§ 505. Guaranty. 1. No person shall be subject to prosecution under section five hundred one of this article if such person (1) establishes a guaranty received in good faith signed by and containing the name and address of the person residing in the United States by whom the product, fabric or related material guaranteed was manufactured or from whom it was received, to the effect that reasonable and representative tests made under the procedures provided in section five hundred two of this article show that the product, fabric or related material covered by the guaranty, or used in the product, fabric or related material covered by the guaranty, is not, under the provisions of section five hundred two of this article, so highly flammable as to be dangerous when worn or used by individuals, and (2) has not, by further processing, affected the flammability of the product, fabric or related material covered by the guaranty which he received. Such guaranty shall be either (a) a separate guaranty specifically designating the product, fabric or related material guaranteed, in which case it may be on the invoice or other paper relating to such product, fabric or related material; or (b) a continuing guaranty filed with the department or with the federal trade commission applicable to any product, fabric or related material handled by a guarantor, in such form as the department or the federal trade commission by rules or regulations may prescribe; or (c) a continuing guaranty given by seller to buyer applicable to any product, fabric or related material sold or to be sold to buyer by seller in a form as the department or the federal trade commission by rules or regulations may prescribe.
2. The furnishing with respect to any product, fabric or related material, of a false guaranty, except by a person relying upon a guaranty to the same effect received in good faith and signed by and containing the name and address of the person residing in the United States by whom the product, fabric or related material guaranteed was manufactured or from whom it was received, with reason to believe the product, fabric or related material falsely guaranteed may be introduced, sold or transported in commerce, is unlawful.
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