Electrical Wholesalers
16 CFR Part 87 · 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 These rules and guides are historical: most were rescinded or replaced, so do not assume any is in force.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)
§ 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
Chapter !—Federal
injuring a competitor, and where the ef-
fect may be to substantially lessen com-
petition or tend to create a monopoly or
to unreasonably restrain trade is an un-
fair trade practice.
§ 87.11 Removal of
identifying mark.
The distribution and sale of any elec-
trical supplies from which the name
plate, serial number, or other identifying
mark of the manufacturer has-been ef-
faced or removed with the purpose and
effect of deceiving purchasers is an un-
fair trade practice.
Group II
§ 87.101 Proper labeling endorsed.
The industry disapproves of the shlp-
ment of unlabeled products of the in-
dustry which makes possible the easy
substitution of merchandise of lower
quality for that of higher quality, par-
ticularly such material as is removed
from the original factory containers,
and the electrical wholesale industry
hereby records its approval of the label-
ing or identifying, in accordance with
accepted standards of the industry, of
all products of the industry in such
manner as to establish the grade, quality,
and quantity of the products.
§ 87.102 Repudiation of contract.
Contracts, either written or oral, are
business obligations whlch should be
performed in letter and spirit. The
repudiation of contracts by sellers on
a rising market, or by buyers on a de-
clining market, is equally reprehensible,
and is condemned by the industry.
§ 87.103 Cost accounting.
It is the judgment of the industry that
each member should install a proper and
accurate method for determining his
costs.
§ 87.104 Publication of price lists and
terms of sale.
(a) The industry approves the practice
of each individual member of the indus-
try individually publishing and circulat-
ing to the purchasing trade its own price
lists.
(b) The industry approves the prac-
tice of making the terins of sale a part
of all published price schedules.
§ 87.105 Arbitration.
The industry approves the practice of
handiing disputes in a fair and reason-
manufacturer’s
Trade Commission § 87.201
able manner, coupled with a spirit of
moderation and goodwill, 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.
§ 87.106 Unwarranted return of mer-
_ chandise.
The unwarranted return of mer-
chandise, not due to error on the
part of the shipper, creates waste and
loss and inceases the cost of doing busi-
ness, and such practice is condemned by
the industry.
§ 87.107 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.
§ 87.108 Production and marketing
statistics.
The industry approves the gathering
and dissemination of complete statis-
tical information concerning past trans-
actions with reference to the production.
distribution, and marketing of its
products.
§ 87.109 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 law-
fully done.
§ 87.110 Violation of discount agree-
ment.
Violation by either party, buyer or
seller, of the agreement between them
as to the discount for cash is condemned
by the industry.
COMMITTEE ON TRADE PRACTICES
§ 87.201 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 88—SAW AND BLADE
SERVICE INDUSTRY
Group I
Sec.
88.1 Inducing breach of contract.
88.2 Defamation of competitors or dispar-
agement of their products or serv-
ice.
499