July 1951 



COM^ERCIAL FISHERIES REVIEW 



55 



(11 The person making the statement 

 for the buyer must be a person duly au- 

 thorized to make the certification. 



( 2 ) Both the buyer and the seller must 

 promptly make a written record of the 

 fact that the certification was given 

 orally and the record must be signed by 

 the buyer in the same way as a certifica- 

 tion. 



(e) The person who places a rated or- 

 der, the individual whose signature is 

 used, and the individual who approves 

 the use of the signature, will each be 

 considered to be making a representation 

 to NPA that the statements contained 

 in the certification are true to the best 

 of his knowledge and belief. The person 

 receiving the certification and any other 

 information required to be included with 

 it. shall be entitled to rely on it as a 

 representation of the buyer unless he 

 knows or has reason to believe that it is 

 false. 



( f ) No person shall knowingly apply or 

 extend or purport to apply or extend a 

 rating to any order unless he is entitled 

 to do so. No person shall apply or extend 

 a rating for material or services after he 

 has received the material or after the 

 services have been performed, and any 

 person who receives .'uch a rating shall 

 not extend it. 



Sec. 9. Special provisions applicable to 

 extensicms; grouping of orders, (a) No 

 person may extend any rating to replace 

 inventory after the expiration of 3 

 months from the date of receipt of the 

 order bearing the rating, or 1 month 

 from the date he took from Inventory 

 the material being replaced, whichever 

 date is later. 



(b) If the purchase requirements for 

 filling a number of rated orders for dif- 

 ferent items bearing different rating 

 identifications are combined in one pur- 

 chase order, each applicable rating iden- 

 tification must be placed alongside the 

 related item. 



(c) If the purchase requirements for 

 filling a number of rated orders for the 

 same material but bearing different rat- 

 ing identifications are combined in one 

 purchase order, the purchase order must 

 show the amount of such material to 

 which a particulai rating identification 

 is extended. 



<d) In the case of a manufacturer ot 

 common components or shelf items or 

 any other person who has a number of 

 rated orders for which he cannot place 

 orders for minimum commercially pro- 

 curable quantities of materials, to fill the 

 rated orders individually, he may place 

 one rated order for all the materials 

 using the identification symbol DO-Z8 

 (formerly DO-99), Orders bearing the 

 rating DO-99 and outstanding on July 

 17, 1951. shall have the same preferen- 

 tial status as though they were rated 

 DO-Z8. However, the amounts so or- 

 dered may not exceed the total amount 

 of the material required for the rated 

 orders so combined. 



Sec. 10. Rules for acceptance and re- 

 jection of rated orders. Every order 

 bearing a rating must be accepted and 



filled regardless of existing contracts and 

 orders except as provided in this section. 

 The "existing contracts -and orders" re- 

 ferred to include not only ordinary pur 

 chase contracts but other arrangements 

 achieving substantially the same results, 

 though in form they may concern the 

 use of production facilities rather than 

 the material produced. 



(a) A person must not accept a rated 

 order for delivery on a date which would 

 interfere with delivery of rated orders 

 which he has already accepted, nor if de- 

 livery of the material ordered would in- 

 terfere with delivery on an order which 

 NPA has previously directed him to fill. 



(b) If a person, when receiving a rated 

 order bearing a specific delivery date, 

 does not expect to be able to fill it by 

 the time requested, he must not accept 

 it for delivery at that time. He must 

 either (1) reject the order, stating when 

 he could fill it, or (2) accept it for deliv- 

 ery on the earliest date he expects to be 

 able to deliver, informing the customer 

 of that date. He may adopt either of 

 these two courses, depending on his 

 understanding of which his customer 

 would prefer. He may not reject a rated 

 order Just because he expects to receive 

 other rated orders in the future. 



