Zellwood Fruit Distributors, Inc

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IN THE JIXl'TER OF ZELLWOOD FRUIT DISTRIBUTORS, INC, COXSEXT ORDER, ETC. , IX REGARD TO THE ALLEGED VIOLATION OF SEC. 2 (e) OF THE CI,AYTOX ACT Docket "/923. Comp aint, June 1960-Decision, May, 1961 Consent order requiring" a Tampa, :B'la. , packer of citrus fruit to cease violating ing Sec. 2(c) of the Clayton Act by paying brokerage, or its equivalent, to customers making purchases for their own accounts for resale. CO:nIPLAINT The Federal Trade Commission, having reason to believe that the party respondent named in the caption hereof, and hereinafter more particularly described, has been and is now violating the provisions of subsection (c) of Section 2 of the Clayton Act, as amended ec. c. Title 15, Section 13), hereby issues its complaint stating its charges with respect thereto as follm\s: \TL-\GIL\PH 1. Respondent Zell1\ood Fruit Distribut.ors, Inc. is a corporation organized existing and doing business under a.nd by yirtuc of the laws of the State of Florida, with jts offce and principal place of business located at ZeJlwood, Florida, with mailing address as Post Offce Box 103, Zellwood, Florida. m. 2. Respondent is now and for the past several.l years has been engaged in the business of pach:ing, selling and dist.ributing citrus fruit, such as oranges, tangerines and grapefruit, an of which are hercinnfter sometimes referred to as cit.rus fruit, or fruit products. Respondent sens and distributes its citrus fruit through brokers, as well as direct, t.o customers located in many sections of the Units1 States. ,Vhen brokers arc utilized in making sales for it respondent pays them for their services a broker'flge or commission usually at the rate of 10 cents per 1% bushel box, or equivalent. Hespondenfs annual yolmne of business in the sale and distribution of citrus fruit is substantial.

PAn. 3. In the course and conduct of its business over the past several yeHl'S, respondent has sold and distributed and is now selling and distributing its citrus fruit in commerce, as "commerce" is defined in the. aforesaid Clayton Act as amended, to buyers located in the several states of the United Sintes other than the State of 838 FEDERAL TRADE COMMISSION DECISIO Decision :j8 F. Florida in which respondent is located. Respondent tnmsports 01' causes such citrus fruit, when sold, to be transported from its place of business or packing plant, or other places in the State of Florida to such buyers: or to the buyers: customers, located in various other state, of the United States. Thus there has been "t a11 times mentioned herein a cont.inuous course of trade in commerce in Silic1 citrus fruit across stale lines between said respondent and the respective buyers of such fruit.

PAR. 4. In the course and conduct of its business as aforesaid. respondent has been and is now making substantial sales of citrus fruit to some, but not all, of its brokers and direct buyers purchasing for their own account for resale, and on a large number of these sales respondent paid: granted, or allowed and is no"., paying, granting or allowing to these brokers and other direct buyers on their purchases, a commission, brokerage, or other cmnpensation: or an allowance or discount in lieu thereof: in connection therewith.

PAR. 5. The acts and practices of respondent, as a,bove alleged nIlel described, are in violation of subsection (c) of Section 2 of the Clayton Act, as "mended (U. C. Title 15, Section 13). 3fT. Cecil G. JIiles and1cft. Ernest G. Betmes for the Commission. ..11'. Co"u.nts Johnson of Tampa, Fla.., for respondents. INITIAL DECISION BY EARL J. ICoLB, HEARING EXAl\IIXEH The complaint -in this mattet charges the respondent with violation of Section 2 (c) of the Cla.yton -\ct, ns amended. An agrepment for disposition of the proceeding by means of a, consent order has now been executed by re,spondent and its counsel and counsel supporting the complaint and submitted to the hearing examiner for his consideration. Attached to and made a part of the a.greement is a stipulation entered into by the same parties for the purpose of making clear the intent of the complaint and of the proposed order to cease and desist.

The agreement provides, among othet things, that respondent. admits all of the jurisdictional allegations in the complaint; that the record on which the, initial decision and the decision of the Commission shall be ba.sed shall consist solely of the complaint and t.he agreement; that the inclusion of findings of fact rulc1 conclusions of law in the decision disposing of this matter is waived, together with any further procedural steps before the hearing eXfLminer and the Commission; that the order hereinafter set forth may be entered in disposition of the proceeding, such order to have the ZELL'VOQD FRUIT DISTIUBUTORS , L'7C. 839 837 Order same force and effect as if entered after a full hearing, respondent specifically waiving any and all rights to challenge or contest the validity of such order; that the order may be altered, modified or set aside in the manner provided for other orders of the Commissian; that the complaint may be used in construing the terms of the order; and that the agreement is for settlement purposes only and does not constitut.e an ac1m1ssion by respondent that it has vio- Jated the law as alleged in the complaint. The hearing examiner having considered the agreement and the proposed order, and being of the opinion that they provide a.n adequate basis for appropria.te disposition of the rroceedil1g, the agreement is l1ereby accepted, the following jurisdictional findings made and the following order issued:

1. Ilespondent Zellwood Fruit Distributors Inc. is a corporation existing and doing business under and by virtue of the laws of the State of Florida, with its offce a.nd principal place of business loealed in the City of Zellwood, State of Florida, with mailing acldrcss as Post Offce Box 103, Zellwood, Florida. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding aml of 1.he respondent. ORDJ:R eel. That the respondent Zel1wood Fruit Distributors It 'is owleT' Ine" a corporation, and its offcers, agents, representatives and employees, direc.tly or through any corporate or other device, in connection with the sale of citrus fruit 01' fruit products in commerce as "commerce" is defined in the aforesaid Clayton Act do forthwith cease and desist from:

Paying, granting or allowing: directly or indirectly, to any buyer subject to theor to anyone acting for or in behalf of, or who is direct or indirect control of such buyer, anything of value as a commission, brokerage, or other compensa-tion, or any allowance or discount in lieu thereof, upon or in connection with any sale. of citrus fruit or :fruit products to such buyer for his own account. DECISION OF THE co nnssIOX AXD ORDER TO FILE REPORT OF CO)IPLL\NCE The Commission having now determined that the hearing examiner s initial decision, filed J anuary 2:'5 1961 : 1S adequate and appropriate to dispose of this proceeding:

1 t /8 ordered That said decision be: and it hereby is: adopted as the decision of the Commission.

840 FEDERAl, TRADE COMMISSION DECISIOKS Complaint 58 :r.

It is jmthe?' ordered That the respondent shall, within sixty (60) days after service upon it of this order, fie Iyith the Commission a report, in \\writing setting forth in detail the manner and form in which it has complied \with the order to cease and desist contained in the aforesaid initial decision.