NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
W~HOLESALE SURGICAL INDUSTRY
For sale byJ the Superintendent of Documents, W'ashington, D.C. .-Price 5 cents
Approved Code No. 501
R'egistry No. 1628--09'
AS APPROVED ON AUGUST 9, 1934
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Approved Code No. 501
CODE OF FAIRR COMPETITION
MArNUFAC1`7iTUING~; AN~D WHO~CLESALE: SURIGIC~AL
SAs Approved on Arugust.9, 1934
CODE, OF FAIR COMPETITION FOR THE RiANUFACTURING AND WHOL;ESALB!
An application having been duly made pursuant to and in full
compliance withn the provisions of Title I of the National Industrial
Recovery A4ct, approved June 16, 1933, for approval of a Code of
Fair Competition for the Manufacturing: and Wholesale Surgical
Industry, and hearing having been duly held thereon and the annexed
:report on said Code, containing findings with respect thereto, having
been made and directed to the 1President:
NSOW, THEREFORE, on. behalf of the Presilnt of the United
States, I, H3ugh S. Johnson, ~Administra~tor for Industrial Recovery,
Peiet nldn xctv repursuant to authnority vested in mebyExecuti~ve Ordecrs of thie
30, 1933, and otherwise; do hereby incorporate by referencej said
annexed report and do find that said Code complies in all respects
with t~he pertinent provisions and will promote the policy and
purpI`oses of said Title of said Act; and do hereby order that said
Code of Fair Competition be and it is hereby approved; provided,
howev-er, that w-ith~in ninety days I may diret~cthat there be a, further
hearing on suchl of the provisions of said Code as I may dlesignalte,
andl that any order which I: may make after such hear~ingb shall have
the effect of a condition on the appllrovai~l of said Code, and providled
further thant Se~ction 3 of Article VIII be, and the same is, hereby
HTEcu S. JaINuson,
Admlinidtrautor forr Industrial! Recovery.
AppIr rovanl reco I 7!nunended:
GEo. L. BERRY,
A ~1ugut 9, 19~3;.
REPORTT TO THE~ PRESIDENT
The White House.
SmR: This is a, re~port on tlhe Codle of Fair Compettiton for the
nlnfnufacturingn and Whlesale Surgicral Indlustry, the h-ear~ing hav-
ing been conul~c~ted in W/ashington onl the 27'it~h dany of November,
1933, in accordanmce with the provisions of Title 1 of thle National
Ind'ustrial Recovery Acet.
The M\anufactduring and Wholesale Surgical I[ndustry had a re-
duction in employment betwe-ten Junle, 199~ and~ Octo~ber, 1933 of
about twenty-onre (21%j) p~ercent. Em~ploymentet increased~ about
sixteen (16%/c) percent between June, 19:33 andi October, 193:3, wfhle
the averag~ne hours worked per week detcreasetd about tenl (10)Sr~
per'centl inl that samec period. Average hours worked ~er' week; in
October, 1983;l wer~e 36j.3. The minillnun wage rates in this IndustryF
were somewirnhat h~ighrc1 in. October, 1933 than inl June, 19203. The
minimum. rates as prov,~ided in this C'ode w-ill pro~vide weekcly earnlings
hI~igh~er than the lowvest wage rate in 1990~.
The Office of the Surgeon G~eneral o~f the W\ar Dcpalrtmnlt has
advised me that this Industry shocu~ld r~ceiv-e sympal~zthetic c~onsider-
ation, for the reason that this Indus-try) is an implor~tanlt factor in
their N~ational D~efense pha.I:
HOURS AND' W I~c;ES
The Code provides~ a standardll- work wTeekl of forty~ (4l0) hours,
excecptionsli being made as follows:
Sklilled- mec-l~halnica~l artisans are permI~itted to work miore than
forty (40) hou~lrs~ in any one week.l; p~rov>ided th~t. inl cases where
no such additional la~bor is avalilalble thley sha~ll be allow-ed. t~o workr
forty~-four (44) hourls in any one wee~k or ninle ('1) hours in any
one day; provided, however, tha~t onle andl one~-half timels the normal
rate of pyshall be paid each emplloyee~ for all timie worked in,
excess~ of tesadr week.CL Emergecy\ malintenanllce and emler-
genlcy3 repair wviork emplloyjees m~ay work1 ini ecess~ o.f the standard
w-reek providing they are! paid time an w-af or their wo in
ecesls. of forty (40) hours per week;11. Sria plac itr
may be permlited. to work in excess~ of forlty (010) hours11 inl any' o1e
weekl provided that each employee'~' is paidi onle andi one-half times
his normal rate of pay for w~orkr in excess of thle standrde~i week-.
