NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
MOTOR VEHICLE RETAILING
AS APPROVED ON MARCH 23, 1935
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents, Washington, D. C. - Price 5 cents
Approved Code No. 46-Amendment No. 5
Registry No. 1403-32
This publication is for sale by the Suplriitendent of Documents, Government
Printing Office, Washington, D. C., and by the following N. R. A. offices:
Atlanta, Ga.: 625 Citizens & Southern National Bank Buihlinig.
Balti mori,. Md.: 130 Customhouse.
BirmiiinLrham. Ala.: 201 Liberty National Life Building.
Bol-tn. Mass.: Room 1200, 80 Federal Street.
Buff;i lj. N. Y.: 219 White Build:nI.
Chii.;-al. Ill.: Room 204, 400 North Michigan Avenue.
Cl'vel;inal. Ohio.: 520 Bulkley Building.
Dallas, Tex.: 1212 Republic Bank Building.
Detroit, Mich.: 415 New Federal Building.
Houston, Tex.: 403 Milam Building.
Jacksonville, Fla.: 425 United States Courthouse and Post Office
Los Angeles, Calif.: 751 Fi-inernil Street, South.
Louisville, Ky.: 408 Federal Building.
Minie;a polis, Minn.: 900 Roanoke Building.
Nashville, Tenn.: 415 Cotton St;ti-es Building.
Newark, N. J.: 434 Industrial Office Building, 1ffOi Broad Street
Now Orleans, La.: 214 Customhouse.
New York, N. Y.: 45 Broadway.
Oklahoma City, Okla.: 427 Commerce ExIhange Building.
Philadilj',hi;. Pa.: 933 Commercial Trust Buihliing.
Pittsburgh, Pa.: 401 Law and Finance Building.
Portl;and. Oicg-.: 407 Park Building.
Providence, R. I.: National Exchanlun Bank Building, 17 Exihanune
St. Louis, Mo.: Suite 1220, 506 Olive Street.
San Francisco, C;ilir.: Humbolt Bank Building, 785 Market Street.
Seattle, Wash.: 1730 Exchange Building.
Approved Code No. 46-Amendment No. 5
AMENDMENT TO CODE OF FAIR COMPETITION
MOTOR VEHICLE RETAILING TRADE
As Approved on March 23, 1935
Arr'R.o\ IN AMENuMIENT OF CODE OF FAIR COMPETITION Fr 'i TIIE \IOTOR
VEHICLE RETAILING TRADE
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 19333, for approval of an amend-
ment, to the Code of Fair Competition for the Motor Vehicle Retail-
ing Trade, and hearings having been duly held thereon and the
annexed report on said amendment, containing findings with r-.-pect
thereto, having been made and directed to the President:
NOW, THEREFORE, on behalf of the Pro-idllnt of the United
States, the National Indu-tri;l Recovery Board, pursuant to author-
ity ve-ted in it by Executive Ord, rr of the Pr,.-ident, including
Executtive Order No. 6C.In, dated September 27, 1934, and otherwise;
does hereby incorporate, by reference, said annexed report and does
find that said amendment and the Code as constituted after being
amended comply in all respects with the prtiinent provisions and
will promote the policy and purposes of said Title of said Act, and
does hereby order that said nmn-l.dment of said Code be and it is
hereby appr'i\v'd, and that the previous approval of said Code is
hereby amended to include an approval of said Code in its entirety
as amended; provided that this amendment shall be effective only on
Official Guides compiled and published in accordance with the perti-
nent provisions of this amendment, and provided, further, that all
Official Guides effective on and after April 10, 1!>:'. shall be compi',ll
and published in cl mformity with the pei-rtilijet provisions of this
aIIIt0f-!i ]l ltl lit.
NATIONAL INDUSTRIAL RECOVERY BOARD.
By W. A. HAIn iIMAN, 1 _1/inistratire. Officer.
BARTON W. 3Miir:,.Y,
Division .1,: ;*r.infrator.
W.\-IIINGT' N. D. C.,
March 2.: 1935.
