NATIONAL RECOVERY ADMINISTRATION
SUPPLEM~aENaT A RY
CODE OF FIAIR COMPETITION
For sale by the Superintendent of Documents, Washington, D.C. - Price 5 cents
Approved Code No. 4--Supplement N~o. I
Registry No. 1328--10
(A Division of the Electrical M~anufacturing Industry)
AS APPROVED ON JUNE 9, 1934
GOVERNMENT PRINTING OFFICE
This publication is for sale by thie Superintendent of Documtents, Government
Printinlg Office, Washli~tdon. D).C., and by district offices of thle Burea~iu of
F~oreigon and IDomestic Commerce.
DISTRICT OFFICES OF THIE DEPARTMENT OF` COMMVIERCE
Atlanta, Ga.: 504 Post Office Building.
B~i~rminubl:nn,1 Ala.: 257 Federal Building.
Boston, Ma:ss.: 1801 Custombouse.
Buffalo, N.Y.: Chamber of Commerce Buildin,-.
Char~leston, S.C.: Chlamber of Commerce B~uildlinp.
Chiigoc~ Ill.: Suite 1706, 201 North WVells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce B3uilding.
Detrolit, M~ich~.: 801 First National Bank Building.
Houston, Tex.: Chamber~,~l of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Buildizgr.
Jackisonville, F'la.: Chamber of Commerce Building.
Kansas City, Mlo.: 1028 Ba~ltimore Avenue.
Los Angeles, Calif.: 1163 South Broadwsay.
Louisville, Ky.: 408 .Federal Building.
M~emphis, Tenn.: 220 F~edetral Buildling.
Mlinneapolis, M~inn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Custombouse.
Newv York, N.Y.: 734 Customhouse.
Norfolk, Va.: 406 East P'lume Street.
Philsol~lelhin, Pa.: 422 Commercial Trust Bulildinlg.
Pittsburgh, Pa.: Chamber of Commerce Buiilding.
Portlandc. Oreg~.: 215 New Post Offi~e Bulilding.
St. Louis, Mlo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhfouse.
Seattle, W~ash.: 809 Federal Office Building.
Approved Code Nio. $--Supplement No. 1
SUPPLEMENTARY CODE OF FAIR COMPETITION
As Approved on June 9, 1934
SUPPLEMSENTARY CODE OF FAIR COMPETITION FOR THE REFRIGERATION
A DIVrIION OF TH-E E1LECTRICAS L MANUFACTUCING INDUTSTRY~
An application having beenl duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Acct, approved June 1_6, 1933, for approval of a Supple-
mental Code of Fair Competition for the Refrigeration Subdivision
to the Code of Fair Competition for th~e Electrical Mlanufacturing
Industry, and hearings having been duly held thereon and the an-
nexed report on said Supplemnental Code, containinng findings with
respect thereto, hnavinga been made and directed to the President:
NJOW, THIEREFiORE, on behalf of the President of the United
States, I, H-ugh S. Johlnson, A~dmin~istrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the Presi-
dent, including Executive Order No. 6543-A, dated December 30,
1933, and otherwise; do hereby incorporate by reference said an.-
nexed report and do find that said Supplemeni~al Code complies in
all respects wFlith the pertinent provisions and will promote the policy
and purposes of said Title of said Act; and do hereby order that
said Supplemental Code of Fair Competition be and it is herb
approved; provided, however, that the provisions of Article II
Section (f), are stayed pending my further order.
HUan S. JoHNson,
Administrator for Indulstrial Recovery.
BARTON ., ~MURRAY,
Acting D~ivJision. Admiri~strator.
W~aSH INTKGTON, D.C.,
June~ 9, )1934.,
REPORT TO TH~E~ PRESIDENT
The Whitte Houazlse.
Smn: This is a report on. the Supplemental Code of FEair Competi-
tion for the Refrigreration Subdivision of the Elect~rical Mlanufactur-
ing Industry, Pubclic H-earing having been conducted ther~eon in
W~ashington, D.C., Januazryr 29, 1934, in accordance w\ith the po
visions of Title I of the NPational Indulstr~ial Recovery Alct. h
Code which is attached, waslr presented by duly qualified anld author-
izedl representatives of the Industry, clainming to represent eighty
(80) perceent of the aggrregate production of the Indutsry.
The National Electrical Ma~nulfneturersl~ Associ~iatio being truly
rep>resenta ltt ive of this Sub~division of the Electrical Industry, has
submitted a Supplemental Code of Fiair Competition to the Basic
Code for the ]Electrical M~anufacturing Industry, approved by you
August 4;, 1933. Every person who fied a request for an appear-
ance at the Public Hearing was heard in. alclrcorance? with regula-
tions of the National Recoverly Atldministration. The Rtefrigeration
Subdivision of the Electrical Mnu~n~factur~ing Industry is defined to
mean the manuzfa~cture for sale of Electrical Housetholdl Retfrigrerators
and such Commercial Electrical Refrigerationll as is not w-ithin thie
control of other duly appIroved codes.
