NOTE: Nothing in this section shall be construed as preventing the full, fair, and nondeceptive comparison, by demonstration or otherwise, of competitors' products with the products of another industry member before purchasers or prospective purchasers. [Rule 15] § 51.16

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 so as substantially to injure competition or unreasonably restrain trade. [Rule 16] § 51.17

Enticing away employees of competitors.

It is an unfair trade practice for any member of the industry wilfully to entice away employees or sales representatives of competitors with the intent and effect of thereby unduly hampering or injuring competitors in their business and destroying or substantially lessening competition: Provided, That nothing in this section shall be construed as prohibiting employees from seeking more favorable employment, or as prohibiting employers from hiring or offering employment to employees of competitors in good faith and not for the purpose of injuring, destroying, or preventing competition. [Rule 17]

§ 51.18 Exclusive deals.

It is an unfair trade practice for any member of the industry to lease, contract to sell or sell any industry product, or fix a price charged therefor, or discount from, or rebate upon, such price, on the condition, agreement, or understanding that the lessee or purchaser thereof shall not use or deal in the products of a competitor or competitors of .such industry member, where the effect of such sale or contract for sale, or of such condition, agreement, or understanding, may be substantially to lessen competition or tend to create a monopoly in any line of commerce. [Rule 18]

directly to give, or offer to give, or permit or cause to be given, money or anything of value to agents, employees, or representatives 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. [Rule 19]

§ 51.20

Unlawful interference with competitors' purchases or sales.

It is an unfair trade practice for any member of the industry, by means of any monopolistic practices or through combination, conspiracy, coercion, boycott, threats, or any other unlawful means, directly or indirectly, to interfere with a competitor's right to purchase his materials and supplies from whomsoever he chooses, or to sell his product to whomsoever he chooses. [Rule 20]

§ 51.21 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. [Rule 21]

GROUP I

§ 52.3 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 unreasonably restrain trade is an unfair trade practice.

§ 52.4 Imitation of trade-marks, trade names, 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 deceive purchasers or prospective purchasers, is an unfair trade practice. § 52.5

Mislabeling.

Misrepresentation in general.

The making or causing or permitting to be made or published any false, untrue, or deceptive statement by way of advertisement or otherwise concerning the grade, quality, quantity, substance, character, nature, origin, size, or preparation of any product of the industry having the tendency and capacity to mislead or deceive purchasers or prospective purchasers, and the tendency to injuriously affect the business of competitors, is an unfair trade practice. § 53.5

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 unreasonably restrain trade, is an unfair trade practice.

§ 54.101

GROUP II

Standards of nomenclature.

The present commercially used species of "walnut" should be designated with a qualifying adjective indicating the species, variety or place of origin, and the following names shall be the accepted trade names for use in the United States:

Juglans nigra, to be called "American Walnut" or "Black Walnut”.

Juglans cinerea, to be called "White Walnut" or "Butternut".

Juglans regia, to be called "Royal" or "Persian Walnut".

From England, to be called "English

Walnut".

From France, to be called "French Walnut".

From Italy, to be called "Italian Walnut".

From Turkey, to be called "Turkish

Walnut".

From Russia, to be called "Russian Walnut", or "Caucasian Walnut" or "Circassian Walnut".

From Spain, to be called "Spanish Walnut".

Juglans sieboldiana, to be called "Japanese Walnut".

Juglans boliviana, to be called "Bolivian Walnut".

§ 55.2

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 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 embarrassing competitors in their businesses, is an unfair trade practice.

§ 55.3 Misrepresentation in general.

The making or causing or permitting to be made or published any false, untrue, or deceptive statement by way of advertisement, or otherwise, concerning the grade, quality, quantity, substance, character, nature, origin, size, or preparation of any industry product having the tendency and capacity to deceive purchasers or prospective purchasers, and having the tendency to injuriously affect the business of competitors, is an unfair trade practice.

§ 55.5 Defamation of competitors.

The defamation of competitors by falsely imputing to them dishonorable

Directly or indirectly to give or permit to be given or offer to give money or anything of value to agents, employees, or representatives 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 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, and having the tendency to injuriously affect the business of competitors, is an unfair trade practice.

56.7

56.8 56.9

Guarantees, warranties, etc.
Exclusive deals.

Prohibited forms of trade restraints (unlawful price fixing, etc.) 56.10 Defamation of competitors or false disparagement of their products.

56.11 Prohibited discrimination.

AUTHORITY: The provisions of this Part 56 issued under secs. 6, 5, 38 Stat. 721, 719; 15 U.S.C. 46, 45.

SOURCE: The provisions of this Part 56 appear at 26 F.R. 7012, Aug. 4, 1961, unless otherwise noted.

§ 56.0 The industry and its products defined.

Members of this industry are persons, firms, corporations, and organizations engaged in the manufacture, sale or distribution of pleasure boats. Products of the industry consists of pleasure boats of all types (row boats, motor boats, sail boats, etc.), the length of which does not exceed 65 feet, and equipment therefor, such as engines, propellers, rigging and tanks, which are installed on such boats when the boats are sold or offered for sale. Such equipment, when not installed on pleasure boats is not to be considered a product of the industry. § 56.1 Deception (general).

Boats and equipment thereof, shall not be sold or offered for sale by an industry member under any representation or circumstance (including failure to adequately disclose relevant facts) having the capacity and tendency or effect of misleading or deceiving purchasers or prospective purchasers with respect to size, weight, accommodations, load capacity, speed, horsepower, durability, maintenance, construction, proof against, or resistance to, leakage, resistance or immunity to fire or flame, flotation, safety, or fuel consumption; or having the capacity and tendency or effect or misleading or deceiving purchasers or prospective purchasers in any other material respect.

NOTE: Among the practices to which the prohibitions of this section are applicable,

are pictorial and other representations, either direct or indirect, which create a false impression as to the safe passenger and/or property load capacity of a boat, and/or the maximum weight and horsepower of motor or motors with which it may be safely equipped.

[Rule 1]

§ 56.2 Deception as to length.

Any representation as to the length of a boat, either direct, or indirect as by the use of model numbers suggesting length, or otherwise, must state the exact distance measured end to end over the deck of such boat, excluding sheer. If in addition a representation of the length of a boat measured by any other method (as for example at the water line or on the gunwale) is made, the nature of such measurement must be conspicuously disclosed. [Rule 2]

§ 56.3

Deceptive speed claims.

(a) Claims that a boat is capable of a specified speed by the use of such terms as "up to X miles per hour" or by similar representation, shall not be used unlesssuch boat will attain the specified speed under usual conditions or as represented. If a boat is capable of attaining the claimed specified speed only under conditions such as when not having usual tools, or a reasonable quantity of water or fuel on board or under ideal water or weather conditions such as with a favorable wind or current, such speed claims shall be accompanied by conspicuous disclosure of the conditions which must be present to achieve the claimed speed.

(b) In the case of speed claims made for boats which are not equipped with engines, such claims shall be accompanied by conspicuous disclosure of the horsepower of the engine which must be used in such boat to customarily achieve the claimed speed. [Rule 3]

§ 56.4 Deception as to maintenance.

(a) No representation to the effect that a boat is "maintenance free" shall. be used unless the boat so described, including installed components such as its propulsion machinery, sails, etc., will not. rot, rust or otherwise deteriorate during the expected life of such boat, and will require no sanding, scraping, painting, patching, or other repair, except for accidental damage sustained, and will require no replacement of a part or parts as a result of wear during the life expectancy of such boat.