The industry approved the practice of handling disputes in a fair and reasonable manner, coupled with a spirit of moderation 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.

§ 99.107 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 advantage. 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.

§ 99.108 Publication of price lists and terms of sale.

(a) The industry approves the practice of each individual member of the industry independently publishing and circulating to the purchasing trade his own price lists.

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

§ 99.109 Unethical acquisition of bid information.

Surreptitiously obtaining information relative to competitors' bids in the preparation of one's own bid is condemned by the industry.

§ 99.110 Dissemination of credit in

formation.

The industry records its approval of distributing to its members information covering delinquent and slow accounts insofar as this may be lawfully done. § 99.111 Unauthorized use of designs,

etc.

The practice of usurping designs, styles, or patterns, originated by a competitor and appropriating the for one's own use within 5 years after such origination, is condemned by the industry. § 99.112 Classification of product.

For the benefit of the granite industry and the purchasing public the granite designated and known throughout the country as Barre granite is classified into three grades as follows: 1. Dark monumental granite shall be that grade of

material suitable for polishing but adaptable for all finishes; 2. Light monumental granite shall be that grade of material adapted to all finishes except polishing; 3. Light mausoleum granite shall be that grade of material which because of the texture is not suitable for monumental purposes but which custom has accepted as the standard grade for mausoleum use.

§ 99.113 Tolerance in measurements.

Owing to the nature of the material, in filling an order for a monument of certain specified dimensions the industry approves of the established practice of permitting an allowance of one-half inch on any dimension.

§ 99.114 Solicitation of information with a view to price cutting.

To induce or attempt to induce an architect, owner, builder or retailer to reveal to a bidder the amounts and conditions of any bid received on a competitive job, with a view of giving the favored concern an opportunity to meet or cut below the lowest bid, whether the favored concern was one of the original bidders or not, is condemned by the industry. 99.115 Solicitation of favors in

bidding.

The inducing or attempting to induce an architect, owner, builder or retailer 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 condemned by the industry § 99.116 Cost accounting.

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

§ 99.117 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 a rising market, or by buyers on a declining market, is equally reprehensible, and is condemned by the industry.

§ 99.118 Fictitious price lists.

Issuing fictitious bargain price lists is a detriment to the trade and is condemned by the industry.

§ 99.119 Superficial foot as unit of measure; tolerances.

The industry recognizes the superficial foot as a unit of measure in slabs. The industry further recognizes that the working size of a dimension slab shall be construed as allowing not over 2 inches oversize and on mill length slabs not over 10 percent allowance on length and not over 2 inches on width.

§ 99.120 Cubic foot as unit of measure; tolerances.

The industry recognizes the cubic foot as a unit of measure. The industry further recognizes that the working size of said unit on rough dimension stock shall be construed as permitting an allowance of 2 inches or less on any dimension.

§ 99.121 Gratuities or gifts to pur chasers.

The giving of gratuities to purchasers solely for the purpose of securing their patronage promotes illegitimate salesmanship, frequently leads to bribery, and is condemned by the industry.

COMMITTEE ON TRADE PRACTICES

§ 99.201 Industry committee.

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

Sec.

101.17

101.18

101.19

101.101

101.102

101.103 101.104

Unfair bidding methods. Discrimination.

Aid or abetting use of unfair trade practices.

GROUP II

Repudiation of contracts.

Fictitious bids.

Identical information to all bidders.
Arbitration.

AUTHORITY: The provisions of this Part 101 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 101 appear at 5 F.R. 1812, May 18, 1940, unless otherwise noted. GROUP I

§ 101.1 Misrepresentation of industry products.

It is an unfair trade practice to make or publish, or cause to be made or published, directly or indirectly, any false, misleading, or deceptive statement or representation, by way of advertisment or otherwise, concerning the grade, quality, quantity, use, size, material, content, origin, shrinkage, properties, color fastness, washability, design, tailoring, production, manufacture, or distribution of any product of the industry or concerning any component of such product, or in any other material respect.

NOTE: Disclosure of material content shall be made in accordance with the requirements of the applicable fiber identification rules of the Commission.

The false or deceptive marking or branding of products of the industry with respect to the grade, quality, quantity, use, size, material, content, origin, shrinkage properties, color fastness, washability, design, tailoring, production, manufacture, or distribution of such products, or concerning any component thereof, or in any other material respect, is an unfair trade practice.

NOTE: Disclosure of material content shall be made in accordance with the requirements of the applicable fiber identification rules of the Commission.