The Refr~igera~tion D~ivisionr of the N~ational Electr~ical Mianu-
fnulturers A5ssociation was establishedl in 1929, succceed7ing an earlier
association which was elstabilished in 1926j. Ac~lcoirdi to statistics
furni hlel by members of the ]Refr~igerantio n Div~ision1, there are
alpproximately seventy-four (74) c~olc~erns wFith an aggregate inr-
vecsted capital of $150,000,000, and a reported agg~rleyrte production
for the first ten months of 1933 of 1,010,2415 umits. A~t present the
Indllstry3 emllo~~ys approx-,imtly~~~~ 40,000 persons.
PIROV'ISIONS OF THIE C'ODE
IThe Bas~ic Code for the Electrical Mfanufactulirr ng Industry, estab-
lishes a supervisory agency which is fairlyl and adlequately re ~reoent-
ative of all thne different e~lements in the Int'urstr~y. Since tlu Cod e
is supplanc~iintal to thle Code of Fair Compl.etitionl for the Electr~ical
MlinI andut uiiirin Intustry, it adopts the 11bor pr~ovisionis of thle Basic
Thle Deputy Administrator in his final report to me on said Sup-
plemental Code having found as herein. set forth anld on the basis of
all the proceedings in this matter :
I ~find that
(a) Said Supplemental Code is designed to promote the policies
and purposes of Title I of the National Industrial Recovery Act, in-
cluding removal of obstructions to thze free flow of interstate and
foreign commerce which tend to diminish the amount thereof, and
will provide for the general welfare byJ promoting the organization of
trade for the purpose of cooperative action among trade groups,
by inducing and mnaintaining united action of labor and management
under adequate governmental sanction and supervision, by eliminat-
ing unfair competitive practices, by promoting the fullest possible
use of the present productive capacity of industries, by avoiding
undue restriction of production (except as may be temporarily re-
qui~red), by increasing the consumption of industrial anld agricul-
tural products through, increasing purchasing power, by reducing and
relieving unemployment, by improving standards of labor, and by
other wise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees and it is not classified by mne as a inajor industry.
(c) The Supplemental Code as approved complies in all respects
with the pertinent provisions of said Tlitle of said Atlct, including
without limitation Sjubsection (a) of Section 3, Subsection (a) of
Section 7 and Subsection. (b) of Sectionl 10 thereof ; and that the
applicant group is an Association. truly representative of the afore-
said Subdivision of the Industry; and that said ~Association imposes
no inequitable restrictions on admission to membership thereinl.
(d) The Supplemental Code is not designed to and will not permit
monopolies or monopolistic practices.
(e) The Supplemental Code is not designed to and w1ill not elimi-
nate or oppress small enterprises and will not operate to discriminate
(f) TPhose engaged in other steps of the economic process have
not beetn deprived of the right to be heard prior to the approval
of this Supplemental Code.
(g) In accordance with the provisions of Article XIV of the
Clode of Fair Competition for the ]Electrical Mnlanufacturing Indus-
try, this Subdivision is entitled to a~nd permitted Supplemental
For these reasons, therefore, I have approved this Supplemental
Henar S. JoINSON,
JUNIE 9, 1934.
ISUPPL~E~MENTARY COD>E OF` FAIR COMPETITION FOR
THIE R~EFRIGERATION INDUSTRY
AI DIVION OF THE ELECTRIC 3[ANITFACTURING INDUSTRY
T'o effeatuate~ the policy of Title I of the Nliational Industrialt Re-
covery Act, the following provisions are establishedT pursuant to
the provisions of Article XIV of the B~asic Code of ai-nr Competi-
tion. for the Electrical Mianufacturing `Industry, approved byI the
President August 4 1933, as a Supplemnental C~ode of F~air Com-
petitio~n for the Rle'frigeration Subdivision of the Electrical Manu-
facturing Industry, and upon the eleventh day after approval by
the P'resident shall, together wiJith the provisions of said Basic Code
and any modifications thereof, or additions or supplements thereto,
thereafter made, be made a part of and be the standard of fair
co-mpetition for the Refrigera~tion SubdivIision of the Electrical
Mnl u fu etur IinIg I n duLStry3.
ArrrlIC LE IIl---D Ev I crIou(s
(a) The term "L Refriger~ation Subdivision of the E~lectrical Ma~nu-
facturingr Industry ") as used herein is defined to mean- the manulfac-
ture for sale of electrical household refrigerators and such commercial
electric ref!igeration as is not within the control of other dulyS
(b) Tihe termr7 Presidlent "' means the President. of the U~nited
States of Amlerica.
