NA~~ITIONAL ]RECOVERY ADMIN~iIST'RAhTION
COD)E: OFi FAIR COMPETITION
MOTOR VEHICLE RETAILING
For sale by the Superintendent of Documents, Washington, D., O. .... Price 5 cents
Approved Code No. 46i-Amrendment No. 4
Reegistry No. 1403-32
AS APPROVED) ON DIECIEMBIER 8, 1934
WE Do OUR PM~
GOVERNIENT PRINTING OFFICE
This publication is for sale by the Superintendent of Docum~ents, Government
Printing Office, Washington, D. C., and by district offices of the ]Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
B3irmingham, Ala.: 257 Federal Building.
Boston, Mass. : 1801 Customhouse.
Buffalo, N. Y.: Chamber of Commerce Building.
Charleston, S. C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First Nat~ional Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce 1Building.
Jacksonville, Fla.: Chamber of Commoerce Building.
Ktansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisvrille, Ky.: 408 F'ederal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Fiederal Building.
New Orleans, La.: Room 2f25-A8, Customhouse.
New York, N. Y.: 734 Custombouse.
Norfolk, Va.: 406 E~ast Plume Street.
Philadelphia, Pa.: 422 ~Commnercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Sieatt~le, Wasch.: 800 Federal Offlece Building.
Approved Code No. 46-A~Pmendment No. 4
AMIENDMRENT TO COD)E: OF FAIR COM[PETIITI[ON
MOTCOR VEH~I3ICL;E1 R]ETAILIING TRADE
A-s Acpproved onl December 8, 1934
A-PPROV~IPU' AMENDMENT OF CODE OF FAIR COMPETITION FOR THE
MIoron VEHICLE RETAILING TRADE
An application having been duly made pursuant to and in full
compliance with thre provisions of Title I of the National Industrial
Recovery Act, approved June 16j, 1933, for approval of an amend-
Inent to the Code of Fair Competition for the Motor Vi7ehicle Retail-
ing Trade, and hearings having been duly held thereon and the
annexred report on said amendment, conltaining findings with respect
thereto, having been made and directed to the President:
NOW, THEREFiORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order No. 6859, dated September 27, 1934, and otherwise,
does hereby incorporate, by reference, said annexed report and does
find that said amendment and the Cjode as constituted after being
amended comply in all respects with the pertinent provisions and will
promote the policy and purposes of said Title of said Act, and d-oes
hereby order that said amendment of said~ Code be and it is hereby
approved, and that the previous approval of said Code is hereby
amended to include an approval of said Code in its entirety as
amended; and further, that the State Advisory Committee in any of
the several Code States established as provided in ~Article V, Title
A of the Code is hereby designated as the Agency to determine the
acceptability of the credit rating of anzy person ordering a motor
vehicle wherein the provisions of Title A, Paragraph 4, Subpara-
graph d (ii) of Article IV, of said Amendmenlt beFcomes operative,
any such determination to be subject to the disapproval of the
National Industrial Recovery Board.
NATIONAL INDUSTRIAL RECOVERY BOARD,
ByW7~. A. HARRIMAN, adq~tinistrative O~f)Ecer.
Approval recommended :
BARToN WN. MenI~.\r,
Division A dmlin istrator. *
WASHINGTON, D. C.,
December 8, 19g34.
102109*--1 385--71---34 (1 1
REPORT TO THE PRESIDENT
The White HTiouse.
SmR: An applient~ionl has been duly made pursuant, to and in full
compliance with the provisions of thie National Industrial Recovery
A~ct, for an amendment to the Code of Fair Competition for the
Mlilotor Vehicle Retailing Trade, submitted byT the National Control
Committee on behalf of the Emergency NIational Comm~ittee.
Trhe purpose and effect of the amendment are to permit the making
of contracts, or the submission of bids, uponl the basis of a used car
allowance current at th~e date of the~ contract or bid and the comcple-
tion of such contract or bid in a subsequent Guide Book: period, even
though the subsequent Guide Book may change the mnaximnum per-
missible allowances; such contracts to be entered into for future de-
liveryT onlly when the dealer, for reasons beyond his colt~rol, is unable
to make earlier delivery to the customer. One of the conditions of
the contract shall be that delivery shall be accepted by the purchaser
as soon as the dealer is in a position to make delivery.
