NATIONAL RECOVERY, ADMINISTRATION
CODE O FAIR COMPETITION
S / FOR '2
AS APPROVED ON MARCH 16, 1934
WI DO OUR PART
GOVERNMENT PRINTING OFFICE
WASHINGTON a 1934
For erl by the Superintendent of Documents, Washington, D.C. Price 5 centm
Approved Code No. 334
Registry No. 1331-02
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Approved Code No. 334
CODE OF FAIR COMPETITION
BEVERAGE DISPENSING EQUIPMENT INDUSTRY
As Approved on March 16, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE BEVERAGE DISPENSING
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of the Code of
Fair Competition for the Beverage Dispensing Equipment Industry,
and hearings having been duly held thereon and the annexed report
on said Code, containing findings with respect thereto, having been
made and directed to the President:
NOW THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise; do hereby incorporate by reference said
annexed report and do find that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved; provided, how-
ever, that the provisions of Article VIII, Section 2 insofar as they
prescribe a waiting period between the filing with the Code Author-
ity and the effective date of revised price lists or revised terms and
conditions of sale be and they are hereby stayed pending my fur-
ther Order either within a period of sixty days from the effective
date of this Code or after the completion of a study of open price
associations now being conducted by the National Recovery Admin-
istration; and further provided, that Section 6 of Article VIII
shall be stricken from the Code.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
W. A. HARRIMAN,
March 16, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the Code of Fair Competition for the
Beverage Dispensing Equipment Industry in the United States, as
revised after the hearing conducted in Washington on November 8
1933 in accordance with the provisions of the National Industrial
PROVISIONS OF THE CODE AS TO HOURS, WAGES AND GENERAL LABOR
This Code provides that no employee shall be permitted to work in
excess of forty (40) hours in any week, except as follows:
(a) Persons employed in a managerial or executive capacity who
earn not less than thirty-five dollars ($35.00) per week and traveling
(b) Employees engaged in emergency maintenance and emergency
repair work, and
(c) Employees engaged as firemen and watchmen in manufacturing
operations may be permitted to work not more than forty-eight (48)
hours in any one week, and
(d) Employees engaged as truck drivers, installation, repair and
erection employees who may be permitted to work not more than
forty-four (44) hours in any one week, and
(e) To provide for seasonal .peaks employees (other than those
engaged in clerical or office work and those engaged as firemen and
watchmen in manufacturing operations and those engaged as truck
drivers, installation, repair and erection employees) may be per-
mitted to work not in excess of forty-eight (48) hours in any one
week in not more than six (6) weeks of any six (6) months' period,
provided, however, that this tolerance shall not be permitted if sea-
sonal demands can be- met by the employment of additional
This Code establishes a minimum rate of pay of forty cents (40t)
per hour, except that persons employed in clerical or office work shall
be paid not less than at the rate of $15.00 per week in any city of
500,000 population or over, or in the immediate trade area of such
city; nor less than $14.50 per week in any city of between 250,000
and 500,000 population or in the immediate trade area of such city;
nor less than $14.00 per week in any city or town of 250,000 or less
This Code also establishes a minimum rate of pay irrespective of
whether the employee is actually compensated on a time-rate, piece-
work or other basis. This Code also provides for an equitable
adjustment of all wages above the minimum and for overtime pay
as at least one and one-half (11/) times the normal rate of pay.
Further this Code provides that no employee now employed at a
rate in excess of the minimum shall be discharged and reemployed
or replaced by another employee at a lower rate for the purpose of
evading the provisions of this Code.
Further no person under sixteen (16) years of age shall be em-
ployed in the industry and no person under the age of eighteen (18)
years shall be employed at operations or occupations, hazardous in
nature or dangerous to health.
Further no employer shall reclassify employees or duties of occu-
pations performed or engage in any subterfuge for the purpose of
defeating the provisions of the Act or of this Code. Provisions are
incorporated covering Standards for Safety and Health and for the
Payment of Wages.
