NATIONAL RECOVERY ADMIINISTRATION
CODE OF FAIR COMPETITION
For sage by the Superintendent of Documents, Washinglan, D.C. - Price 5 conts
Approved Code No. 181
Registry No. 1328--02
AS APPROVED ON DECEMBER 23, 1933
2. Letter of Transmittal
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
This publiation is for sale by the Superintendent of D~ocuments, Glovernment
Printing Office, Wasrhin~gton, DO.,, and by district oflices3 of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Al~a. : 2571 Fe"deral Building.
Boston, Mase.: 1801 Custombouse.
Buffalo, N.YS.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Buildinlg.
Chicago, Ill.: Suite 1706, 201 North W67ells Street.
C'~-levland, Ohio: Ch'lamiber of Commerce.
D~allas, Tex.: Chamber of Commerce Building.
D~etroit, MIic~h.: 2213 F'irst National EBank: Building.
Hrouston, Tex.: c.ha~mber of Comrmerce Building.
Ind~ianuapolis, Ind.: Chamber of Commnerce Building.
Jackrsonville, Fila.: Chamber of Commerce ]Building.
Ka;nsas City, Mo.: 1028 Baltimore Avenue.
Los> Ang~eles,. Calif.: 1163 South Broadway.
Ltouisville, K~y.: -loS1 Federal Building.
Memphr~'is,. Tenn.: 229 Federal Building.
M~iunneapoli s, Mlinl.:: 213 Federal B~uilding.
New Orleans, La.: R-oom 225-A, Customblouse.
New Yorkz, N.Y.: 734 Customhouse.
No~rfollk, Va.: 406, Ensit :Plumie Street.
Philadeclphias Pa.: 933 Commercial Trust Building.
Piltjtdorgh, Pa.: Chamber of Commerce B~uilding5.
Portland, Oreg.: 215 N~ew Post Office Building.
St. L~ouis, Mlo.: 506 Olive Street.
San Francisco, Calif.: 310 Custombllouse.
Seattle, Wansh.: 809 Fedleral Building.
Approved Code No. 181
CODE OF FALLIR COMPETITION
COMMERCIAL ]REFRIGERAOR INDUSTRY
As A-pproved on D~ecemnber 23, 1933
An application having been duly made, pursurant to and in full
compliance wFith the provisions of Title I of the National Industrial
Recovery Act, approved June~ 16, 1933, for my approval of a Code
of Fair Competition for the Commnercial Rtefrigerator Industry, anld
hearings having been held thereon, and the AIdministrator having
rendered his report containing an analysis of the said Code of Fair
Competition, together with his recommendations and findings with
respect thereto, and the Administrator having found that the said
Code of Fair Competition complies in all respects with the pertinlent
provisions of Title I of said Act and that the requirements of
Clauses (1) and (2) of sub-section la) of Section 3 of salid Act have
NOWV THEREF'ORE, I, ]Franklin D). Roosevelt, President of the
United 8taltes, pursuant to the authority vested in me by Title I of
the National Industrial Recovery Act, approved June 16, 1933, anid
otherwise, do adopt and approve th~e report, i-ecommnendations anId
findincrs of the Administrator and do order that the said Code of
Fair competition be and it is hereby approved.
FRANKT~LIN D). ROOSEiV1E] L.
HUGH S. Jonxsurox,
A d-minist ra~tor.
The WarrE HOUSE,
December 93~, 19~833.
The PRESENT )ECEMIBER 5, 1933.
The WThite House.
Smr: 1. This is a report on. the Code of FIiair Competit~ion for The
Commercial Raefrigerator Industry in thie U.nited States as revised
after the hearing conducted in Washington on Novemlber 9, 1933, in
accordance with the provisions of the National Industrial Recovery
PROVISIONS OF TH CODBI AS TO HOURS, WAGES, AIND GENERAL LABOR
2. Th2is Article stipulates that no employee shall workL in excess of
forty (40) hours a woeekr, nine (9) hours a dayT, and five (5) days a
week, excepting that in. peak: periods, and for times not to exceed
eight (8) weeks in any six (6) months' period, employees mray work
forty-eight (48) hours per week, provided, however, that at least
one and one half (1%a) times the normal rate of pay ) or eis paid for
hours in excess of forty (40) hours a week and eight()horpe
day. There are certain exceptions. T'he first of these covers em-
ployees in emergency maintenance, and emergency repair work in-
volvinrg breakdowns or protection. of life alnd property wC~ith. one and
one half (1Yz) for overtime. The second exception. is travelling
salesmen and employees engaged in managerial and executive wor&
who receive more than thirty-five dollars ($35.00) per week. The
third exception from the general rule covers the week of office and
clerical employees, which Is made ~five and one half (5Yz) days in-
stead of five () days. The fourth exc~eption is firemene, who shall
not work more than forty-eight (48) hours per week or more than
ten hours per da~y. T~he fifth. exception is watchmen whose hours
p)eur week are limited to forty-eight (48). The final exception is
truk rivers, installation, repair an d/or erection employees~: who
are allowed a tolerance of ten (10) percent in any week receive
one and on~e half (1%a) for time workied in excess of nine (9) hours
3. The minimum wage is forty cents($0.40)peho r hour e~wept that in
the Souh thirty-seven and o~ne-ha~lf cen~ts (;i0(.371,.1) per hour mnay
be pid. Thle TIndulst ry has agreed~ anld it is provided in the Code
bthatl this differential deserves study andi inrve~t igation by" the Code
Authority with a view to its elimninationr at the earliest timet prac-
tie~nble for the industry. The minimum wa;ge pr1ovidedl for clerical
anrd offil c employees is a flat r~ate of fifteen dolllars ($~15.00) per
w~eek. Wagebr(s; fr learners are thirty-two cetlts ($03.32L) per hour
with the proviso that no member o~f the industry~ shall allow thiis
category of workers to exceed 54% of the total number of workers
which the memlber empIloys. Learners are defined as beginner em-
ployees requiriiing instruction and/or experience for a period of
three (3) months and emnployees canl be classified as learners only
This Article establishes a minimum rate of pay regardless of
whether the employee is co-mpensated on, a time rate, piece work, or
other basis;; prohibits any~ evansion of the wage schedules through dis-
m issals anId reem ploymlent ; provides for an equality of pay as between
males and females; limits the employment of handicapped persons
to such persons anid conditions of emnploymient prescribed by such
State authority as is designated by the U~nitedl States Department
of Labor; and provides, finally, for an equitable readjustment of
all wages above t.he minimum.
