NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
ASPHALT AND MASTIC TILE
For sae by the Baperinteenden of Documents. Washington, D.C. - Price 5 cents
Approved Code No. 15i0
Registry No. 1003--03
AS APPROVED ON DECEMBER 7, 1933
1. Executive Order
2. Letter of Transmittal
GOVERNMENT PRINTING OFFICE
This publication is for sale by the Superintendent of Documents, Government
Printing Officer, ~ashiington, D.C., and by district offices of the Bureau of For-
eign~ and Dom~estic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
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Birminngam, ABla.: 257 Federal Building.
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Clharleston, S.C.: Chaimber of Commerce Building.
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Detroit, Mlich.: 2213 First National Bank Building.
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K~an~sas City, Mlo.: 1028 Baltimore Avenuer.
Los Angeles, Calif.: 1163 South Broad way.
Louisville, Ky.: 408 Federal Building.
M~emphis, Tenn.: 229 Federal Building.
MUinneapo~rlis, Minn.: 213 Federal 1Building.
New Orleans, La.: Rooml 225-A, C'ustomhouse.
New York, N.Y.: 734 Customhouse.
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Philadelphia, Pa.: 938 Commercial Trust Buildinlg.
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Portland, Ore~g.: 213 New Post Offitce Building.
St. Louis. Mio.: 506 Olive Street.
SSco Francisc~o, Calif.: 310 Customhouse.
Seattle, Wansh. : 800 Federal Building.
Approved Code No~. 150
CODE OFi FiAIR COMPETITION
ASPHALT' AND MASTIC THLE INDUSTRY:
As Approved on December 7, 1933
A~n application having been :1uly made, pursuant to and in full
compliance with the prov-isions of title I of the National IZndustrial
Recovery Act, approved June 16, 1933, for my approval of a Code of
Fair Competition for the Asphalt and Ma~stic Tile Ilndustry, and
hearings having been hezld thiereoln and the Administrator having
rendered his report containing an analysis of the said code of fair
competition together with his re-comme~ndations and findings with
respect thereto, and the Administrator having found that the said
code of fair competition complies in all respects with the pertinent
provisions of title I of said act and that the requirement of clauses
(1) and (2) of subsection (a) of section 3 of the said act havce
NOW, THEREFORE, I, Frank~lin D. Roosevelt, Pre~sident of there
United States, pursuant to the authority rested in me by title I of the
National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do approve the report and recommendations and adopt the
findings of the Administrator and do order that the said code o'f fair
competition be and it is hereby approved.
FRANKLIN D. ROOSEVEL.
Approval recommended :
HUGH S. JoHNson,
A dmin istrator.
THE ~HITE HOUSE,
December 7, 1933.
Thle IPRESIDNT, NVME 8 98
The `White House.
SmR: TLhis is a report on the Code of Fair Competition for the
;Aspholt and Mastic Tile Industry in the United States as revised
after the hearing held in Washmngton on November 14, 1933, in
accordance with the provisions of the Nliational ]Indu~strial Recovery
PROVISIONS OF TH CODE AS TO WAGEs ANDr IOURS
This Code provides for a maximum of forty hours of work per
'week, averaged over a twenty-six-week period, and for a maximum
of forty-eight hours in any one week, with one and one third times
the normal wage rate for time worked in excess of eight hours per
day. The following are excepted:
()Executive, supervisory, and technical employees, receiving
no less than $35.00 per week, outside salesmen and personal secre-
taries of executives;
(b) Emplo~yees on emnergec aneac rrpi ok h
are o b pad oe ad oe tirdtimes the normal wage rate for timle
worked in~ excess of forty-eight hours per week;
(c) Wa~tchm~en, who are not to be employed more than twelve
hours per day nor six days per week.
The Code provides for minimum. rates of pay of 40 cents per hour
in the ~North, 30 cents per hour in the extreme Southn, and 35 cents
per hour in an intermediate zone. It provides for minimum rates
of pay for office employees ranging from $15.00 to $14.00 per week,
accord' g to the population of the city, in the trade area of which
they are em~ployed.
The employment of persons under 18 years of age inl manufactur-
inlg operations and under 16 years of age in other operations is
Provision is made for the employment of aged or disabled em-
ployees at such wages and for such hours as stated in a certi~cate
Issued by a State authority designated by the United States Delpart-
~e~nt of Labor, provided that the number of such employees does
not exceed 5%0 of the total em~ploye~d by- any employer.
