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IN RE HALE PRODUCTS INC Click to find out why . . .



Keywords & Phrases
CaseNo: IRHPI112490, CourtCode: FED, CourtName: FEDERAL TRADE COMMISSION, State: PA Pennsylvania, UniqueCaseRef: LCD>IRHPI112490, Hale Products, Respondent Hale Products, Federal Trade Commission, Complaint, Mounted Fire Pumps, Agreement, Commission, Competition, Act, Respondent, Oems, Pump, Market, Mid-ship Mounted Fire, Customers, Exclusive Dealing, Price, Fire Truck, Hale, Starek, Pump Maker, Trade Commission Act, Pump Manufacturers, United States, Customer Allocation, Fire Pumps, Pennsylvania, Jurisdictional Facts, Exclusive Dealing Arrangements, Thereafter, Consent Order, Arrangements, Vertical Integration , ContentID: 120247797

Case Documents
1   STAREK STATEMENT
[ see first page and extracted highlights below  ] ItemID: 118840
23 pages
PDF
2   DECISION & ORDER
[ see first page and extracted highlights below  ] ItemID: 118839
12 pages
PDF
3   COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 118838
3 pages
PDF
Total Documents: 3 documents , 38 pages
Price: $ 29.95


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1 . STAREK STATEMENT

EXTRACTED KEY WORDS
RESPONDENT HALE PRODUCTS
FEDERAL TRADE COMMISSION
MOUNTED FIRE PUMPS
COMPLAINT
AGREEMENT
ACT
OEMS
BUSINESS
EXCLUSIVE DEALING
CUSTOMERS
MID-SHIP MOUNTED FIRE
MARKET
PUMP MANUFACTURERS
PRICE
COMPETITION
LAW
FIRE TRUCK
EXCLUSIVE DEALING ARRANGEMENTS
PENNSYLVANIA
UNITED STATES
PUMP MAKER
CUSTOMER ALLOCATION
PROPOSED CONSENT
FIRE DEPARTMENTS
VERTICAL INTEGRATION
COMPLAINT ALLEGES
SPRING MILL AVENUE
JURISDICTIONAL FACTS
PROPOSED RESPONDENT WAIVES
                                     UNITED STATES OF AMERICA
                               BEFORE FEDERAL TRADE COMMISSION




                                                          )
       In the Matter of                                   )       File No. 901 0061
                                                          )
       Hale Products, Inc.,                               )       AGREEMENT CONTAINING
              a corporation,                              )       CONSENT ORDER TO
                                                          )       CEASE AND DESIST
                                                          )




       The Federal Trade Commission (  Commission'') having initiated an investigation of

certain acts and practices of Hale Products, Inc., (sometimes referred to as   Proposed

Respondent'' or   Hale Products''), and it now appearing that Proposed Respondent is willing

to enter into an Agreement containing an Order to Cease and Desist from the use of the acts

and practices being investigated,



       IT IS HEREBY AGREED by and between Proposed Respondent, by its duly

authorized officers, and their attorneys, and counsel for the Commission that:



       1.  Proposed Respondent Hale Products Company, Inc., is a corporation organized,

existing, and doing business under and by virtue of the laws of the Commonwealth of

Pennsylvania.  Its principal place of business is 700 Spring Mill Avenue, Conshohocken,

Pennsylvania 19248.



       2.  Proposed Respondent admits all the jurisdictional facts set forth in the draft of

complaint here attached.

SNIPPETS:
  • to enter into an Agreement containing an Order to Cease and Desist from the use of the acts
  • Proposed Respondent Hale Products Company, Inc., is a corporation organized,
  • Its principal place of business is 700 Spring Mill Avenue, Conshohocken,
  • Pennsylvania 19248.
  • Any claim under the Equal Access to Justice Act.
  • it, together with the draft of complaint contemplated thereby, will be placed on the public
  • by Proposed Respondent that the law has been violated as alleged in the draft of complaint
  • here attached, or that the facts as alleged in the draft complaint, other than jurisdictional
  • Proposed Respondent waives
  • Mounted Fire Pumps, or Hale's parent if it engages in the manufacture or sale of Mid-Ship
  • Mid-Ship Mounted Fire Pumps'' are truck mounted fire pumps that meet the
  • affecting commerce, as commerce'' is defined in the Federal Trade Commission Act, does
  • OEM not covered by sub-paragraph above to whom it provides a price list for or a price
  • OEM's'' are original equipment manufacturers who buy and install Mid-Ship Mounted Fire Pumps,
  • OEM's then sell the trucks to fire departments in the United States.
  • Respondent Hale Products sells and ships Mid-Ship Mounted Fire Pumps from its production
  • These three firms have each sold fire pumps in the United States for over 50 years, and in
  • Respondent Hale Products believed that continued adherence to the exclusive sales policy by
  • During the 1980's and until approximately 1991, Respondent Hale Products continued to adhere
  • The proposed consent order has been placed on the public record for sixty
  • The complaint alleges that respondent Hale Products and Waterous Company
  • themselves and with other fire pump manufacturers in the United States.
  • for customer allocation of a component
  • exclusive dealing arrangements would not increase the
  • He relies on the fact that some OEMs
  • an exclusive dealing contract between a pump maker and one or more OEMs -- or even outright