Thne Deputy ALdministrator in his final report to us on said amnend-
mnent to said Code~ having found as herein set forth and on the basis
of all the proceedings in this mnatter:
We find that:
(a) The amendment to said Code and the Code as amended are
well designed to promote the policies and purposeFs of Title I olf thre
National Industrial Rtecovery Act including the removal of obstruc-
tions to the free flow of intier-state and foreign commerce which
teind to diminish the amount thereof, and will provide for the gen-
eral 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 management under adequate-
governmental sanction and supervision, by chminanting unfair com-
petitive practices, by promoting the fullest possible utilization of
the present productive capacity of industries, by avoiding undue
restrictions of production (except as` may be temporarily required),
by increasing the consumption of industrial and agriultural prod-
ucts through increasing purchasing power, by reducing and relieving
unemployment, by improving standards of labor, and by otherwise
(b) The Code as amended complies in. all respects with. the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7 and
Subsection (b) of Section 10 thereof.
(c) The Cod-e empowers the C'ode Authority to present the afore-
said amendment on behalf of the industry as a whole.
(d) The amendment and the Code as amnendled are nlot d ~iged~c to
and will not permit monopolies or monopolistic practices.
(e) The amendment and the Code as amelnd~ed are not de igirned to
and will not eliminate or oppress small enterprises and will not
operate to dliscrimlinate against them.
(f) T~hose engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
For these reasons, therefore, this amendment has been approved.
For the National Industrial Recovery Board:
W. A1. Th1antum,6
IDECEM6BER 8, 1934.
AMENDMENT TO CODE OFLi FAIR COMPETITION FORt THECI
MOTOR VEHIICLIE RETAILING TIRADE
Include in and add to Article IV, Title A, Paragraph 4, thze follow-
ing to be known as subparagraph (d) :
(d) T1he allowance? on a used motor vehicle, taken in trade as
part payment on the purchase of another motor vehicle, shall not be
in excess of the maximum permissible allowance as determined by
thne A1ssociation. Official Guide current as of the date title an~d pos-
session of the used motor vehicle passes to the dealer, except as
(i) When a definite bonsfide order is placed by a person for hris or
its own requirements with a cash. deposit of at least five per cent of the
factory list price of the new car or with proof of good credit rating,
for a car which the dealer is unable for reasons over which he has no
control to make immediate delivery, the dealer may enter into a
firm contract to make an allowance not in excess of the maximum
permissible allowance as determined! by the Alssociation Official G-uide
current at the date of the order and such contract may be kcept in
force during the period of the Association Guide Book immediately~
subsequent to that current at thie date of said order, notwithstanding
any change in the maximum permissible allowance which. mnay be
mlade by such subsequent Association Offcial Guide; provided, how-
ever, that such contract shall provide that the buyer must accept
delivery immediately upon delivery being offered and the dealer
must offer to make delivery immediately uponl the new motor vehicle
becing available for delivery; provided further, that said contract
shall further provide that same shall not be tranlsfera~le. and
all orders or contracts a~ccepted in aIc~cordanle with this provision
shall immediately be filed b~y the dealer with the State Advisory
(ii) Wmhen written bids are called for by any G-overnmental
agency or by any person having a good credit rating and are not
awarded until the next succeeding issue of the Association Official
Guide has become current, any dealer who has offered as part of
such bid to accept a used car at an allowance not excteedinga the maxi-
mum permissible allowance as determined by the Association Official
Guide Book current as of the date of the bid, may carry out the~
terms of the bid notwithstanding any change in the ma~xinnun per-
missible allowance as determined by the Association Official Guide
Book immediately succeeding the'Guide current at the date of the bid.
Any dealer attempting to use allowances pursuant to previous
AIssociation Of~ficial Guide at a time when subsequent Assoc~iation
Ofi~cial Guide is current, except under the terms and conditions of
this sub-p~arangraph (d) shall be dleemned guilty of a Code violation.
ABpproved'Code No. 46---Amendment No. 4.
Registry No. 1403-32.
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