tion or the scale of prices of goods or industrial services, regarding the kind of supply or the source of supply of goods, regarding the possession of marks of distinction, regarding the cause or the purpose of the sale, or regarding the quantity of the stock, is punished with imprisonment up to one year and with a fine up to 5,000 marks, or with one of these penalties.

If the incorrect statements specified in paragraph 1 were made in a business establishment by an employee or representative, then the proprietor or manager of the concern is punishable besides the employee or representative, if the action happened with his knowledge.

SEC. 5. The use of names which in business dealings serve to specify certain goods or industrial services, without intending to specify their provenance, is not included under the provisions of Sections 3 and 4.

In the sense of the provisions of Sections 3 and 4, pictorial presentations and other contrivances which are calculated and adapted to replace such statements are to be regarded in the same way as the specified statements.

SEC. 6. If in public advertisements or in communications intended for an extensive group of persons, the sale of goods is announced, which came from a bankrupt stock, but no longer belong to such bankrupt stock, it is forbidden to make any reference to the origin of the goods from a bankrupt stock.

Violations of this provision will be punished with a fine up to 150 marks or with arrest.

SEC. 7. Whoever in public advertisements or in communications which are intended for an extensive group of persons announces the sale of goods under the designation of a closing out sale is obliged in the announcement to give the reason which has given occasion to the closing out sale.

Through the superior administrative authorities, after

hearing given to the proper legal representatives of industry and trade, regulations may be made for the announcement of certain kinds of closing out sales, to the effect that notices regarding the reason of the closing out sale and the time of its beginning be provided at a place to be designed by them, as well as a list furnished of the goods to be sold

out.

The inspection of the list is permitted to every one.

SEC. 8. Whoever in case of the announcement of a closing out sale places goods for sale, which have been procured merely for the purpose of a closing out sale (so-called replenishment of goods), is punished with imprisonment up to one year and with a fine up to 5,000 marks, or with one of these penalties.

SEC. 9. The announcement of a closing out sale within the meaning of Section 7, paragraph 2, and of Section 8, applies also to every other announcement which relates to the sale of goods on account of winding up business, giving up a particular kind of goods, or getting rid of a specific stock of goods from the existing supply.

With respect to season and inventory sales, which in the announcement are specified as such and are customary in regular business, the provisions of Sections 7 and 8 have no application. Concerning the number, time, and duration of the customary season and inventory sales, the superior administrative authorities may make regulations after hearing the proper legal representatives of industry and trade.

SEC. 10. With fines up to 150 marks or with arrest is punished

(1) Whoever, contrary to the provisions of Section 7, paragraph 1, neglects, in the announcement of a closing out sale, to give the reason which has given occasion to the closing out sale:

(2) Whoever violates the regulations issued on the basis

of Section 7, paragraph 2, or in complying with these regulations makes incorrect statements;

(3) Whoever violates the regulations provided by the superior administrative authorities on the basis of Section 9, paragraph 2, and sentence 2.

SEC. 11. By decision of the Federal Council it may be determined that certain goods in retail trade may be sold or offered for sale only in prescribed units of number, volume, or weight, or with a description upon the article or its covering concerning the number, measure, weight, place of production, or place of origin of the article.

For the retail trade in beer in bottles or jugs, the description of the content can be prescribed with provision of suitable limits of toleration for error.

The regulations prescribed by the Federal Council are to be published in the Imperial Gazette and laid before the Imperial Diet immediately or at its next meeting.

Conduct contrary to the regulations of the Federal Council is punished with a fine up to 150 marks or with arrest.

SEC. 12. Whoever in business dealings for the purpose of competition offers, promises, or grants presents or other advantages to the employee or representative of a business, in order to obtain through improper conduct of the employee or representative an advantage for himself or a third person in the supply of goods or industrial services, is punished with imprisonment up to one year and with fine up to 5,000 marks or with one of these penalties, unless a heavier penalty is incurred under other legal provisions.

The same punishment applies to an employee or representative of a business establishment who in business dealings demands, allows to be promised, or accepts presents or other advantages in order that he through improper conduct may give another a preference in the supply of goods or industrial services.

In the judgment, the thing received or its value is to be declared forfeited to the state.

SEC. 13. In the cases of Sections 1 and 3 the action to desist can be brought by every manufacturer who produces goods or services of a like or related kind, or handles them in trade, or by associations for the promotion of industrial interests, in so far as the associations as such can sue in civil litigation. These manufacturers and associations can also bring an action to desist against those who violate Sections 6, 8, 10, 11, and 12.

For compensation of the damage arising from the violation is responsible:

(1) Whoever in case of Section 3 knew or should have known the incorrectness of the statements made by him. Against editors, publishers, printers, or distributors of printed periodicals, the claim for compensation of damage can be made effective only if they knew the incorrectness of the statements.

(2) Whoever intentionally or negligently violates Sections 6, 8, 10, 11, and 12.

If acts which are not permitted according to Sections 1, 3, 6, 8, 10, 11, and 12, are committed in a business establishment by an employee or representative, the action to desist therefrom may also be brought against the owner of the establishment.

SEC. 14. Whoever for the purpose of competition asserts or circulates facts concerning the business of another, concerning the personality of the owner or manager of the business, concerning the goods or industrial services of another, which are adapted to injure the operation of the business or the credit of the owner, is bound, in so far as the facts are not demonstrably true, to make compensation for the damage arising therefrom. The injured party may also demand that the assertion or circulation of the facts cease.

If it relates to confidential communications and if the communicant or the recipient of the communication has a rightful interest therein, then the action to desist is only permissible when the facts are asserted or circulated contrary to the truth. The claim for compensation of damages can be made only if the communicant knew or should know the incorrectness of the facts.

The provisions of Section 13, paragraph 3, have corresponding application.

SEC. 15. Whoever against better knowledge asserts or circulates facts contrary to the truth concerning the business of another, concerning the personality of the owner or manager of the business, concerning the goods or industrial services of another, which are adapted to injure the operation of the business is punished with imprisonment up to one year and with a fine up to 5,000 marks, or with one of these penalties.

If the facts specified in paragraph 1 are asserted or circulated by an employee or representative in a business establishment, then the owner of the establishment, besides the employee or representative, is punishable, if the act happened with his knowledge.

SEC. 16. Whoever in business dealings uses a name of a person, a firm name, or the special designation of a business establishment, of an industrial undertaking or of printed matter in a manner which is adapted to produce confusion with the name, firm name, or special designation, which another properly uses, may be made subject by the latter to an action to desist from such use.

The user is bound to compensate the injured party for damages if he knew or ought to know that the improper kind of use was adapted to produce confusion.

Equivalent to the special designation of a business establishment are such business insignia and other distinctive