Fabricators Of Ornamental Iron, Bronze, And Wire
16 CFR Part 85 · Trade practice rules · in the Code of Federal Regulations 1938-1976 (14 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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 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
§ 85.7
made prior to securing the orders, with-
out he consent of the purchasers to such
substituions, 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.
§ 85.7 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.
§ 85.8 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 campetitors’ cus-
tomers or prospective customers, without
the knowledge of their employers or
principals, 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 princi-
pals to refrain from dealing or contract-
ing to deal with competitors, is an unfair
trade practice.
§ 85.9 Espionage.
Securing information from competi-
tors concerning their businesses by false
or misleading statements or representa-
tions or by false impersonations of one in
authority and the wrongful use thereof
to unduly hinder or stifie the competition
of such competitors is an unfair trade
practice.
Group II
§ 85.101 Fraud in bidding.
The practice of bidders or sub-bidders
of intentionally leaving out of their bids
certain material called for by the plans
and specifications, or the failure to make.
any mention in their bids as to whether
certain work is or is not to be erected for
the particular price submitted, thereby
enabling a bidder, after the bids have
been opened, to state, if necessary td
secure the bid, that the missing material -
or the cost of erection was or was not
included in his bid, and in this way un-
fairly to underbid his competitor, ls con-
demned by the industry. .
§ 85.102 Delayed sub-bids.
The practice of submitting sub-bids
after the general contract has been
Title 16—Commercial Practices
awarded, where sub-bids have been <e-
cured, particularly after the s:1b-bids on
the same work have been opened and the
sub-bidders know the amount of the low-
est sub-bid on the originai bidding, is a
fertile field for fraud and chicanery,
makes a farce out of the wholesome
practice of competitive bidding, and is
condemned by the industry.
§ 85.103 Fictitious bids.
The industry approves of the
bid” policy and condemns fake or “| 1-
tious bids made for the purpose <°
deceiving competitors and securing un- -
due advantage. If plans and_ speci-
fications are changed and new vids
called for after the original bids have
been submitted and opened, the same
fairness should be obtained as with
the original bid.
§ 85.104 Price-cutting bids; “skinning
the job.”
The practice of lowering one’s bid
without changes in the specifications
justifying same, and without regard to
the possibility of being able to comply
with the specifications, frequently neces-
sitates “skinning the job,” and the use
of inferior materials, designs, and work-
manship and is condemned by the
industry.
§ 85.105 Solicitation of
bidding.
The inducing or attempting to in-
duce an architect, contractor, or builder
to reveal to any bidder on a competitive
job information relative to bids already
received, which information would give
the favored bidder an advantage in the
Preparation of his own bid, is con-
demned by the industry.
§ 85.106 Solicitation of information
witb view to price cutting.
To induce or attempt to induce an
architect, contractor, or builder to reveal
to a bidder the amounts and conditions
of any bid received 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.
§ 85.107
To mislead or deceive any bidder as to
the amounts and conditions of other bids
or with any other faise information for
the purpose of inducing him to cut his
own is condemned by the industry.
Tye.
favors in
Deception in bidding.
496
Chapter i—Federal
§ 85.108 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.
§ 85.109 “Shopping”
practice.
It is a frequent practice for orna-
mental iron, bronze, and wire contrac-
tors 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 re-open the
bidding for the same operation, com-
monly known as “shopping,” which prac-
tice involves deception and misrepresen-
tation, lowering the standard and quality
of ornamental iron, bronze and wire in-
stallation and building construction.
Such practice is condemned by the in-
dustry.
§ 85.110 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 compe-
tent bidders to estimate accurately the
amount of material and labor required.
(ad) Invited bidders, provided they
actually submit bids, should not be re-
quirod to pay for the use of plans and
specifications.
(e) A reasonable time should be al-
lowed for preparation of estimates.
§ 85.111 Identical information to all
bidders.
Where a bidder requests an inter-
pretation of some feature of the plans
and/or the specifications from the buyer
or his representative before submitting
his bid, which would materially affect the
cost of the work, the same information
should be submitted to all other bidders
by the buyer or his representatives.
§ 85.112 Cost accounting.