123249 -10-.lJ-, 10--5-.3 (1)
REPORT TO THE PRESIDENT
The White House.
SIR: An application has been duly nmade pursuant to and in full
compliance with the provisions of the National Industrial Recovery
Act, for an amendment to the Code of Fair Competition for the
Motor Vehicle Retailing Trade, submitted by the National Control
Committee on behalf of the Emergency National Co~mmittee.
The purlpose and effect of the amtendmient are to clarify and make
more equitable the procedure now in effect, permitting members of
the Trade to accept used motor vehicles in lieu of money in the sale
of any motor vehicle, and to provide a record for establishment of
maximum used motor vehicle allowance as determined by this
The Deputy Administrator in his final report to us on said amend-
ment to said Code having found as herein set forth, and on the
l-ai, of all the proceedings in this matter:
We find that:
(a) The amendment to said Code and the Code as amended are
well de-ignied to promote the policies and purposes of Title I of
the National Industrial Rec over Act, including the removal of
obstructions to the free flow of inter-talte and foreign commerce
which tend to diminish the amount thereof, and will provide for
the general welfare by promoting the organization of industry for
the purpose of cooperative action among trade groups, by inducing
and maintaining united action of labor and -iila;ingement under
adequate governmental sanction and supervi-i'i, by eliminai;ting
unfair competitive pra ctices, !by pri voting the fullest po. -ible utili-
zation of the present prod`l-tive capacity of industries, by avoiding
undue ret ri. t ion of production (except as may be temporarily
required), by increasing the ,~io.-iinption of indu-t riil and agricul-
tural products through increas:ingll pur'lha-inig power, by reducing
and relieving unemployment, by impro'vinng taillndards of labor, and
by otlhrwiiu- rehabilitating industry.
(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limi-
tation Subsection (a) of Section 3, Subletion (a) of Section 7 and
Subsection (b) of Section 10 thereof.
(c) The Colt empowers the Code Authority to present the afore-
said amendment on behalf of the industry as a whole.
(d) The amendment and the Code as amended are not designed
to and will not permit monopolies or monopolistic practices.
(e) The amendment and the Code as amended are not ,le-igned
to and will not eliminate or oppress small enterpri-es and will not
operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of
For these reasons, therefore, we have approved this amendmlnet.
For the National Industrial Recovery Board:
W. A. HARRIMAN,
AdminiJilltrli tL' Off ''r.
MARCH 23, 1935.
AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE MOTOR VEHICLE RETAILING TRADE
Delete Article IV-A, with the exception of subsection (d) of
Section (4) and Sections (5) and (6), and substitute therefore the
ARTICLE IV-TRADE REGULATIONS
The provisions of this article will cover the following motor ve-
hicles: Passenger cars, trucks, and commercial vehicles with bodies
of 3/4 ton capacity and less, or such other capacity limitation as
may be d(eemled proper by the National Recovery Administration.
A. USED MOTOR VEHICLE ALLOWANCE
In order to further mitigate the destructive practices which have
resulted from the lack of a measure of value for used motor vehicles
which dealers find it necessary to accept in lieu of money in the
sale of motor vehicles and to promote fair and equitable treatment
of the consumers of both new and used motor vehicles, this Trade
(1) The term fair market value of any series, model and body
type (hereinafter referred to as model) of used motor vehicle is
defined as a value for the better grade of such class of vehicles and
which value is reasonably related to the average price that the public
is paying for such class of motor vehicle and shall be ascertained by
the Association subject to the approval of the National Recovery
Administration as hereinafter provided.
(2) In ascertaining the fair market values specified, in section (1)
the A-.siciation shall compile the reports of dealers within the same
or comparable trading anreis, supported by sworn statements as to
authenticity, showing actual retail sales of used motor vehicles to
consumers during the preceding period of approximately thirty
(30) days. To insure that the fair market value determined is
indicative of the value of the better grade of used motor vehicles,
there shall be included in the comiplltatii;n only th,.e sahle. reported
for ea;Ih model which represent the sales pri'ce.s netuilly obtained
in normal trii.-ctions involving the sale of better grade used
motor vehicles. The final determination of the fair market value
for any individual model shall be in rl':-nii:ibl!e relationship with
the majority of the fair market values prevailing for the varils
models of bettor gra'le motor vehicles of that particular make.