Ma\]nage~,rrial, executive and superv\ielI n~ryemloyees wh~c ar~e panid more
t1h;1n Th'irty-five ($35.00) Dollars pe'L r week are exemp~ted from~ the
ma xsimlum~ hour provisions. In the evecnt. of emergencies dlue to ;~
epidmcl~icss or ca~talstrophes wherein the public hiealth is t~hreatened
the provisions regarding maximum hours of employment shall be
tem pohra rily suspended during such emergency.
Thraes Co~derovides for a minimum wage rate of 37%#2 per hour
for alesand321/2 per hour for females with. the following ex-
ceptions being made:
~Office boys or messengers between the ages of 16 and 18 may be
paid not less than $12.80 per week. This type of employees, how-
ever, being restricted to 5%/ of the total number of employ-ees in
any one establishment. At person whose earnirgg capacity is limited
because of physical or m~enltal handicap may be employed on light
work at a wage below the minimum established by the Code.
E~CONOMICI(. EFFECT OF" THIE CODE
In t~he Manufal~fcturingr and Wholesac~le STurgriedn Industry there
is practically no unemployment and consequently the shorter hour
provisions as established~c by this Code will not, in the final analysis,
inlcr~ease emnploymenet to any great extent. It is estimalted~, however,
that with th~e stalcndrd forty (410) hour week there will be a slight
increase in wnge-earner employment. The Code establishes a mini-
mum rate which is in excess of the average rate paid in June, 1929
and, from this point of view, wi~ll tend to effect~uat~e the purposes
ofT~itle I: of the Naistional Industrial Recovery Act.
The Deputy Administr~ator in his final report to me on said Code
having found as herein set forth and on, the basis of all the pro-
ceedings in this ma~tter:
I ~find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Rtecovery Act, includ-
ing removal of obstructions to the free flow of interstate and foreign
commerce which ~tend to diminish the amount thereof and will pro-
vide for the general welfare by promoting the organization of in-
dustry for the purpose of cooperative action among the trade groups,
by indu~cingr and maint~ainingf united action of labor anld mlanage-
ment under adequate governmental sanctions and supervision, by
elimlinatiner unfair comlpetitive practices, by promroting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (excerpt as ma~y be tem-
porarily~ required), by increasing the consumption of industrial
and agricultural products through increasing purchasing power, b
reducing and relieving unemployment, by improving standards o
labor, and by otherwiset rehabilitating industry~.
(b) Said ~Indus~try and Trade normally employs not more than
50,000 employees; and is not classified by me as a major industry.
(c) The Code as approved coml~plies mn all respects with the per-
tinent provisions of said Title of said Act, inrcludmng without limita-
tion Subsection (a) of Section 3, Sub!se~ction (a) of Section. 7, and
Subsection (c) of Section 10 thereof ; and that the applicant associa-
tion is an indlustrial association truly represe~ntat~ive of the afore-
said Industry; and that said assc~ciatio~n un~poses no equitable
restr~ictions on admission to membership therein.
(d) The Col-e, is not designed to and will not permit monopolies
or mnonopolistic pr1actices.
(e) The Code is not designed2 to andl will not eliminate or oppr~ess
small enterprises andi will nlot operate to dliscrimninate, against them.
(f) Those n~ga~gesd in other steps of the el:cnonomic process have
not b~een de~pr~ived of the r~ight to be heard prl~or to approval of said
M~embe:,rs of thlis I~ndustry have cooperated in a mIost satisfac~tory
amanner wit~h thle Adm-Tlinistrator in the p~reparation of this C~ode.
Fr1omi evidnc~e. addiuecd during this hearing and from recom-
menda.ltions and rep>orts of the va~lious Advisory Boardsli it is be-
lieved that this Code as now proposed and I~revi- ed represents an
effective, practical, equ~itab~le so.lutio~n for this Ind::ustry andc f'or
these reasons this Code has belen app,~c~rove.
HUGH S. JoHX2oN,
Adm~7ini ilisfitrat or.
A~UGUST' 9, 1934.