(c) TIlhe term. "Act mcanls Title I of the National ITndustrial
(d) 'the trm "Adinistrantor means the Adminiistrator for
Indus1t rinll ReovLery.
(e) The termn Employer as used helrein shalil includte, every
person eng:uredl in the manufacture for ~sle of the prtod'ucts of the
Rlefriigerant'on Surbdivision of thne Electrical Manufa~lctt u ring Inldustry
(f ) The term "' Person "' as uised herein shanll inc~luid natural per-
son,pa, '"rt ne rsh1i PsaSSOC ia8t ions,~1trusts, t rustees, trustee. in 1nnkr; ~ uptcy,
I'receivers andt corporations.
(g) Th~e tiermi "' employees "" as usedl herein included s anyone engaged~J
inl anyi erlnpnedy receiinng com~pensatiocn for his serv\icecs, Irrespective
of the! naturle or mecthod of payment of slc~h compllensation.
AnRTcLE I[-ENRL RITIN
(a) No emloyeIg r shall mark or brand any product of the Industry
in any mnl~nelr Which has the tendency to; mislead or deceive cus-
tomers or prospective customers as to the substance, grade, quality,
size, quantity, origin, or preparation of any product of' th~e Industry
sold or offered for sale.
(b) Emlployers shall refrain from inducing breach of conlsumers's
contracts, and shall refrain from enticing away employees of com-
petitors for the purpose of unduly hampering, injuring, or embar-
r~assing competitors in their business.
(c) Emrployers shall refrain from wmilful or mialic~ious defamation
of comlpetitors and from disparagement of competitors' products.
(dl) Emuployers shall not give secret rebates or discounts, free
special services or exorbitant advertising allowances.
(e) Employers shall not give, permit to be given, or directly offer
to give anything of value for the purpose of influencing or r~eward-
ing the action of any employee, agent, or representative of another
in relation to the business of the person employing such employee,
the principal of such agent or the represented party. This provi-
sion shall not be construed to prohibit free and general distribution
of articles commonly used for advertising except so far as such
articles are netuallyJ used for commercial bribery as hereinabove
defined. Conunercial bribery provisions shall not be construed to
prohibit prize contests openlly conducted among satlesmen.
(f) Employers shall not give, permit to be gi~venr, or directly
offer to give rewards or premiums to actual or to prospective pur-
chasers of their products. This clause shall not be construed to
prohibit prize contests openly conducted among actual or prospec-
tive purchasers of such products.l
(g) TIhie making or circularization of threats of suit for infringle-
ment of patents or trade marks to or among customers of a compet-
itor, not made in good faith and for thie purpose of harassing and
intimidating customers is prohibited.
ARTICLE IV ADVERTISING AND SALEs PRomorroN
Advertising and sales promotion as dealt with inl thlis Code shall
have the broadest possible interpretation. The term shall apply
without limitation to magazine and newspaper advertising, bill-
boards, radio broadcast ing, house organs, catalogues, direct mail
material, and to all forms of adver~tisingr and sales promotional
activities in verbal or printed presentation.
(a) Nlo employer shall make or cause or permit to be made or
published any false, untrue, or deceptive statement byI way of ad-
vertisement or otherwise concerning the materials of construction
used in, the operating characteristics of, thne quality, size, orilginl, or
prepara~tionl of any product of the Industry sold or offered for sale.
(b) No representation of a character calculated to mislead the
uninformed or casual reader shall be used. All statements made in
advertising or sales promotion shall be complete and so phlrasedi as
to convey to the casual and uninformed reader the full and complete
(c) No false, untrue, or misleading statements shall be made,
either directly or byr inference, in any advertising or sales promotion
concerning the product advertised or any competitive product, nor
1 See paragraph 2 of order approving this Code.
shall any statement be made, t~he effect of which will be to mislead
the public with respect to other products.
(d) ~Advertising and sales promotional activities offering products
which are not intended to be openly and freely sold, with the object
of attracting culstom~ers for thne purpose of selling other products,
are exp~ressly proh-ibited.
(e) Neither direct nor indirect use shall be made of competitive
appa"ra t us for compara111t ive purposes in con ne~t ion with sa les
promotion or advertising.
ARTICLE 'Ti--TARRANTY~ AND SERVICE POLICY
(a) Except as special provisionls shall from time to time be
approv?\ed by the Supervisory Agrency for this Subdlivision and by
the Admirnsll~~torato no employer shall give any express warranty
which extends his responsibility for refrigreration equipment manu-
fnl:turled and/or sold byT him beyond one year from. the date upon
which such rtefr~igeration equipmentn is installedl on the premisles of
the original pur~chaser, or which extends his r~esponsibility for such
refriger~ationl equipment beyond the replacement or repair of such
equipment which shall be defective in mater~ial aInd/or worrkmanship.