Econ-omrc EFFECTS OF TH ClODE
This is a small industry employing less than 400 persons, but one
which was growing rapidly until the year 1931. Present employ-
ment is approximately 2570 less than in 1931 and approxrimately the
same as in 1929. The volume of sales has declined approximately
50%0 since 1931 and income froma sales has declined by a much higher
percentage due to the lower unit prices now preailing.
Most of the labor provisions of this C~ode have already been
adopted by the industry. Since June of this year, the number of
employees has increased approximately 25%p, the average hourly
earnigs about 20%0 and the total weekly earnings of employees about
5%. The minimum wages proposed in the Code are from 80%0 to
100%o higher than the lowest wages paid by some manufacturers in
June of this year.
Price cutting in. thnis industry has reached a point where sales are
frequently made below the actual cost of materials. The Code should
help to correct this evil.
The Administrator finds that-
(a) Thei Code as recommended complies inl all respects withn the
pertinent provisions of Title I: of the Act, includling, without limita-
tion, subsection (a) of Section 7 alnd subsection () of Section 10
thereof and that
(b) te applicant group imposes no inequiitable restrictions on
admission to membership therein and is truly representative of the
Asphalt and MIastic Tile IndustryN; and that
(c) The Code as recommendled is not dtesignedl to promote monop-
olies or to eliminate or oppress smaall enterprises andl will not oper-
ate to discriminate against them, and will tend to effe~ctulate the
policy of Title I of the National Indust rial Recovery Act.
It is recommended, therefore, that this Code be approved.
HUan S. JoHNsoN,
ASPH~AL-T ANDJT MA~cSTIC TILE INDUSTRY
AnnormE I DPRPOSE.S
To effectuate the policies of T'itle I: of the National Indlustrial Re-
coveryr Act the following provisions are established as a Code of
Fair C~ompetition for the Asphalt and Mastic Tile Industry.
SECTION 1. The term Products means Asphalt Tile, Asphalt
Tile Bases, T~ile Adhesives, Underlay~ment M11aterlals includingg Felt
and ]Primner), and Finishtes. Asphalt Tile is a thermloplastic ma-
terial maanufactured of asphalts, or plastics, or resins, or any comnbi-
nation of these materials, together with mineral and/'or vegetable
fillers or reinforcing materials, and mineral and/or vege~t.able color
pigments, in the shape of tiles or sheets in its fEinished form, and less
than one h alf inch in thickness and used for flooring purposes.
SEc. t2. The term "L Industry ", as used herein, includes the busi-
ness of manufacturing, and selling by manufacturers, t~he Products,
anld such branches or subdivisions thereof as may from tim~e to time
be included under the provisions of this Code.
SEC. 3. The term Member of the Industry includes anyone
engaged in the Industry as above defined, either as an employer or
on his owCn behalf.
SEc. 4. The term Member of the Code includes anyone who
has signified his assent to this Code by complying with the provi-
sions of Paragraphz (g~) of Section 1 of Article VI.
SEc. 5. The term "Employee ", as used herein, includes anyone
engaged in the Indcustr~y in any aaiyrciigcmesto o
hissevicsirespctve f henatulre or method of payment of
SEC. 6. The term Employer ", as used herein, includes anyone
by who any such employee is compensated or employed.
SEC. '7. The term "_Association mneans the Asphalt and Mastic
Tile Association, an unincorporated association having an office at
41. East 42nd Street, New York City.
SEC. 8. The terms President ", "'Act ", and "Admninistrator as
used herein, shall mean, respectively, the P'residlent of the United
States, the N\ational Industrial ]Reco~very Act, and the Administrator
of Title I of said AL~ct.
CODE OFi FAIR COMPETITION
SEO. 9. The te~rmo The effective date of the Code means the
second Ml~onday after the Code shall have been approved by the
SEO. 10. Population, for the purposes of this Code, shall be deter-
mined by reference to the 1930 Federal Census.
SECTION 1. Except as provided for in Section 2 of this Article no
employee shall work or be permlitted to ~or~k in excess of an aver~age
of more than forty (40) hours per week in any twfenty-six (26) week
period-that is, 1,040 hours in any twenity-six (26) week: per~iod--
and in no event more than forty--eight (48) hours in any one week,
nor more than sixr (6) days in any one weekl. In thne event an. em-
ployee is worked more than eight (8) hours in any one day, one and
one third times the normal wage rate shall be paid for the time
w~orked in, excess of eight hours in one day.