ARTICLE V-GENERAL IABOB PROVISIONS
4. This Article provides that no person under sixteen (16) years
of age shall be emnployed in the industry, nor anyone, under eighteen
(18) years of age at operations or occupations which are hazardous
in nature or dangerous to health.
This Article embodies subpar~agraph (a) of Section '7 of TIitle I
of the National Industrial Recovery Act.
This Article further pr'ovides that employers shall not reclassify
employees or the duties of occupations so as to defeat the purpose of
the A~ct and requires every employer to make reasonable provision
for the safety and health of his employees, to post complete copies
of this Code in accessible places and to make paym~ient of all wages
at regular pay periods and in lawful currency or by negotiable check
payable on demand.
ECONOMIC EFFECT OF THE CODE
5. The members of this industry manufacture coimnmercial refrig-
erators and the state of the industry is necessarily dependent upon
factors outside the industry, such as the demand for vegetable and
animal products whose retail distribution requires ref~rigeration.
According to t~he report of the Div~ision of Research and Planning
the decline in employment in this industryT since 1929 has been. 31%1,
which represents a numerical decline of 1,250 men. Assuming that
demand returns to thle 1931 levelz this same report indicates that the
forty-hour week providedl in this Code will re-absorb at least 450
workers and create employment at least 14.2 percent greater than
the 1931 level, or 91.4 percent of the 1929 level.
In addition to the re-employm~ent which should, in. this Industry,
follow appnroval of this Code, thelp puirchaing power of the employees
should also be developed. Thle report of the Research and Planning
Division shows a decline in the wages of this Industry since 1929
of approximately 21 percent for unskilled anid skilled labor alike.
This represents a decline from 6'7.3 inr 1929 to 53.3 in 1933 in the
average hourly earnings for skilled labor, and from 48.7 in 1929 to
84.5 in 1933 In the average hourly earnings for unskilled labor.
The members of the Industry have been as desirous as anyone of
stemming this decline. By cooperating through the President's Re-
emnployment Agreement they: have stemmedit and the wage rates
provided in this Code promise, with such adjust.ment~s as are out-
lined in the Code, to fulfill the objects of thle Act. The minimum
wage stiplallted is five and one half cents ($0.051/2) higher than
the average waLge now paid anid but three and seven tenths cents
($0.037) lower than the average: paid in 1929. This is a substantial
mecrease over th~e wage levels of last spring.
Thne Administrator finds that:
(a) The Code as recommended complies in all respects with th
mandatory provisions of T~itle I of the Act, including, wiithou limi-
tation, subsection (a) of Section 7 and subsection. (bb) of Section 10
thereof, and that
(b) The applicant group imposes no inequitable restrictions on
admission to membership thnerein and is truly~ representative of the
Commercial Refrigerattor Inldustry; and that
(c) The Code as recommended Is not designed to promote monop-
olies or to eliminate or oppress small enterprises alnd will not operate
to discriminate against them, and will tend to effectuate the policy
of Title [I of the -National Industrial Recovreryg Acet.
It is recommended, therefore, that this Code be approved.
HuanH S. JoHNSon,
COD)E O-F FAIR COMPETITION
COMMERCIAL REFRIGERATORR INDUSTRY
To effect the policies of Title I of the Niational Industrial Re-
covery Act this Code is submitted as a Code of Fair Competitio-n for
the Comnmercial R~efrigerator Industry, and upon approval by the
President its provisions shall be the standards of fair competition
for such industryT and shall be binding upon every member thereof.
SECTION 1. The term Comercial Refrigerator Industry or
"~ Industry ", as used here~in, is defined to include the manufacturing
and the installing, and/or repairing (by the manufacturer) of com-
mercial refrigerators, and such branches or subdivisions thereof as
may~ from time to time be included under the provisions of this Code.
S~c. 2. T'he termn Comm~ercial R~efrigerator as used herein is
defined to mean an insulated room~, boxr, chest, cabinet, display case
or counter, when not a part of the fixed construction, for the storage
and/or display of perishable food or other products under refrigera-
tion, in meat markets, grocery and delicatessen. stores, florists' shops,
hotels, restaurants, clubs, institutions, and such other similar estab-
lishments where such food or other products are retained or stored
in large quantities for purposes of sale or service; provided, how-
ever, that this term does not include the refrigerating unit or agent.
