Code of fair competition for the electric storage and wet primary battery industry, as approved on October 3, 1933 by Pr...


Material Information

Code of fair competition for the electric storage and wet primary battery industry, as approved on October 3, 1933 by President Roosevlet
Portion of title:
Electric storage and wet primary battery industry
Physical Description:
iv, 9 p. : ; 24 cm.
United States -- National Recovery Administration
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Battery industry -- Law and legislation -- United States   ( lcsh )
Storage batteries -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 699-1-05."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004942931
oclc - 63654836
System ID:

Full Text

Registry No. 699--1-05

I ------~'I
For sale by the Superintendent of Documents, Washington, D.C. Price 5 cents








1. Executive order
2. Letter of Transmittal
3. Code


This publication is for sale by the Superintendent of Doc~uments, Governmuent
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
Atlanta, Ga.: 504 Post Office'Building.
Birmingham, Ala.: 257 Federal Building.
Boston, 1Mass.: 1801 Customhnouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chlicago~, 111.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Texc.: Clhamberc of Commerce Building.
Detroit, Mich.: 2' 1:3 First. National Bank Building.
Houston, Tex.: Chambler of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Flat.: C~hamber of Commaerce Building.
Kans8as City, Mo.: 1028 Baltimore Avenue.
Los, Angele~s, Calif.: 1163 South ]Broadwcay.
Louisville, KIy.: Room 405, 421 West Markret Street.
Memphis, Tenn.: 266 South Water Street.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
Newv York, N.'Y.: 734 Customhiouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: Room 812, 20 South Fifteenth Street.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 1406 Vance Building.



Arn application having been duly made, pursuant to and in full
compliance with the provisions of title I of the Nationlal Industriall
RecovFery Act, approved June 16, 1933, for my approvcal of a Code of
]Fair Competit~ion for the Eilectric. Storage and Wet ]Primary Battery
Industry, and healring~s having been held thereon and the Administra-
tor having rendered -his report containing an analysis of the said
Code of Fatir Comnpetition1, together with his recommendations and
findings with respect thereto, and the Administrator haavin~g found
that the said Code of Fiair Compgetition complies in all respects
with thae pertinent .provisions of title I of said act and that the require-
menzts of clauses (1) and (2) of subsection (a) of section 3 of th~e said
act have been met:
NOW, THEREFORiE, I, F'ranklin ~D. Roosevelt., President of the
United Stat~es, pursuant to the authority vested in me by title I of
thle Nat~ionall Industrial Recovery~ Act, approved Junle 16, 1933,
and otherwise, do adopt and approve the report, recommendations
and findings of the Administrator and do order that the said Code
of 1Fair Competition be and it is hereby approved.
October 8, _1988.
Approval recommended.
Ad min~l istrator.

Th~e White HoYuse.
IMY D)EAR Mr. ]PRESIDENT: I hatve the honoer to submit and recom-
mend for your approval, the Code of Fair Competition for the Electric
Storage and Wet Primary Ba Ltery: Industry. The Code has been
approved by the Industrial Advisory Board, the Labor Advisory
Board, and the Consumers' Advisory Board.
An analysis of the provisions of the Code has beenl made by the
Administration, and a complete report is being transmitted to you.
I find that the Code complies with the requirements of clauses (1)
atnd (2), subsection (a) of section 3 of the N~ational Industrial Recovery
I ama, mry dear M~r. President,
Very sincerely yours,
Admnin istraltor.



I. To effectuate the policies of Title I of the Natio-nal Ind~ustrial
Recoverys Act, the followig provisions are submitted as a Code of
F'air Competition for the 1Electric Storage anid W7~et ]Primary Battery
Industry, and upon approval by the President, shall be the standard
of fair competition for this industry.~