SEc. 2. The provisions of the foregoing section shall not apply to:
(a) Any em~lployTee on em~ergency maintenance, or emergency repair
work involving break-dow~ns or protection of life or property, who,
however, shall be paid at the rate of one~ and one third times the
normal wage rate for time worked in excess of forty-eight (48) hours
in any one week.
(by Employees regularly employed in an executive, supervisory, or
techmecal capacity receiving in no week in, which t~hey ~are employed
less than Thirty-Five Dollars ($3j5.00) per w9ee~k. Ti exception,
however, shall not apply to foremen regularly engaged iln manuatl
(c) Outside salesmen, and personal secretaries of executives.
(d) Watchmen, with the reservation, however, that they shall
not work more th~an twelve (12) hours in any one day, nor more
than six '(6) days in any one weekr.
SEc. 3. No employers shall rnowin~gly permit anay emrployee to
work any time which when totalled with that already performed
with another employer or employers exceeds the maximum specified
in this Article III.
A~RTICLE I\- VAG~\ES
SECTION 1. No e~mncployee1 shall be pid at. less tha~n t~he following
30C per hour in the. Southern Section of the I~ndustry.
356 per hour in the M~iddle Section of the Industry..
400 per hour in the Northern Section of the I~ndustry.
This minimum wage shall apply to common labor or other totally
unskilled labor. Other classes of labor, including all pieceworker~s,
shall be compensated at a rate above this rnimminum. The above
miinmimum rate~ shall be eempnt. from any charge and,'or deduction
by the employer.
SEc. 2. The Southern Section of the Industry shall be defined as
follows: The States of Florida, Georgia, Alabamna, 1\lississippi,
Louisiana, Texas, Arizona, New 1\lexio, andl South Carolina.
The Mliddle Section of the Indlustry shall be defined as follows:
The States of North Carolina, Tennessee, Arkansas, Okrlahoma.
All of the other States of the Union are designated as the North-
ern Section of the Industry.
SEc. 8. Accounting, clerical, office, or sales employees (excludingr
outside salesmen) in any office, department, or establishment shalli
not be peaid less than at thie rate of F~ifteen Dollars ($15.00) per week
mn any exty of 500,000 population or over, or in the immediate trade
area of such city; and not less than ant the rate of Fourteen Dollars
and Fifty Cents ($14.50) per week in anyV city of between 250,000
and 500,000 population, or in the immediate trade area of suchl esty;
and not less than at the rate of Four~teen D~ollars ($1.00 pe wee i
an~ city of? less than 50,000 population.
OEc. 4. This Article estalblishes a minimum rate of pay regard-
less of whether an employee is comipensatedl on a time-rate, piece-
work, or other basis.
SEC. 5. Female employees performing substantially the same work
as male employees shall rcectiver the same rates of pay as mazle em-
OEC. 6. Employers shall make payments of all wages due in lawful
curency or by negotiable checkr therefore payable on, demand at least
twice a month.
SEC. 7. EmpDloye~rs shall not reduce the rates of wagaes for em-
ployees whose raftes are now in excess of the minimum rate of wages
herein provided (notwithstanding that the number of hours worked
in such employment may be hereby decr~eased) and where in any
case an employer has not increased the rates of wages for such em-
ployees prior to the effective date of this Code by an equ~itable read-
justment of all such wage rates such employer shall readjust all such
wage rates. This provision shall be interpreted in the same manner
that paragraph 7 ~of the Presidlent's Reemployment Agreement has
been interpreted by the Administrator in Interpretations Nos. 1
ARTICLE V--GENERABL PROVISIONS
SECTION 1. No persons under `16 years of age shall be employed
in the Industry nor anyone under 18 years of age in manulfacturinga
In. any State anl employer shall be deemed to have complied with
this provision if he shall have on file a certificate or permit duly
issued by the Auth~ority in such State emnpowiPered to issue employ-
mnent or age certificates or permits showing that the emlployree is of
the required age.
SEc. 2. Employees shall have the right to organize and bargain
collectively through representatives of their owFn choosing, and shall
be free fromr the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or in
self-organization, or in other concerted activities ~for the purposes
of collective bargaining or other mutual aid or protection.
SEC. 3. NO employee and no one seeking employment shall be re-
quired as a condition of employment to join any~ company union or
to refrain from joining, organizing, or assisting a labor organization
of hnis ow7n choosing.
