Automated Building Components, Inc

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IN THE MATTER OF AUTOMATED BUILDING COMPONENTS, INC.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT AND SEC. 3 OF THE CLAYTN ACT Docket C-26,'J5. Complw:nt, Feb. , 1975 - Deci:,wn, Feb. 1:/, HJ75 Consent order requiring a Miami, Fla., manufacturer and tributor of truss fabricating equipment and truss connecting plates, among other things to cease tying the sae of woo roof truss connecting plates and/or engineering servces to the sale, lea...e or license of fabricating equipment. Appearances For the Commission: Micful H. Abrams and Duncan J. Parmr. For the respondent: Robert M. Goolrick, Steptoe Johnson Washington, D.

), . ,,,. .-U "V.LU.-LL"''' UU.L' OJV.'"'' .."... "OJ, ''''OJ. 224 Complaint COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, as amended (15 V. C. 941 et seq. and by virue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that Automated Building Components, Inc., a corporation sometimes referred to hereinafter as respondent, has violated the provisions of Section 5 of the Federal Trade Commssion Act, as amended (15 V. C. 945), and Section 3 of the Clayton Act (15 U.S. 914), and it appearing to the Commission that a proceeding by it respect thereof is in the public interest, hereby issues its complaint stating the following:

PARAGRAPH I. Respondent Automated Building Components, Inc., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Florida with its principal"place of business located at 7525 N.W. 37th Ave., Miami, Fla. PAR. 2. Respondent Automated Building Components, Inc., is now and for some time last past has been engaged in the manufacture and distribution (by sale, lease and/or license) of truss fabricating equipment; the manufacture and sale of truss connecting plates; and the design and sale of engineering servces in connection therewith. PAR. 3. In the course and conduct of its business, respondent Automated Building Components, Inc., now causes, and has caused in the past, its products, when sold, leased, and/or licensed, to be shipped from its place of business in the State of Florida to purchasers, lessees and/or licensees thereof in other states, and maintains, and at all times mentioned herein has maintained, a substantial coure of trade in said products in commerce, as "commerce" is defined in the Federal Trde Commssion Act.

PAR. 4. Except to the extent that actual and potential competition has been lessened, restricted and restrained by reason of the practices hereinafter alleged, respondent Automated Building Components, Inc. has been and is now engaged in competition with fir, parnerships and corporations eng-dged in the manufacture and distribution of truss fabricating equipment, the manufacture and sale of truss connecting plates, and the design and sale of engineering servces. PAR. 5. In the coure and conduct of its business as described above respondent Automated Building Components, Inc., has offered, entered into and enforced agreements with purcha.-;ers, lessees and/or licensees of its truss fabricating equipment which require such purchasers lessees and/or licensees, as a condition to the purhase, lease or license of truss fabricating equipment from said respondent, to purchase truss connecting plates and/or engineering services from said respondent. Decision and Order 85 F.

PAR. 6. The effect of the aforesaid agreements has been and may be to substantially lessen competition in the manufacture and sale of truss connecting plates and the design and sale of engineering services. PAR. 7. The acts, practices and methods of competition alleged herein constitute tying agreements or practices by respondent in violation of Section 3 of the Clayton Act and/or Section 5 of the Federal Trade Commission Act.

PAR. 8. The acts, practices and methods of competition alleged herein constitute unfair methods of competition or unfair acts or practices by respondent in violation of Section 5 of the Federal Trde Commission Act.

DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondent named in the caption hereto with violation of Section 5 of the Federal Trade Commssion Act and Section 3 of the Clayton Act, and the respondent having been served with notice of said determnation and with a copy of the complaint tbe Commission intended to issue, together with a proposed form of order; and The respondent and counsel for the Commssion having thereafter executed an agreement containing consent order, an admission by the respondent of all the jursdictional facts set forth in the complaint to issue herein, a statement that the signing of said agrement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as alleged in such complaint and waivers and other provisions as requid by the Commission rules; and The Commission having considered the agreement and having provisionally accepted same, and the agreement containing consent order having thereupon been placed on the publicrecord for a period of sixty (60) days, now in furher conformty with the procedure prescribed in Section 2.34(b) of its rules, the Commssion hereby issues its complaint in the form contemplated by said agreement, makes the following jursdictional findings, and enters the following order: 1. Respondent Automated Building Components, Inc. is a corpration organized, existing and doing business under and by viue of the laws of the State of Florida, with its offce and principal place of business located at 7525 N.W. 37th Ave., Miami, Fla. 2. The Federal Trade Commssion ha., jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

