NATIONAL RECOVERY ADMINISTRATION
CODE OF FA~IRE COMPETITION
(A Division of the Machinery and Allied Products Industry)
AS APPROVED ON JULY 30, 1934
For sale by the Superintendent of Documents,Wnashington, D.C. - Price 5 centa
Approved Code No. 347--Supplement No. 36
Registry No. 1328--09
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GOVERNMENT PRINTING OFFICE
T~his publication is for sale by the Superintendent of Documents, Government.
Printing Office, W'ashington, D.C., and by district offices of the Bureau of
Foreign and Domestie Commerce.
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Approved Code No. 347--Supplement No. 36
SUIPPLEM~ENTAIRY COD)E: OF FAIR COMPVETEITIION
]RGF~RIG~ERAT`ING( MIACHI[NEkRY ]INDlUSTIIRY
As AQpproved on July 30, 1934
APPROV~ING SUPPLEMENTARY CODE OF FAIR COMPIETITION FOR TH3E
RE~EFRIG:ErATINGrl: R1ACHINERY TNDUSrTRY
A. DIVISION OF THE MACHf-INERY AND ALLIIED PRO)DUlCTS INDUSTRY
An application having been~r duly madlce pursunnlalt to and in full
comlplianie with, the provisions of T~itle I of theF N~iational Industrial
Recovery ~Act, approved June 16, 1933, for approval of a Supple-
mednal Code of FEair Competition for the R~efrigerating Mnc~hinery~
Subdivision of Maulllchiney and Allied Products Inldustry,, and hear-
ings having been duly held thliereonl and' the annexed report on said
Sulpplemlenta~l Code co.ntaining findcing~s with r~uleset, thereto, having
beelln made and directed to the P'residecnt:
NOW7, THEREFORE, on behalf of the President of the Unitedl
States, I, Hugh S. Johlnsonl, Admlinistrator for Industrial R~coer~y,
pu"rsunn~t to authority res~ted in me by Executive Or~der of the
Pres~ident, includling Executive Order No. 6543-A, dated December
30, 1,3:3, and otherwise; do hereby, 3 incorporate by reference said
annexed report and do ~find that said Supplemental Code complies
in all respects with thie pertinent provicions and will pr1omiote the
policy and purposes~r of said Title of said Act; and do h~ereb~y border
th~at said SupI~plemental Code of Fair Competition be and it is h~ereby
approved subject to th-e following~ cojndit ionsl: (1) that the provisions
of Articles VI, VII, VIII, and IX be and they hereby are stayed for
a period of fifteenl (15) days; then to become effective unless I, by
mny further o-rderl, otherwise direct; within which time cause may be
shlowin, if any there be, why7 the above provisions should not b~ecomle
effec~tive; and that. thle Code Aulthority' send notice of the stay of
these provisions anld of the opportunity to 2ho-w cause why they
should not becomelc effective to all known employers of the S~ubli-
vision; and (2) that the provisions of Article VIII[, Section (a),
insofnc as they pr~es~cribe a wFaiting period between the filingr with
thle Codte Authority (or sulch open~lcy as may be des~iglnated in the
Supp'lemental Corde) aInd the effective date of price lists or rev.isedl
terms and conditions of sale, be and they her~eby atre stayed pending
mly furtherr order.
HUTGH S. JOiHNSONS
Administrl~rator for lIndu~stirl Recov~ery.
Jzldy 30, 1934.
REPORT TO THEIE PRESIDENT
The Wh~ite H2ouse.
SmR: Tlhis is a report on the Supplemental Code of Fair Com-
pet~itionl for the Refrigerating Machinery Subdivision of Machclineryy
and Allied Products Industry, a Public Hearing on which was
held in Washington, D.C., on December 21, 1933. The ]Hearingf
w\as conducted in full neccordance w~ith the provisions of T~itle I:
of the NJational RecoveryT Act.
The Refrigerating: Machinery Subdivision being r~llepresentative
of the manufacturers of the products definedel in Airticle II of thne
Supplemnental Code, has ele~~cted to formulate and submit. a Sup-
plemental Code of Fair Comupetition as provided in the second
paragraph of Article I of the Code of Fair Compe~cttition for the
Mnc~hiner~y and Allie-d Products Indus~try approved on the seven-
teenth day of March 1934.
TPhe Refr~igelratingr Machinery Subdivision means the eng:ineer~lling,
design, and production of commnrer~cial and inldus;trin1 ice I11lking: and~
r~efr~igerasting machinery and eqluipmzent ini~cidetntl thereto. It is
expressly stated for the purposes of this Code that it is to apply
to the eng ineer~Iing, des~i g, malnufncturec and sale, a-s well as erec-
tion and/or installation of such machinery and equipment incidental
theret. Any ork or process incidental to and carried on by an
teeoemlolcyer aIt his plant or elsewrPhere as a part of the m~anufacture
of anly product of the Subdlivision shall1 be govrned~lcl byT thle pro-
v\isions of this Code: rather than of any otherl Code.
