NATIONALr RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
~MOTOR VEHICLE RETA~ILING
For sale by the Superintendent of Documents, Waschington, D). C. - Price 5 cense
Approved Code No. 46-A~mendment No. 3
Registry No. 1403--32
AS APPROVED ON OCTOBER 19, 1934
WE DO OURZ PARt
GOVERNMENT PRINTING OFFICE:
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Printilg O~ffice, Wa~shington, D. C., and by district offices of the Bureau of Foreigrn
anld Domestic Com merce.
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Approved Code No. 46---Amendment No. 3
AMENDMENT TO CODE OF FAIR COMPETITION
MO8TORW VEHICLE RE~TAILING TRADE
As Approved on Octobesr 19, 1934
ArPRNorma n AENDM~rEN;T OF CODE OF FAIR COMP IETITION FOR THE Afu.TORI
VEHICLE RETAILING TRADE
An application having been duly made pursuant to andl in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of an azmendl-
ment to the Code of Fair Comlpetit~ion for the Motor Vehicle Rtetail-
ing; Trade, and hea~rings having been duly held thereon and the
annexed report on said amndmentlrlt containing findings with. repect,
thereto, having been made and directed to the President :
NOW, THTEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to au-
thority vested in it by Executive Orders of the President, including
Executive Order No. 6859, dated Septenmber 27, 1934, and otherwise;
does hereby incorporate, by reference, said annexed report and does
findl that said amlli~llendmn and the Code as c~onstitultedc after becine~
amlended~ comply in all respects with the pertinent provisions and
will promote the policy and pulrposes of said Title of said Act, and.
does hereby order that said aml~lcllendmet of said Code be aznd it is
hereby appr<>vedr~, and that the previous approval of said Code ifs
hereby a mendled to include an approval of said Code in its entirety as
amended; provided, however, that pending the designation of an
impa-rtial agency or person as set forth in Section 1 of this nlinendt-
ment, the! Compliance Division. of the N~ational Re~covery3 Adminis-
tration be, and is hereby designatedT as the agency to determine
whether the wage~c and/or hour and/or labor provisions of this Code
have been violated so as to makze operative thie provisions of sub-
section (a), (b) and (c) of Section 1 of this amendment; and pro-
vided further, that amounts paid or collected in all instances wpherein
the provisions of subsections (d) and (e) of Section 1 of this amnend-
ment become operative in any of the several code states eitablished
92555"---1 244-78---34 11 1
as set forth in Title! A of this Article VJ, shall be distriuted in t~he
code state where thre violatiol ol.-curred in accordance with. the method
prescribed in Section. 2 of this amendment.
N'.noNA~K L INoUSTnzAL RECOVERY BOARD,
By G. A. LY NCH, Addmi.njtlnistrti Of)Ecer.
~Approval recommeded :
BARTOrr W. MavnAor,
AQPSHINGCTON, 1D. C.,
October 19, 1934.
REPORT TO T]HE PRESIDENT
The White HI~ouse.
SIR: An application has beenl duly made pursuant to and in full
comnpliance with the provisions of the National Industrial Recovery
Act, for an amewhnent~t~lt to the Code of Fair Competition for the
IMotor V~ehicle Retailing Trade, submitted by the NJational Control
Committee on. behalf of the Emergency National Conunitteec.
The purpose and effect of the amendment are to permit such com-
mittees under the Code, who qualify with th~e requirements contained
in the amlenl-hnentt to endeavor to secures comnpliantce with the pro-
visions of the Code without immediate recourse to the Federal chan-
nels of lawv enforlcemennt as provided for in the National Industrial
The Deputy Aldministrator in his final report to 'us on said amcndl-
ment to said Code having found as herein set forth and on the basis
of all the pr~oc.eedlings in this matter:
WVe find that:
(a) Thne amendment to said Code and the Code as amended are
well des;igned to promo''te the policies and purposes of Title I of th~e
National I~ndustrial Recoveryt~ Act includ~ing~ the removal of obstruc-
tionsI1 to the free flow of inlter-tate and foreign conunelreerlc which te~nd
to dimninishn the amountI111 thereof, and will provide for the general
weclfar1e bry promloting the organization of industry for the purpose
of cooperaItive action among trade groups, by inducingr and~ main-
taining united action of labor and mannagemelnt under adequate gov-
ernmental sanction and supervision, by elimijlnating6 unfair (compe~;ti-
ti~ve practices, by promnotingr the fullest possible utilization of the
pr~esent productive capacity of industries, by avoiding undue re-
strictions of production (Ie~lcpt as m~ay be temporarily required),
by increasing the consumption of indus~trial and agr~i(ultural prod-
ucts through~fl increasing pr~llChas~ingb power, by reducing and reliev-
ingr unemployment. by imrov~~c\ingr stalndarlds of labor, and byr other-
wise reharbilitatingr industry.
(b) The Code as amlendedc~ complies in all rI:leipets with the perti-
nent prov,\isionsl of said Title of said Act, including without himita-
tion Su~bsectio~n (al) of Sec~:tion 3, Subsection (a) of Section. 7 and
Subsection (b) of Section 1_0 thereof.
(c) The Code emnpowrers the Code Atuthority to present the afore-
Sa7id amendment on behal:lf of the indcustry as a whole.
(d) The amendmentll~~t and thne Code as murlenl~cld are nlot designed
to and will not perm'llit monopolies or mnonopolistic practices.
(e) The amendmeillint atnd the Code as almendedcc are not designed
and wFill not eliminate or oppress small eniterprises and wll tnot
operate to discriminate against theml.