SEc. 3. The term memberr of the industry includes- but without
limitation any individual, partnership, association, corporation, or
other form of enterprise engaged in the industry, either as an em-
ployer or on his or its own behalf.
SEc. 4. The terma ," ~Sempoye as used herein includes any an~rd
all persons engaged inteIndustry, however compensated, except
a member of the: industryT.
SEC. ,5. The term learner as used herein, is defined to mean. and
include all beginner employees requiring instruction and/or experi-
ence in their duties and/or occupations for a period not to exceed
three (3) months.
SEc. 6. The term "( trade "' as used herein shall mean all channels
of distribution of the products.
SEc. 7. The term "AssociationJ "T as used herein is defined to mean
" The Commercial Refrigerator Manufacturers Association."'
SEO. 8. 1116 term '" Outh "' as used herein shall mean the States of
South Carolina, Georgia, Florida, Arkansas, Allabama, 1Mississippi,
Louisiana, Arizona, Oklahoma, Texas, and N~w Mlexico.
SEc. 9. The terms "At3ct and "'Administr~ator as used herein
mean, respectively, Title I of the ~National Ind-ustrial Recovery Act
and the Admzin~ist~rator for Industrial Recovery.
S;ECTION i. MG.ril771il hcOWF8.--RiO eniployee shall be permitted to
work in excess of forty (40) hours per week (except that in cases of
peak demand employees may ~work forty-eight (48) hours for eight
(8) eek inanysix (6) mlonthss period), or nine (9) hours in any
twenty-four (24)8 eksi n hour period, or more than five (5i) day~s mn any week
(seven (7) day period). At least one! and one half (1%)~ time the
normal rate shall be paid for hours worked in. excess of eight (8)
hours in any twenty-four (24) hour period and fortyl (40) hours in
any five (5) day period.
OEC. 2. weXCeptions8 as to hozcre.-The mnaximum hours otherwise
fixed herein shall not apply to employees in emergency maintenance
or emergency repair workr involving: breakdowns or protection of life
or property, but in any such special case at least one and one half:
(11/) times the normal rate shacll be paid for hours worked in excess
of thie m~aximnum hours otherwise herein provided.
SEC. 3. Excepted also shall be travelling salesmen and employees
engaged in managerial or execut~ive work who receive more than
thirty-five dollars ($35.00) per week (seven (7) day period).
SEC. 4. Excepted also shall be office or clerical emuploy4ees,) howho
shall not work or be permitted to work in excess of forty (0 or
per weekr (seven (7) day period), or nine (9) hours mn any one
twPendyty-fourn a e(24) hour period, or more! than five anld one half (5$/)
SIEc. 5. Excepted also shall be firemen who shall nlot be permitted
to work more than forty-eight (48) hours per week sevenn (7) day
period) or more than ten (10) hours in any twenty-four (24S) hour
SEc. 6., Ex=cepted also shall be watchmen who shall not be per-
mlitted to work more than forty-eight (48) hours mn any week (seve
OEo 7. Excepted also shall be truck drivers, installation, repair,
und/or erection employees wPho shall be permitted a tolerance of ten
percent (101r) in any week (seven (7) day period, provided how-
ever, that such. employees who work in excess of nline (9) hours in any
twenty-:four (24) hour period or more than fortyv-four (44) hours
per w\eek shall be paid not less than one and one half (1%f~) times
their normal rate of pay for said excess.
SEc. 8. Employment by sev~eral emloyer.-No employer shall
knowingly _permit anly employee to work for anyl time which, when
totaled wcPith that already performed with another employer or em-
ployers in this industry, exceeds the maximumi permitted herein.
Ann7CLE ]I-TYT AGES
SECTnow 1. 11/nknulrn. wages.--No employee shall be paid in any
pay period less than at the rate of forty cents (404)Q per hour except
as herein oth~erwise provided.
SEC'. 2. Employees in the South may be paid not less than at the
rate of thirty-seven and one hlalf cents (371/24#) perl hour. This
dlifferentiall shlall be a subject of study and ilnvestigationl byT the: Code
Author~ity with a v~iewP to its elimination at the earliest time pruc~ti-
cable for the induistry.
SEC. 3. rV;Iil)dW 173/6y O fo 7ClrGCI aUd ff OCO ( mp~loyet cs.-RO Clerl-
cal or office em~ploryee shall be paid in any pany period less than at the
rate of fifteen dollars ($15.00) per week.
SEC. -1. Il'nge8 for 71-crr,;rnfl;.--RO emp~floyec shall be engaged!. as a
lear~ner mor-re than once nor be paid in oly~ pay period less than at
the rante of thirty-two cents (32d) per hour, provided. howsPever, that
the total Iinumber of all such employees employed~r by any one mlembler
of the induslltry dulringlc any c~alenidar monlth shall not exceed five per-
cent (59 ) of th~e total numnber of all employees empiloyedc by such
emllployer~ exclusivee of office and clerical emplloyeecs).
S~~~c.I 5.Pecwrkci p rain mnmu aes. -This article
establishes a mlinlimum11 rate of pay which shall apply, ir~respective of
whether an employee is actulnl~y compllensatedl on a time rate, piecec-
w~orB, or other basis.
SEc. 6. Ezlasion, through ?~reemploym~ent.- NoI~ employees now em-
ploy'ed at a rate in exzcess of the minimnumn shall be dischar~gedl and
r~eemployedl at a lowecr rate for the purpose of evadlingr the prov>\isions
of this Code.