CODE OF FAIR COMPETITION FOR THIE MANUFACTUR-
ING AND WHOLESALE SURllGICAL~I INDUSTRY
To effectuate the policies of Title I of the National Industrial
Re~coveryT Act, this Code is established as a Code of Fair Competi-
tion for the 1Manufacturing and WhVlolesale Surgical Industry, and
its provisions shall be th~e standards of fair competition for such
Industry, and shall be binding upon every member thereof.
SECTION 1. The term "L the Maanufacturing and Wholesale Surgical
Industry or "' the Industry as used herein shall mean the manu-
facture and/or wholesale distribution and/or the importation of
particles or commodities uLsed in, or in connection wcith, or in aid of,
the practice of medicine and as particularly applied to surgery,
suchl as surgical and diagnostic instruments, appliances and appara-
t us for medical and surgical treatment, including sutures and liga-
tures, and including electro-surgical instruments and trusses and lik~e
appliances, used, prescribed or recolmmlended by physicians, hos-
p'italsi and nurses; except such instruments, appliances and appara-
tus, the manufacture and w~holesale distribution of which are gov-
er~ned by another Code or Codes.
S~ECTION 2. The term Member of the Industry r" or Ma/ember "
as used here~in. shall mean any individual, partnership, association,
cor~poration or other form of enterprise engaged in the Industry as
dlefined above, either as an employer or on his or its own behalf.
SECTION 3. The term. Employee as used herein includes any
andr all persons engaged in the Industry, however compensated,
except a member of the Industry.
SECTION 4. The term Employer as used herein includes anyone
by whom any such emplo ee is compensated or employed.
SECTIO)N 5. The terms President ", "CAct ", and "Admlinistrator "
as used herein mean respectively~ th~e President of the U~nited States,
Title I: of the NLiational Industrial Recovery Act, and the Admainis-
tra~tor for Industrial Recover~y.
SECTIoN 1. No employee, except as here~in otherwise specified, shall
be perm"itted~ to waork more thanl forty (40) hours in ainy one weekr
or six (6) days in any one week or eight (8) ho-urs in any onle day.
EXC~EPTIO~NS AS TO HOURS
SECTIO: N 2. No skilled m1chanllicalZ artisan shall be permitted to
workt more than forty (40) hours in any one week or six (6) days in
any. one week or eight (8) hours in any one day, provided however
that in cases where no suich addlitional labor is available as evidlencedl
by recports from. the UI~.S. Emnploymnent Service and a folrtyv (40) hlour
week will unav8oidlably restrict production such emuployetes may be
permlitted to w~orkl not more than forty-four (44-) hours in any one
.week- nor more than nine (9) hours in anly one day nor mlore than six
(6) days in any olne w~eek, provided~ howF~ever that one andl onel-half
times his normally rate of pay shall be paid each employe-e forl all timle
worked in excess of forty (40) hours in1 any one w~~ek or six (0) dayn~s
in any one wrecek or eight (8) hours in an~y one day).
SECTIONI 3. The0 provisiolns of this Article shall not aply;l~ to entl-
provided thatt each such em~ployees is paid at the rate orf one and
one-half times his non1rmal rate of pay for all time worked~i inl excess
of forty (40) hiouis in any one w~Teeki or six (6) days' in anyi onec week
or eight (8) hours in any one day.Lr e pmitl rol n
SECTION 4. Surgilcal applian'cefitrmabepmttdowokn
excess of forty (40) hours in any one wF~eekr or six (6) days in any
weekl or eighlt. -(8) hours in any one day providedl each such emp~loye~e
is pa:id' onoe and one-half times his normal rate~ of pay iocr all timle
workedt~ in excess of hours sp-ec~ified in this Section.
SCEenoxt~l 5. Tle ~provisIons of this Article shall1 not apply1\ to, petr-
son,!s emuployed~c in a mnagn~erial, executive or supernsi o~yv capjc~ity wh~o
are paid more than thiirty-~five ($i35.00) dollars per week~l, nolr3 to
S~cenos 6. In the event of emergecnL~cis due to ep~idetmic or e~nts-
trop'hils wherein the public health is thlreatenedl, the pr~1ovisionls re-
gallrFin maximum hours of employment, shlln be tempralc rlyll sus-
pcriende during such em~ergecncy as to those employees whosc;e work: is
at~'ectell thereby, but on. condition that no crnemloyee shal~l be pe!rmi tted.
to wo'irk mIore than fifty-four (514) hours in any one! week~l dur1ing
such ejmerrcenev p~eriod; in all such enses the members of th~e In-dustryp
atrected thereby shall notify the Code Authority of the~ reason for
the exi:rency of thel emrgenc-~lry, Lrthe hoursl- workelld by! the~ Employ(3 ees
during thze period of such. CllemrrgenlCy, and the ~termination~ thereof;
and~ the YCode Author.ity\ shlall immlled~iately report the isame to thle
Adinstatr.In these enwrglencies eatch employee cshall be paidl
one and one-half times his normalnl ra~te of payl for all timle wocrke~d in
excess of forty? (40) hours in any onec week or sixr (6', days in any
one week: or eight (8) hzours in any one day.
