15 U.S.C. § 1197 — Guaranties
submitted 73 years ago by ch. 164 to r/title-15-COMMERCE-AND-TRADE · 391 words · no verdicts yet
This section provides a defense based on a good-faith guaranty that covered materials meet flammability standards. It also makes knowingly furnishing a false guaranty unlawful in specified circumstances.
(a) Defense to prosecution. A person* is not subject to prosecution under section 1196 for violating section 1192 if the person: (1) establishes a good-faith guaranty, signed by and naming and giving the address of the maker or source, stating that reasonable representative tests under section 1193 standards show the covered fabric* or related material*, or material used in the covered product*, meets applicable flammability standards; and (2) has not further processed it in a way that affected its flammability. The guaranty may be: (1) a separate guaranty identifying the item, including one on its invoice or related paper; (2) a continuing seller-to-buyer guaranty in the Commission’s prescribed form; or (3) a continuing guaranty filed with the Commission* for items handled by the guarantor, in the prescribed form.
(b) False guaranty. It is unlawful to furnish a false guaranty for a product, fabric, or related material when the person has reason to believe it may be introduced, sold, or transported in commerce*. This does not apply to a person relying in good faith on a guaranty with the same effect, signed by and naming and giving the address of the maker or source. A violator commits an unfair method of competition and an unfair or deceptive act or practice in commerce under the Federal Trade Commission Act*.
No person* shall be subject to prosecution under section 1196 of this title for a violation of section 1192 of this title if such person (1) establishes a guaranty received in good faith signed by and containing the name and address of the person by whom the product*, fabric*, or related material* guaranteed was manufactured or from whom it was received, to the effect that reasonable and representative tests made in accordance with standards issued or amended under the provisions of section 1193 of this title show that the fabric or related material covered by the guaranty, or used in the product covered by the guaranty, conforms with applicable flammability standards issued or amended under the provisions of section 1193 of this title, and (2) has not, by further processing, affected the flammability of the fabric, related material, or product covered by the guaranty which he received. Such guaranty shall be either (1) a separate guaranty specifically designating the product, fabric, or related material guaranteed, in which case it may be on the invoice or other paper relating to such product, fabric, or related material; (2) a continuing guaranty given by seller to buyer applicable to any product, fabric, or related material sold or to be sold to buyer by seller in a form as the Commission* by rules and regulations may prescribe; or (3) a continuing guaranty filed with the Commission applicable to any product, fabric, or related material handled by a guarantor, in such form as the Commission by rules or regulations may prescribe.
It shall be unlawful for any person to furnish, with respect to any product, fabric, or related material, a false guaranty (except a person relying upon a guaranty to the same effect received in good faith signed by and containing the name and address of the person by whom the product, fabric, or related material guaranteed was manufactured or from whom it was received) with reason to believe the product, fabric, or related material falsely guaranteed may be introduced, sold, or transported in commerce*, and any person who violates the provisions of this subsection is guilty of an unfair method of competition, and an unfair or deceptive act or practice, in commerce within the meaning of the Federal Trade Commission Act* [15 U.S.C. 41 et seq.].
Source credit: (June 30, 1953, ch. 164, § 8, 67 Stat. 114; Pub. L. 90–189, § 6, Dec. 14, 1967, 81 Stat. 572.)
- 1953Enacted · Act of June 30, 1953, ch. 164 · 67 Stat. 114
- 1967Amended · Pub. L. 90-189 · 81 Stat. 572
A history note hasn’t been published yet. The record shows enactment by ch. 164 on 1953-06-30.
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