Consumer Law Library

Waste Paper Dealers And Packers

16 CFR Part 81 · Trade practice rules · in the Code of Federal Regulations 1938-1973 (11 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1973 CFR · Earliest edition: 1938 CFR

Text (1973 edition, OCR)

Chapter I—Federal Trade Commission

thing of value to agents, employees, or
representatives of customers or prospec-
tive customers or to agents, employees, or
representatives of competitors’ customers
or prospective customers, without the
knowledge of their employers or princi-
pais, as an inducement to influence their
employers or principals to purchase or
contract to purchase industry products
from the maker of such gift or offer, or
to influence such employers or principals
to refrain from dealing or contracting
to deal with competitors is an unfair
trade practice.

Group IT
§ 76.101 False billing.
The presentation or use of fictitious

pills of lading or other evidence of billing,

for the purpose of securing advances of
money or other valuable consideration, is
condemned by the industry.

§ 76.102 Credit for overweight.

Failure of dealers or brokers to give
credit for overweight, where credit for
overweights has been passed by the con-
sumer, is hereby condemned.

§ 76.103 Repudiation of contracts.

Contracts, either written or cral, are
business obligations which should be
performed in letter and spirit. The re-
pudiation of contracts by sellers on a ris-
ing market, cr by buyers on a declining
market, is equally reprehensible, and is
condemned by the industry.

§ 76.104 False invoicing.

Withholding from or inserting in the
invoice statements which inake the in-~
voice a false record, wholly or in part, of
the transaction represented on the face
thereof, is condemned by the industry.

§ 76.105 Arbitration.

The industry approves the practice of
handling disputes in a fair and reason-
able manner, coupled with a spirit of
moderation and gcod will, and every ef-
fort 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.

§ 76.106 Cost accounting.

It is the judgment of the industry that
each member should install a proper and
accurate method for determining his
cost.

§ 81.2
COMMITTEE ON TRADE PRACTICES

§ 76.201 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 81—WASTE PAPER DEALERS
AND PACKERS

Group I
Sec.
81.1
81.2
81.3
81.4
81.5

Substitution.

Defamation of competitors.
Commercial bribery.
Inducing breach of contract.
Sales below cost.

Group IT

Misleading price quotations.
Submission of false claims.

False billing.

Negligence in concluding agreements.
Repudiation of contracts.

Willful breach of contract.

Credit for overweight.

Violation of discount agreement.
Cost accounting.

Arbitration.

COMMITTEE ON TRADE PRACTICES
81.201 Industry committee.

AvUTHORITY: The provisions of this Part 81
issued under secs. 6(g), 5, 38 Stat. 722, '719;
15 U.S.C. 46(g), 45, unless otherwise noted.

Source: The provisions of this Part 81
contained in trade practice rules, Waste
Paper Dealers and Packers, FTC, Sept. 3, 1982,
unless otherwise noted.

Group I
§ 81.1 Substitution.

Willful delivery of an inferior product
against a contract for a particular grade
of waste paper by means of false pack~-
ing that can not be readily discovered,
the.effect of which is to deceive the pur-
chaser, or the substitution of an inferior
grade of material against a contract
calling. for a particular grade without
the permission of the purchaser and ul-
timate consumer with the intent and
effect of deceiving the purchaser and ul-
timate consumer, is an unfair trade
practice.

§ 81.2 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

81.101
81.102
81.103
81.104
81.105
81.106
81.107
81.108
81.109
81.110

479


§ 81.3

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 such competitors, is an unfair trade
practice.

§ 81.3. Commercial bribery.

Directly or indirectly to. give or permit
to be given or offer to give money or any-
thing of value to agents, employees, or
representatives of customers or prospec-
tive customers or to agents, employees,
or representatives of competitors’ cus-
tomers or prospective customers, without
the knowledge of their employers or
principals, as an inducement to influ-
ence their employers or principals to
purchase or contract to purchase indus-
try products from the maker of such gift
or offer, or to influence such employers
or principals to refrain from dealing or
contracting to deal with competitors, is
an unfair trade practice.

§ 81.4 Inducing breach of contract.

Willfully inducing or attempting to in-
duce the breach of an existing contract,
or the interference or attempted inter-
ference with the performance of any
contractual duty for the purpose and
effect of injuring or destroying the pa-
tronage, property, or business of a com-
petitor is an unfair trade practice.

§ 81.5 Sales below cost.

The selling of goods below cost with
the intent and with the effect of injur-
ing a competitor, and where the effect
may be to substantially lessen competi-
tion or tend to create a monopoly or to
unreasonably restrain trade, is an unfair
trade practice.

Group II
§ 81.101 Misleading price quotations.

The issuance of fictitious, inflated, de-
fiated or misleading price quotations or
offers for the purchase or sale of waste
paper with no purpose to accept pro-
posals received or to make sales at the
prices quoted but solely to attract pur-
chasers to his place of business is con-
demned by the industry.

§ 81.102 Submission of false claims.