SECTION 7. grTatehllell mayS be permitted to w~or-k a me x Worn~:1 of
fifty-six (56) hours II:'' we< k', but no wa't(.llhl'in shall be~ emp~l!loyed
more thann six (6) days in any seven ('7) day pecr~iod.
EM:'I:PLOYMENT BY NE11-R.1L TI`L~~ioYEPS~;
SECTION 8. No employer shall knowine~ly permit any employeec to
wrork for arny timle which whn-l! toltaled withl that already v workedi f~r
another employer or emplloyers exc~eeds thle maxilum~ perm~itted
SECTION 1. N~o male emplloyeec ecepft. as hrereinafter sp~ecifiedl shllnl
tj pa~id less than at the ratec of thirty-seven and one-hlfnt (:3714z)
cents per hour. No female emnployee, except as hereinafter speci-
fledl shall bc panid less thasn at the r~ate of thirty-twco and one-ha~lf
(321.0) cents per hour.
SECTION 2. Offiice boyS or messengers between thne ages of sixteen
( 16) and eigrhteen (18S) years maiy be paid at not less than the rate of
Twelve Dol/lars andl Eigrhty Cents ($f12.80) per week, and the total
number of su~chi workcr~s -Ihall nIot in any (lcase exceeds one in number
or 5C'% of the ttlnme fteepoeso netbihet
whichever isi thle hlighrcl. ?lThe names of such emlplo-yees shacll be
madre available1 t, any\ emplloyee and shall b~e filed with the Code.
Authlority andl thei Athnlniis;.toratr
Se~TCrno ;3. Thiis Article es4tabishes a miniiirlnun rate of pay which
shanll ap~ply irrespctivict\ e of whelcthler an employee is actually comn-
pensated on a timie rate, piece work or other basis.
SECxnon -. Femal~le emp~loyees~ pe~rformlingr substantially the salme
work; as malle employees~t shanll recerive~ the same rate of pay as male
emlployees andl whlen they\ diclplaee male eployees3-c they shall receive
the! samle ra;te of pay1~ n- ther me1n they displace.
SEc.TION .5. EqulitaBleC adjustmlents above the mzinimumr in all pay
schedulesci of empl.loyees. shalll bel madelt within thirty (30) days aIfter
the eff:c~tive dante of this Cod:e by any employer~ who ha~s not since
JuneI; 10, 133. madelt su~ch adju.s~tmen~lts under th~e Act. In no evecnt.,
hown~~ever, shll hrly~ll rates Ihe redl(uced. WTit~hin sixty (60O) days after
thle e-ffc~ti\.e datice of this iCode,. each ruembller of this Industry shall
manke a recporlt of suchl ad~ju~stmenclts (whether made prior to or subsl~e-
q~uent to da~te of aI~pprovali of th~is Code) to the Code Aluthlority.