1. The term Electric Storage and Wet Primary Batter y Industry
as used herein includes the manufacture of the following products:
(a) Automotive Storage `Batteries for Starting and Ligh~ting Serv-
ice and Radio Receivig Storage Batteries and Parts and Accessories
(b) All Electric Storage Batteries not included in (a) and Parts
and Accessories ftherefor.
(c) All Wet Perimary Batteries an~d P~arts and Accessories therefore.
2. The term "emrploy~ee", as used herein, includes an~y person
engaged in any phase of the industry in any capacity in the nature
of employee irrespective of the method of payment of his comlpensa-
tion .
3. T'he term "'employer", as used herein, includes anyone for whose
benefit such an employee is so engaged.
4. The term "member of the industry includes any~ manufacturer
who shall be subject to the Code.
5. TIhe term "member of the Code includes a~gny meber of the
industry- wjho shall expressly signify a~ssnt~ to this Code.
6. TIhe term. "effective date", as used herein means the second
Monday after this Code shall have been approved by the P~residecnt
of the Unit~ed States, except Schedules I and II of the Code, whvlich
shall become effective thirty days thereafter.
7. The term expirationon dat"', as used herein, mens~fn the: ter~mina-
tion of the National Industrial Recovery Alct or thie earliest date prior
thereto on which the President shatll by proclamattion, or the Conrress
shall by joint resolution, derclalre thant the emergency r~cocgnized- by
Section I of the National Industrial Recovery Act has ended.
8. ThZe term "Association", as ulsed hereinl, m~eans Nltiolnal Bat ter~y
Manufacturers Associatio~n, Inc., a trade-l association having its office
inr New York Citly.
9. The term "Code Authority", as usedt hnerein, metans the Com- or its successors as provide~d for by Article: VI.
10. The term "the Pre~sidetnt" means the Preside~nt of the United
States of America.
11. TIhe term "the Act"" means the Nartiona~l Indtustrial Recovery
Act as approved by the President, June 16, 1933.
IE16-13-164---33 (11

12. The term "the Administrator" means th~e Admlinistraltor
appointed by the President under the Act and at the time in offce.

A. No factory employee engaged in processing and in labor incident
thereto, except supervisors receiving not less than $375.00 per week,
shall work or be permitted to work in excess of an average of 40 hours
per week in any calendar year; nor in excess of 48 hours in any one
week; nlor in excess of 8 hours in any one day except as hlereinafter
provided. When necessary to avoid economic wanst~e in continuous
processes, employees engaged in such processes (not to exceed 10%0
of the factory employees) will. be permitted a tolerance of 10%0 over
the maximum hours per day, except that such tolerance shall not be
permitted to increase the maximum hours per week, nor the average
hours per week in any calendar year.
B. No other employee, except managerial and executive staffs and
technical engineers and outside salesmen, receiving nlot less than
$35.00 per week,' shall work or be permitted to work in excess of an
average of 40 hours per week in any calendar year.
C. The maximum hours ~fixed in the foregoing sections shall not
apply to employees on emergency maintenance and repair work, but;
in any such special cases at least time and one third shall be paid for
hours wvorkred in excess of the maximum hours per week herein pro-
D. No employee shall wiork or be permitted to work for a total
number of hours in excess of the number of hours prescribed for each
week, whether employed by one or mrore employers.

A. No factory employee engaged in processing and in labor incident
thereto, shall be paid at a rate less than 40~ per hour; unless the rate
per hour for the same class of labor on July 15, 1929, was less than
40 in which case the rate per hour shall be not less than thke ra t.e
per hour paid on July 15, 1929, but in no event shall the rate per hour
be less than 90% of the highest minimum rate per hour established in
this paragraph; and provided further that learners may be paid not
less than 80%0 of such rate but the total number of such learners shall
not exceed 3%0 of the total number of factory employees.
B. No other employee shall be paid at a rate less than $15.00 per
week, provided, however, that office boys and girls na~y- be paid not
less than 80%0 of such minimum rate but the total number of such
office boys and girls receiving less than such minimum rate shall not
exceed 3%/ of the total number of such other employees.
C. Equitable adjustments upward in all pay schedules of factory
employees above the minimum shall be made on or before the effec-
tive date by any employers who have not heretofore made such
adjustments anid the first mnonthrly reports of wages after said effec-
tive date required to be filed under this Code shall contain all w age
increases made since Fiebruary 1, 1933.
D. In determining his or her classification under this Code each
employee shall bei entitled to claim the benefit of the classification of
occupation existing on June 16, 1933.