SEC'. 7. Waicgcs abore( m~ilnimuml.-E mloyero3els shall not reduce the
r~ates of wagl~es for employees whlose rates are now in excess of the
minimluml rate of wages hereinl provided (nlotwith. sta~lndin that the
nulmber of hours workIed in such. employment may be hereby de-
creased)-, and where in anly case an employers has not incr~eased the
rates of wages for such employees prior to thne effective date of this
Code by an equitable readjustment of all wange raltes such employer
shall readjust all such wage rantes. This provision shall be inter-
preted in the same manner that paragraph 7 of the President's
Reemployment Agreement has been interpreted by th~e Adlministratorr
inl Interp~ret.ations Nos. 1_ and 20.
SEc. 8. Hanldica12pped! p'r'SOns.----A person whose enenlinlg epClltitiy
is limited because of age or physical or mental handiicap may be
employed on. light work at a wage belowt the minimum estab.lish~ed
by this Codle. provided the employer obtains from the Sjtate authority
designated by the United Sftates Departmlent, of Labor a certificate
authlorizinga his employment at such wages and for such hours as shall
be stated in the certificate. Each emrployer shall file with the Code
AuthorityS a list of all such persons employed by him.
SEC. 51. PC/lull/O cinfployeCS.-Ii emallle emp1loyees performing sub-
stantially the same work as male emp~lloyeesc shall receive the samne
rante of p~ay as male emnployvees.
AR'TICLIE V---GENER~PAL TJ.IBOHt IPROV.II:IOS~
SECTION i. Chid l abor pTOuisioz.--No person under sixteen! (16)
years of age shall be emnployred in the indus~itr~y. No perlsonl under
eighteen (18) years of age shall be emplloyed at op~erations or occu-
pations which are hazardous in Inaturle or danllger~ous to health. The
C'ode Aut~hority shall submit to the Admnini tratorl before FIiebruary
28772"---0-L' 3-~~:33 2
1, 1934~, a list of sulch operlation~s or occupations. In anly State an
employTer shall be deemedP I to have complied with this pro(vision as to
age if he shall have on file a cer~tifiente or permit dluly- issuedt byv the
ALzuthority in suchz State empowered~c to issuec cl-,oinloyinen oi age
certificates or permits showing that the emp~loy-ee is otf the requ~ired
SEC.. 2. Prod.'.;onls from thelc act.---In compllianlrs c ith Section 7i
()of the Aqct, it is prov-ided:
("a) That employees 'shall havet the rio-ht to o~rL;aizel and harga in
colledti\elyr, through rep:tresentatives of their own chl~ousine, and shlall
be free from the interlfelcrnce,, res.-trainrt., or cor~ccion, I of emlployerls of
labor, or their ag~ents, in the des`ignaftionl of such I~,ireln-esntatis or
in self-or~ganizalt ion or in olther~ con~lc~~erte acltivities for the purpose03(
of enc~lec~tive :largainingr or other mutual aid or protcc.tionl.
(b) Tha~t no employee~c and no one seekring employment; shlll be
reqcuired~c as a condition of employment; to join any company union
or to reframn from jommig, organizing,~ or assi~sting a labor clrganliza-
tion of his own choosing, and
(c) That emp~loyers shall comply with the ma xsimuml hour~ls of
labor, m~iiininuin ra;tes of pay, and others cond('itionls of unemployment
approved or pr1escr~ibedc' by the P'residenrt.
SjEC. 3. Red ./rlsB~ifrollio;!n, of (;. p~ilorf,~el~s.-No emp~loyeri' shall r~eclas-
sif eplyee o ties of occupa,;tions~ performed for the purpoi>se of
de'feat~ing~ the pr1ovisionsl of the Act or of this Code.
cC;eC. 4. 8/nda~rtrds for safety andct hea177lt.-Every'! employer.C~ shall
mnake reasonablel~l provision for thle :nfety atnd health of his emnpoi yees
lt, ther pin;e and d~uring~ the. hours~c of their empnloyment. SL~tlandar
for salfety and health shall be -ubinlittedt by t~he Code Authority to
the AdmIlinlistrator w! \ihlinl Sixr (6) molnlthlS after the c~itect iv \-! ate of
Sec 5i. LState lawrs.--No proi(\-Iionr in this Code shall supeCl'rsed any
Si~tat or Federal~1n law which impo~ses on employercls more stringent
reuieensas to aget of employees, wagesc. hlour.i of workl. orI as to
safety, hiealthi, canitary or generally wor~kino-' conditionsll. or` insurance,
or filre protection, than are imrpusedl by\ this rCode.
Soc,. 6. P/sihfrU./--Each employer~!.~ shall post
R-:.e. 7. Paymen~)Pt of ?Iay-~z.e.Each empl~loyer~l shatll makel~i paymen1C~t
payale o deand.Wee sha~ll be paidi at the end1 of ech~rl regullar
pay'3 period but not to xceed~~i soluiinntly~lllS inlteria;ll. These4 w\nges
bet-nefits mother than thovec voluntarily panil hv cemplloyees.c~ No cut~-
plye r isaen~hal 1pt irc~ctly or :i ndirec~1\Tl, anyr) bat on)lflr1
such wag;es or Fivec antIng.lll~ of value or extenatl :!ny\ flavors to anyi
per '-"' for th~e purpose'' of inlflunc~illrnl rate of wnge"(.-, orI workl.`ingl
condllitionsl of their emp~loyees.~~
andl of I;aIh pay'S per''icl shall1 unt, npl'T'tly to """ (>er n 1, emplo1 in a
I);I):'i~llsI] o 1 r\i I*lfiV e i :!t,:li'itlV W 10 PeaTH 1n11 t ~--s tl1:11 ijlfl V-fiveC
AR:TIC'LE VTI-CiRANIZ.1TION; P, FOERS, A~NDC1T'TIES OF THrE CODE
SfEcT.lION 1. Or~gaNII;. ion(ll a2! ul con.Wittion,.-A-~ Code Authority is
hereby~S cons~titutedl to cooperatne w\ith! the Administrator in the admnin-
i~strationl of this Code.