ECONOMIC EFFECTS OF THE CODE
The members of this industry manufacture and install dispensing
equipment and accessories for beverages, both alcoholic and non-
alcoholic. The raw materials utilized in the industry are numerous,
consisting, in part, of stainless steel, non-ferrous metals, lumber,
marble, tile, vitrolite and formica.
The report of the Research and Planning Division indicates that
the value of the industry's products fell from $24,500,000 in 1929 to
$9,000,000 in 1932, or a drop of approximately 65 per cent. During
the first part of 1933, the legalization of beers and wines of low alco-
holic content has aided the industry, but the increase in output has
fallen off appreciably since July. Likewise the number of employ-
ees decreased approximately 45% from 1929 to 1932, the total in 1932
being approximately 1,500. For the first nine months of 1933 the
number of employees increased to approximately 2,100, but if beer
drawing equipment is disregarded, approximately the same number
of workers were employed as in 1932. The adoption of this Code
should show an immediate increase in the number of employees en-
gaged in the industry, amounting to approximately 500 persons.
Further, the minimum wage rate provided in the Code should
raise the rate approximately 12% above the minimum rate paid in
1929 and should increase the purchasing power for this class of
labor above the 1929 purchasing power. Corresponding wage ad-
justments of wages above the minimum should further increase pur-
The Assistant Deputy Administrator in his final report to me on
said Code, having found as herein set forth and on the basis of all
the proceedings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Industrial Recovery Act, including
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 inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by elimi-
nating unfair competitive practices, by promoting the fullest possi-
ble utilization of the present productive capacity of industries, by
avoiding undue restriction of production (except as may be tem-
porarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of la-
bor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant associ-
ation is an industrial association truly representative of the afore-
said Industry; and that said association imposes no inequitable re-
strictions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies or
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said
For these reasons, therefore, I have approved this Code.
HUGH S. JOHNSON,
MARCH 16, 1934.
CODE OF FAIR COMPETITION FOR THE BEVERAGE
DISPENSING EQUIPMENT INDUSTRY
To effect the policies of Title I of the National Industrial Re-
covery Act, this Code is established as a Code of Fair Competition
for the Beverage Dispensing Equipment Industry, and its provi-
sions shall be the standard of fair competition for such industry
and shall be binding upon every member thereof.
SECTION 1. The term Beverage Dispensing Equipment Industry"
or Industry" as used herein is defined to mean and include the
manufacturing (for sale) and the installing (by the manufacturer)
of all dispensing equipment for beverages as herein defined, includ-
ing front counters and back bars, drain boards, soda fountains, and
carbonators, and parts thereof, which are a part of beverage dis-
pensing equipment and sold in connection or for use therewith, but
not including barrels, kegs and other containers in which beverages
are packaged for delivery to the dispenser.
SECTION 2. The term beverage" as used herein is defined to
mean and include alcoholic, spirituous and fermented liquors of all
types and kinds, beer and other malt and cereal beverages, and
those non-alcoholic beverages (both still and carbonated) commonly
known as soft drinks.
SECTION 3. The term "member of the industry" includes but
without limitation any individual, partnership, association, corpora-
tion, or other form of enterprise engaged in the industry, either as
an employer or on his or its own behalf.
SECTION 4. The term "employee" as used herein includes any
and all persons engaged in the industry, however compensated, ex-
cept a member of the industry.
SECTION 5. The term "Trade as used herein is defined to mean
the channels of distribution to the consumer for the products of this
SECTION 6. The term "Association as used herein means "The
SNational Beverage Dispensing Equipment Association ".
SECTION 7. The term "Act" and "Administrator" as used herein
shall mean respectively Title I of the National Industrial Recovery
Act, and the Administrator for Industrial Recovery.
SECTION 8. Population for the purposes of this Code shall be
determined by reference to the latest Federal Census.
SECTION 1. Maximum Hours.-No employee shall be permitted to
work more than forty (40) hours in any one week (seven (7) day
period) nor more than eight (8) hours in any one day (twenty-four
(24) hour period) nor more than six (6) days in any one week,
except as herein otherwise provided.