~E. There shall be no discrimination in wages by reason of sex and
where in any- case w~omenl do substantially th7e samne w~orkf or performs
substantially the same duties as mnen they shall~receive the samne
rates of wages.
A. N1\o person under 16 years of age shall be emlployed in the indus-
tryT and no person under 18 y~ea-rs of age shall be employed in factory
B. No female shall be employed in any department where due to
the nature of the work or the location of the department such female
would be ecxposed to an appreciable; lead hazard.
1. Tlhe Code Authority shall. consist of five (5) members fairly rep-
resentative of the industry and elected by the members of the Code
at a meeting to be held between October 15 and N~uovember 15, 1933
and annually thereafter. During thne period between the approva\l of
the Code and the date of the meeting referred to above the Code
Committee of the Industry shall serve as the Code Authority and
cooperate with the Administrator to effectuate the purposes of the
2. FEior the purpose of supplying the President and the Adminris-
trator with requisite data as to the observance anld effectiveness of
this Code anld the administration thereof the Code Authority is
hereby designated:
(a) To collect from the members of the industry through an impar-
tial agent wiith full protection to each member as to the confidential
nature of the material all data and statistics required by the Admin-
ist~rator or reasonably pertinent to the effectuation of T~itle I of the
National Inrdustrial Recovery Act and said agent shall compile the
data and statistics and furnish the Code Authority summarizes thereof,
whlich shall be furnished to the National Recovery Administration
and to the members of the industry- all in such. formn and matnner as
t.he. Code .Aut~ho~it~y shall reasonably prescribe subject to the approval
of the Administ~ra tor.
(b) TIo represent the industry in conference with the Administra-
tor with respect to thie application of this Code and of said Act, and
any regulations issued thereunder, provided, however, that as regards
all matters mentioned in this paragraph (b) the Code Authority shall
have nlo power to bind the industry. The President or the Admninis-
trator may designate a representatives! to participate in such confer-
ences, wvho shall have access to all data and statistics collee~tdc~ by
said agent as above prov\ide~d. The Code ALu thor~ity or its lu thlorized-
comumittee or agent; shall hold itself in .realdiness to assist and keep
the Administrator fully advisedT, and to meet with the Admninis-
trator's representative frm time to time as required to consider and
study any suggestion or proposals pre1sented upon behalf of the Ad-
ministrator or any member of the indulstry regarlding the operation,
observa~nce, and admninistrration, or otherwise, of this Code.
(c) Evecry employer engaged in the industry shall furnish to thre
said agent as hereinbefore provided, approximlately everyT four weeks,

duly certified reports in such form as may hiere~after be prescribed by
the Code Authority, subject to the approval of the Administrat~or,
showing actual hdurs worked by the occupational groups of employees
and wages paid.

1. (A) Employers in the I~ndustry shall comply with the NSational
Industrial Recovery Act, as follows:
(1) Employees shall have the rightf to organize and bargain col-
lectively through representatives of their own choosing, and shal be
free from interference, restraint or coercion of employers of labor, or
their agents, in the designation of such representaltives or in self-
organizzation or in other concerted activities for thze purpose of col-
lective bargaining or other mutual aid or protection.
(2) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
from !oining, organizing, or assisting a labor organization of his owin
choosmg9; atnd
(3) Employers shall comply with the ma x~imum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed byT the President.
(B) This Code an~d all the provisions thereof are expressly made
subject to the right of the Presi~dent, in necordance with the provision
of Subsection -(b) of Section 10 of the National Industrial Rlecovery
Act, from time to time to cancel or modify an~y order, approval,
license, rule of regulation issued under Title I of said Act and speci-
fically, but without limitation., to the right of the President to cancel
or modify his approval of thins Code or any conditions imposed by
him upon his approval thereof.
(C) Within each State, members of the industry shall comply with.
any laws of such State imposing more stringent requilrements regu-
lating the age of em~ployTees, wages, hours of work or health, fire or
general w-orking conditions, than under this Coder.
(D) This Code is not designed to promote monopolies or to elmi
nate or oppress small enterprises and will not operate to discriminate
against them.
1. T~he Code Authority is designated as the agency to mlake recom-
mendations from time to time as to changes in this Code and its
schedules and to submit the same to the Administra tor.