SEa. 4. Employers shall comply with the maximum hours of labor,
minimumn rates of pay, and other conditions of employment approved
or prescribed by th President.
SEc. 5. Within each State this Code shall not sulpersede anyl laws
of such State imposing more stringent reqjuiremnents on employers
regulating the age of employees, wages, hours of workr, or health, fire,
or general working conditions than uind~er this Code.
SEO. 6. Employers shall not~ reclassify employees or duties of
occulpat~ions performed by employees~ so as to defeat the pulrposes
of the Act.
SEc. 7. Each employers shall post in conspicuousl places in each i
department full copies of this Code.
SEC. 8. AS person whose ear~ningr elpneit;y is limitedl because of age
or phys'ical or mental hlandicap my~l be em~ployed on light work
at a w~age belowc the minimum e~s~tbishled by this Code i-f the em-
ploy'er obtains from the State authority d~esignatedl by the United
States ]Depa rtmen t of Lablor a, ce rt ificnte, au~t ho~i zinIg his employment
at suchi wages and for such hours as shall be tated~ in the certificate.
Each employer shall file wCith the Code Authority a list of all such~
persons employed by him; the number of suc~h emlployeesr shall not
exceed five (5%o) percent.
SEc. 9. Every employer shall make reasonable provision for the
safety and health, of his e~mployees at the place and during the hours
of their employment.
ARICE: VI--A DMrI NISTRATION
To further effectuate the policies of the Act a Code Authority is
here~!by constituted to administer the Code.
SECTION 1. Organization and Constitution of Code Authority:
(a) The Code Authority shall consist of three individualsoruc
other member as may from time to time be approved bytlhei
Administrator, who sall be representatives of the Asphal t andih
Plastic Tile Industry. The Adlministrator, in his discretion, myav
appoint fromt one to three additional members to represent, the
Administrator, who shall not, however, be vested with voting rights
and shall serve without exrpense to the Mlembers of the Code.
(b) All voting members~ of the Code Authority shall be3 selected
from Mlembers of the Code and shall be elected by a vote of' two
thirds of all1 the Mlembers of the Code, and said members shall be
selected between the dlate of appr~ovnl of the Code by the President
and the effective dlate thereof.
(c) Every member of t~he ICndustlry shall be eligible to member-
ship in the Association, and there shall be no inequitable restrictions
upon such members. Any members of the Indlustry desiring to
become a Miember of thle Association may do so by signing and
delivering to t.he Asphalt a~nd Ala~stic Tile Association a letter
substant~ially in the followTing form, to wit:
The PRESIDENT, ASPHALT AND niASTIC TILE AssocIerroN,
41 East 4,8nd Street; New7 Yo7rk, Newau Yo~rk.
DEAR SmR: The undersigned, desiring to become a member of the
Association and of the Coeof Fair C~ompetition of the Asphalt
and Mast~ic Tile Industry, a copy of which is annexed hereto and
marked "A", hereby assents to all of the provisions of said Code.
In consideration of the benefits confered by such membership, the
undcersigrnedl agrees to become a member of the Association and of
the Code and agrees to be bound by all of the provisions of the
Code and of the Constitution and By-Laws of the Associat~ion, ef-
fective as of thie date on which the Code shall have been approved
by the Pr~esidecnt of the U~nited States, or as of the date on which this
letter shall1 have been deliv-eredl, if deliver thdero shall have been
made sulbsequentr l to th~e dante on which teCd hl aebe
approved' by the Presidelnt.
~Yours very truly,
(d) The A~sphalt and Mastic Tile Association shall (1) impose
no inequitable restrictions upon members, and (2) shall sulbmnit to
the AQdministratorr two copies of its Articles of Association, Bylawvs,
and Regulations, and anly amendments when made thereto, together
with any other information as to membership, organizations, and
activities as the Adminillstrator mnay deem necessary to effectuate
the purposes of thle Act.
(e) I~n order that the Code Authority shall at all times be truly
represe.cllntative of the Industry and in other respects comply wTith
the provisions of the Act, thne AdmI-inistrator maay provide suchl
hearings as he may deem proper; and thereafter, if he shalnl findl
that t he Code Authority is not truly representative or does not in
other resp~crts comply with the provisions of the Act, may require
an aEppropriate modification in the method of selection of the Code
(f) T'he Code Authority shall adopt its own rules of procedure
and may delegate its authority or such part thereof to s~uchn agencies
as it shall select, subject to review and applrovanl or modificationn by
(g) Members of the Industry shall be entitled to participate in
and share the benefits of thie activities of the Code APuthority and to
participate in the selection of the members thereof by assentingr to
andrr complyingr wit~h the requ~.llire~ments of~ t~hisc C~ode ~nd bea~ring their
proportionate shanre of the reasonable expenses of its administration.