(f) Those nblbengage in other steps of the economic process have not
been d-ep~rivdc- of the right to be heard prior to approval of said
For these reasons, therefore, the Boardl has approved this amzend-
For the National Indutl~r~ial ]Recovery Board:
G. A. L;YNca,
OCTOBER 19, 1984f.AmiitaveO)e.
AMEIND1\ENNT TO" CODE O1F FAIR COMPETITION FOR THE
MOTOR VEHICLE RETAILING TRADE
To include in and add to, Article V, the following to be known as
Title C--Liquidated Damages.
TITLE CLIQOTIDATED) DA MZAG ES
Recognizing that the violation by a m1ember3~1 of anyT provision of
this code wrcill disrupt the normal course of fair competition in the
trade and cause serious damage to others, and that it will be im~pos-
sible accurately to determine the amount of such damallge, it is thereby
provided that those members who may desire to do so may enter
into an agrrleem~ent aImong thems~lvesn embodying the follow~ingl prob-
1. 1Each member violating any provision of this code shall pay to
the Treasurerr of thle Code Authority, as an individual and not as
Treasurer, in trust, as and for liquidated damages, uponl determnina-
tion of violation by thne A~dministrator, or any impartial agency~ or
person nomiinated by the Code Authority or detsignaterd by the as-
senters to this agreement and approved by the Admninistenlf !:lto
amounts as set forth belowcv:
(a) For the vio-laltio~n of any wage provision, an amol-unt e~cpid~ to
the difference between the wages which have been paid and the wanrrge
which would have been paid if the member hadf complied with the
applicable provisions of the code;
(b) For the violation of any hour pr1ov;ision, an amount equal to
the wagbes paya''ble for the overtime at the regular rate payable undlcer
the terms of the code, tio the employee or employees wc\ho wo(rked-
(c) For the violation of any labor provision of the: cocde other than
an hour or wage provision, One Hundred Dollars;
(d) For the violation. of any provision of the code (other than a
labor provision) invcolving a transactions incidlental to or tconnec.tedl
with a satle of any product of the trade, an amount equall to 25i perce~nt.
of the actual shelling price of the product sold in violation of any such
provision, or of the price at wChich the 'r~oduc~t should have been sold
under the codel, if determinable, whichever is the higher;
(e) For th~e violation of any provision of the code otherr thalfn a
labor provision) not involving a tran!sneii on incidental to or conr-
n~c~tedl with a sale of any- product, of the trade, One Hundr~ed Dollars.
2. All amlounts so paid to or collected' by the Ti~nreasurr of the Code
Aulth~ority, under th~e prov-\isionsu of this Article, shall be applied by
him as follows: F'irst, if the violation shall ha~ve been of a labor pro-
vision of the code, equitable distr~ibution of all damages paid therefore
shall be made amnonga all employees directly afft~ecte byT such. violation;
Second, if thle violation shall have been of a code pr~ovisioin other
UNIVERSITY OF FLORIDA
3 1262 08728 6398
than a, labor provision, the damalges arising therefromu shall be utilized
to defray proper expenses of codle adlministration, and the balance,
if any, remaining in the hands of the Treasurerr shall be distributed
semli-annuallly among members of the trader whio have assented hereto
and w~ho have not been determ~inedl to have been guilty of a violation
of a code provision during thle precedingr semni-annual period, on the
basis of the most recent, assessmecnt madie against members of the
tr:\de for the expenses of code admlinisit entionl.
3. Assent to this Atrticle byT any members' shall be ev-idenced by
a signed statement signifying :Icen't, filed w~ith the CodeC Authority.
Failure to assent to this Article shall not deprive anyi~ member of
any other right or privilege under the Code. By so assenlting, each
member agrees w~ith every other memlber and the Treansurer, in-
dividanlly (1) thaut violationi of a code p~rovision shall b~reach this
agreement and shall rcnd~er the violator -liable for the payment of
liquidartedl damag:~es asi he~rein pronvidedl (2) all righ~ts and causes
of action ar~isingr hereun!lderl are assignedl to the TIreasurer, indlividu-
ally and in trust, and (3) thant the Treasurer, as suchl alssinee and
as attorney in fact for ea~chl assetining member, may tak~e a~ll proper
legal action concerning doimagecs found due hereulnder.
4. Th'le Code Authority may waive linhiit~y `for paymllent of liqui-
datedd damages for any violation it fin~ds to hav\e been innocenltly made
andl resulting in no maiter~ial injury.
5. The Treasurer olf the Code A~uthlority asa an: individuals andl
not as Treasurer, by- accepting offce, accepts the trust established
by this contract andi agrees~ to perform the duties of, Tr~ustee hlere-~
und~er until his suzccessor mn office mayT have been ap~pointled'.
6. Nothing conltaine~d herein, shall- be construled or nppplied to (a)
depr-rive; a~ny pe~l~lrso of any ri ght or right of action arising out of this
code, or (b) relieve any mlember of the trade from any contraoctuall or
legal obligation arisinga out of this code or of thle Act or otherwise;
nor shall violation o this agreement by an assenting memllber' be
deemed a violation of the code, so as: to subject thle violator to anyr.
consequence ar~isingb under Section~ 3(b),o section 3(c), or Section
3(f) of the National Induistriail 'Rcovery A4ct, nor to anly criminal
pr~oscutionn of any kind.
AppL-rovedl C0.tl* No'. 46---Amleumenet No.. 3.
Registry N~o. 1-103-32".