1. A~ny member of the industry may become a member of th
Code and receive the benefits of the activities of the Code Authority,
b~y paying the proper pro-rata share of the costs of administering the
Code or by becoming a member of the Association.


1. Aflerchandising-(A) Branding.--Failure: either actually to maark or brand
each battery, or to refer by type or number or other designation marked onr the
battery to published specifications, with respect to the capacity) and quality of
the battery is an unfair trade practice.
(B) Seconds and Discontinued Lines.-Th~e manufacture of batteries as seconds
or disdcontinuled lines, or the marking of ~first-quality batteries as seconds, for the
purpose of selling then as such is an unfair trade practice. Seconds and dis-
continued lines incidental to normal production and sale, and not purposely made
as such, may be sold provided each battery is sold with the word "'second or
wPords "discontinued line"' as the case may be, plainly and permanently marked
on th battery. The guaranteeing and/or adjusting of seconds or discontinued
lines for a period longer than 90 days are unfair trade practices.
(C) Fidlitious Guarantees.-T-he giving or permitting to be given or published
of a specific time or mileage guarantee of life, by guarantee or adjustment policy
in excess-of a reasonable life expectancy of the battery in average normal service;
or t~he use of such terms as "unconditional guarantee" when conditions are in
fact imposed on replacement, are unfair trade practices. To describe or adver-
tioe or refer to an adjustment policy as a guarantee or warranty, is an unfair
trade practice.
(D) Rebuilt or Repaired Batteries, For Resale.--(1) The use of branded parts
in, connection, with. "rebuilt batteries, where the plates are of a brand other than
that shown on thne branded parts, or (2) the branding and/or marketing of bat-
teries as "rebuilt'" when in fact all used positive plates, negative plates, and
separators have not been, replaced with new ones, or (3) failure to mark and
identify plainly and permanently "rebuilt" or "repaired"' batteries in such a
manner as to clearly distinguish them from new batteries, or (4) the guaranteeing
or adjusting of "'rebuilt or "repaired batteries for a period longer than 90 days;
are unfair trade practices.
2. Transportation.--The maaking of transportation allowances in excess of the
amount of the actual transportation cost is an unfair trade practice.
3. Alisrepresentaion .--The making or causing or permitting to be made or
published of any false preparation of any batteries, component parts, electrolyte
or accessories is an unfair trade practice.
4. Excessive Allowances to Customers.--The granntingr or giving to any customer
of an allowance for adv~ertisinig or sales promotional work in excess of the actual
amount expended by the customer for these purposes is an unfair trade practice.
5. Subsidies-(A) Conrsignments.--There shall be no consignment of goods
mabde to any customer except to a wholly owned subsidiary of the consignor.
The term "consignment ", as used herein, means the supplying of goods to a con-
signlee for sale by the consignee under an arrangemnent whereby title to the goods
remains in the consignor until such time as they are wvithdraw-n from the con-
signed stock and/or sold by the consignee, and no liability for the purchase price
of the goods arises on the part of the consignee until such time as said goods
have been. withdrawn from the consigned stock and/or sold by him.
(B1) Renting Part of Customer's Premises.-TS~he p~ayuenlt by- any manufacturer
of more than a fair rental for any part of the premises of a customer for office or
warehouse space or any other purpose is an. unfair trade practice.
(C) .Ext~cessive Allowance and Adl-jusruentris .--The granting by a manufacturer of
any excessive allowance to a customer for alleged defective merchandise, alleged
shortages, or for adjusting comnplainlts of any kind is an unfair trade practice.
6. Selling Blielowr Coat.-TLhe selling of batteries and battery parts belowv the
manufacturer's cost, except seconds and discoluntinuedl lines and to fulfill obli-
gations under guarantees o~r replacemnelt, agreemlents, is an unfair trade prac-
tice. In determining violation of this rule, the cost of the product, apiplicable to
easch division of the business or to each product, determined in basic principles as
outlined in. the uniform, cost accounting procedure of the Association, subject to
the approval of thei .Administrator, shall be considered to be the prime cost of