ECOl~N(IM IC: EFFECT
This Subd-ivisionl has been severely affected by the recent depres-
sion. This is eviden~cedl by the steady dc~cline in annual iales after'
1.929 from $37,'769,000 in 1929 to $20,580,000 in 1932 or 45.2 perr cent.
In 1929 this Subdllcivis~ionI employed approximately 6,7i59 factory
worklers, which total dec~ilinedl to about 4 ,33(, workersl as of November
15, 1933 or 35.8 per cent. Approximatelyi 56 per cent of the wrorkePrs
were work~inS more than 40 hours per week as of June 15, 198~3 us
comprlnled to an average work w:eek; of 50.6 hours in 1929.
Est:imae man hours decine from- an-'- "-- average of 342,000U per week
in 19129 to 1:33,210 as of N-ovemnber 15, 1933 or 61 per c ent. UCnt~il
there is a fur~ther increas~ne in man hour reqruir~ement~s the adoption
of the 40i hour week will pr~cbably cause no increase in unemployment
in this Subdivision.
Estimalte~d weekly earn~ings dec~linedl from an aver~age. of $27.02 in
1929 to a minimum of $13.38 in the last half of 1932, or 50.5 per cent.
Based on th~e distribution as of June 15, 1933 and t~he specified
per-''centages of number of wage ear!ner~s receivingr less than rates
previously prevalent in this Sulbd.ivisionl th~e adoption of the pro-
posed mimmrum hourly rates ~will cause an increase in factory pay-
rolls in this SCubivision.
TIhe wagei~ provisions for Cthe Subd~ivisi~n, which is op~erating
under the Code of the Mviachinery and Ajllie l Products Indlustry,
provide that employees ellngaed~ in plant operations shall be p~aidl as
follows: (1) in cities of more1' thaln 50,000U popuplationl and their
jimmiediat e viciinityv, 40 cents per'' hour; (2) in cities of more th~an
10,000 but not more than 50,000 population and their inunledliate
vieirnity, which cities ~r~e not in the ulnmediate vicmnity of a city of
mnore than 50,000 popiula~tionl, 38 cenlts per hour; (8) in cities of 110,000
populationl or less and their immediate vicinity, which cities ar~e not,
in the immediate vicinity of a city of more thann 10,000 popullation,
36 cents per hour, except, tha~t e'mpnloyeePs engag~ed in p~lantl op~erations;
in all localities in the states of Virginia, North Caroclina, S;Iouth
Carolina, Georg~ia, Filor'ida7, Tennessee~ Alabam~a, MIissiesjipp~i, Arkai--
Sas, Loulis~:i1;n, Texa5s, and Oklahomna, shall be paid not less t~ha 32
cents per hour.
When females do sub~stantilally Lrthe 3iamel work as male~s or replace
mallesi, they shall receive thne same pay.' Ho wevetr, no female employees
shall be paid less than 871/251 of the p'roper' rate for the locality in
Employees other than those cengagetd in plant operations shall re-
cei~ve not less than $1.i.00 per weeitk.
Office boys and girls and, apprenticcs .shl~l be p~aid not less th~an
80%i of the ml~inlinsunll wagZ~e.
Ti1s S3upplt~lemetlllal Codet pzrovides~ thnat no pers'lonl under isiteen
years of age shall bec employed? ~ in this Su~lbllivision.r l
HI [314..~~ OF SUPPL.EMEN:SI'TAL icODE
Article I stalti.s the pur11pose ofl the Supp1'~ lemental: Colle.
Article II owarall'~tely deIfineC' .-lc'ifilr LC'InI.; applfical';te to the Sub-
livision as used in this Suppkinental Coale
A4rtic~lle III: provides for the adol~ption- of the emnployment provi-
sions~ of the Codc~e of Fair ~Competitionl forl the Ma~chlieryr3 and~ Allliedl
Prlodulcts Industry.;1 as approved byT you,1 undl as fr~oml timet to timle
ArticlTe IY p~rovides~ for thef adop)ttionr of Art~iles ICI,`I, ndl~ VIII,
Products Indusltr' y in ncordla nce! with thc (ondl i t ionsi o f th is A~.rt icle
A~t icii li provbles~ for the cest abfjcll-nient of the Col~~.le Autor~ity
andll clefines`.c its powers~l'~ andM (Iuti('.-;
AQrticle VI pro'lvides~ for an ;Icrountlling~ system andM methlodlS of
Article VIII provides for methods of setting up, revising, and
filing price lists and discount sheets and ter~ms of sale and payment.
Article ~IX sets forth tlrae practices for the Subdivision.
Article X qprovides that no provision of this Supplemlenta~l Code
relating to pricing; and marketing shall apply to export sales.
Article ~XI: This Supplemlenltal Code and all the provisions
thereof are expressly made subject to the right of the Pre~csidetlt in
accordance with subsection (b) of Sectio~n 10 of the A~ict, from time
to timrte to cancel or modify any order, approval, license, rule or
regullation issued under said A~ct~. Provision is also madle that modti-
~fications mayT be submitted by the Code Authority to the Adminis-
trator for approval.
.Article XII provides means for withdcranwal of this Subdivision
from the Basic Code and its continuance as an autonomous Code.