§ 101.3 Misrepresentation as to character of business.

It is an unfair trade practice for any person, firm, or corporation to hold himself or itself out as a uniform tailor, uniform manufacturer, or uniform wholesaler, when such is not the fact, or in any other manner to misrepresent the character, extent or type of his or its business.

§ 101.5

Deceptive numbering.

It is an unfair trade practice for any member of the industry to disguise, by any special number, any standard or special fabric known to the trade by a given number, in such manner or under such circumstances as to have the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public into the erroneous belief that a superior fabric is being offered for sale when such is not the fact, or of deceiving the purchasing or consuming public in any other respect.

§ 101.6 Deception as to used garments.

(a) It is an unfair trade practice for any member of the industry to sell, offer for sale, advertise, or otherwise represent any uniform, or any part thereof, as being new when such is not true in fact.

(b) In the marketing of used or second-hand uniforms or uniforms containing used or second-hand parts, it is an unfair trade practice to fail or refuse to make full and nondeceptive disclosure, by tag or label attached to the product, of the fact that such uniform or parts thereof are not new but are used or second-hand, as the case may be, such failure or refusal to make disclosure having the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public.

§ 101.7 Deceptive use of competitor's plates, cuts, or illustrations.

It is an unfair trade practice, in the sale and distribution of industry products to adopt for one's own use, by photostatic, photographic, or other means of reproduction, the exclusively owned plates, cuts, or illustrations of a competitor contained in such competitor's catalogs, sales publications, measure books, folders, or blanks, with the capacity and tendency or effect of thereby misleading or deceiving the purchasing

or consuming public into the erroneous belief that the products so sold and distributed are products of such competitor. § 101.8 Imitation of trade-marks, trade names, etc.

The imitation or simulation of the trade-marks, trade names, brands, or labels of competitors, with the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice.

§ 101.9

Substitution of products.

The practice of shipping or delivering products which do not conform to samples submitted, to specifications upon which the sale is consummated, or to representations made prior to securing the order, without the consent of the purchaser to such substitutions, or with the capacity and tendency or effect of misleading or deceiving the purchasing or consuming public, is an unfair trade practice.

§ 101.10 Fictitious prices.

Offering merchandise for sale at prices purported to be reduced from what are in fact fictitious prices, or offering merchandise for sale at a purported reduction in price when such purported reduction is in fact fictitious, or is otherwise misleading or deceptive, is an unfair trade practice.

§ 101.11 Defamation of competitors or Y disparagement of their products.

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 disparagement of the grade, quality, or manufacture of the product of competitors, or of their business methods, selling prices, values, credit terms, policies, or services, is an unfair trade practice.

§ 101.12 Enticing away employees of competitors.

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

§ 101.13 Commercial bribery.

It is an unfair trade practice for a member of the industry, directly or indirectly, to give, or offer to give, or permit or cause to be given, money or anything of value to agents, employees, or repre

sentatives of customers or prospective customers, or to agents, employees, or representatives of competitors' customers 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 products manufactured or sold by such industry member or the maker of such gift or offer, or to influence such employers or principals to refrain from dealing in the products of competitors or from dealing or contracting to deal with competitors. § 101.14 Procurement of competitors' confidential information by unfair means and wrongful use thereof.

It is an unfair trade practice for any member of the industry to obtain information concerning the business of a competitor by bribery of an employee or agent of such competitor, by false or misleading statements or representations, by the impersonation of one in authority, or by any other unfair means, and to use the information so obtained in such a manner as to injure said competitor in his business or to suppress competition or unreasonably restrain trade.

§ 101.15 Inducing breach of contract.

Inducing or attempting to induce the breach of existing lawful contracts between competitors and their customers or their suppliers by any false or deceptive means whatsoever, 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 prejudicing competitors in their businesses, is an unfair trade practice. § 101.16 Selling below cost.

The practice of selling industry prodducts below the seller's cost with the intent and with the effect of injuring a competitor and where the effect may be substantially to lessen competition or tend to create a monopoly or unreasonably restrain trade is an unfair trade practice; all elements recognized by good accounting practice as proper elements of such cost shall be included in determining cost under this section. The costs, however, which are referred to in this section, are actual costs of the respective seller and not some other figure or average costs in the industry determined by an industry cost survey or otherwise.

§ 101.17

Unfair bidding methods.