SEC.. ". Tile Codet Authority shall cornisi4 of \even (7I) indlividluals
to b~e selecte-d as follow\~s: Memben~irs of thle industry shall elect the
indlustry~ members of the Coder Auirthlority by a majority vote of the
members1 of th~e bnllustry. As many (but not exceedling twfo (2))
of such'1 indu~stry mrembe~rs. of the~ Coa~le Author~ity- ,shall ber el~c~tedl
from thoe member of theC Iindustry. whIich are nYot members1~1' of the
A~ssociatio:n as may be eligible to a -h~I repre1~scntation asz provided by
Section p of this Article at the time of electionl. The comnplannlr at of
the indlustr~y members of the Code Aul~tho~itty .hall1 be seleiclte from~n
membl-ers~ of thle indusr~itryj which ar1e members~i.- of the Ass~c~ia~tion.l
Each inlu~stry~ member of the Code Authority shall be a director,
officers, o executive of the member of the industry.
SEC. 3. The IASSO~cilatloD 18 hereby des.i(natedl as ~the age=:tIwy' to
'ond~:uctb an e'Clection1 of the mclmbers of the Clode A1uthorityT within
fifteen (15) daiys after th~e effective date of this; Cod~e, andlc any o~th~er
elections o~f membler~s of thne Code Au~tho.rity which many therir; fter
be el. lember~ls of the Code ~Authorit~y shall be elected to serve
for a termll of oneC (1) yearll or until threil ;lcr sweessorls are elected at
the next annelll meetC'in~ of the memberslil'i of the incduitlry. In the
event of anyv valcainly inl the ml~nlembershipl of th~e Code Authnority, a
special meetmig of th-le members of thle indusllctryI for an election to fill
thle incomlel~te terms of such members~1 shall be called byy the Asso-
e~intioni. No-tice of thne time and p~lacre of eCh7'l eClectionl shall be senlt
to eachl memberc~l of the industry at his address as rcgistt1ere in accord-
ance with~ Article XII, at least tenl days~ in advance of such election,
andi vc~ting at such election may be byT person, byr prl,lis' or by letter
ballot. Each m~emberll of the indrustry$ shall have one (1) \ote at
S~c. 4. In addition to membersh1'.;lip, as above procvictedl therlr inay
be three (3) m~emrbers, w~ithlout vrtE~, to be, appointedl by the Admin-
istrator, to serve~ for termiis of from! six: (6) mon.,lths~i to one (1-) !.ea;r
so ar~ranged that the terms do not1 expire at the c:1ne( time.
SEC'. 5. The representtatives~ who m~ay be a~ppointedl by the Adm~in-
istlratorl, together w-iith~ the Admniinistrator,, shall1 be g/iven1 notice of
andlt bhall be permitted to sit at al1 ncl einlgs of thle Cbode Authority.
Sec. f. Each trade or industia~l'il asson~(intionI directly or indirecc~tly
par~tic~ipatingS in the selcc-tionl or activities of the Code Au~th~orit y
shall (1) impose no inequitable r~estr~ictionsi on membership, an
(2) submit, to the A~dministratl~or true copies of its articles o so
cintionl, bylaws1, r'eglalctions, andlT anyr amlle ndment~fS when madlt e
thiereto, tog~etherl withl such other in~formaltion as to membershi~llp,
organizations, and7 netiv~ities as~ the Administrator may deem n~ececs-
snry to effectunto the 11purpa~es of ith e At.
~Ec'. )i. Tn Order that the Code iAuthlr~it\- shall at all times be
truly repr~esentativez of the indusltry! andl in other recspeccts compllly
w~ithi the p~rov\isions of the Ac-t, thle Admrinistraor ay rest h
such hlearings as he mayT deem pr~oier; anrd thereafter if he shall
find that the Code Authlority is not truly :representative or does not
in other retspiec~ts comllply~ with the p~rovilsions of t~he Act, mnay re-
quire!' an appropriately~ modifie~ntionl in the met~thod of selections of the
S1:(. 8. 31\embrshr of the indulstry shall be e~ntitled~ to p~articip~ate inl
and share t'he benefits of the lc~tivities of the Code A~utho rity andl to
participate in th~e selection of the members thereof by assenting to
and complying w\ith the Itcreqi emenltlts of this Code andl sustaining
thleir reus~nulblc e sharl~e of the expenses of its admiinistraition. Such
reasoinabic share of the expen~ises of admlinistration n shall be deter-
mlined by the Code Abuthority, subject to r~eviewr by the Admllinist rator,
on the bansisi of volumen of business andr/or such- other factors as may
be d~eemledl eqcuitablle.