Article. XIII establishes that no provision of this Supplemental
Code shall be so applied as to p~elrmit monopolies and monopolistic
practices as to chmmliate, oppress, or dliscrlmii lnate against small
Article X~IV states the effective date of this Supplelmental Code.
T'he3 Assistant D~eputy Admlinistrator in his final report to me
on said Sup~ple mentall Code hav\ing= foulnd as herein set forth and
onl the basis of all the proceedings in. this matter:
I find that:
(a) Said Supp~lemlentall Code is well designed to promote the
policies and purpose0~s of Title I of the National Industr~ial RecoveryS
Act, including removal of obstructions to the free flow of inlterstaite
and foreign conuneree~ which tend to diminishz the amount thereof
and will provide for the g~nera~l welfare by promoting the organiza-
tionr of industry for t~he purpol~c se of cooperatl~nive action. among the
trade groups, by inducing and ma~intainingg united action. of labor
and management under nd~equate, gover~nmellnt salc~tio~ns and supler'-
vision, by eliminating unfair competitivet practices, by promoting
thte fullest possible utilizationl of the present productive e~anpnitry of
industries~, by avoiding undue restriction of production (i~lexcet as
may be tempiorlyn~i l required), by increasing the consumption of
ind~ustr~ial and agr~iculltura~l products through incpirreasing prchasi;ngr
power, by P~reducingr and relieving unemployment, by improving
standards of labor, and by oth~erw\ise~ rehablilitatin g industry.
(b) Said Suibdlivisio normally employs not more thanl 50,000
empllloyees; and. is not obes~ifiedl by mle as a major industry.
(c) The Supplernet~ntMl Code as apprvc~\edt complies in all respects
with the pertinent provisions of said Title of said. Act, including
without limlitation Subsection (a) of Section 3, Subsectiojn (a) of
Section 7, and Subsection (by of Section 10 thereof ; and that the ap-
plicaznt ass~oc~iation is an industrial association n truly representative of
the aforesnid Subdivision; and that saidt Association imp~oses no in-
equitable restrictions on admnisi~c~n to mlemlber~ship therein.
(d) Thle Suppleme~ntal Code is not designed to and will not per-
mitt monopolies or monopolistic practices.
(e) The Suplellmental Codte is not d~esigrnedl to and wtiill not elim-
ina'te or oppress small enter~prisjes and will not operate to discrim-
inate against them.
(f) Those engaged in other steps of the economic process have not
been detpr~ived of the right to be h~eardl prior to approval of the said
F'or these reasons, ther~efor~e, I have approved this Sulpplem~ental
Code, provided that certain provisions relatingr to accounting and
cc: tin~, selling below reaso~-nable: cost, price lists, an~d unfair trade
peinetl:ices are stayed as statedt in the Ordler.
HUGuI S. JOHNSON,
rl d l~ndnistraator.
Jun 30, 1934.
SUPPLEM~ENTARY CODE OF FAIR COMPETITION 'f~OlR
THE REFRIGERATING MAICHINTERY INDUSTRY
A DIVISION O7F THE1 MAdCHIINERY AND ALLIED PRODUCTS INDT'STRY
To effectuate the~ policy of Title I of the National Indulstr1iall
Recovery~ Act, the followingi i Ino\isio~ns are esta~blishedi as a Supple-
mental C'ode of Faoir Colmpetition for the Refrigerating M~achinery
Subdivisionl ofi- th~e Malchinery~ and Allied Prodnel~lt-- Industryr, and
together with thep C'od~e of Fair Comllpetition for the Ma~chiner~y and
Allied Products Inldustry. shall be the standard of fair complettition
for this Subdlivision, andc shanll be bind~ingr on t;every Emlol~lyer therein.
cAvppicclicat" means the ~Refr~igerating: Mlachinery Ass~ociatio n,, a
trade organization, all members~ of which~ are engaged in the manu-
falctu re for sale of the products of the Refrigera~t ing Machinery
Subdiv-ision o.f the M~achinery and Allied Pr~odulcts Indu~stry.
Indurs~try~ means the Manchiner~y and Allied Ptroducts Indrust ry3, as
defined in its Code as approved by the Plr~esitent., and as such de~fini-
tion may from time to time be amendled.
Subj~'liciion." means the Refr~igerating M~achineryy :Su~bivisionl
of t.he Manchineryy and Allied ]Produllcts Inldustry as defined and set
forth in paragraph 26, Article II of the Code of Fair Comipetition
for the Manchilnery and Allied Products Industry as followss:
ReifrigycraIting Marchinzery Sutbdhisi;aon "' means the engcineering,
design, andl production of commler~cial and inluatr~ial ice mak~ing n
refrigerating ma~chinery and equipment incidental thnereto. It isan
express stated for thle: purploss of-this Code that it is to applyt
the engineering. design, manufacturer,, and sale, as well as erecto
and..'or installationl of such manchiner~y and equipment incid~ental
thereto. Any wrork or pr1ocess incidental to and carried on by an
Emp~loyetr ait his plant, or elsewhere as a part of the manufacture of
a~ny product of the Subdivision shall be governed~ by the provisions
of this C'ode rantherl than any other Code.