  • 2 . DECISION & ORDER

    EXTRACTED KEY WORDS
    RESPONDENT
    PUMP
    COMPETITION
    COMPLAINT
    AGREEMENT
    OEMS
    HALE
    STAREK
    MOUNTED FIRE PUMPS
    FEDERAL TRADE COMMISSION
    TRADE COMMISSION ACT
    MARKET
    PRICE
    CUSTOMERS
    THEREAFTER
    CONSENT ORDER
    EXCLUSIVE DEALING
    ARRANGEMENTS
    HALE PRODUCTS
    PUMP MAKER
    AZCUENAGA
    JURISDICTIONAL FACTS
    FIRE TRUCK
    MANUFACTURERS
    MID-SHIP MOUNTED FIRE
    CUSTOMER ALLOCATION
    VIOLATION
    ANTICOMPETITIVE EFFECTS
    VERTICAL INTEGRATION
    
                                                                                                       
                                                                                                       
    
    
                                                          UNITED STATES OF AMERICA
                                               BEFORE FEDERAL TRADE COMMISSION
    
    
               COMMISSIONERS:
    
                           Robert Pitofsky, Chairman
                           Mary L. Azcuenaga
                           Janet D. Steiger
                           Roscoe B. Starek, III
                           Christine A. Varney
    
                                                                                        )
    In the Matter of                                                                   )     DOCKET NO.
                                                                                       )
    Hale Products, Inc.,                                                               )     DECISION
               a corporation,                                                          )
                                                                                        )
    
    
               The Federal Trade Commission having initiated an investigation of certain acts and
         of the respondent named in the caption hereof, and the respondent having been furnished
         thereafter with a copy of a draft of complaint which the Bureau of Competition proposed to
         present to the Commission for its consideration and  which, if issued by the Commission, would
         charge respondent with violation of the Federal Trade Commission Act; and
    
               The respondent, its attorney and counsel for the Commission having thereafter executed an
         agreement containing a consent order, an admission by the respondent of all the jurisdictional
         facts set forth in the aforesaid draft of complaint, a statement that the signing of said
         for settlement purposes only and does not constitute an admission by respondent that the law
         been violated as alleged in such complaint, or that the facts as alleged in such complaint,
         than jurisdictional facts, are true and waivers and other provisions as required by the
         Commission's Rules; and
    
               The Commission having thereafter considered the matter and having determined that it had
         reason to believe that the respondent had violated the said Act, and that a complaint should
         stating its charges in that respect, and having thereupon accepted the executed consent
         and placed such agreement on the public record for a period of sixty (60) days, and having duly
         considered the comments filed thereafter by interested persons pursuant to Section 2.34 of its
         Rules,now in further conformity with the procedure prescribed in Section 2.34 of its Rules, the
         Commission hereby issues its complaint, makes the following jurisdictional findings and enters
    
    
    
    following order:
    
    SNIPPETS:
  • The Federal Trade Commission having initiated an investigation of certain acts and practices
  • Respondent Hale Products is a corporation organized, existing and doing business under and by
  • "Respondent Hale Products" means Hale Products, Inc.; its predecessors, subsidiaries, gents and representatives of any of the entities described in subparagraphs, and above.
  • "OEM's" are original equipment manufacturers who buy and install Mid-Ship Mounted Fire Pumps,
  • IT IS FURTHER ORDERED that Respondent Hale Products, directly or through any corporation, n from the purchase or sale of Mid-Ship Mounted Fire Pumps of any manufacturer, or will purchase or
  • for a period of three years after the date this Order becomes final, to each OEM not covered
  • Commissioners Azcuenaga and Starek dissenting.
  • Enclosed with this notice is a copy of a Consent Order agreed to between the Federal Trade
  • The Order does not prohibit OEMs from purchasing only Hale Mid-Ship Mounted Fire Pumps if, in
  • for customer allocation of a component
  • the ultimate customers of the finished product.
  • There will be situations where downstream competition will
  • allocation through exclusive dealing was maintained over
  • method for enforcing the exclusive dealing arrangements.
  • The key to competition in this market was the competitive
  • The complaints claim anticompetitive effects arising from alleged exclusive dealing
  • an exclusive dealing contract between a pump maker and one or more OEMs -- or even outright

