Robert A. Lyons

Text (OCR of the scan at left; may contain errors)

IN THE JVA TTER OF ROBERT A. LYONS ET AL. TRADING AS TAB" AND TECHNICAL APPARATUS BUILDERS CONSE:-T ORDER, ETC. , IN Regard TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7125. Complaint, Apr. 1.98-Decisiun, Apr. , 1.9.5.9 Consent order requiring a concern in New York City sellng radio and television tubes-many of them military and manufacturers' surplus, used pull-out, and factory reject-to the public by mail order and also to indust.rial establishments and manufacturers, to cease representing falsely in advertising- brochures, magazine advertising, etc. that all their tubes were new, unused, and of first quality and were unconditionally guaranteed, and to disclose conspicuously-in advertising', packaging, and shipping memoranda- when their tubes were used, reject, or surplus. iVh-. Kent P. Kratz for the Commission. Wiesenthal Wiesenthal of New York Y., for respondents. INITIAL DECISION BY EARL J. KOLB, HEARING EXAMINER The complaint in this proceeding issued April 18, 1958, charg-es respondents Robert A. Lyons and l\forton C. Blumberg, copartners trading as "TAB" and Technical Apparatus Builders, located at 111 Liberty Street, New York, N. , with violation of the Federal Trade Commission Act in the sale and distribution of radio and television tubes.

After the issuance of the complaint respondents entered into an agreement containing consent, order to cease and desist with counsel in support of the complaint disposing of all the issues as to all parties in this proceeding, which agreement was duly approved by the director and assistant director of the Bureau of Litigation.

It was expressly provided in said agreement that the signing thereof is for settement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint.

By the terms of said agreement, the respondents admitted all the jurisdictional facts alleged in the complaint and agreed that the record herein may be taken as if the Commission had made findings of jurisdictional facts in accordance with the allegations. Order 55 F.

By said agreement, the parties expressly waived any further procedural steps before the hearing examiner and the Commission; the making of findings of fact or conclusions of law; and all the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with the agreement.

Respondents further agreed that the order to cease and desist issued in accordance with said agreement, shall have the same force and effect as if made after a full hearing. It was further provided that said agreement, together with the complaint, shall constitute the entire record herein; that the complaint herein may be used in construing the terms of the order issued pursuant to said agreement; and that said order may be altered, modified or set aside in the manner prescribed by the statute for orders of the Commission. The hearing examiner has considered such agreement and the order therein contained, and, it appearing that said agreen1ent and order provides for an appropriate disposition of this proceeding, the same is hereby accepted and is ordered filed upon becoming part of the Commission s decision in accordance with Sections 3.21 and 3.25 of the Rules of Practice, and, in consonance with the terms of said agreement, the hearing examiner finds that the Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents named herein, that this proceeding is in the interest of the public, and issues the following order:

ORDER It is onleo' That respondents Robert A. Lyons and :vorton C. Blumberg, individually or trading as "TAB" or as Technical Apparatus Builders, or trading under any other name, and their representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, or distribution of television or radio tubes in commerce, as "commerce" is defined in the Federal Trade Commission Act do forthwith cease and desist from:

1. Representing, directly or indirectly, that any used tubes are new.

2. Representing, directly or indirectly, that used, pull-out TAB" AND TECHNICAL APPARATUS BUILDERS 1679 1677 Decision (sometimes referred to as "removed from equipment" ), factory rejects, military surplus or manufacturers' surplus are first quality tubes, provided, however, that nothing herein will prohibit respondents from representing the true or actual quality thereof. 3. Sellng, offering for sale or distributing used, pull-out (sometimes referred to as tubes "removed from equipment" ), factory rejects, military surplus or manufacturers' surplus radio or television tubes without clearly and conspicuously disclosing on the tube, the individual carton in which such tube is packaged and in advertising and shipping memoranda that they are used, pullout or removed from equipment, factory rejects, military surplus or manufacturers' surplus tubes, as the case may. 4. Representing, directly or by implication, that their tubes are guaranteed, unless the nature and extent of the guarantee and the manner in which the guarantor wil perform thereunder are clearly and conspicuously disclosed. DECIsrON OF Tile COMMISSION AKD ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3. 21 of the Commission s Rules of Practice, the initial decision of the hearing examiner shall, on the 16th day of April 1959, become the decision of the Commission; and, accordingly;

It is ordered That respondents herein shall, within sixty (60) days after service upon them of this order, file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist.

Dccision 55 F.