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International Parts Corp. v. Federal Trade Commission.

February 17, 1943

INTERNATIONAL PARTS CORPORATION
v.
FEDERAL TRADE COMMISSION.



Petition for review of order of the Federal Trade Commission.

Author: Minton

Before EVANS and MINTON, Circuit Judges, and LINDLEY, District Judge.

MINTON, Circuit Judge.

The petitioner, International Parts Corporation, seeks to review and set aside an order of the Federal Trade Commission ordering it to cease and desist from making certain representations concerning its products. The petitioner, an Illinois corporation with its place of business in Chicago, sells replacement auto parts at wholesale in interstate commerce. Its president is Mr. Sherman, who was formerly associated with his brother-in-law, Mr. Grawoig, in the same line of business. They did business through an Illinois corporation located in Chicago, known as the Universal Parts Company. Sherman and Grawoig had a disagreement which ended in a fist fight, and Sherman left Univeral and started a rival business through the petitioner corporation.

Among the replacement parts sold by the petitioner in competition with Universal and many others were automobile mufflers. The petitioner did not manufacture the mufflers, but purchased them from a concern which manufactured them. In its advertising and sales literature, the petitioner stated:

"WARNING! To Protect Yourself Against Leaking Carbon Monoxide Gas Be Sure Your Muffler Is Made With Continuous ELECTRIC-WELDED SEAMS Throughout . . . Not Locked, Crimped or Spot-Welded Your Safeguard INTERNATIONAL" is An

The petitioner also represented that its mufflers were made with the "Finest Quality Metallic Finish Prevents Rust and Corrosion."

The Commission issued and served a complaint upon the petitioner in which it charged the petitioner with false and misleading representations concerning its mufflers in the following particulars:

(1) "Electric welded seams throughout - not locked, crimped or spot-welded."

(2) "Double shell construction for added strength and quiet operation, exclusive feature."

(3) "Finest quality, metallic finish prevents rust and corrosion."

(4) "They increase gas mileage."

(5) "Warning! To protect yourself against leaking carbon monoxide gas, be sure your muffler is made with continuous electric-welded seams throughout, not locked, crimped or spot-welded."

After a hearing, the Commission found that only the third and fifth specifications were fals and misleading, and issued an order that ...


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