SECTIONs !L. II pellson Wilib~~e 0YIlng capac~l:ity it limitede. beCau;~ Se of
age or' phy~lsied:l olr mentanl band~icap~l or other infirmity may~l be em~-
p>~!llae on ligh~t w-orkl at a wagei below the mlinimuml established by
this Cod.l~e if thle emprlloyr,' olbtains fromt the Staste Authority desig-
natdcc by th~e UnTlitedl States Depatrtment of Labor a certificate au-
thor~izingS h~ii empilloyme~lnt aIt sm-1h wages anld for SUCh~ hours as sharlll
be statedl~ in thle cer~ltit~eate. Each~l emlbyeri3 shall file monthly with
thle Code Au~thor~ity a list of all such pe;rsons employed by him, showc-
inig the w\nges~ pa~id to,. nd~ th~e mnaximum hours of wvorki for such
S~rnes 7.Wees shal be paidweekly o san-ot lyinlawfl
noney ~ ~ ~ ~ ~ ~ ~ ~ ~~V~~t orb eoibecekpybeo eu .Wgs hall be
exempllt froml~ lines, (harge.-,' reba);tes,~ deductions or any other form
elf w\ithhorlllding_ wages~~ excep'lt for conr~libli-utions voluntarily rnpale b3y
the: emplloyee~ or requirilEdI by law. Thec empllloyer or his agenlts sha~ll
acce(Plt no1 re~bates directly or indliretilly on such wages nor give any-
th~ing~ of value or extendi favors to any person for t~he pu;rposc'e of
inlfluen c1.'ingII rates of wagesc, hours, or the wvorkring conditions of his
SECTIrON I. NO ICrson unCder sistcen (18) years Of nge Shall be
emlo~'ryed in the Industry. No person under eigrhtceen (18) yecars1 of
age shllnl be emplloy\ed' at operations or oclcupations; whlich are ha3zalrd-
oius in nature or dangerous to health. The Cod~e Aut~hority shall
submit to the Administrator within sixty (60) days after the ap-
proval of this Code a list of such operations or occupations. In any
State an employer shall be deemed to have complied with. this pro-
rision as to age if he shall have on. file a certifiente or permit duly
signed by the Authority in such State empowered to issue employ-
ment or age certificates or permits showing that the employee is of
the required age.
rHO\'IScIONS FROMI TI1E: ACT
SEcTocx 2. (a) Employees shall have the right to organlize and
bargain collectively through representatives of their own choosing,
and shall be free from the interference, retstralint, or coercion of
em~ployeres of labor, or their agents, in ~the designation of such repre-
sentatives or in self-organization or in other concerted activities for
thelP purpoeSP of corll~ctijve bargainingr or other mutual aid or pro-
(b) No employll,3ee and no one seeking employment shall be reqluiredl
as a condition of employment to Jomn any company umion or to
re ramn romt joimng, orgamizm~g, or aSsis ing sa, lor organization
of his own. choosing, and
(c) Emrployers shall comply writh the maximum hours of labor,
minimum rates of pay and other conditions of employment approved
or pr'escribed by the 1President.
RECLASSIFICATI[ON OF EM~PLOYES
SECTION 3. No employer shall reclassify employees or duties of
occupations performed or engage in any other subterfuge so as to
defeat the purposes or provisions of the Act or of this Code.
STANDARDS FO SAF ETAND HELTE
SECTION 4. Every employer shall mak~e reasonable provision for
the safety and health of his employees at the place and during the
hours of their employment. Standards of safety and health for
each division of the industry shall be submitted to the Administrator
bythe Code Authority within three (3) months after approval of~de
S3c-rtoxs 5. No provision in this Code shall supersede any State or
Federal Law which imTposes on employers more stringent require-
ments as to age of employees, wages, hours of work, or as to safety,
health, sanitary or general wcorkiing conditions, or Insurance or fire
protection, than are imnpo-~sdc: by this Code.
SECTIONJ 6. Ahll employers shall post and keep posted copies of
this Code or its labor provisions in conspicuous places accessible to
all employees. Every member of the Industry shall comply with
aLll rules and regulationsll relative to the posting of prlov-isions of
Codtes of Fiair Comp-i-etitio~n which mayT from time to time be pre-
scribed byV the ~Administrator.
DISTIGSSAL FOR COMXPLANT
SEenoxs 7. No extployee shall be dlismissed, demo~clcted or discrimni-
nntee against by reasonl of mainig a complaint or giving evidleic~e
withl r'es)et to an alleged~c vichltionll of this Clode.
ARTICLE VI-Oh';anI.~Tizanox PowERS sr 21 Ivrles OF THE CceD
SCECTION: 1. A Code Au~tho-r~ity is hllereby established to cooperate
w~ith the A2dinitraitor~l( 1 in the ad~minis.tration. of this Code, and
shl~~l consist of seven (7) members of the Indu tryi;, five (5) of
w~hom shaIllbe selected from the Whlc, alel~ Surgica~l Trade Ass~oc~in-
tion, andt two (2) members from the Industry who are not.memberlc 31s
of the Wh'lolesale SurgIical Trade Association. The mnethrod of elee-
tionl of the Code Authorityr shall be subject to the approval of the
SECTION 2. In addition to the members of the Code Authotrity aIboveo
mecntioned, the Ad-minis:trator, l may appoint not more than three (3)
members without vote anld without compensation from the Indiustry.
