The Director shall approve for use and seal or mark with appropriate devices such weights and measures as he finds upon inspection or test to be “correct” as defined in section 156 of this title. He shall reject or condemn in seal or mark as “rejected” or “condemned” such weights and measures as he finds upon inspection or test to be “incorrect” as defined in section 156. Sealing or marking shall not be required with respect to weights and measures which are exempted by a regulation of the Director issued under the authority of section 156. The Director shall reject or condemn and may seize and destroy weights and measures found to be incorrect. Weights and measures that have been rejected or condemned and ordered corrected or disposed of may be confiscated and may be destroyed by the Director if not corrected as required by, or if disposed of contrary to the requirements of section 164.