SCodel means the Code of Fair Comp~etition for the M~achinery
and Allied Prloductj Industry3 as appr~ovedl by' th Presidetnt, Mrllc~h
17, 1934. andl as fr~om~ timle to time amended.
Per's~on mneans a natural person, a partnership, a corporation,
an association, a trust, a trustee, a trustee in banikruptcy, a receiver
or other entity.
"'Emplloyer l" means anyl person engag~ed in this Subd-ivision eitherr
on his own behalf or as an emp!loy~er of laborl.
"Emiplo~lCe "! mleans anly one whlo is emuployed' in the Subdlivision
bY ~' any suc Employer.
77106'--82J-16T--34- --2 )
"'The A ct "' means Title I: of the National Industrial Recovery Act.
"The President' means th President of the United States.
"'The Adm;linis~trator' means the Administraltor for Indus-trial
"'Basic Cod~ce Au~thoritly '" means the Code Authorit~y for the M~a-
chineryI and Allied Produ~cts Industry as const~itutedl by t~he Code.
"'Code Aulthorty meanss the Code Author~ityr constituted for this
Subdlivision as provided by the Code and by ~this Sulpplemental Code.
"LGroulp Cod~e ALthority' means thec Code Atuthor~ity for anly
gr'oup or product classifiention within this Subcl\lvision.
"'Publislh means to mnake. available. to the public.
AnRTcLE I[I[I-EILIPLOYMET PROV'ISIONS
The :follow-ing Articles of the Code, viz; Article III, "' Working
HoT~urs "; Article IV, Wages "; and Article V', General Labor
Provisions "" are hereby madre a part of this Supplemental Code,
wCith the same effect as if they were wrrittenl into this Supplemnental
ARTIcLrE IV--AIDOPTION O~r OTHER PROVISIONS' OF CODE
The followving~ Articles of the Crode, viz; Article I[I, "LDefini-
tions "; Ar1ticle VI! "'Admninistrationl ", to the extent that they shall
be applicable to thils Suplellmentanl Code as such or as it may here-
after be administered as an autonomous Code; and Article VIII,
"' MCodifications and Termnination "., are hereby adopted and made a
part of this Su~pplemnental Codte wirth the same effect as if they were
written into thlis Supp1,I lemental Cfode.
S(a) The pelrmanent Corle Authority to admliinister, supervise and
to facilitate the enfolr~lement of~ thle Ctode and this Supplemnental
Code, hlerertcfore duly e~lec1ted in alccclcranlce with~ Article VI, Se~c-
tion (g) of the Co;de, shall be (if suchl meithou d of election is
approvedc by the~ Admiinist rationi) thec Codce Au~ithor~ity of this Sub-
division until its iso -ce.ssorls are duly elect,d andlc quallifiedt inl acc~ord-
unlce withl the prioced~urai l rules and~' regullationl s of thlis Suibdivision
(duly ad~opteld inl ncord~ancce w~ith~ Arlti~cle VII, Scltion (g) of the
Codte) and~ with the follow\ing~ retions orf this Ar~tic~le V. Wh'len its
surc~cessors ,-alrl ha-~ve bencl dluly~ elc~ted~ and qualrIified, thery shanll con-
5tituite the Permanenllt.lt Cod(e Authority1.
(b I~t beingr foundr nIecessary~7 in ordler to support thle Admlinlistr~a-
tio~n of this Supp~lemntait l Code anid to mainitain the~ standiardls of
fair compelr(titionl etabflt~l.;lished hereundel~r anld to effectulate th~e policy
of' the Act, the Codle Aulthlorit is aulthlorized~:
1. To incuir suchl reasonable e ob\ligations as are necessary and
properC' f~or the for~eoingproes n o etscholgtin u
of fundl s wiic~h many be raiise~ asI- herieinafter provided and which
shall1 be! held~ inl trust for thle. pur'ose~s of thle ICode;
"See paragraPllh 2 of order approving this Colde.
2. To submit to the Admninistrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary:
(A) ALn itemnized budget of its estimated expenses for the
foregoi ng purposes, andl
(B3) Ain equitable basis upon which the funds necessary to
support such budget shall be contributed~ by all emlployers of
(C) After such buldgret and basis of contribution h~ave been
approved by the Admninistrator, to dletermine and obtain
equ~itable contribu~tions as above set for-th by all emlployers of
the Subdivision, and to that end, if necessa ry, to institute legal
proceedings therefore in its own name.
3. Each employer of the Subdivision shall pay his or its equitable
contribution to the! expenses of the manintena~nce of the Code Aiuthor-
ity, determiined as her~einabove providecd, and subject to rules and~
regulations pertaininga thereto issuedl by the Administrator. Only
employers of the Subdlivision complying with the Code and con-
tributing to the expenses of its adminis-ltration, as hereinabo-ve piro-
vided, unless duly exemlptedd from making such contributions, shall
be entitled to participate in the selection of the members of the Code
Authority or to receive the benefits of any of its voluntary activities
or to make use of any emblem or insignia, of th~e National Recovery
Ad m in istration.