SECTION 2. Hours for Clerical and Office Employees.-No person
engaged in clerical or office work shall be permitted to work in ex-
cess of forty (40) hours in any one week (seven (7) day period)
nor more than nine (9) hours in any one day (twenty-four (24)
hour period) nor more than six (6) days in any one week.
SECTION 3. Exceptions as to Hotrs.-To provide for seasonal
peaks, employees under Section 1 may be permitted to work not in
excess of forty-eight (48) hours in any one week (seven (7) day
period) in not more than six (6) weeks of any six (6) months
period, provided, however, that this tolerance shall not be per-
mitted if seasonal demands can be met by the employment of addi-
tional employees, and further provided, that at least one and one-
half (11') times the normal rate of pay shall be paid for all hours
worked in excess of the maximum provided herein in Section 1.
SECTION 4. Employees engaged as firemen and watchmen in manu-
facturing operations may be permitted to work not more than forty-
eight (48) hours in any one week (seven (7) day period).
SECTION 5. Employees engaged as truck drivers, installation, re-
pair and erection employees, may be permitted to work not more
than forty-four (44) hours in any one week (seven (7) day period),
provided that at least one and one half (1%) times the normal rate
of pay shall be paid for all hours worked in excess of nine (9) hours
in any twenty-four (24) hour period.
SECTION 6. Exemptions as to Hours.-The provisions of this Arti-
cle shall not apply to traveling salesmen, or to persons employed in
a managerial or executive capacity who earn not less than thirty-
five dollars ($35.00) per week.
SECTION 7. The provisions of this Article shall not apply to em-
ployees engaged in emergency maintenance or emergency repair
work, provided, however, that in any such emergency work at least
one and one-half (11) times the normal rate of pay shall be paid for
all hours worked in excess of the maxima herein provided by this
Article, and further provided that all cases of emergency work shall
be reported to the Code Authority, and further provided that such
overtime shall not exceed eight (8) hours in any one week (seven
(7) day period) except in cases of emergency maintenance or emer-
gency repair work involving breakdowns or the protection of life
SECTION 8. Employment by Several Employers.-No employer
shall knowingly permit any employee to work for any time which, ,
when totaled with that already performed with another employer
or employers, exceeds the maxima permitted herein.
SECTION 9. The provisions of Section 1 of this Article shall apply
to all employers normally engaged in an executive or managerial
capacity when engaged in production or mechanical work.
SECTION 1. Minimum Iaages.-No employee sail be paid in any
pay period less than at the rate of forty cents (40t) per hour except
as herein provided.
SECTION 2. No clerical or office employee shall be paid in any pay
period less than at the rate of $15.00 per week in any city of 500,000
population or over, or in the immediate trade area of such city; nor
less than at the rate of $14.50 per week in any city of between 250,000
and 500,000 population, or in the immediate trade area of such city;
nor less than at the rate of $14.00 per week in any city or town of
250,000 or less population.
SECTION 3. Piece-Work Compensation, Mininmum Wiages.-This
Article establishes a minimum rate of pay which shall apply, irre-
spective of whether an employee is actually compensated on a time
rate, piece-work, or other basis.
SECTION 4. Wages Above Minimum.-Equitable adjustments in
pay schedules of all employees shall be made within thirty (30) days
after the effective date of this Code by any employer who has not
heretofore made such adjustments under the National Industrial Re-
covery Act. Within sixty (60) days after the effective date all such
adjustments made under the Act shall be reported to the Code
Authority and the Administrator. In no case shall rates be reduced.
SECTION 5. Evasion Through Reemployment.-No employee now
employed at a rate in excess of the minimum shall be discharged and
reemployed or replaced by another employee at a lower rate for the
purpose of evading the provisions of this Code.
ARTICLE V-GENERAL LAnoR PROVISIONS
SECTION 1. Child Labor Provision.-No person under sixteen (16)
years of age shall be employed in the industry. No person under
eighteen (18) years of age shall be employed at operations or occu-
pations which are hazardous in nature or dangerous to health. The
Code Authority shall submit to the Administrator within sixty (60)
days after the effective date of this Code a list. of such operations or
occupations. In any State an employer shall be deemed to have
complied with this provision as to age if he shall have on file a
certificate or permit duly issued by the Authority in such State em-
powered to issue employment or age certificates or permits showing
that the employee is of the required age.
