are de-
sired for information only, a reasonable
fee or fees should be paid to the parties
preparing them.

(c) Plans and specifications should
be sufficiently complete to enable com-

449


§ 64.109

petent bidders to estimate accurately
the amount of material and labor

required.

(d) Invited bidders, provided they
actually submit bids, should not be re-
quired to pay for the use of plans and
specifications.

(e) A reasonable time should be

allowed for preparation of estimates.

§ 64.109 Identical information to all
bidders.

Where a bidder requests an interpreta-
tion of some feature of the specifications
from the buyer or his representative be-
fore submitting his bid, which would ma-
terially affect the cost of the work the
same information should be submitted
to all other bidders by the buyer or his
representative.

§ 64.110 Publication of price lists and
terms of sale.

(a) The industry approves the prac-
tice of each individual member of the
industry and independently publishing
and circulating to the purchasing trade
its own price lists.

(b) The industry approves.the prac-
tice of making the terms of sale a part
of all published price schedules.

§ 64.111 Definition.

The industry hereby records its ap-
Pproval of the definition of a qualified
wholesale distributor to be one whose
principal business is selling to the retail
distributor.

§ 64.112 Cost accounting.

It is the judgment of this industry
that an accurate knowledge of cost is
indispensable to intelligent and fair com-
petition, and the adoption of accurate
methods of cost finding and estimating
is recommended by the industry.

§ 64.113 Arbitration.

The industry approves the practice of
handling disputes in a fair and reasona-
ble manner, coupled with a spirit of mod-
eration and good will, and every effort
should be made by the disputants
themselves to arrive at an agreement. If
unable to do so they should agree, if
Possible, upon arbitration under some
one of the prevailing codes.

Title 16—Commercial Practices

COMMITTEE ON TRADE PRACTICES
§ 64.201 Industry committee.

The provisions of § 16.1 of this sub-
chapter shall be applicable to an industry
committee established under this part.
[21 F.R. 1174, Feb. 21, 1956]

PART 66—WIRE ROPE INDUSTRY

Sec.

66.0 Definitions.

66.1 Misrepresentation (general).

662 Deception as to origin and disclosure
of foreign origin.

66.3 Substitution of products.

66.4 Misleading price lists.

66.5 Misuse of terms “close-outs,” “over-
runs,” “discontinued lines,” etc.

66.6 Deceptive invoicing, etc.

66.7 Prohibited discrimination.

66.8 Prohibited forms of trade restralnts
(unlawful price fixing, etc.).

66.9 Inducing breach of contract.

66.10 Consignment distribution.

66.11 Exciusive dealing.

66.12 Defamation of competitors or false
disparagement of thelr products.

66.18 Commercial bribery.

66.14 Push money.

66.15 Tie-in sales—coercing purchase of one
product as a prerequisite to the
purchase of other products.

66.16 Unlawful use of volume of freight

traffic.
AvuruHoriry: The provisions of this Part 66

issued under secs. 6, 5, 33 Stat. 721, 719; 15
U.S.C. 46, 45, unless otherwise noted.

Source: The provisions of this Part 66
appear at 28 F.R. 311, Jan. 11, 1963, unless
otherwise noted.

§ 66.0 Definitions.

(a) Industry member. Any person,
firm, corporation, or organization en-
gaged in the manufacture, sale or dis-
tribution of industry products as defined
below.

(b) Industry products. Industry
products are wire rope, wire cable, and
fabricated assemblies consisting pri-
marily (by value, weight or mass) of wire
rope, cable, or strand.

§ 66.1 Misrepresentation (general).

It is an unfair trade practice for any
member of the industry, in connection
with the sale, offering for sale, or distri-
bution of industry products, to make or
publish, or cause to be made or published,
by way of advertising, labeling, or other-
wise, auy statement or representation
which, directly or by implication, has the

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