4. TChe Code Authority shall neither incur nor pay any obligrn-
tion in excess of the amount thereof as estimated in its apprloved
budget., except upon approval of the Adlministrator; and Ino subs~e-
quent budget shall contain any deficiency iteml for exp~endlitures in
excess of prior budget estimates except those worhich the .Admlinistra-
tor shall have so approved.
(c) In order that the Code Authority shall at rall times be truly
representative of th~e rSubdlivisionl alnd in other r~espects comply with
th~e provisions of the Act. the Admninisitrator Imay prescribe such
hearingrs as he may deem proper; a nd there fier if he shall find
that thle Code Auth~ority is not truly representative or does not in
other respects complnly with the IIc\leavisios of the Act, may requIire
an appIropriate mod~ifiention~ in the method of selection of the Code;
(d) Act~ion by Etmp~loye~rs in any Sublivision meeting for the
election of Code Authority shall be by vote of the `Employrers entitled
to vote as providedl in Section (b3) of thlis A3rticle VC, and who are
present in person or by pr'oxy, each such Emlployer to have one vote
(e)~ Action by Employers in any Subdivision mleeting for the
adoption of procedural rules, revisions or additions to the SuppDle-
mental Code, or the transaction of other business of the. Sulbdivision
under this Supplemental Code, shall be by vote of the Employers
who are entitled to vote therent as provided inI Section (b3), Ar1ticle
V of this Supplemlental Code and a-re present in person or by proxy
duly executed and filed with Code Aut~hority; cast and computed in
the manner provided in Section (d), Article VI of the Code. All
questions as to the number of votes which each Employer shEasll be
entitled to cast at any meeting of Employers other than the mneet-
ing held to vote for the election of the permanent Code Authority
shall be determninedl by Code Authority, in accordance with Sec-
tion (d), Article VI of the Code.
(f) Emp~lo~yer1s in this Subdtivision hav~\ingr a common interest. and
coinunon prob~lemns may be grouped by~ Codle Aulthor~ity for adminis-
trative pupss There shiall be a Gro~cup Codc~e Alt~hority approved
or appointedl by Codte Authority for each such g7roupl.
(g) If formal comlan t.ni l is malde to Code Authority that provi-
sions of this Supp-leme~lnta Code have been violated~ by anty Emnployer,
Code Authlority or the proper Group Cod(e Aiuthlority shall investi-
gat~e the compl~nint, and to that end, m~ay to theo extent permitted by
the Act, enuslle such investigation, exa~minati onl or audcit to be made, as
ma~y be d~eemed~r necessary. If suc-h inves~.~tigaltion is made by Group,
Code Authlority, it shall report thne result of suchl investigation or
audit to Codle Authority for actio-n.
(h) The Code ALuthorlIity may73 appoint a Trade Practice Commit-
tee which shall meet with the Trad'e P~r~c~ticet Commnittees appointed
ulnder such other Codes as mllay be r~elatedc to the Subdlivision for the
purpose of formiiulatinga fair trade practices to govern the relation-
ships be~twreen pr~ouctu'ion anrd distribution. Employers under this
Supplemnental Code and under such others to the end that such fair
trade pranctices mlay' be pr~oposed to the Admninistrator as amend-
mrents to this Supplemental Code and such other Codes.
ARTICLE VI I-CCOUNTING ASND GOSTING
T1Lhe Code Atuthority shatll cause to be formulated an accounting
Eystemn and methods of cost finding and/or estimating capable of use
by all Emp~loyers of this Subdlivision. A4fte~r such system and\
methods have Ybeen formllulated, full details concerning them shall
be made available to all emplloyers. Thlereafter all Emlployers shall
determine and/or estimate costs in accordance with the principles of
ARTICLE~ 711 --SELLINGt UELOW\" RE\SON;ABLE GOST
S~Ee'INo 1. W~hen. the Code AuthorityT determines that. an emer-
gency' exists in this Subdivision and that the clause thereof is de-
st~ruct~ive p~~~~r~ice-cutin such. as to rcndcr inefflc~tive or seriously en-
dangrer the mainutenanice of the p~rovisions of thiis Sulpplemental
Codle, thne Code AluthorityI may cause to be, determinedl thle lowest
:reasonalelt cost of. the! prlouc~lts of this Subdlivision, such deter-
m~inationl to be subject to such'1 notice anld hlearling as thle Admi~nis-
tlator ma~y rquir~e. "Thle Adm nli nistra~ntor may ap~r~ovec, disapprove,
or modlifly the determlina~tion.1 Theren~o~ fter, during; l thle period of t~he
emrll en'~cyI \ it .hll~ beC an unlfalir tl:rnde pra:CtfiCe fOr any? employ1)er of
the sbivir ion~r to sell or offerr to sellI anyv products of thle SCubdivision
for which thec lowest reas~onale~l~ cost hats beenl determninedc at such
ity, upon its ownI initiative or uponil theC request~ Of an1y interes'ted~
18 ,. pr l giraph~l~ 2 of order appircving~ this colde.