material and direct labor; plus factory burden. including taxes, depreciation, and
ordinary obsolescence; plus selling, advertising, administrative, w-rarehoursing,
transportation, collection and all other costs and expenses. "Primne Cost of
mzaterial shall be understood to be the fair replacement cost of samle.
7. Indirect V~iolation.--No member of the industry shall participate in or pro-
mote practices which are declared unfair trade practices in this Code, by selling
batteries or parts to or through distributors or dealers which are not clomplying
with the requirements of Section 1, Paragrapha A, B, and D (1), (2), and (3),
8. Tyinig Contracts.--It is an. unfair trade practice to promote or induce the
purchase of batteries by any distributor or dealer by refusing to supply to such
distributor or dealer, goods other than batteries which such distributor or dealer
may desire to purchase unless such distributor or dealer shall also purchase
batteries from the seller.
9. Bonus and Discounts.--It shall be an unfair trade practice to increase the
discount or bonus on battery purchases made by anyone because of their volume
of other commodities purchased from the seller.
10. Exports.--Sections 1-B3, 2, 5-A, 6, 7, 8, and 9 of this Schedule shall not
apply to batteries exported to a foreign destination by the manufacturer or his
11. Marketing Standards.-Any violation of, or failure to adhere to or comply
with, any provision of the Domestic Marketing Standards in Schedule II of this
Code in any transaction to which the same are applicable is an unfair trade
12. General.--It is an unfair trade practice for any member of the industry to
indulge in any subterfuge contrary to the provisions of this Code.


Thie following marketing standards apply to automotive storage batteries for
starting and lighting service and radio receiving storage batteries and parts and
accessories therefore.
1. Terms of Payments.--Termns of payments shall be not more favorable than
2%~7 10th proximae, net 30 days, or 60 days trade acceptance with. no cash dis-
count. If cash discount privilege is exercised the discount must be figured on the
balance due after all deductions are made for goods returned, discounts, allow-
ances, or other credits.
Shipments made on thie 25th or any later, day of any month may for the purpose
of allowr~ing cash discount be considered as made on the ~first day of the following
2. Guarantees and Adjustment Policy.--Every storage battery shall be covered
by the following standard guarantee and no battery shall be covered by an adjust-
ment policy for periods longer than are provided for in the following standard
Adjustment Policy.
Standard Guarantee.-Themanufacturer agrees to repair or replace at his op-
tion, for tlhe original user, f.o.b. factory, or at any authorized Service Station,
without charge, except transportation, any battery of his manufacture whicht
fails to give satisfactory service within a period of 90 days from date of sale to the
original user.
Standard Adjustment Policy.--The manufacturer further agrees, after expiration!
of the 90 days' guarantee period, to replace witha new battery on a pro-rata basis
for the original user, any battery which fails in normal service. No~rmal service
is considered not to exceed the following:
Automobile Passenger Car Batteries .______- 1,000 miles per moonth.
Passenger Car Batteries in' Commercial or Truck Serv-
ice-,------ ---------- -- --- 2,000 miles per month.
Heavy Plate T'ruckr and Coach Batteries (Yua inch or
thicker PTositive Plates)-_---- .. .... 3,000 miles per month.
Motorcycle Batteries ... ..... ......,---- 2,000 miles per month.
Radio Receiving Batteries .----, One discharge per week.
The adjustment policy established by the manufacturer is to be based on the
quality of the battery, but is in no case to exceed periods figured from the date of
sale to the original user, for the various applications of batteries, as followsu:
Automobile Passenger Car Batteries___________ Periods per Table.
Passenger Car Batteries in Commercial or truck service__ 12 months.
Beavy Plate Truck & Coach Batteries._____ __ ,, 8
Motorcycle Batteries_____ .________ _. .. 9
Radio Rieceiving Batteries.. ___ __________ 18
All adjustments are to be based on the current list prices, plus transportation
EXAMIPLE.-A~ battery carrying an eighteen maonts' atdjustment period, listing
at $12.00, fails in service in. nine months from date of purchase; the user receives
a new battery of the same type and size for 9/18 of $12.00, or $6.00, plus trans-
portation charges.