The reasonable share of the expenses of administration shall be
determined by thie Code A~uthority, subject to review by the Admin-
istrator. Such expenses shall be~ determined on the basis of volume
of business and/or such other factors as m~ay be deemed equitable to
be taken into consideration.
SEC. 2. Th.e Code Authority- shall have the following duties and
ponwrer toC t~he extefnt Ipermittedp by t~he Ac~t,~ subjec ton .the right of
the Admlninist rator,1 on review to disappove or modify any action
taken by the Codec Autho~rity.
(a) Wlith a viewc to keeping the Pre~sidtent and the M~embers of thle
Code informed as to the observance or nonobservanlce~ of the Codle,
and as to whether M~ember~s of the Code are taking approp-lriate steps
to effectuate the declared policy of the A~ct, the Code Authority
Study conditions in the Industryr and ~from time to time, subject
to approval of tw~o thirds (2/3) of th~e members of the Indust ry, makes
such recommendations to the Adfministrator as it deems desirable
to further the policies of: the Act, and w-hichr after suchn hearing as~
the President may prescribe, and upon hlis atpproval, shall become
a part. of this Code and shall have full force a ndl effc~t as p~rov\isions~
hereof ; and
Report to the Admiinistratoril at -u1h1 times and couner~t rlnin such
conditions in the Indus~try as the A4dminiisl~tratr may fromn time to
time, require, and every M~ember of the Code shall file in the office
of the Asphalt and MSastic T~ile AtSssociation at such time, in such
form, and for such periodic as re~quir~ed by the Code Acuthority, dully
certified reports with respect to wages, houlrsi of labor, condlitio~ns of
employment, number of employees, production. and other ma~tteri
p~ertinent to the proper supervisio-n of the Induzstry as determninedl
by the Code Aulthority.
(b) All confidenttial information. of any nature~t requested by the
Code Authority shall be collected by the Malnner~I of the Alsphalt alnd
Mastic Tile Association or o~therl agenlcy~ not a member of the Indus-
t~ry selected by the Code Authorit~y, and slc~h information shall be
kept. c~onfidlential except when required by the Code A~uthlority for
the p~roper enforcement of the Cod~e. anrd with thie further exception.
that all such information shasll be fully available to the Adinis-
trator. Only~ such information may be so requested by the Code
Authority w-hich is appro~pr'iate to the proper suplervisionlr of thle
Industry or to the enforcement of this Codel.
(C) T~he Code Authorit~y shall designate an agent or agent. not
mlembers of the Industry, to investigated complaints of violations.- of
the Clode. The members of th~e Code shall facilitate all such investi-
gaation byT opening~ their colrrespon dence,, books, and neccounts reillating
to alleged violation for examination by such nuthorizedl ngent and
by furnishing relevant information.
If, upon inv-estigation, any complaint by a Member of the Colle
of a violation of the C'odle chall be detelrminedl by the Codet Authority
to be substantiated in any material respect, the Mfembe~r of the Code
guilty of such violation shall pay the cost thereof; otherwise the cost
thereof shall be borne by the comlplninant.
All such information shall be kept confidential by the agent,
except. thant in the event of anyIT suhl voiolartionr being substantintedl
by the investigating agency the Code Authority shall be info~rmed
and shall present evidence thereof to the proper department, agency,
or judicial branch of the Grovernmlent.
The guilty member shall also be subject to all penalties provided~
for in the Act.
SEc. 3. Appeal~s.--(a) Any interested par~ty shall hav-e the right
of complaint to the Crode Auithority, and a prompt hearing and de~ci-
sion shall be made thereon under suich r~ules andl reguilatioins as it
shall prescribe, in r~espct to any net. of anyr agernt or agen~rc! desrig-
nated by the Code Authiority to act in its behialf.
(b) any interested party shall h~ave the right of appeal to thle
Administrator, under such rules and regulations as he shall pre-
scribe, with respect to any decision, rule, regullat~ion, order or finding
made by thne Code Authority.
