Before PHILLIPS, HUXMAN and MURRAH, Circuit Judges.
Paul A. Porter, Administrator of the Office of Price Administration*fn1 brought this action against J. E. Baggett, a used car dealer, doing business as Rex Motors, to recover statutory damages for past violations and to enjoin future violations of Maximum Price Regulation 540, 9 FR 6434 (pertaining to the sales of motor vehicles and motor vehicle equipment) issued under Section 2(a) of the Emergency Price Control Act of 1942, as amended, 58 Stat. 632, 50 U.S.C.A.Appendix, § 901 et seq. After the action was filed the Administrator consented to the intervention of appellee, W. C. Allred, and disclaimed any right of recovery for the alleged "over ceiling" sale made to him.
Maximum Price Regulation 540, as amended March 1, 1945, contained the following provisions at the time material to this action:
"Sec. 15. Definitions. When used in this regulation, the term: * * * 'Dealer' is a person who has received an order from the Office of Price Administration authorizing him to charge for a warranted used car defined in section 7 a warranted maximum price permitted by section 5,*fn2 * * *.
"(v) Requirements for grant of application by District Director. An application for authorization to sell as a dealer shall be granted if:
"(a) The applicant is generally engaged in the business of acquiring for sale, selling, displaying, repairing and reconditioning used cars; and
"(b) The applicant has a place for selling and displaying used cars; and
"(c) The applicant has a shop and equipment for reconditioning and repairing which in general are adequate for placing used cars in good operating condition as defined in section 7(b) and for fulfilling the terms of the warranty in section 7(c). * * * but,
"(d) In the case of an applicant who does not have the facilities described in (c) above, as a substitute for them, he may have a working arrangement, evidenced by a written contract, with a service supplier, who has the adequate reconditioning and repairing facilities described in (c) above, whereby the service supplier will perform the reconditioning and make the replacements the applicant, as a dealer, is required to make to place a used car in good operating condition as defined in section 7(b) or to fulfill the terms of the warranty in section 7(c); * * *".
"Sec. 7. * * * A warranted used car is a used car:
"(1) Which is in good operating condition as defined in paragraph (b); and
"(2) For which a dealer (as defined in section 15(b)) furnishes in writing to his purchaser at the time of sale the warranty [prescribed by the regulation]; and
"(3) In the case of a dealer who does not have adequate facilities for repairing or reconditioning used cars, it shall be a used car which, in addition to satisfying the conditions of (1) and (2), is one for which the service supplier that makes the repairs or replacements for the dealer in accordance with section 15(b) guarantees in writing the making of the repairs or replacements the dealer is obliged ...