Table of Maximum Adjustment Periods for Automobile Batteries in Passenlger Car

Group 1:
65-74_ -..........................------------... ... ... ... ...
75-84 -- _---_-- -_-_........ ... .. .- -- ..._. .
85-94 ....... ...... ....... ...... .---.. ....... ...... ...... 78
95-104 _--_ ---__ -_ ---_---- --- ---- ---- -- ---- ---. ...
105-up _---_-_ --_-___ -_---_--_--- ---- .... .... .... ...
Group 2:
80-89 .... .... .... .... .... .... .... ..-- .... .... .... ....

99- 107 ----- ---- ---- ---- ---- ----- ---- ---- ---- ---- ---- 96
108-11 7.... .... .. .... .... ... .... .... .... .... .... ...

Group 3:
90-99 ..... ...--- ....... ....-- -----.. ...... ....... ......
100--112 __..-__ --__ .._...._.. .... ... .. ... .... ... ...
113- 125_... ....._ .. .._._. .__. .... .. ... .... ... 108
126-138 .... .... .... .... .... ... .... .... .... .... .... ...
139-up __-.. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .
Group 4:
105-114 .... .... .... .... .... ..- -... .... .... .... .... ...
115 -127.... .... .... .... .... ... .... .... .... .... .... ...
128- 143.... .... .... ... .... .... .... .. .... .... .... .. 126
144--156.. . . . .
Group 5
120-29 ..... ..... ..... ..... .... ..... ..... ..... ..... ....
130-141.... .... .... .... .... ... .... .... .... .... .... .
142-161.. . . . 144
162-174.. . . . .
175 -up .. . . . .

for 20
at 8n0 E`

Adjustment period

For wood F or ru ber
insulation and-rubber

Months M~onths
151 9
12 15
18 21
211 24
24 24
6 9
12 15
18 21
21 24
24 24
6 9
12 15
18 21
211 24
24 24
6 0
12 15
18 21
21 24
24 24
61 9
12 15
18 21
21 24
24 24

Minimum ampere-hour capacity, 20-hour rate at 800 ".

The ampere-hour capacity as given above shall be determined as provided in
the standard specifications for lead-acid storage batteries for automotive equip-
ment of the Society of Automotive Engineers. (Adopted January 1932.)
For passenger-car batteries in Commercial or Truck Service, the adjustment
period shall be one half the above periods given for batteries in Passenger Car
The sale or offering for sale of a battery in any group size, either new, rebuilt,
or repaired, having a capacity in ampere-hours and a rating in, amperes for twenty
minutes of less than the minimum ratings of the group, is an unfair trade practice.
3. Sales or Excise Tax.--Any tax or excise imposed by any governmental
authority on the manufacture and/or sale of any product included under these
standards and where it is the Government's intention that this tax be paid by
the buyer, shall be added to regular sales price and listed as a separate item on
the manufacturer's invoice.
4. Subsidiary Companies.--No manufacturer shall use a subsidiary company
or other agency wholly or partly controlled by such manufacturer, for the purpose
of distributing such manufacturer's product on terms or conditions not in accord-
ance with thie Class I Marketing Standard of this Code.


T'he following marketing standards apply to all electric storage batteries not
included in Class I and parts and accessories therefore.
1. Terms of Payments.--Terms of payments shall be not more fav\orable than
2%r, 10th proximo; net 30 days; or 60-day trade acceptance with no eash dis-
count. If cash discount privilege is exercised, the discount must be figured on,
the balance due after all deductions are made for goods returned, discounts,
allowances, or other credits. Shipments made on the 25th or any later day of
anly month, may for the purpose of allowing cash discount be considered as made
on the first day of the following month.
2. Guarantees and A~djustment Policies.--(A) All guarantees and Adjustment
Policies shall specify a definite period of time or a definite cost for a definite
(B3) T'he period shall not be greater than the average life for the type of battery
and service concerned.