It is the judgment of this industry
that an accurate knowledge of cost is
indispensable to intelligent and fair
as a hbidding
Trade Commission § 85.201
competition, and the adoption of
accurate methods of cost finding and
estimating is recommended by the
industry.
§ 85.113 Dissemination of credit in-
formation.
The industry records its approval
of the distribution among members of
the industry of information covering
past-due credit accounts insofar as it
may be lawfully done.
§ 85.114 Inability to carry out con-
tracts.
The practice of subcontractors of
quoting on projects which they are not
able to carry out is condemned by the
industry.
§ 85.115 Standardization of specifica-
tions. ,
It is apparent that more intelligent
costs can be estimated where the char-
acter, scope, quantity and detail of the
work are clearly defined, for which rea-
son the industry recommends that ade-
quate steps be taken to persuade archi-
tects to properly group and separately
specify the metal work to definitely stip-
ulate what is required as—
(a) Structural steel and iron work
(b) Ornamental iron work
.(c) Miscellaneous iron work
(a) Bronze and other nonferrous
metal work
(e) Wire work
(f) Metal specialties.
§ 85.116 Arhitration.
The industry approves the practice or
handling disputes in a fair and reason-
able manner, coupled with a spirit of
moderatlon 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.
§ 85.117 One-bid policy applicable to
purchases.
Having recommended the one-bid pol-
icy to all general contractors, the manu-
facturers of ornamental iron, bronze, and
wire approve of applying the same bid
policy to themselves in all their pur-
chases of raw material and other neces-
sary products.
COMMITTEE ON TRADE PRACTICES
§ 85.201 Industry committee.
The provisions of § 16.1 of this sub-
chapter shall be applicable to an indus-
497
§ 87.1
try committee established under this
part.
{21 F.R. 1174, Feb. 21, 1956]
PART 87—ELECTRICAL
WHOLESALERS
Group I
Sec.
87.1
87.2
87.3
87.4
87.6
87.8
87.9
87.10
87.11
Misrepresentation in general.
Inducing breach of contract.
Defamation of competitors.
Sales below cost.
Commercial bribery.
Enticing employees.
Espionage.
Consignment selling.
Removai of manufacturer's identify-
ing mark,
Group II
Proper labeling endorsed.
Repudiation of contracts.
Cost accounting.
Publication of price Hsts and terms
of sale,
Arbitration,
Unwarranted return of merchandise.
False invoicing.
Production and marketing statistics.
Dissemination of credit information.
Violation of discount agreement,
87.101
87.102
87.103
87.104
87.105
87.106
87.107
87.108
87.109
87.110
COMMITTEE ON TRADE PRACTICES
87.201 Industry committee.
AutTuHority: Secs. 6(g), 5, 88 Stat. 722, 719;
15 U.S.C. 46, 45, unless otherwise noted.
Source: Trade practice rules, Electrical
Wholesalers, FTC, Dec. 24, 1932, unless other-
wise noted.
Group I
§ 87.1 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, size, or preparation
of any product of the industry having
the tendency and capacity to mislead or
deceive purchasers or prospective pur-
chasers, is an unfair trade practice.
§ 87.2 Inducing breach of contract.
Wiilfully 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
Title 16—Commercial Practices
hampering, injuring, or embarrassing
competitors in their businesses, is an
unfair trade practice.
§ 87.3. 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, is an unfair
trade practice. :
§ 87.4 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.
§ 87.6 Commercial bribery.
Directly or mdirectly 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 competititors’ custom-
ers or prospective custoiners 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 empioyers or principals to
refrain from dealing or contracting to
deal with competitors is an unfair trade
_ practice.
§ 87.8 Enticing employees.
Willfully enticing away the employees
of competitors with the purpose and
effect of unduly hainpering, injuring, or
embarrassing competitors in their busi-
nesses is an unfair trade practice.
§ 87.9 Espionage.
Securing information from competi-
tors concerning their business by false or
misleading statements or representations
or by false impersonations of one in au-
thority and the wrongful use thereof to
unduly hinder or stifle the competition
of such competitors is an unfair trade
practice.
§ 87.10 Consignment selling.
The shipment of goods on consignment
with the intent and with the effect of
498