SEC:TION 2. The foregoing Section (1) shalll niot apply to (a)
dropped lines, or (b) seconds, or (c) inverntor~ies which must be
convecrted into Cash1 to meet emergency needs, all of which may be
disposed of by any emnployer at any price and on any terms or cona-
dittions, but only if such employer, not less than:ll two weeks before
.such proposed disposal, has filed with Code~~ AuthorityT a statement
in wr1it~ing setting forth the facts of, and! i'(';sons for, such p~'clropsed
disp~osa;l and the price termsl and rcons~litionls of sale, and Code Au-
thority has not, (wcPith thei approval of thne Adminillstrantor), b-efore
the termination of such two weekr period, in writing, disapproved~'
the proposed disposal. Notice of such dliisposnI if not disapproved,
shall be sent .imnuneditely to all employers m1andne alturlling~ produ~1cts
.of equivalent design, chanrrcterl, quality or spiec~ifien;tions,; who may
sell such products at pr,1ices and on terms~~ and co~nititons as favor-
able as those s~tipulatedl- in the proposed disposal, when meetings the
competition of such proposed d~isposa8l.
SIEoTroN 3. The foregoing Sect~ion (1) shall not apply to a sale
madre in order to meet competition on. p3rodulcts mnanufactured out-
sidie the United States.i. F'or such disposal, any clmplloyer mnay sell,
a~t prices and on terms~i and cond~itions~ as favorable as those of the
competing foreign pr1odluc~t, but onlly if he has first reportedly to the
Code Authforityj h~i intention so to sell, and the, facts as to the
competition which jus~tifie~s such action.
ARTICLE VTIII *-PRICE LISTS
(a) If and wvhen the Code Authority of this Subdivision deter-
mines that in. any brannch~ or group of the Subc-ivjic ion it hlal been
th~e generally recognized practice to sell a sp~ecified~ product on the
basis of net price lists, or pr1ice lists w-ith~ dtiscount sheets, andl terms
of sale and payment, each employer shall, within ten (10) days
after notice of such determination, file withr the Code Authority a
net price list, or a price list and discount sheet, as the casec mayT be,
individually p~repared'c by him, showing his current prices, or pr1ic~es
and discounts, and terms of sale and paymenlnt, for such spetcified'
.prdc~c~ct, and the Codle Authiority shall immed~ia~tely publish a7nd-
end copies thereof to all known empllloyers. who ar~e cnooperating in
this Supplemental Code as described in Section (b3) of Article V
Revised price lists and/or discount sheets aznd/~or terms11 of sale
and payment for such product Inuty be filed froml timer to, time there-
after wcith the Code Authority by any emlployer, buxt such revised
price lists and/or discount sheets and/or termls of sale and payment
shall be filed with the Code Aulthority ten (10) dlays in advance of
the effective date. Copies of such retvlsed price lists anld/or discount
sheets and/or sterns of sale and pnyment, for such product, with
notice of the effective date sp~eciiedl, shall beimmedialtelypulishedl
and sent to all known employers who are cooperation in thsSup-
plemnental Code as described in Section (b3) of Article V hereof, any
of whomn may5L file, if he so deir~iles, to become effective upon the date
when the rt\ievise price list and/or discount sheet and/or sterns of
sale and payment first filed shall go into effect, ~ev-isionls of his price
1 See paragraph 2 of order approving this Code.
lists and/or discount, sheets and/or terms of sale and payment estab-
lishing prices or prices and discounts not lower or ter~ms of sale and
payment not more favor~able than. those, established in the revised
price lists and/or discount sheets und~/or terms of sale and payment
first filed. Nothing in the foreg~oing_ shall constitute a limitation
upon the right of anly employer to file r~evisedl lists fixing his own
prices, discounts and/or terms of sale and payment. which prices
and dliscoulnts may be eithler more or less fa~voranble t~han those .con-
tained in any other price list, to be effective as provided in the first
sentence of this paragr~aph.x
(b) If and when the Code Authority shall dletermnine thlat in any
branch or group~ of thle ~Subtlivisio~n not now selling its product on
the bansis of price lists, with or without dliscount sheet.s, with terms
of sale and payme~lnt, the distribution or marketing conditions in said
branch or group are the same us! or similar to, the distribution or
marketing co~nditions in a br~anchl or group of the Subdrivision wFhere
the use of price lists, with or without discount sheets, and/or terms of
sale and paymen~lt, is well recognized, and that a system of selling on
net price lists or pr1ice lists and discount sheets with terms of sale and
payment for such product should be puzt into effect in. suchl branch
or groupl,, then each emnploy~er of such br~anch or group shall within
ten (10) days after notice of such determnination,, file with the Code
Authority net price lists or price lists and discount sheets, containing
terms~.i of sale anld payment, showing his current p-rice~s andl discounts
and terms of sale and payment, and such price lists and/or discount
sheets and/or terms of sale and payment may be thereafter revised in
the manner1C1 hereinabovec provided; and such methods of pricing and
revisions thereo~cf h-lall be "' pub~lished and senlt." as descr1ibedc inr A~r-
ticle 'VIII (a); provided, hiowT~ever, that the Codle Aulth~ority shall
make no dleterminationl to pheecc any product of the Subdivi\ision (not.
now on a price list bas~is) on a price list basis, as pr~ovided in this
p>"~6~aragrah (b) of Ailrticle VTII:I, unless~ the emlployerr s who are at
that time e~ngagdc~ in malnulf acturingl sulch product andl are at that
time cooperati~ng, have given their unantl~ative c~onsen~t to sulch deter-
mination. The eligibility Icrjllequlntireens method~r andi effect of such
v;otin~ sha~ll be the conto as provided in. secrtionI (e) of Atrtic~le V.