SEc. 4. In addition to information required to be submitted to t~he
Code ~Authority, there shall be furnish~ed to government agencies
such st at ist ied information as the Administrator me y deem nece~s-
sary for the purpose recited in Section 3 (a) of the N~ational Indus-
trial Reco-very Act.
A HTIC.LE VII-PITBLICITY OF PRICES
SECTION 1. On or before the effective date hereof each manufauc-
turer shall publish and file with the Code Authority his current prices,
discounts, and other conditions of sale, if any, which shall be uni-
for'm throughout the United States, and the Code Authority shall
c~a se? copies thereof to be! immediately sent to all members of t~he
Industry. Revised prices, discounts, and other conditions of sale
shall be published and filed from time to time thereafter with the
Code Au-Lthority by any member of the Industry to become effective
upon. the date specified therein, which shall not be later than ten (10)
days after filing, and any reduced prices, or more favorable dis-
counts or other conditions of sale shall be filed wiith the Code Author-
ity ten days in advance of the effective date of the lower prices and, 'or
more favorable discounts or other conditions of sale unless the Code
Authority shall authorize a shorter period. Copies of revised price
lists and more fasvoi-able discounts and other conditions of sale with
notice of the effective date specified shall immediately be sent by thle
Code Authority to all mnemrbers of the Industry, who thereupon may
file, if they so desire, revisions of their price lists and/or discounts
and other conditions of sale, which shall become effective upon the
date when the revised price lists and/or discounts and oth-er condi-
tions of sale first filed shall go into effect, provided the price lists
and/or discounts and other conditions of sale are not lower or more
favorable than the revised price lists and/or discounts and other
conditions of sale first filed. Any prices that are lower or discounts
and other conditions of sale more favorable than the price list.s
and/or discounts and other conditions of sale already file with the
Code Authnority shall not become effective until they shall have been
filed with thle Code Authority ten days in advance of the effec-
tive date of such Inew revised price lists and/or discounts and other
conditions of sale.
SEc. 2. All price lists or changes in price lists filed with the Clode
Authority and all price lists or changes in prices lists forwarded by
the Code Authority to members of the Industry shall be forwarded
by registered mail with a return receipt requested.
SEc. 3. Thne price list of every Membr of the Induxstry shanll showi
prices for eachz classification or definition of customer described in
Section 1 (a), (b), and (c) of _Article XII of this Code of Fair
Competition and shall also include prices covering the installation of
the Products of this Industry and accessories necessary to complete
AnRTcus VTIII-PROTECTION OF CUSTOMERS
SECTION 1. In the events of an navance in price by anyMme
of the Industry his flooring contrnetors and,/or dealers sha_~ll n~ehave
protection in price on all bids actually outstand~ing and closed con-
tracts, provided the flooring contr~actor and,'or deaPler shall--
(a) W~ithin 141 days of such price increase notify in writing the
Member of the Industry withi whomi he rnay have executed a ~floor-
ing contractors' agreement of such bids as the flooring contractor
and:'or dealer has outstanding;
(b) WVithin 10 dlays of the contract awar~d, which in no event
shall exceed 45 danys after th~e date of such price Zincrease, place a firm
order wiith the M3ember of t~he Indllustry,, withl whom hie ma~y h~avce
executed a flooring contrnetors' agreement, for the quantity of the
Products required to complete said contract.
SEc. 2. Every M~ember of thle Im~lustry shall file with the Code
Authority the details of all bids that have been filed with said
Member of the Indulstry by his flooringr contractors andl/or dealers
in order to secure price protection as dlefinedl above within 20 days
of such price increase.
ARTICLE IX--APPLICATION OF TILE BY RIEMIBERS OF THEl INDUSTRY
SECTION 1. Every member of the Ind~ustry w-ho applies any ma-
terial shall designate and- operate that part of his business as a
separate department. w~hichi department shall operate in all respects
as a flooring contractor and shall be subject to all of the terms and
conditions o'f any form of flooring contractors' agreement which may
be approved byv thle Code Authlorityv and the Admninistrator, and no
member of this Industry shall sell any Product through any such
department at lower prices t~han published under Article VrII of
ARTICLE XY-PIaucrryT or TRADE CLA\SSIFICATION.S
SEcTION 1. Within tenl (10) days after thne effective date of this
Code, each Miember of the Industry shall publish to his trade and
file with the Code Authority all classifications which have been estab-
lished by him to determine the prices, terms, or conditions of sale
made applicable by him to the different classes of his trade, for
products covered? by this Code. He shall publish to the trade and
file promptly with the Code Authority any changes made by him in
such classifications and any additional classifications.