AUTOMATED BUILIHNG CUMPUNl!NT:S, INL -al 224 Decision and Order ORDER For purposes of this order, the following definitions shall apply: A. The term "respondent" refers to Automated Building Compo nents, Inc., a corporation, and its subsidiares, affiliates, successors assigns, officers, agents, representatives and employees. B. Tbe term "truss fabricating equipment" refers to all machinery and equipment sold, leased, or licensed by respondent to be used in the assembly, production and construction of wood roof trusses used in the construction of residences, multiple dwellngs, commercial or industrial buildings and far structures.

C. The term "truss connecting plates" refers to all metal plates bearing any number of nails or other shar devices used to permanent ly connect the joints of wood roof trusses used in the construction of residences, multiple dwellngs, commercial or industrial buildings and fann structures.

D. The term "engineering servces" refers to design specification servces provided by respondent in connection with the assembly, production and construction of wood roof trusses, and the selection and designation of truss connecting plates deemed necessar for the proper support of said trusses.

It is ordered That respondent, directly or indirectly through any corporate or other device, in connection with the sale, lease or license of truss fabricating equipment, truss connecting plates and/or engineering services in the United States shan, within thiry (30) days after entry of this order, cease and desist from:

1. Offering, enterig into or enforcing any agreement or provision of any agreement, express or implied, which in any way requires or obligates any purchaser, lessee or licensee of respondent's truss fabricating equipment as a condition to the execution or continuation of a purchase, lease or license agreement with respect to such equipment to purchase or agree to purchase all or any part of such purchaser's lessee s or licensee s requirements of truss connecting plates and/or engineering servces, from respondent or from any soure designated by respondent.

2. Offering, aUowing or granting a price discount, rental or royalty reduction, rebate, or other valuable consideration on or with respect to the sale, lease or license of respondent's truss fabricating equipment which is in any way based upon purchases of truss connecting plates 228 FEm;RAL TRADE COMMISSION DECISIONS Decision and Order 85 F.

and/or engineering services from respondent or from any source designated by respondent.

3. Requiring any of its purchasers, lessees or licensees of truss fabricating equipment to purchase truss connecting plates and any other products from respondent or from any source designated by respondent.

It is further ordered That respondent shall: 1. Within thirty (30) days after entry of this order, mail a letter on its stationery, signed by the officers of the respondent ahd enclosing a copy of this order, to all of its purchasers, lessees, and/or licensees of truss fabricating equipment who have purchased truss connecting plates from it durng the twenty-four (24) months preceding entry of this order which informs each such purchaser, lessee or licensee of the prohibitive terms of this order.

2. Notify, during the five (5) year period after entry of this order each new prospective purchaser, lessee or licensee of its truss fabricating equipment (excluding replacement pars) of the prohibitive terms of this order on its first wrtten proposal to each such new prospective purchaser, lessee or licensee.

a. Within ten (10) days after entry of this order, provide a copy of this order to each of its salesmen, sales agents and sales representatives.

4. Within thiry (30) days after entry of this order, and continuing thereafter, make available its manuals concerning its standard wood roof truss designs, including updated standard wood roof truss designs to any truss fabricator desirng such manuals; nothing contained in this order shall prohibit respondent from charging a reasonable fee for such manuals.

5. Within sixty (60) days after entry of this order, fie with the Commission a report in wrting setting forth in detail the manner and form in which it has complied with this order. 6. Notify the Commission at least thirty (30) days prior to any proposed corporate change such as dissolution, assignent or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiares or any other change in the corpration which may affect compliance obligations arising out of the order. ), , 229 Complaint