§70h Guaranty

Summary

You are not guilty of an illegal act under section 70a if you have a written guaranty, received in good faith, that is signed and shows the name and U.S. address of the person who made or supplied the textile fiber product, and that says the product is not misbranded or falsely invoiced. The guaranty can be a separate paper naming the product (it may be on the invoice), a continuing guaranty from seller to buyer covering all current and future textile fiber products in a form the Commission sets, or a continuing guaranty filed with the Commission covering all products a guarantor handles. Giving a false guaranty is illegal and is treated as unfair competition and a deceptive act under the FTC Act, unless the person who gave the false guaranty relied in good faith on a similar signed guaranty that named and gave the U.S. address of the maker or supplier.