Elachl e~mplo2yer shall p~reparne an11 shall furn'lishl the! Code Aulthlority
for <1i~strib~ution. with. such. number of copies of hIis price lists and'/ocr
discount sheets andc/or terms of sale and~ pay~~menlt us C(o'` e Aulthor'-
(c) No empiloyer!l shiall sell dtironctiv or indirectly by any mneans
of this Article VITII at a pr~iec or aIt ili counllts, or on tclrnls of sale
ind paymenl~t, differently .f!.oml those~ provi.tled~ in. his ownl curren'~t nlet
price lists. cor pni~ric lists- and d~isenanit sheets, pirovidedl~ tha~t thn
and/or pries~i list and dlisicountl heetsL~4 hy! increa jlingp hIj job~ pri~Ce to
include unusual selingtr, eng~,inecering, serv\ic~ing, financl(ing, financial
evenlt Of an ('nployer~.1
ISee p'Irlcr. pllil 2 of I..rder rlpposh\i llr this ('n*de..
care of unusual selling, engilneering, servin~cing fnancing, financial
risks, or other similar special charges, he shall not subsequently
qu"ote a lower price on said prosp~ectiv-e sale than that price first
quoted, except .in accordannce, with revised price lists duly filed or
unless he simultaneously elimninates part or all of the unusual engi-
neeringr, serv~icin~g, fiinancing,, financiial risks or other similar special
charges, for which. a corresponding reduction only may be made.
(d)5 Wher~ever by the provisions of this Article VIII an employer
is oir may be requiredc' to or permitted to file terms of sale and pay-
ment, such terms shall mean usual or standlard terms, and to cover
any special anld/or unusuc~al terms definite forlnullae for detlerminingr
such special and/or unusual terms shall be filed.
(e) If and when Code Authorrity shall dleterminet that it is unde-
sirazble to continue the filing of net price list; andc/or price lists
with~ discount sheets and/or fixed terms of sale andc payment on
any product in respect of which such filing has heretofore bleen
requir'edl, such filing shall cease. and the provisions of this Article
shall not apply to such prod?~uct unless and until Code Authl~ority
.shall again deteirmiine thiat such filing be made.
(f) The Code Authority Ihall from time to time, with the approv-
al of the A~dministrator, formulate, prescribe and distribute to
perscons~ in the Ind-ustry regulations with respect to minimum cash
payments, and/or maximum deferred terms, and/or carrying or
ARTICLE IX1-UiNFAIR TRADE PRACTICES
The folloing~i7 practices constitute Unfair M\etho~ds of Competi-
tiozn for employers of the Sub~division. They are prohibited and are
in. violation of this Code:
1. Nao Employer shall knowingly make anly mnisrepresenltation in
conn~ectionl with the sale or advct~ertisement for sale and/or marketing
of any products of this Subdivision with the intent or effect of mis-
leading or deceivinlg buy3er-, or proispecctive buyers, regarding their
quality, composition, or service features.
2. No employer shall give, permit to be giv-en, or directly offer to
give, anylthingf of value Yfor the~ purpose of influencing or re~ward~ing
the action of any employee, nagent or repr~e.sentativ~e of anlother~ in
relation to the bulsiness o ef the emlployerl of such employee, the princi-
pal of such agernt. or the Irepre etnted party, without the know~ledge
of such Emplolyer, principal or party. This Commercial bribery
provision shall not be construed to prohibit free anld gen~er~al distri-
butfionl of particles commonly used for advertising except so far as
such articles are actually used for rlllcnunerdal br1iberyS as heretinabhove
3. No employer shall induce~ or attempllt to indulcet by any means
any party to a co:nu~nercial a~rgrneemen with another Emplol.yer to
violate such agreementC~I1.
4. No Emp~loy~e r shall secrletly offer or make any p-aymrent or
allowannce of a rebate, refund, conuni.-;issin credit, unearned d~iiscounlt
or excess allowa~nce, whe~ther in the form of money or otherw~ise, nor
1 Sr paragraph 2 of nrltier approving this Code.
shall any Emnployer secretly offer or extend to any customer any
special ser-vice or privilege not extendled to all customers of the same
class, for tlhe pulrpose of influencing a sale.
5. No Emiployer shall publish or circulate threats of suits for in-
fringement of patents or tr~adec marks, or of any others legal pr~oceed-
ing~s not made in good faithn, with the tendency or effect of harassing
completitorss or intimidaltinga their customers.