(C) An. adjustment for ulnexrpired adjustment period shall be prorated on the
unetxpired part of the! period and the net sale price of an equivalent newc battery
or of parts thereof installed. The allowance for the old battery shall not exceed
a fair aCrap value.
(D) In no case shall a cash refund be allowed on a guarantee.
3. Conditional Sales.-Th~e manufacturer may sell on the basis of any' deferred-
payTment plan provided that the sum of all payments shall n~ot be less than the
outright purchase price plus average interest at 6%r.
4. Rental Servie.--No batteries are to be rented belowv cost of such rental
5. Loan Batterica.--The manufacturer may loan batteries to prospects or cus-
tomers for the purpose! of demnc~rst rant in the ability of a battery to do the pros-
pect's or customer's work as an aid in mak~linE. the sale, or to customers to enable
them to keep their equipment in service while batteries which are giving trouble
are tested or repaired. In no case shall a battery be loaned for a period longer
than 60 days.
6. Fr-ee Installation.--Manlufacturers who sell batteries for permanent installa-
tion shall be reimbursed in full for all expenses of installation.
7. Used Batteries.-W`Chen used batteries are sold by a manufacturer they shall
be sold as such.
8. Free Repairs.--No free repairs or replacements shall be made by any manu-
facturer beyond a period of two years from date of installation. Under any other
condition when the manufacturer repairs or replaces cells in a, user's battery he?
shall furnish the user with an itemized account of the repairs and replacements
made and shall bill the user for all the material supplied atnd for the expenses
9. Disposition of Replaced Batteries.-WTihere a manufacturer allows a credit on
thie purchase price of a ne~w battery in return for the worn out battery, the: worn
out battery shall become the property of the manufacturer and the customer
shal niot be permitted to retain it.
10. Sales or ~Excise Taes.--Any tax or excise imposed by any governmental
authority on the manufacture a~nd/or sale of any product included under these
standards and where it is the Government's intention that this tax be paid by the
buyer, shall be added to regular sales price and listed as a separate itemz on the
manufacturer's invoice.
11. Subsidiary Companies.--No manufacturer shall use a subsidiary company
or other agency wholly or partly~ controlled by such. manufacturers for the pur-
pose of distributing such manufacturer's product on terms or conditions not ini
accordance with Class II, M/arketing Standards of this Code.


1. The following Marketing Standards apply to all Wet Primary Batteries and
parts and accessories therefore:
1. Terms of Payment.-T-Perms of payment shall not be more favorable than
2%0 for cash in 20 days, net 45 days.
2. Designating Capacity.--All statements or guarantees of capacity must be
based on American. Railway Association, Signal Section, specifications for deter-
mining the capacity of the Wet Caustic Soda, Primary Cells used in Railroad
Signal Ser~vice. The stated or guaranteed ampere-hour capacity of cells, renewals,
or parts thereof, must be marked on all shipping containers and shown on the
invoice rendered to cover thetz shipment.
3. Price Protection.-No manufacturer shall accept an order protecting cus-
tomer against price advance or price decline for any quantity of wet primary
battery cells, renewals, or parts thereof, in excess of the average 60-day require-
ments of that customer.
4. Contracts.--No maanufacturer shall accept orders froma a, customer under
requirements contract with another manufa~cturer over a period of twelve months,
for a quantity of primary battery cells, renewals, or~parts thereof, to be used for
test purposes in excess of a total of 2%r of the normal requirements of that cus-
tomr during the twelve months' period.
5. Sales or Ex~cise Taxes.--Any tax or excise imposed by any governmaental
authority on the manufacture and/or sale of any product included under these
standards, and where it is the Government's intention that this tax be paid by
th buyer, shall be added to regular sales price and listed as a separate item on
the manufacturer's invoice.

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