Each member shall file at such times, in such manner, and at such
places as may be designated by the Code Aurthority the names and
locations of hiis trade, grouped according to his own stated classifi-
cations then in effect. The names and locations so filed shall be
available to the trade and to the members of the Industry, provided,
that the name of the manufacturer submitting any such names and
locations shall not be disclosedl without consent except to the extent
necessary to prevent, violations of this Article.
ARTICLE XI-TRADE PRACTICES
The following practices constitute unfair methods of competition
for members of the Industry and are prohibited.
SEC'TION 1. False M~7iar~king or Brandi~ng.-T-lhe false marking or
branding of any product of the Industry which has the tendency to
mislead or deceive customers or prospective customers, whether as
to thne grade, quality, quantity, substance, character, nature, origin,
size, finish, or preparation of anyT prod-uct of the Industry, or
SEC. 2. driJ.'rl4ep resena.ionl or F~alse oMilaigAdvlertisin2g.--
The making or causing or knowingly permittingq to be made or
published any false, materially inaccurate, or deceptive statement by
way of advertisement, or otherwise, whether concerning thle grade,
quality, quantity, substance, character, nature, origin, size, finish,
or preparation of any product of the I~ndustry, or the credit terms,
values, policies, or services of any member of the Industry, or other-
wise having the tendency or capacity to mislead o~r deceive customers
or prospectivee customers.
S C..Cmnmercial Bribery.-Directly or indirectly, to give or
permt to be given, or offer to give, money or anything ofvalue
to agents, employees, or representatives of customers or prospective
customers, or to agents, employees, or representatives of competi-
tors' customers or prospective customers, without the knowledge
of their employers or principals, as an, inducement to influence their
employers or principals to purchase or contract to purchase fromn
the makers of such gift or offer, or to influence such employers or
principals -to refrain fromn dealing or contracting to deal with
SE~c. I. In Orff678Rc6 uuith CorztfGctalt Re8GliOR.-RalainiulOUy
inlducring or attempting to induce the breach. of an existing oral or
written contract between a competitor and his customer or source of
supply, or interfering with or obstructing the performance of any
such contractual duties or services.
SEc. 5. Giving1L of Prizes, Pretizums, or Gifts.--The offering or giv-
ing of prizes, premiums, or gifts in connection with the sale of pr~od-
ucts, or as an mducement thereto, by any scheme which involves lot-
ter~y, misrepresentation, or fraud.
SEC7. 6. The defamation of competitors by falsely imputing to them
dishonorable conduct, inability to perform contracts, questionable
credit standing, or by other false representations, or by the false
disparagemenmt of the grade or quality of their goods.
SEC. ?. Threaf8s of Liti'gation~.-r[The publishing or circularizing of
threats or suits for Infringrement of patents or trade mnarks, or of any
other legal proceedings not in good faith, with the tendency or effect
of harassing ~omlpetitorsY or intimiatn their customers.
SEC. 8. Espionzage of Consp et~ito!rs.--Securingr confidential in formaz-
tion concerning thue business of a competitor by a false or misleading
statement or representation, by a, false impersonation of one in
authority, by bribery, or by any other unfair method.
SEc. 9. Selling at Less thaz ~Publi~sheda Pices.--The selling of any
Product to any purchaser thereof at less than the published price
applicable to such class of purchaser; or to effect a lower price. by
any means whatsoever, either directly or indirectly,, or by any
subterfuge, or to use or effect. a lower price than thiat. published for
all customers of thle same class.
SEc. 10. Secret Rebaties.--Thle secret payment or allow~ance of
rebates, refunds, commissions, credlits, or unearned discounts,
whether in the form of money or otherw.ise, or the .secret extension
to certain purchasers of special servrices or privileges not extended
to all purchasers on like terms and conditions.
SEC. 11. rSellng Be0-10 C'O1.--The sellmgl of the Product below
the manufacturer's ind-ividual cost, except to meet anyr price pub-
lished by another manufacturer in accordannce with Article VII;
in meeting these prices the manufactuirer shall comply with all the
provisions of Article VTII. Cost shlln be d~etermniend by such mnethod~
as is prescribed by the C~ode~ Authority andi approved by the
SEC. 12. CO1idignm~C.Ent Free Goods, o' Fal~se Bllincg.--Shi[pping
goods on consignment or storing goods in any place where a ~floor~ing
contractor or dealer has any interest, or hiring a warehouse from
customer except where the customer mlay have or own an interest in
a public warehouse in which the customer's place of business is
not located; or in any way delivering free goods to anly customer or
prospective customer; or invoicing goods to any other person than
the person by whom payment is to be made; or making anly ficti-
tious invoice for any shipment; playing a price in excess of the
prevailing open-market price for a ny product of this Industry; i ay-
2ng for materials of his own manufacture more than the original
net delivered cost thereof.