SECmon 3. Nolthingr conitainedl in this Code shall con,!stitute the
members of the Clode ASuthority partners for any purpose; nor shall
anly miemblers of the Code Authority be liable in any manner for any
ne't of any othecr member, o~fficer, agent, or employees of the Cod~e
Authority; nor shall an~y member of the Code Authority exerc~ising
reaRsonable diligence in the conduct of his duilties hereunder, be liable
to anyone for any action or omission to act under this Code, ex-
cep:t, for h~is o~wn wilful malfelns;nce or nonfeasance.
SEcTION; 4. Ill Order thatt the Code Authority shall at all times be
truly reprecselntaive of the Indullstry and in other respects comply
w~ith~ the provisions of the Act, the Administrator may prescribe
such hlearings~i as he may deem~l proper; and thereafter if he sjhnll find
that. the Code Authority is not truly: representative or does not -in
other1 respects comply with the provisions of the Act, may require
an app'ropria:tez modification in the method of selection and composi-
tion? of thec Code'l Author~ity.
Bre'TTNo 5. If the Acdministrator shall determine that anly action
of thle Code Authority or any agecy!c thereof may be ulnfair or unjust
or co:ntranry to th-e public interest, the iAdministratorr may require
thant sulchT ac.tio~n be~ suspendedi:' to afford an o~pportunity for an inves~ti-
gntion orf the merits of such action and further considerationi by such1
(Code: Aruthcr~ity or agency pending final action which shall not be
effective unless the Administrator approve-,~ s or ulnless he shall fail
to dtisapprove after thirty (30)- days' noticet to him of intention to
pt-roceedl with such action in its original or modified form.
POWnER:S AND DUTIES
SEenowN 6. Subject to such rules and regulations as may be issued
by the Adlministrator, the Code Authority shall have the followinga
powrsand dulties, in addlcitionl to those authorized by other provi-
sions of this Code.
(a) To insure the execution of the provisions of this Code and to
provide for the compliance of the Industry with the provisions of
(b) To adopt by-laws and rules and regulations for its procedure.
(c) To obtain from members of the Indlustrfy such information
and reports as are required for the administration of the Code. In
addition to information required to be submitted to the Code Au-
thority, members of the Industry subject to this Code shall furnish
such statistical information as the Atdmlinistrator ma~y deem neces-
sary for the purposes recited in Section 3 (a) of the Act to such
Federal and Statet agencies as he may designate; provided that noth-
myg in this Code shaUl relieve any member of the Industry of any
existing obligations to furnish reports to any Government agency.
No individual report shall be disclosed to any other member of the
Industry or to any other partyJ except to such other G-overrunlental
agencies as may be directed by the Admninistrator.
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any~ of its activities provided for
hereinl, provided that nothing herein shall relieve the Code Au-
thority of its duties or responsibilities under this Code and that
such, trade associations and agencies shall at all times be subject to
and comply with the provisions hereof.
(e) To make recommendations to the ALdm~inistra-tor for the co-
ordination of the administration of this Code and such other Codes,
if any, as maty be related to or affect members of the Industry.
(f) 1. It being found necessary in order to support the admin-
istration of this Code and to maintain the standards of fair com-
petition established hereunder and to effectuate the policy of the
Act, thte Code Authorityr is authorized.
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes, and to meet such obligations
out of funds which may bee raised as hereinafter provided and
which shall be held in trust for the purposes of the Code~;
(b) To submit to the Administrator for his approval subject
to such notice and opportunity to be heard as he may deem
necessary: (1) an itemized budget of its estimated expenses for
the foregoing purposes; and (2)j an equitable basis upon which
the funds necessary to support such budget shall be contributed
by members of the Industry;
(c) After such budget and basis of contribution have been
approved by the Administrator, to determine and obtain equi-
table contribution as above set forth by all members of the
Industry, and to that end, if necessary, to institute legal pro-
cee~dings therefor in its own name.
2. Each member of the Industry shall pay his or its equitable con-
tribution to the expenses of the maintenance of the Code Authority,
determined as hereinabove provided, and subject to rules and regaula-
tions pertaining thereto issued by the Adiministra~tor. Only mem-
bers of the Industry complying wiith the Code and contributing to
the expenses of its administration as hereinabove provided shall be
entitled to participate in the selection of members of the, Cods
Authority or to receive the benefits of any of its voluntary activities
or to make use of any emblemn or insignia of the National Recovery
8. The Code Authority shall neither incur nor payr any o~bligation
in excess of the amount thereof as estimated in its approvedl budget,
except upon approval of the Administraltor; and no subsequent
budget. shall contain aniy deficiency iteml for expenditures in excess
of prior budget esitimates except those which the! Admnini-trator
shafll hav~e so ap~pr~oved.