6. No Emnployer1 shall procure, otherwise th~an with the consent
of any other employer, any information concenn the business of
such. emnploy~er, which is propercIly regardled by such employer as a,
te~nde secret or confidenitial within his or its organization.
7. No Employcr shall accept a contract wherein the Employer as-
sumes responsibility for indirect or consequrential dlam~ge~s nor shall
any Employer grant a g~uaranty covering dlefect~ive w~olrkmanship,
material or~design to extendl for a longer prod' than one year. The
term indirect or conlsequent~ial damages "is defined to mean dam-
ages (1) other than, or in excess of, the reasonable cost of repairing
or replacing any defective machinery, equipment or p~arts furnished
by the Emnployer under thne cocntra~ct., or (2) other than stipulated,
liquidatedl damages relating to delivery, completion andl/or
8. No Emplloy~er shall guanrantee cost of power conlsumled or cost
of products produced by products of thle Subdivision.
9. No EmplIoyer shall, except in order to comply with ~the written
specifications of any agecyllS of the F~'tederal G~overnment, State Govr-
ernment~ll, or any Subdivisio~n thereof, accept contracts embllodyingg
penal~ltly or bonus clauses relatives to dates of completion of coltr~acts.
10. No Employer shall guaranlRttee cost of mnaintenance of products
of thne SuCrbtivisio n.
11. No Emlplo:yer shall nurnke an allowance or tr~ade-in value to a
buyrl~c for used. or siecondlc-hand products.
12. No Emlploye~r shall indulge in destruictiv-e price-cutting..
AnnIC'I XF--SALE.S FOiR EXPrllT
T~he pr1ovisions of this Supple'1~me~ntal Code concetrning' priicingi and
muirkletingF shall1 not apply to
of anl product dlestined~i ultimaltely for export. Thle term11 export
trade whelreve~rl ulsed in this Codle means solely5 t~rmlel or c~ommrclce?
mn goodsl, wares, or me~lrchandti.- e exportedC~1 or in the~ coursle of being
e~xpor~ted~ from thej Unitted Sc~tate~s or alny Terr~itoryg there'(of to anly
foreignr nation; but the wordstl "expsIort te~nll1,". -all noc t be dfeemedtl to
jIinclud thle production, manulllfurlture,' or selling for rconsouptionl~l or
for resale:l c within the Unitcld Sta~tes or anyl\ Terr~itory' 3 thclreof, of
suIch gr~oods, waresc or nwrehmuliselli~r or any n o't in the cocurs~e of sulch
produion, mlanlufac.tulrc or selling forl (_:onstunpt~ionl or fOr' reSale.
(a) Ans prov\ided by! Fc~tio~n 10 (b) of thbe \c~t. thie Prewiden~Crt mayn
fromll tinwlc to timell I';1II(l or modiiif3. anyI order.'l' u1Iproval.;1 liCenseC;,
rurle or regulation inedc~ unlarlli TIitle 1 of thec \c~t. Any1 ame1Cnd-
ment'lls, atlcitionsll, rev'\i ionsl- or u:ll~~llr.plfwt;s of thlis Supp11Cll'lennal
Code authorized byT thre offir~mative vote of G6%6fo of thle Employers
in. this Subdivision shall be in full force and effect upon approval
by- the Admninist rator. The eligibility requirements, method and
etfect of such voting shall be the same as pro-videcd by ASrticle V,
Section (e) hler~eof.
Arrc X:II., III I-WITHDRAWAL
Upon thirty (30) days' notice to the B3asic Codie Authority and
to the Administrator, this Subdivision may, uplonl thre concurring
affirmative vote of Emp~lloyers, within the said Subdivision entitled~
to cast two-thirds or more of all the votes that might be cast by all
Employers within the Subdivision entitled to vote th~er~eon, withdraw~c
from thne jurisdiction of the B~asic Code Aiuthority. The eligibility
of voters shall be in. necordancelc.t: with Article V, Section (b3) and the
miethlod- and effect of such voting shall be in neeorda~cll~nce with the
provisions of Article V, Section (e) hereof. After and in the ev7ent
such withdrawal is :Icunecomlishel:d th~is Supplemental Code, together
with the provisions of the Code shall become and be the sole code
governing this Subdivision, and thne Code Authority shall for thris
Subdivision become and be the sole Code Authority and shall per-
folrm all the functions with respc~l't thereIto:.
~Applicant imlposes and shall impose no inequitable restrictions on
membership therein. Th]e Supplemental Code pr1esentedl by it is
not designers to promote monopoly, and shall not be so construed or
applied as to oppress or eliminate small enlterpri~se or dliscrimninatee
against them, and is deiiigne~d to effectuante the policy of the _Act.
AU~1TIC.LE XIV---EFFECTIVE DATE
This Supplemental~ Code shall become effective and b~indling on all
employers eng~agel in the Subdivisi~on on the eleventh day after;
Approved Codie No. 347---Supplement No. 36.
Registry No. 1328j-0~.
UNIVERSITY OF FLORIDA
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