It is an unfair trade practice for a uniform manufacturer to induce a contractee or purchaser to use and apply in specifications a number to denote a style of fabric upon which bidding is to be let publicly, which number is not generally used and known to other members of the industry to denote a known fabric, or to withhold other information necessary to enable competitors to intelligently bid on the contract, where the effect may be to substantially lessen competition or tend to create a monopoly or unreasonably restrain trade.

(a) Prohibited discriminatory prices, or rebates, refunds, discounts, credits, etc., which effect unlawful price discrimination. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce, to grant or allow, secretly or openly, directly or indirectly, any rebate, refund, discount, credit, or other form of price differential, where such rebate, refund, discount, credit, or other form of price differential effects a discrimination in price between different purchasers of goods of like grade and quality, where either or any of the purchases involved therein are in commerce, and where the effect thereof may be substantially to lessen competition or tend to create a monopoly in any line of commerce, or to injure, destroy, or prevent competition with any person who either grants or knowingly receives the benefit of such discrimination, or with customers of either of them: Provided, however, (1) That the goods involved in any such transaction are sold for use, consumption, or resale within any place under the jurisdiction of the United States.

(2) That nothing contained in this section shall prevent differentials which make only due allowance for differences in the cost of manufacture, sale, or defrom livery resulting the differing methods or quantities in which such commodities are to such purchasers sold or delivered;

(3) That nothing contained in this section shall prevent persons engaged in selling goods, wares, or merchandise in commerce from selecting their own customers in bona fide transactions and not in restraint of trade;

(4) That nothing contained in this section shall prevent price changes from time to time where made in response to changing conditions affecting either (i) the market for the goods concerned, or (ii) the marketability of the goods, such as, but not limited to, actual or imminent deterioration of perishable goods, obsolescence of seasonal goods, distress sales under court process, or sales in good faith in discontinuance of business in the goods concerned.

(b) Prohibited brokerage and commissions. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce, to pay or grant, or to receive or accept, anything of value as a commission, brokerage, or other compensation, or any allowance or discount in lieu thereof, except for services rendered in connection with the sale or purchase of goods, wares, or merchandise, either to the other party to such transaction or to an agent, representative, or other intermediary therein where such intermediary is acting in fact for or in behalf, or is subject to the direct or indirect control, of any party to such transaction other than the person by whom such compensation is so granted or paid.

(c) Prohibited advertising or promotional allowances, etc. It is an unfair trade practice for any member of the industry engaged in commerce to pay or contract for the payment of advertising or promotional allowances or any other thing of value to or for the benefit of a customer of such member in the course of such commerce as compensation or in consideration for any services or facilities furnished by or through such customer in connection with the processing, handling, sale, or offering for sale, of any products or commodities manufactured, sold, or offered for sale by such member, unless such payment or consideration is available on proportionately equal terms to all other customers competing in the distribution of such products or commodities.

(d) Prohibited discriminatory services or facilities. It is an unfair trade practice for any member of the industry engaged in commerce to discriminate in favor of one purchaser against another purchaser or purchasers of a commodity bought for resale, with or without processing, by contracting to furnish or furnishing, or by contributing to the fur

nishing of, any services or facilities con nected with the processing, handling, sale, or offering for sale of such commodity so purchased upon terms not accorded to all purchasers on proportionally equal terms.

(e) Inducing or receiving an illegal discrimination in price. It is an unfair trade practice for any member of the industry engaged in commerce, in the course of such commerce, knowingly to induce or receive a discrimination in price which is prohibited by the foregoing provisions of this section.

(f) Purchases by schools, colleges, universities, public libraries, churches, hospitals, and charitable institutions not operated for profit. The foregoing provisions of this section relate to practices within the purview of the RobinsonPatman Antidiscrimination Act, which act and the application thereunder of this section are subject to the limitations expressed in the amendment to such Robinson-Patman Antidiscrimination Act, which amendment was approved May 26, 1938, and reads as follows:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled That nothing in the Act approved June 19, 1936 (Public, Numbered 692, Seventy-fourth Congress, second session), known as the Robinson-Patman Antidiscrimination Act, shall apply to purchases of their supplies for their own use by schools, colleges, universities, public libraries, churches, hospitals, and charitable institutions not operated for profit.

(Sec. 2, 38 Stat. 730, as amended, secs. 2, 3, 4, 49 Stat. 1527, 1528; 15 U. S. C. 13, 13a, 13b, 21a)

§ 101.19 Aiding or abetting use of unfair trade practices.

It is an unfair trade practice for any person, firm, or corporation to aid, abet, coerce, or induce another, directly or indirectly, to use or promote the use of any unfair trade practice specified in this part.