SEC. 9. NOtinlg COInta1ned in. this Codet shall constitute the mem-
bers of the Code Authority partners for any purpose. Nror shllnl
any member of the Code Authority be liable in anly ma1nner~1 to any-
one for any act of any o'ther memberI~C, officer, agent, or employee of
the Code Authority., Nor shall any13 member of the Cod~e Aut~hority,
~exrc~isinga reasonable diligence in the conduct of his du~ties h~ereunder,
be liable to anyone for alny action or comissionl to act ~underl this Code,
ecectpt for his own wilful mnisfensanlce or nonfeasance.
SEc.10O. Powefl~ rs an Duties.--The Code Authority shall hanve the
following further powers and du~ties,! which shall be subject to the
right of the Admninistra~tor, on review, to dlisap~prove:
(al) To insure the execution of the provisions of th~is Code and
provider for the compliance of the ind~ustry with the lr~ovision~s of
(b) To adopt by-laws andc rules and regulations for its prlocedure
andI( for the administration and en~folcrlcemen of the Code.
(c) To obtain. frolln members of the induistry3 sulch inlforma~tionl and
reports as are required for thle adic~nisl~tration of the Code and to
provide -for submission b~y mlemblers of su~ch! informa~tion anld reports
as the Adm~inistrator may dleem necessary for the pu~rploses recited
in Sec~tionl 3 (a) of the Act, which informaation and r~epor~ts shall be
ubmi~tted b.y members to such administrative and/or government
agencies as the Admiiinistr~ator may designated; providecd that nothing
in this Co0de shall relieve any~! member of the inldustr~y of anry existing
o~bligationsl to furnish. reports to any government"" agecyl~?. No indi-
viduall reports shl~ll be tisc~losedl to anly other mlem~ber of thie industry
or anyT other par"t.y except to suchl govermuentaclt; l ngelc~iesj as mlay be
dircc-ted'l by thle Ad.ministrattior.
(dl) To use suchl tradelc asscriaitionl and other agencies a., it deems
properc'l for the e-nlrrying~ oult of anly of its noctin;ties pr1ovided for
hereciin proidedl~c thalt nlothingf]clCI here n hll relieve the Codle Authlorityt
of its cluties or I.lresponsibilitiesi undellr this C'ode andlr thnat sulchl trade
as w~cintfionls andC7 ageneles'c shanll at all timesc be subject to andi comply
wTit~h the prov.,\isionls hlereof.
(e) To mIlake r~ominewll ationtc ~ l to the Admin~i itratori for the
coorinal l~t ion of fthe admllinliStration of this~ Codec w\ithl sucih other
rcodes, if any,: as~l ninv b reLlated to the indutry.~'7
(f) To -ure(' fromll membersc~? of the~ industry aI equitalble and
prpoprtionate palyment of thle Ir:lana~ble expenses of mlailntiningg
the "codle Authiorityl and its activities.
(g) To cooperate with the Administrator in regulating the use of
any N.R.A. insignia solely by those members of the industry who
have assented to and are comp~lying with this Code.
(h) To recommend to the Adicministrator further fair trade prae-
tice provisions to gov-ern members of the industry in their relations
with each other or with other indlustr~ies, and to recommend to the
Admlinistrator measures for industrial pulannin~~aning, i ncludinig stabiliza-
tion of employment.
ARTICLE VII -TRADE IPRACTIcE RULPE
For all purposes of the Code the acts described in this AQrticle
shall constitute unfair practices. Any~g meber of the industry who
shall directly, or indirectly through any officer, employee, agent, or
representative, knowingly use, employ, or permit to be employed,
any of such unfair practices shall be guilty~ of a violation of the
Rule 1. Inaccurate Reference to Competitors, eto.--No member
of the indlustry shall publish adv~ertising which ortefer os, inccutel
in any material particular to any competororhirgdspics
values, credit terms, policies, or services.
Rule S. I~naccurate Aldvertising.--No member of the industry shall
publish advertising (whether prmted, radio, display, or of any other
nature), which is misleading or inaccurate in any material par-
ticular, nor shall ainy member in any way misrepresent anly goods
includingr but without limitation its use, trade-mark, grade, quality,
quantity, origin, size, substance character, nature finish, material,
content, or pre~para tion) or credit terms, values, policies, services, or
the nature or frm of the business conducted.
Rule 3. Commer~cial Bribery.--No mlemnber of the industry shall
give, permit to be given, or dilrc~rt~ly offer to giveTF anythingr o value
for the purpose of influencing or rewarding the action of any em-
ployee, agent, or representative of another in relation to the business
of the emlployer of such employee, the principal of such agent, or t~he
represented party without the knowledge of such employer, pri~n-
cipal or party. Commercial bribery provisions shall not be con-
strued to prohibit free and general distribution of articles commonly
used for advertising except so far as such articles are actually used
for commercial bribery~ as hereinabove defined.
Rule 5. Inter.ferenwe writh Anothe~r's Con-tracts. -No member of the
industry shall Induce or attempt to induce the breach of an existing
contract between a competitor and his employee or customer or
source of supply; nor shall any such member interfere with or ob-
struct the performance of such contrlactual duties or services.
Rule 5. Secret Rebates.--No member of the industry shall offer
or make any secret or discriminatory payme~nt or allowanIce of a
rebate, refund, commission, credit, unearned discount or excess allow-
ance, whether in thre form orf money or otherwise, nor shall a member
of the industry offer or extend to any customer any secret or dis-
crimlinatory service or privilege for the purpose of influencing a sale.
