(1) The application for a collective mark shall also be refused, in addition to cases falling under section 37, if it does not comply with the prerequisites of section 97, 98 or 102 or if the regulations governing use of the collective mark are contrary to public policy or to accepted principles of morality.
(2) The application for a collective mark shall also be refused if the public is liable to be misled as regards the character or the significance of the mark, in particular if it is likely to be taken to be something other than a collective mark.
(3) The application for a collective mark shall not be refused if the applicant amends the regulations governing use of the collective mark such that the grounds for refusal of subsections 1 and 2 no longer exist.