(g) To recommlendc to the A~dministrato-r any action or meIres~~~rc
deem~edl advisable. including furthler fair trade practice provl~isinnsl'
to gov-ern m~embe~r~s of the IndlustryS in their relationsl with each o~th~er
or with~ jthlerl Industrie~s; measures for industrial planllning~, and
staibilization olf emnplolyment- and inclutlinej modlif~ic~iati o~f this
Coder which shanll bci-ome effective as part hereof upon approval by
the Adiminiistrantor after such notice and hearing as he may -pecify.
(h) To appoc-int a Trade Practice Committee which shall meet
with the Tradel Pr~c~ticeI Committees appointed under such o~theri
codes as may be related to the Indu7~stry for the purpIlose of formnulat-
Ing fair trade prne-tice~s to govern the relationships between em-ploy-
ers under this Code and under such other Codes to the end that such2
fair trade Ipractices may be plropoiru- to the Administrator as amend'1(-
Inents to this Code and such other Cod~es.
(i) To consider and refer to an executive Comm-ittt~e of the Div~i-
sion concerned, for investigation and Itlreprt back~~ to the Codel Au-
tho~rityr, all charges of any brea~;ches of the Code and/or any jlchedul~ les
or amendments thereto.
SECTION 7. Each tradnie or industrial association dliretctly or indi-5
rect~ly participating in the selection or activities of the Codle Au-
t~hority shall (1) imposei~t no inequljitabl:le! retric~tions opn mrembershaip,
a~nd (2) submit to the Adm!!inictrator:; true copries of its particles of
associartio~n, by-Irnws, regulations, and any amndment~f.~:~ t. wihen madl~e
ther~eto, togeth-er w-ithl such other information as to membershipc:il'
organniza tion, and activi-ties as the Adm~ni n istrIa t o may deem ne'!cssaryS
to effec~tulate thle pur~poses of the Act.
SrEC'TIOjN 8. Each product divisional group of the induilstry shrall
hlave its ow~n separate~i and distinct planingii l committees, kinowin as the
Divisio~n Exsecutive Committee, and such executive committee shall
place in writing all ofE its de!cisons and recomlmenda~tion~s to thre Clidet
AuthorityT for~ approval at least. fifteenr (15) days b:ef- r such d3e-
cisions aIndl recomme!ndlationss are to become effooljciive. I h o
Auth~orit~y disapprovesc~ or fails either to alpprov-e or dlisapp1l!rovec sulch
dlecisions or r~ecommenan!ll;tionsr l within fifteenl (13) Ilnys after their
retceiit, by the Code Authorityi, the D~ivisir-n Ex3recu~tivLe Commit~tee
shall b~e entitledc to prlesent its recommeI~cl~i~tndaios to thle Adminis-
trator for his app~rolval, if the approval of the Adinr~rirstr~ator is
~AzercIcr VII--TRADE PRACITICES
SECTION I. ~NO mnemb~~er of the Industry shall give, pe~rnit to be
gi ven, or dir~ectly offer Lto ih~ve3, an~ythng of v-alu~e frtepr eo
in fluenci ng or rewfirding h action of any employee, agent or repr!e-
sentfative of another in relation to the b~usiness of the emplloyel~tr of
such employece, the pr~inc~ipal of such agent, or the representede~
party, without the knowledge of such emp~loy~er, principal or party.
Commrerc~ial bribery prov-isions shall not be cons~trued~ to prohlibit free
and general distribution of articles comm~only used for adlver~tisingr
except so far as such articles are actually ulsd for commercial
bribery as hereinabove defined.
SECTION 2. No memrber of the Industry shall allow secret rebates,
refunds, commissions, credits, or unearned discournts, whether in
the form of money or o~therw~ise or extendl to certain purchansers
special services, prices, nor shall a member extend special privileges
not exte~nded~c to all purchasers of the same class, on like terms and
conditions, nor withhold from, or insert in an invoice or cont mect
any stattementts wRhich make the invoice or contrnet a false record,
wholly or in part, of the transaction cover~ed thereby.