Rule 6. Giving Prises, Premzium7s or Gifts.--No member of the
industry shall offer or give prizes, premiums, or gifts in connection
with thie sale of products, or as an inducement th~ereto, by any scheme
which involves lot~teryS, misrepresentation, or fraud.
Roule 7. Defamaitiolz.-o member of th~e industry shall defame
competitors by falsely imnputing to them dishonorable conduct, ina-
bility to perform contracts, questionable credit standing, or by other
fa~lse represePntations or by t~he false. dlisparagement of the grade or
quality of their goods.
Rule! 8. Threats of Lawlsw~R-li~ts.N mlember of the industry shall
publish or circulate unjustified or unwalrranted threats of legal pro-
ceedingfs which tend to or have the effect of harassing competitors
or intimnidating their customers. Failure to prosecute in dule course
shall be evidence that any such threat is unwar~ranted or unjustified.
Rucle 9. ~ESp~ionage of C~omipetitors.--No member of the industry
shall securle or attempt to secure confidential information concerning
the busiiness of a competitor by a false or misleading statement or
represeJ~nttion or by false impersonation of one in authority by
bribery or any other unfair method.
Ruleb 10. Edl7ing belowu cost.-No member of the indunstry shall sell
below his allowable cost. Pur~sonnt to the provisions of Article VI,
the Code Authority shall formulate or cause to be? formulated stand-
ard methods or systems of cost accounting for use in this industry,
which methods or systems shall be adaptable to the cost-accounting
procedure of and to the business of this industry. Such methods or
systems shall specify the factors that shall determine the allowable
cost for each member of the industry. pursuant, to thle provisions of
this section. Upon approval of such methods or sySste~ms by the
Adminiristrator the Code Authority shall furniish to eachn member of
the industry complete details of such methods or systems. There-
after in determimng costs each mecmber of the industry shall use a
cost-accounting system which shall be at least as complete and de-
tailed as the cost-accounting method or system recommended by the
Codle A~uthor~ity and approved by the Admlinistrator.
The cost of a used refrigerator or other product of this industry
for wPihich a trad'e-in allowance has been made by h elro e
equipment to r~eplace that takenr in exchange sn1hal bellrob not less thanne
the am~oulnt of the allowance. shlown on the purchase contract for
sulch new equ~ipmnt.. This provision does not apply to the sale of
obsolete or damagedc l products, which products may be sold only at
such prices and~ under sulch terms1~ and colnditions of sale as shall be
estalbli hed by the Code Auth~ority.
Rule11.-o member of thre industry shall, dlirectlyoinrely
discriminate in, price between different purchasersoftepdus
of th~is indutr~~ly; providled, however, that nothing contained in this
section shall prevent discrimination in price betw-een purchasers of
the same class on~ necount of differrences in the trade, quality, or
cluantity of the product, sold, or which maktes only due allowance for
diffrerence in the cost of selling or tranlsportation.
Rule 19.-No member of the industry shall resell refrigerating
units, a~ccssories, equipment, or other products of other industries,
without the addition to the invoice cost of all other elemnents of cost
as determined in accolrdanrce with Rule No. 10 of this Article.
Rulea 13.--No member of the industry shall sell any commercial
refrigerator or other product of this industry of special design or
size at less than the estimated cost of suchl pursuant to Rule 10 of
Rule 18.--No member of the industry shaall, directly~ or indirectly,
permit or allow his employees, agents, or repr~esentatives to lend
money or anything of value to any purchaser for the purpose or with
the etfect of financing or assistinga to finance any contract for the
purchase of the products of this industry.
Rule 15.--No member of the industry shall postdate or predate
any contract, invoice, quotation or receipt, or withhold from or in-
ser~t in any' contract, inlvoice, quotation, or receipt any statement which
makes such contract, invoice, quotation, or receipt a false statement
either in whole or in part.
Rule 16.--Nothing in this Code shall limit the effect of any adjudi-
cation by the Courts or holding by the Federal Trade Commission
on complaint, finding, and order, that any practice or method is
unfair; provided, that such adjudication or holding is not incon-
sistent with any provision of the Act or of this Code.
ARTICLE VIII--PUnLTrola or PRICES, TEMS, A.ND CONDITIONS OF~
SECTION 1. Within ten (10) days after the effective date of this
Code each member of the industry shall file and shall maintain on
file with the Code Authorityr, or wsith such agency as the Code Au-
thority Imayr designate, such member's current and most recently
published catalogue and specifications and a full and complete price
list with discounts applicable thereto for all his standard products.
Such price lists shall be based on the net retail selling price f.o.b.
manufacturing point and include all discounts, terms, and conditions
of sale to the consumer trade, provided, however, that no suchn pric-e
list and/or discount applicable thereto shall provide for prices less
than the member's individual cost as determined by Rule 10 of
Article `VII. A schedule of all such specifications, price lists, dis-
counts, and terms and conditions of sale shall be immediately dis-
tributed by the Code Authority to all interested members of the
SEC. 2. In the event O~f any change by any member of the ITndus-
try in any price, discount, specifiention, term, or condition of sale,
he shall file full and complete copies of every such change with
the Code Authority te~n (10) days in advance of the effective date
of any such change. Copies thereof, with notice of the effective
date of such change, shall be immediately published and distributed
by the Code Authority to the interested members of thie Industry
who may file, if they so desire, revisions of their prices, discounts,
specifications, terms, or conditions of sale, which, if filed nrot less
than five (5) days prior to such effective date, shall be effective on
the same such effective date.
