Warm Air Furnace Industry
16 CFR Part 84 · Trade practice rules · in the Code of Federal Regulations 1938-1976 (13 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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, 1976 CFR · Earliest edition: 1938 CFR
Text (1976 edition, OCR)
Chapter ![—Federal
§ 76.2 Defamation of competitors.
The defamation of competitors to
falsely imputlng 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 capac-
ity to mislead or deceive purchasers or
prospective purchasers, is an unfair trade
practice.
§ 76.3. 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 ham-
pering, injuring, or embarrassing com-
petitors in their businesses, is an unfair
trade practice.
§ 76.4 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’ customers
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.
Group II
§ 76.101 False billing.
The presentation or use of fictitious
bills 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 oral, are
business obligations which should be
performed in letter and spirit. The re-
pudiation of contracts by sellers on a ris-
ing market, or by buyers on a declining
Trade Commission § 76.201
market, 1s equally reprehensible, and 1s
condemned by the industry.
§ 76.104 False invoicing.
Withholding from or inserting in the
invoice statements which make 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 good 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.
COMMITTEE ON TRADE PRACTICES
§ 76.201 Tudustry 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 Misrepresentation in general.
84.8 Faise representations.
84.9 Imitation of trade-marks, trade
names, etc.
84.11 Fictitious prices.
Group IT
84.101 False invoicing.
84.102 Special quantity prices.
84.103 Publication of price Hsts and terms
of sale.
84.104 Incomplete coverage of warranties,
etc.
AvuTHoriTy: Secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46, 45, unless otherwise noted.
Source: Trade practice rules, Warm Air
Furnace Industry, FTC, Nov. 18, 1932, unless
otherwise noted.
493
§ 84.1
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-
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 mfluence 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 misieading or deceiving purchasers
with respect to the quanilty, 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
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.
§ 84.6 Defamation of competitors.
The defamation of competitors by
faisely imputing to them dishonorable
conduct, inability to perform contracts,
questionable credit standing, or by other
false representations, or the faise dis-
paragement of the grade or quality of
their goods, with the tendency and ca-
pacity to mislead or deceive purchasers
Title 16—Commercial Practices
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
to the quantity, quality, substance, size,
measurement, or heating capacity of
such product is an unfair trade practice.
§ 84.9 Imitation of trade-marks, trade
naines, etc.
The imitation of the trade-marks,
trade names, slogans, or other marks of
identification of competitors having the
tendency and capacity to mislead or de-
celve purchasers or prospective pur-
chasers, is an unfair trade practice.
§ 84.11 Fictitious prices.
Offering for sale merchandise at a
price reduced from a marked-up or fit-
titious price with the tendency and ca-
pacity to mislead or deceive purchasers
or prospective purchasers is an unfair
trade practice.
Group If
§ 84.101 False invoicing.
Withholding from or inserting in the
invoice statements which make the in-
voice a false record, wholly or in part, of
the transaction represented on the face
thereof, is condemned by the industry.
§ 84.102 Special quantity prices.
It is hereby declared that special quan-
tity prices be applicable only to a
definite quantity of goods which are
placed in one order and, at the option
of the selier, to be forwarded in one ship-
ment as promptly as possible.
§ 84.103 Publication of price lists and
terms of sale.
(a) The industry approves the prac-
tice of each individual member of the in-
494
Chapter I—Federal Trade Commission
dustry 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.
§ 84.104 Incomplete coverage of war-
ranties, etc.
The service which a warm air furnace
will render to the user is dependent not
only upon the quality and the correct
size for the use intended, but also upon
the method of installation. The issuance
of a guaranty against defective material
or workmanship, coupled with a guar-
anty of successful performance, which
does not provide definitely for the re-
placement of defective parts on account
of workmanship or material within a
stated time, and for replacement if in-
stalled in accordance with the standard
code approved by the National Warm Air
Heating Association, or as altered by
municipal ordinances at the residence of
the user, and falls to comply with ap-
proved standards of performance, is con-
demned by the industry.
PART 85—FABRICATORS OF ORNA-
MENTAL IRON, BRONZE, AND
WIRE
Group I
Sec.
85.1 Substitution of inferlor materials.
85.2
85.3
85.5
85.6
Tilegal methods of manufacture.
Sales below cost.
Inducing breach of contract.
Substitution of products not con-
forming to representations.
Aiding or abetting use of unfair trade
practices.
Commercial bribery.
Espionage.
Group It
Fraud in bidding.
Delayed sub-bids.
Fictitious bids.
Price-cutting bids;
job.”
Solicitation of favors in bidding.
Solicitation of information with view
to price cutting.
Deception in bidding.
Unethical acquisition of bid infor-
mation.
“Shopping” as a bidding practice.
Standards of calls for bids.
Identical information. to all bidders.
Cost accounting,
Dissemination of credit information.
Inability to carry out contracts.
Standardization of specifications,
Arbitration,
85.7
85.8
85.9
85.101
85.102
85.103
85.104 “skinning the
85.105
85.106
85.107
85.108
85.109
85.110
85.111
85.112
85.113
85.114
85.115
85.116
§ 85.6
Sec,
85.117 One-bid policy applicable to pur-
chases.
CoMMITTEE ON TRADE PRACTICES
85.201 Industry committee.
AurHoriry: Secs. 6(g), 5, 38 Stat. 722, 719;
15 U.S.C. 46(g), 45, unless otherwise noted.
Sourcs: Trade practice rules, Fabricators
of Ornamental Iron, Bronze, and Wire, FTO,
Dec, 9, 1932, unless otherwise noted.
Group I
§ 85.1 Substitution of inferior materials.
The practice of using or substitut-
ing in structures materials inferior in
quality to those specified by the purchas-
ers, without the consent of the purchasers
to such uses or substitutions, and with
the effect of deceiving or misleading such
purchasers, or the use of materials infe-
rior in quality to those required by the
applicable governmental laws, rules, and
regulations in the territory affected, is
an unfair trade practice.
§ 85.2 Illegal methods of manufacture.
The practice of using methods of
manufacture and erection not in accord
with the applicable governmental laws,
Tules, and regulations obtaining in the
territory affected is an unfair trade prac-
tice.
§ 85.3 Sales helow cost.
The seliing of goods below cost, with
the intent and with the effect of injuring
@ competitor and where the effect may be
to substantialiy lessen competition or
tend to create a monopoly or to unrea-
sonably restrain trade, is an unfair trade
practice.
§ 85.5 Inducing breach of contract.
Willfully inducing or attempting to in-
duce the breach of existing contracts be-
tween 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,
§ 85.6 Substitution of products not con-
: forming to representations.
The practice of shipping or delivering
products which do not conform to the
samples submitted or representations
495