SEO. 13. Informing any customer or prospective customer, directly
or indirectly, of any change or contemplated change in any price
and/or discount prior to the date on which such price and/or discounts
is to be published to the trade.
SEc. 14. Other L'n~fair Pr~actices.--Not thing in this Code shall limit
the effect of any adjudication by the Courts or holding by thie F'ed-
eral Trade Commission on complaint, finding, and order, that any
practice or met~hod is uinfair, providingr that such adjudication or
holding is not inconsistent with any provision of the Act or of this
ARTICLE XII-IfERCHANDISINO Pux~
The following shall constitute the Mierchandising lPlanl of the
SECTION 1. Class8t/Calon of Ot8tot.ers.--The following classifica-
tions of customers shall be used by all members of the Indulstry when
publishing to the trade and filing with t~he Code Auth~ority schedules
of prices, dliscounts, allowa~nces, rebates, or terms of sale and notices
of changes t~herein. If said classification by virtue of its application
works hardship on any customer, such customer may appeal to the
Code Authority which shall have power to reclassify such customer
as justice requires.
(a) Floorig Contractor: A flooring-covering Contractor who-
acti~vely engages in the solicitation and installation of the Product,
wCho possesses a good reputation for high quality workmanship and
business integrity; who will sign a standard form of contract with
a single member of the Industry for the purchase of his entire
requirements, which standard form of contract shall be designed to
conform to the practice under and the provisions of the Code, and to
be approved by the Code Auxthority and the Adminlistrator.
(b) Dealer: A floor-covering contractor who engages in the solici-
tation of and/or installation of the Product; who possesses a good
reputation for hligh. quality workmanship and business integrity,
but who otherwise does not comply- with the qualifications of a floor-
anc Cons~umer: Any customer who purchases the Product for use
installation for himself and not for resale.
SEIC. 2. iE81408 Of Listing Flooring Contra~ctors.--Each member
of the Industry shall determine his own trade classification of cus-
tomers, and when determined shall file withr the Code Authority lists
of flooring contractors and dealers classified.
SEO. 8. XegregatiON of Item8.--In all bids, proposals, quotations,
an~zd invoices involving materials other than the Product, the price
to be charged on each shall be segregated so that the product shall
be separate and distinct from all other items.
SECTIONs 1. Nothing contained in the Code shall be deemed to con-
stitute any of the members thereof partners for any purpose. No
member of the Code shall be liable in any manner to anyone for
any act of any member or agent of the Code Authority or of the Aes-
sociation. No member of the Code, except as otherwcPise provided
herein, and no member of the Industry or of the Code Authority and
no agent of the Industry or of the Association, shall be liable to
anyone or in any manner other than as provided in the Act, or in
the Code, for any act or failure to act under the Code.
SEc. 2. This Code and all the provisions thereof are exrpressly made
subject to the right of the President, in accordance with the provi-
sions of subsection (b) of Section 10 of the Act, from timle to time
to cancel or modify any order, atpprovlal, license, rule, or regulation
issued under said Act.
SEO1. 3. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or changes in circum-
stances, such modification to be based upon application to the Adi-
ministrator, and such notice and hearing as he shall specify, and to
become effective on approval of the President. The Members of this
Industry assentmng to this Code do not thereby consent to any
modification thereof, and they reserve the right to object individually
or jointly to any such modification.
The provisions of this Code shall remains in effect until and unless
modified or eliminated in accordance with the foregoing provisions
of Section 2 hereof and of this Section 3, or until the expiration of
the Alct, namely, June 16, 1935, or sooner, if thle President shall, byg
proclamation, or Congress shall, by joint. resolution, declare the
emergency recognized by Section 1, Title 1. of the Act, has ended.
ARTICLE XIV~-EFFECTIV\E ABTE
This code shall become effective on the second. Monday after its
approval by the President.
Approved Code No. 150.
Registry No. 1003--)3.
UNIVERSITY OF FLORIDA
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