15 U.S.C. § 70h — Guaranty

submitted 68 years ago by Pub. L. 85-897 to r/title-15-COMMERCE-AND-TRADE · 270 words · no verdicts yet

in plain englishAI-generated · not legal advice

A seller avoids liability under section 70a with a good-faith guaranty that the product isn't misbranded. This guaranty can cover a single product, a buyer-seller relationship, or all products filed with the Commission. Knowingly furnishing a false guaranty is an unfair or deceptive practice under the Federal Trade Commission Act.

(a) A person is not guilty of an unlawful act under section 70a if they establish a guaranty. The guaranty must be received in good faith. It must be signed by, and show the name and address of, the U.S. resident who manufactured the textile fiber product or from whom the person received it. It must state that the product is not misbranded or falsely invoiced under this subchapter. This guaranty can take three forms: (1) a separate guaranty naming that specific product, which may appear on the invoice or another related paper; (2) a continuing guaranty a seller gives a buyer, covering all textile fiber products the seller sells or will sell to that buyer, in whatever form the Commission's rules require; or (3) a continuing guaranty filed with the Commission, covering all textile fiber products the guarantor handles, in whatever form the Commission's rules require. (b) Furnishing a false guaranty about a textile fiber product is unlawful. It counts as an unfair method of competition and an unfair and deceptive act or practice under the Federal Trade Commission Act. There is one exception: a person is protected if they relied in good faith on a guaranty, to the same effect, that they themselves received — one signed by and naming the U.S. resident manufacturer or supplier.

the actual law source: uscode.house.gov ↗public domain

(a) Avoidance of liability; requirements

No person shall be guilty of an unlawful act under section 70a of this title if he establishes a guaranty received in good faith, signed by and containing the name and address of the person residing in the United States by whom the textile fiber product guaranteed was manufactured or from whom it was received, that said product is not misbranded or falsely invoiced under the provisions of this subchapter. Said guaranty shall be (1) a separate guaranty specifically designating the textile fiber product guaranteed, in which case it may be on the invoice or other paper relating to said product; or (2) a continuing guaranty given by seller to the buyer applicable to all textile fiber products sold to 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 all textile fiber products handled by a guarantor in such form as the Commission by rules and regulations may prescribe.

(b) Furnishing false guaranty

The furnishing of a false guaranty, except where the person furnishing such false guaranty relies on a guaranty to the same effect received in good faith signed by and containing the name and address of the person residing in the United States by whom the product guaranteed was manufactured or from whom it was received, is unlawful, and shall be an unfair method of competition, and an unfair and deceptive act or practice, in commerce, within the meaning of the Federal Trade Commission Act [15 U.S.C. 41 et seq.].

Source credit: (Pub. L. 85–897, § 10, Sept. 2, 1958, 72 Stat. 1722.)

history & why it existsrecord from the source credit

1958Enacted · Pub. L. 85-897 · 72 Stat. 1722

A history note hasn’t been published yet. The record shows enactment by Pub. L. 85-897 on 1958-09-02.

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