For all model larking sufficient current sales to develop the
fair market value by the method above described, the fair market
value shall be determined by e-tiablillhing such value upon the basis
of those values shown by the computation of actual- sales and other
pertinent information which is available, to the end that this value
shall then be in reasonable relationship with the fair market values
determined for iniilar or comparable models of used motor ve-
hicles. The values so established shall from time to time be further
surveyed by being sent to approximately 10% of the new motor
vehicle dealers, if any, in each Official Guide area concerned han-
dling that particular make of car, for their review. All conlllients re-
ceived from such dealers, within a rea-.on;ile time, shall be con-
sideredl in the final determination of the fair market values for such
(3) No dealer shall, directly or indirectly, or by s-ublterfuge, accept
in trade in lieu of money, any used motor vehicle, giving an allow-
a nce price of more than its fair market value as published in the
Official Guide, hereinafter de-cribed, less a minimum selling and
handling charge of 15%, fractions of a dollar to be disregarded;
provided, that the only limitation placed on the trade-in allowmace
for the current yearly models until the maximum allow n'ces for such
models are published in the Official Guide is that no dealer shall
allow more than the local new motor vehicle delivered price for
such motor vehicle. It is further provided that for other models
on which a fair market value is not published in the Official Guide
formulae for determining the maximum trade-in allowances shall
be published in the Official Guide in accordance with the provisions
of Section (4) siublection (c) below, and no dealer shall accept in
trade any such -used motor vehicle at an allowanlle greater than that
determined by such formulae.
(4) (a) To provide a record for the establishment of maximum
used motor vehicle allowances specified in Section (3) above, there
shall be provided by the Association an Off ii:cl Guide which shall
be recognized as the Official Authority for such allowances. Said
Official Guide shall contain the maximum trade-in allowance as pro-
vided in Section (3) and/or the fair market values :;-.certained as
provided in Section (2). The Association slhall publish such Official
Guide as frequently as (leenledl advisable but in no case less fre-
quently than approximately every sixty (60) days.
(b) Each dealer shall send the Association a used car -ale- report
covering each used motor vehicle sold to the consumingll public.
Such report shall be forwarded promptly after the delivery of the
car sold and all reports shall be forwarded at least weekly. A
sworn .ttatiiment covering all reports of such sales in each month
shall be sent to the A--ociation not later than the fifth day of the
following month and such sworn statement shall show that reports
have been made for all such umedl car sales during such previous
months, and in the event no u-ed car sales have been made during
such month, the dealers shall so report in said sworn statement.
(c) To insure that the fair market values and the maximum trade-
in allowances are determined in accordan re with the intent of the
provisions of Article IV-A, Sections (1), (2), (3) and (4) (a)
and (b), the deternlinltion thereof shall be subject to the approval
of the National Recovery Administration, which shall be afforded
acI-ess to all records and operations relating therto.
Upon determination by a representative de -ignated by the Na-
tional Recovery Administration that each issue of the Oflicial Guide
conforms with the provisions hereof and with such conditions as
UNIVERSITY OF FLORIDA
SI lll iii li il III l iIHIllIllI II
6 3 1262 08728 6083
the National Recovery Atdministratiion lma. stipulate as necessary
prior to approval, a copy of such is.,ue shall be so certified by such
reprce-ent t ive.
Thereupon said copy shall be submitted for the approval of the
National Industrial Recovery Board, and upon approval, shall, to-
gether with the order of approval, constitute the official record of
(c-1) The Official Guide shall be made available to all motor
vehicle dealers at a price without profit, and to all other interested
parties at a reasonable price.
Approved Code No. 46-Amendment No. 5.
Regi--try No. 140;3-32.
SSee paragraph 2 of order approviiig this Amendment.