The submission of false claims to a
supplier when same are not founded on
actual mill reports or are not substan-
tiated by authentic debit bills is con-
demned by the industry. :

‘Title 16—Commercial Practices

§ 81.103 False billing.

The issuance of fictitious bills of lad-
ing or other documents of title, or the
willful inclusion of erroneous weights or
other information therein, for the pur-
pose of securing advances of money or
full payment when ithe contract provides
otherwise, is condemned by the industry.

§ 81.104 Negligence in

agreements.

The practice of neglecting or failing
to return signed contracts or confirma-
tion of verbal or telephone agreements.
of purchase and sale with the end in view
of later relying on the absence of any
signed contract or memorandum as
ground for repudiation of the agreement
is condemned by the industry.

§ 81.105 Repudiation of contracts.

Contracts, either written or oral, are
business obligations which should be
performed in letter and spirit. The
repudiation of contracts by sellers on &
rising market, or by buyers on a declin-
ing market, is equally reprehensible, and
is condemned by the industry.

§ 81.106 Willful breach of contract.

The intentional failure to fill orders or
perform contracts except for act of God
or other lawful cause, or the intentional
withholding by the purchaser of shipping
instructions with the intent of avoiding
the contract is condemned by the indus-
try.

§ 81.107 Credit for overweight.

The failure of dealers or brokers to give
credit for overweights, where credit for
overweights has been given by the con-
sumer, is condemned by the industry.

‘§ 81.108
ment.

Violation by either party, buyer or
seller, of the agreement between them
as to the discount for cash is condemned
by the industry.

§ 81.109 Cost accounting.

It is the judgment of this industry that.
an accurate knowledge of costs is indis-
pensible to intelligent and fair competi-
tion and the adoption of accurate
methods of cost finding and estimating is.
recommended by the industry.

§ 81.110 Arbitration.

The industry approves the practice of
handling disputes in a fair and reason-

concluding

Violation of discount agree-

480


Chapter I—Federal Trade Commission

able manner, coupled with a spirit of
moderation and good wil], and every
effort should be made by the disputants
themselves to arrive at an agreement. If
unable to do so they should agree, if pos-
sible, upon arbitration under some one
of the prevailing codes.

COMMITTEE ON TRADE PRACTICES
§ 81.201 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 84—WARM AIR FURNACE

INDUSTRY
Group I
Sec.
84.1 Inducing breach of contract.
84.2 Commercial bribery.
84.3 False marking or branding.
84.5 Sales below cost.
84.6 Defamation of competitors.
84.7 Misrepresentatian in general.
84.8 False representations,
84.9 Imitation of trade-marks, trade
names, etc.
84.11 Fictitious prices.
Grovp II
84.101 False invoicing.
384.102 Special quantity prices.
84.103 Publication of price lists and terms
of sale.
84.104 Incomplete coverage of warranties,
etc,

AutTHority: The provisions of this Part 84
issued under secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46, 45, unless otherwise noted.

Source: The provisions of this Part 84
‘contained in trade practice rules, Warm Air
‘Furnace Industry, FTC, Nov. 18, 1932, unless
otherwise noted.

Group I

§ 84.1 Inducing breach of contract.

Maliciously inducing or attempting to
induce 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 contractual
‘duties or services by any such means,
with the purpose and effect of unduly
hampering, injuring, or embarrassing
competitors in their businesses, is an un-
‘fair trade practice.

§ 84.2 Commercial bribery.

Directly or indirectly to give or permit
to be given or offer to give money or any-

§ 84.8

thing of value to agents, employees, or
representatives of customers or prospec-
tive customers or to agents, employees, or
representatives of competitors’ custom-
ers or prospective customers, without the
knowledge of their employers or princi-
pals, as an inducement to influence their
employers or principals to purchase or
contract to purchase industry products
from the maker of such gift or offer, or
to influence such employers or principals
to refrain from dealing or contracting to
deal with competitors, is an unfair trade
practice.

§ 84.3 False marking or branding.

The false marking or branding of
products of the industry with the effect
of misleading or deceiving purchasers
with respect to the quantity, quality,
grade, size, heating capacity, or sub-
stance of the goods purchased is an un-
fair trade practice.

§ 84.5 Sales below cost.

The selling of goods below cost with
the intent and with the effect of injuring
@ competitor and where the effect nay be
to substantially lessen competition or
tend to create a monopoly or to unrea-
sonably restrain trade is an unfair trade
practice.

§ 84.6 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, is an unfair
trade practice.

§ 84.7 Misrepresentation in general.

The making or causing or permitting to
be made or published any false, untrue,
or deceptive statement by way of adver-
tisement or otherwise concerning the
grade, quality, quantity, substance, char-
acter, nature, origin, heating capacity,
size, or preparation of any product of the
industry having the tendency and capac-
ity to mislead or deceive purchasers or
prospective purchasers is an unfair trade
practice.

§ 84.8 False representations.

False representations in the sale or of-
fering for sale of any product of the
industry with the effect of deceiving
purchasers or prospective purchasers as

481