(b)cie n Empoyes mn ay develo individual plans for providing re-
p~nemet uitsin aseof aiure after thre expiration of the war
rant y3, provided :
1(1) Adv\ertising and sales promotion shall contain no represenlta-
tion which, by reference to any term of years or by the use of trade
terms or phrases not readily understood by th~e public, or otherwise,
would cause any per~sonl to assume that an extensionl of the uniform
warranty is iritende~ld, nor shall any representationn be made in
advertising or .sales promotion wIjhich will in any w~a~y tend to confuse
such unit repllacemelntn plans with the warranlty;
(2)l In anly c.aset inl whichr an empllroyer~l'si policyT with respect to
unit replncemeint is refelrred to in advertising or sales promotion,
Fuchl advertising and sales promoctio~n shall state clearly the amountm
which has~ been added to the complete unlit price to cover th av~eragae
cos~t of unit re~placemient.
(c) The term original pulrchaser as ulsed in this Artle shall
be dteemedt to mean that p~erson, firm, association or corporation for
whom the refrigera~ting( equripmnclt rfelrred~ to therein is originally
ins~talled~; or the bona bfide assignlee of thlt, person, firm, association
(d) Thle prov,\isionls of this Article shall not b~e sub\er~ted or evaded,
directly or indirectly, by any manufacturers resortingr to any form of
advertising not in. harmony with the letter andi spirit. of this Article
or subterfuges of any kind.l On the other hannd, no p~rovision of this
Artic;le sharll be~ ccnst~~rue to- lim~it. or reliever fromll liab~ility arisngn
ou~t of any wr;arranty impliedl by law.
ArRTc.E ~VI-Ternarsi o1 SALE
(a) The f01o~Vllow provisionls Ihal~lj be obse~rvedl xc~ept as special
pro(vli(ions untly, fromll timie to timei, be appr,1ovdcl by thle Sup~ervisory
(b) Sales made by employers to their outlets shall, whenever feasi-
ble, be subject to collection by sight drafts attached to the bills of
lading. Open account shall in no case be extended by employers to
their outlets beyond the 20th pr'ox., unless such accounts, extendcedl
beyond the 20th proxy shall be evidlenced by a negotiable note, trade
acceptance, or similar negotiable instrument ~ear~ing interest at an
annual rate of 6 percent. (6 c), or the maxsimum legaal raLte, whiche\er
is lowFPer. Employers shall charge interest at an annulral rate of six
percent (6%r) or the maximum legal rate, wPhichever is lo-er, ont all
AnIC'LE VI7~1I-I[NVESTIGAEOCN OF COMPL;AINTS
(a) Upon receipt of written complaint filed by an employer, the
Supervisory Agency of the Resfrigeration Subd~ivision of the Elec-
trical M~anufact~uring Industry shall cause an investigation to be
made for the purpose of e~stablishling the facts. I~f such investiga-
tion establishes facts from which. there is a presumption that this
Code: has been violated, thne offending employer shall be requested
by registered letter from. such Supervisory Agency to refrain from
such offending practice, and if that employer repeats or continues
the offense, the matter may be referred through the proper channels
to the A~dm~inistrator for such action as seems to him proper in the
circa umIst anIce~.
W~lhen any investigation is made or authorized by the Supervisory
Agency of the Refrigeration Subdivision, such investigation shall
be mad by a person. or p~ersons~ not emnplo~yed by any member of
t~he indusft~ry whenevePr suc~h invesPitigat ion requires facts to be obta inred
which should not be made known to competitive organizations.
(b) If the Administrator shall determine that any action. of a
Code Authority or any agency thereof may be unfair or unjust or
contrary to the public Interest, the Administrator may r~equir~e that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by such. Code
Authority or agaencyS pending final action which shall not be effective
unless the Admninistrator approves or unless he shall fail to dis-
approv'e after thirty days' notice to him. of intention to proc~eedl with
suchl action in, its original or modified form.
(a) This Code and all the provisions thereof are expressly madle
subject to the right of thie 1President, in accordance with the pro-
visions of subsec~tion (b) of Section 10 of the National Indu~str~ial
Recovery -Act, from time to time to cancel or modify any order,
approval, license, rule, or regulation issued under said A~ct.
(b) This Code, except as to provisions required by the Act, may
be modified or amended on the basis of experience or changes in
circumstances, such modification or amnendments to be based upon
application to t~he Administrator and such notice and hearing as
he shall specifyr~, and to become effective on approval of the Adminirrs-
trator, unless otherwise provided, and when so approved shall have
the same force and effect as any other provision of this Code.
ARTICLES IX-LEFFEC'TI'E DATBO
This Code shall become effective on. the eleventh day after its
approval by the Aidministrator unless othlerw~ise provided.
Approved Code No. 4l--Supp~lement No. 1.
Registry No. 1828-16.
UNIVERS111111111111111ITYlii OF111 FLORIDA