Psrnowh 3. No member of the Industry shall use advertising which
is innl.ur11ate in any material particular, nor shall a member directly,
by ambiguity or by inference misrepresent merchandise or any sub-
stance used in connection therewcith (including, buat not limited to,
its use, tradlemar~k, grade, quality, quantity, size, origin, material
content, preparation or curative or therapeutic effect) or credit
terms, values, policies, or services; and no mem~nber of the Industry
shall use advertising and/or selling method- s which tend to deceivec
or mislead the customer. Ad-vertisinlg includes all representations of
fact or opinion disseminated in any manner or byr any means, in-
cluding the labeling of products.
SECTI[ON 4. PNO ml~llembe of the Industry shall disseminate, publish,
circulate or cause to be disseminated, published or circulated any
false or misleading~ statement relative to the following:
(a) Any product or price thereof of any member of the Industry;
(b) The credit stranding or ability of any member of the Industry
to perform any work or manufacture, or to produce any products.
SECTION 5. No member of the Industry shall imnitalte or simulate
any design, style, brand, trademarks, slogan, or other means of iden-
tification owF~nedi by any other member of the Industry in such a
manner as has the tendency or capacity to mislead or deceive
purchasers. In order to maake this provision effective the Code Au-
thority may provide for the establishment of an agency for the
registration of surSpcal instruments of original and useful design.
No provision of this Section shall supersede any State or Fiederal
SECTroxu 6. No member of the Industry shall induce or at tem~pt to
induce ~by any means, the breach of an existing contract between a
competitor and his customer or source of supply; nor shall any such
member inter~fere with or obstruct the performance of such con-
~tractual duties or services.
SECTION 7. The following additional trade practices shall apply
to the Surgical Appliance Manufacturing Division:
(a) No memberll~ of the Division shall ship goods on consignment
except under circumstances to be defined by the Code ~Authority
where peculiar circumstances of the Industry require the practice,
and the Code Authority shall report the same to the Aldministrator.
(b) No member of this Division shall require that the pur~chase
or lease of any goods be a prerequisite of the pilrchase or lease of
any other goods.
(c) No member of this Div~ision shall accept returned merchan-
dise except for defects in manufacture, delay in de~livsery, errors in
shipment, reconditioning at a price p~reviously agreed upon, or the
buyer's inability to pay for the merchandise.
A HTcICLE \'TI -JIfoDIFc.\ICiIN
SECTIO~N i. TilliS jCode~ andl all th~e p3rovisio~ns thecreo~f are exp~re~ssy
m~ade su~ibject. to the r'icht of thne Preeidcnt,, in acordanllnce~ with thne
prov-isionil o~f sub11sectidr3 (b) of Sec~tionr 10 of the ~Act, fromll time to
time to can11cel or mod~cify' any olrder'l, approval~, license,~ rule or regu-
lation issued~ under said' Act.
SEC`Trow, '. Thli3 Codel, excepjt as to provisions req~cuir~ed~ by th~e
Act; may\ b~e mod~ifiedl o-r amended onl the balsis of experience or
changes in c-ircumsl~tances, such nm:,lificentio~ns or amerun~ lments to be
basedl upjolln aplica~tion to- the Administ en~tlrl anld such'1 notice and
hearing as hre sha1 ll spcify, and to become e~ttlletIve on approval of
thle Admin ist ra~t or.
SECTION 3. P'ry plresen~tingr this Cod-e, those who have assented
her~eto do not thetre~by consent to any modification thlered~l except as
each shall thereto subsequently agree, or to the waiver of any of their
constitu t ional righ~ts.f
ARTICLE IXZ-3nIloroui IEsi
NoV proUvisionI of1 th ~is Cod all bei so aipplied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enlterprises.
Ai~RTcLE X--PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if pr1ices~c of goo'ds and
services inlcrease;t as rapidly as wages, it is recognizedt that price
increases except sulch as mal~y be required to meet individual cost
should be delaved, but when made such incr~nease should1I, so far as
possible, be limited to actual additional inc~reases in thne sellerl's cost.
ARCTILE X;I-~FTEC"TIVE 'DATE1
This Codce shall becoi-me effective thne secondc M~ondca.y after1 its
alpprova~l by t~he President..
Approvedr~ Code 501~.
Regrist ry N'o. 1628-49.
1 Deeted---See paagraph, 2 of order approving thist C~ode.
UnIvIER IT Y OF F LORIDA
IIA NIlRII\lIWI ll5II
31262 08850 5069