(c) A supplier does not have to accept 

 a rated order in any of the following 

 cases, but there must be no discrimina- 

 tion in such cases against rated orders 

 or between rated orders of different cus- 

 tomers: 



(1) If the person seeking to place the 

 order is unwilling or unable to meet regu- 

 larly established prices and terms of sale 

 or payment. When a person who has a 

 rated order asks a supplier to quote his 

 regularly established prices and terms of 

 sale or payment, the supplier must do so, 

 except that if this would require detailed 

 engineering or accounting work, he may 

 give his best estimate without such work 

 and say that it is not binding. However, 

 the supplier need not quote if he is not 

 required to accept the rated order and 

 advises the person seeking the quotation 

 of the reason for his refusal. 



(2) If the order is for the manufacture 

 of a product or the performance of a 

 service of a kind which the person to 

 whom the order is offered has not usually 

 made or performed, and in addition, if 

 either (i) he cannot fill the order with 

 out substantially altering or adding to 

 his facilities or (ii) the order can readily 

 be performed by someone else who has 

 usually accepted and performed such 

 orders. 



(3) If an order for material is offered 

 to a person who produces or acquires it 

 for his own use only, and he has not filled 

 any orders for that material within the 

 past 2 years. If he has filled any 

 orders within that period, but the rated 

 order woxUd take more than the excess 

 over his own needs, he may reject the 

 order for any amount over the excess 



(4) If filling the order would stop or 

 Interrupt the supplier's operations dur- 

 ing the next 60 days in a way which 

 would cause a substantial loss of total 

 production or a substantial delay in 

 operations. 



(5) If the acceptance or performance 

 of the order would violate any other 

 regulation or order of NPA in effect at 

 the time such order is received. 



(d) A producer need not accept a 

 rated order from another person who 

 produces the same product. A processor 

 need not accept a rated order from 

 another person who performs the same 

 processing service. 



(e) Any person who refuses to accept 

 a rated order shall, upon written request 

 of the person placing the order, promptly 

 give his reasons In writing for his 

 refusal. 



Sec. 11. Report to NPA of improperly 

 rejected orders. When a rated order is 

 rejected in violation of this regulation, 

 a report of the relevant facts may be 

 filed with the National Production Au- 

 thority, Washington 25, D. C, Ref; 

 NPA Reg. 2. NPA wUl take such action 

 as it considers appropriate after requir- 

 ing an explanation from the person re- 

 jecting the order. 



Sec. 12. Cancellation of ratings. If a 

 rating which has been used by a person 

 is revoked, he must immediately, in the 

 case of each order to which he has ap- 

 plied such rating, either cancel the order 

 or Inform his supplier that it is no 

 longer to be treated as a rated order. 

 If any person receives notice from his 

 customer oi otherwise that the cus- 

 tomer's order is no longer a rated order 

 or that the customer's order is cancelled, 

 he must immediately withdraw any ex- 

 tensions of that rating which he has 

 made to an.v purchase order placed by 

 him. 



Sec. 13. Sequence of filling rated or- 

 ders, (a) Every person who has rated 

 orders on hand must schedule his oper- 

 ations, if possible, so as to fill each rated 

 order by the required delivery or per- 

 formance date. If this is not possible 

 for any reason, he must give precedence 

 to all rated orders over unrated orders. 



(b) As between conflicting rated or- 

 ders, precedence must be given to the 

 order which was received first with the 

 rating: Provided, That orders received 

 prior to October 3, 1950, and which re- 

 ceive ratings prior to October 31, 1950, 

 take precedence as of the dates on 

 which orders were first placed. As be- 

 tween conflicting rated orders received 

 on the same date, precedence must be 

 given to the order which has the earli- 

 est required delivery or performance 

 date. 



(c) A rated order calling for earlier 

 delivery than a rated order already ac- 

 cepted must not be allowed to interfere 

 with scheduled delivery on the first or- 

 der, but if both deliveries can be made 

 on schedule it is not necessary to pro- 

 duce or make delivery on the first 

 customer's order ahead of the second. 



(d) In the usual case, the date on 

 which specifications have been fur- 

 nished to the manufacturer in sufficient 

 detail to enable him to put the product 

 into production is to be considered the 

 date on which the rated order is 



, received. 