  • 3 . COMPLAINT

    EXTRACTED KEY WORDS
    HALE PRODUCTS
    MOUNTED FIRE PUMPS
    MID-SHIP MOUNTED FIRE
    RESPONDENT HALE PRODUCTS
    ACT
    UNITED STATES
    FEDERAL TRADE COMMISSION
    COMPETITION
    PUMP MANUFACTURER
    SALES
    PRACTICES
    EXCLUDE
    EXCLUSIVE TERM
    FIRE TRUCK
    PENNSYLVANIA
    SOLD
    INJURY
    VIRTUE
    VIOLATION
    THEREOF
    COMPLAINT
    BUSINESS
    ACCOUNT
    FACILITY
    CUSTOMERS
    FIRMS
    MARKET
    SELLING
    PRIOR
    
                 9010061
    
                 B209468
    
    
    
                                                               UNITED STATES OF AMERICA
                                                    BEFORE FEDERAL TRADE COMMISSION
    
    
    
                                                                                               )
    In the Matter of                                                                          ))   
    Hale Products, Inc.,                                                                      )
                 a corporation.                                                               ))
                                                                                               )
    
    
                                                                                 COMPLAINT
    
                 Pursuant to the provisions of the Federal Trade Commission Act, as amended, 15 U.S.C.
          41 et seq., and by virtue of the authority vested in it by said Act, the Federal Trade
          having reason to believe that Hale Products, Inc. (sometimes referred to as   Hale Products''
            Respondent''), has violated Section 5 of the Federal Trade Commission Act, as amended, 15
          U.S.C.   45, and that a proceeding by it in respect thereof would be in the public interest,
          issues this complaint stating its charges as follows:
    
          1.           For the purposes of this complaint, the following definitions shall apply:
    
                       a.             Mid-Ship Mounted Fire Pumps'' are truck mounted fire pumps that
          National Fire Protection Association Standard for Pumper Fire Apparatus known as   NFPA
          1901.''
    
                       b.             OEM's'' are original equipment manufacturers who buy and install
          Mounted Fire Pumps, as well as many other components, into a final fire truck.  OEM's then
          the trucks to fire departments in the United States.
    
    
                                                                                    Respondent
    
          2.           Respondent Hale Products, Inc., is a corporation organized, existing and doing
    
    
    
    under and by virtue of the laws of the state of Pennsylvania with its principal place of business
    located at 700 Spring Mill Avenue, Conshohocken, Pennsylvania 19248.  Respondent Hale
    Products manufactures and sells Mid-Ship Mounted Fire Pumps in the United States, and in 1993
    accounted for approximately 50 percent of Mid-Ship Mounted Fire Pump sales in the United
    States.
    
    SNIPPETS:
  • Pursuant to the provisions of the Federal Trade Commission Act, as amended, 15 U.S.C. 41 et
  • under and by virtue of the laws of the state of Pennsylvania with its principal place of
  • Respondent Hale Products manufactures and sells Mid-Ship Mounted Fire Pumps in the United
  • production facility located in Pennsylvania to customers located throughout the United States.
  • Respondent maintains and has maintained a substantial course of business, including the acts
  • These three firms have each sold fire pumps in the United States for over 50 years, and in
  • Respondent Hale Products and Waterous are the two largest manufacturers and together account
  • Respondent Hale Products sold or contracted for the sale of such pumps to OEM's with the
  • Thus, prior to approximately 1991, few if any OEM's offered Mid-Ship Mounted Fire Pumps
  • by both itself and Waterous would exclude or tend to exclude other competitors and would tend
  • Hale Products told prospective OEM's that they must deal exclusively in Mid-Ship Mounted Fire
  • By facilitating an allocation of customers between Respondent Hale Products and Waterous.
  • Therefore, the acts, practices and methods of competition of Respondent Hale Products, as
  • The acts practices and methods of competition of Respondent, as herein alleged, or the
  • WHEREFORE, THE PREMISES CONSIDERED, the Federal Trade Commission on this twenty-second day of
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