Serc. 3. uc candtaogus ,f specifications, price lists, discounts, and
ters ad cndiion ofsae together wi~th any changes thereto shall
be open to inspection at all reasonable times by any interested party.
SEC. 4. No member of the Industry shall sell, p~ay a rebate, or
allow a deduction at any time to any person except in accordance
with his prices, discounts, terms, and conditions of sale filed in the
manner described hereinabove. Each member of the Industryr shall
have the right, individually-, to file new prices, discounts, terms, and
conditions of sale, from time to time, as herein provided.
SEc. 5. No member of the industry shall render any service other
than advice and consultation to any purchaser of any product of
thze industry in connection with the sale, installation or repair of any
product unless not less than the cost of such services to t~he member
s5hall be charged such purchaser.
SEc. 6. The following rules shall be observed in the making of
contracts by the members of this industry. Action of the Code
Authority under this section shall be sub~lect to the right of the
A5dmrinistrator to approve or-dlisapprove.
(a) Chnarges for time payments extending more than three (3)
months shall in no event be more liberal than those established by
the Code Authori~ty~.
(b) Thne allowance value of anyT trale.-in together with a detailed
description of such shall be3 clearly stated in the sales contract for
which such trade-in is received as a part ~paymen~t.
(c) Trade-in~s shall not be accepted in hieu of cash down or arrival
(d) Down payments shall be based on. the net delivered price, after
de action of credit for any trade-in made.
(e) Down payments, arrival payments, monthly payments or othr
periodic payments sh3all represent only payments in cash made or to
be made by the purchaser.
()Payments in kind shall not be accepted in, lieu of cash.
( The last payment in any series of payments shall not be sub-
stantially larger than any other payment mn the same series.
(h) The first monthly installment payment shall be due and pay-
abe not more than forty-five (415) days from the date of shipment.
(i) Each contract for the sale of products of this industry shall
iEnclude complete and exact specifications of the product and the
equipment to be furnished; provided, however, that ilf a, standard
new product of a member of the industry is to b~e furnished, refer-
cence shall be made to the member's standard model number, specifl-
cations of which are o il e with the Code Authority pursuant to
Section 1 hereof. A~ny deviation fromt the specifications of standard
products shall be clearly set forth on a specification form to be
approved by the Code Authority which shal be attached to and
maade a par of the sales contract.
SEO, 7. hNO member of the Indulstry shall provide more favorable
timne and sterns of paymeirnt for inlstallmnent sales than:
(a) Cash amoulntingr to at least ten per~cenit (10%0) of the net sales
price t~o accompany the order.
(b) C'ash almount~ing to at leas-t tw-enty percent (20%7) of the net
sales price to be paid prior to delivecry to thle purchaser.
(c) Ba3lance due on any contract for sale to be paid in not more
than twrenty-four (24) months fr~om the date of such, contract.
(d) Each mnonthlly installment~ shall amount to not less than fifteen
dollars ($15.00), except. on sales of used equipment not exceeding
three hundred dollars ($300.00) in value.
SECTION 1. This Gode and all the p rovisions thereof ar expressly
made subject to the right othPrident, in accordance wt h
provisions of subsection (b) of Section 10 of the Acit, from time to
time to cancel or modify any order, approval, license, rule, or regu-
lat lon issued under said Act.
S-Ec. 2. TChis Code, except as to provisions required by the Act, may
be modified on the basis of experience or changes in circumstances,
suchl modifications to be based upon application to the Adminlis-
trator and such notice and hearing as he slhall specify, and to become
effective on approval of the President.
~Annci X-MRONOPOIES, ETOa.
No provision of this C~ode shgll be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against smaall enterprises.
ARircia XI--Paruca ICREA~SE
Whereas the policy of the Act to increase real purchasing powtJer
wlill be made more difficult of consummnation if prices of gioo~ds :and
serices increase as rapidly as wages ti rcgie ta rc
increases, except such as may be required to me~et individual cost,
pshould, be dlayedP,,"eb ,"'"'": but wIIhen. made, such increases should, so far as
possble belimtedto actual additional increases in thae seller's costs.
AnTICIaE XrII-REGISTRATION OF AfEMBERS OIF THFE INDUSBTRY
Each member of the Indust~r3; shall within. thirty (30) d ays of the
effective date of this Code register with the CoeAuthority. All
members of the ICndustryr who may engage in the Industryr thereafter
shall likewise register wpith the Code Authority. Registration of a
mlember of the Ind~ustry shall include thre full name and mailing
address of t~he member. The time limit for the registrationn by any
member of thle Industry mayV be extended w~heneve~r, in the oplunon
of the Administrator, the time limit as provided herein might cause
an injustice to aniy member of the ICndustry.
AnnICLE XLIII[ -REPORTS
In addition to information required to be submitted to the Code
Authority, all or any of the persons subject to this Code shall furnish
such statistical information as the Administrator may deem neces-
sar for th~e purposes recited in section 8 (a) of the Act to such
edral and State Agencies as the Aldministrator may designate; and
nothing in this Code shall relieve an~y person of any existing obligs-
tion to urnmish reports to Government agencies.
AnconI XIV -EFIFFECTV, DBEE
This Code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 181
Registryj No. 1328-02.
UNIVER-ITY OF FLORIDA
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