SECTION 2. Provisions from the Act.-In compliance with Section
7 (a) of the Act, it is provided:
(a) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection.
(b) That no employee and no one seeking employment shall be
required as a condition of employment to join any company union
or to refrain from joining, organizing, or assisting a labor organiza-
tion of his own choosing, and
(c) That employers shall comply with the maximum hours of
labor, minimum rates of pay, and other conditions of employment
approved or prescribed by the President.
SECTION 3. Reclassification, of Employees.-No employer shall re-
classify employees or duties of occupations performed or engage in
any subterfuge for the purpose of defeating the provisions of the
Act or of this Code.
SECTION 4. Standards for Safety and Health.-Every employer
shall make reasonable provision for the safety and health of his
employees at the place and during the hours of their employment..
Standards for safety and health for the industry shall be submitted
by the Code Authority to the Administrator within six (6) months
after the effective date of this Code.
SECTION 5. State Laws.-No provision in this Code shall super-
sede any State or Federal law which imposes on employers more
stringent requirements as to age of employees, wages, hours of work,
or as to safety, health, sanitary or general working conditions, or.in-
surance, or fire protection, than are imposed by this Code.
SECTION 6. Posting.-All employers shall post and keep posted
complete copies of this Code in conspicuous places accessible to em-
SECTION 7. Payment of Wages.-All employers shall make pay-
ment of all wages due in lawful currency or by negotiable check
therefore, payable on demand. Wages shall be paid at the end of
each weekly period. These wages shall be exempt from any payment
for pensions, insurance or such benefits other than those voluntarily
paid by employees. Employers or their agents shall not accept, di-
rectly or indirectly, rebates on such wages or give anything of value
nor extend any favors to any person for the purpose of influencing
rates of wages or working conditions of their employees.
The provisions of this section regarding payment of wages at the
end of each weekly period shall not apply to persons employed in a
managerial or executive capacity who earn not less than thirty-five
dollars ($35.00) per week, nor to persons employed in clerical or
office work. The wages 'for persons employed in clerical or office
work shall be paid at the end of pay periods not to exceed semi-
SECTION 8. DisrmIssal.-No employee shall be dismissed by reason
of making a complaint or giving evidence with respect to a violation
of this Code.
ARTICLE VI-ADMINISTRATION OF THE CODE
SECTION 1. To provide for the administration of this Code within
the Industry and cooperation with the Administrator, a Code Au-
thority is hereby constituted.
SECTION 2. The Code Authority shall consist of five (5) members
who shall be selected from members of the Industry, eligible to such
participation as provided herein by section 7, as follows:
Members of the industry shall elect the five (5) members of the
Code Authority, provided that not more than one (1) such member
of the Code Authority shall be elected from any one (1) member of
the industry, and provided further, that the non-members of the
Association shall be entitled to at least one member on the Code
Authority, if any such non-members are eligible as provided herein
by Section 7, until eighty percent (80%) of the members of the in-
dustry shall have become members of the Association.
SECTION 3. The Association is hereby designated as the agency to
conduct an election of the members of the Code Authority to be
held within fifteen (15) .days .after the effective date of. this code,
and to conduct, any other elections of the Code Authority which
may. thereafter be held.
Members of the first Code Authority shall be elected by a majority
vote of the members of the industry eligible as provided herein
by section 7 and present at a meeting called for the purpose, as pro-
vided in the preceding paragraph. Subsequent elections of the
COqe.u4thority may be by person, proxy or letter voting, by mem-
bers of the industry, eligible as provided herein in Section 7. All
members of the Code Authority shall be elected to serve for a term
of one (1) year or until their successors are duly elected and qualified.
In the event of any vacancy in the membership of the Code
Authority a special meeting of the members of the industry shall
be called and an election held within thirty (30) days after such
notice of such vacancy to fill such vacancy.
Notice of the time and place of all election meetings shall be
sent by registered mail to all members of the industry and the
Administrator at least ten days in advance of such meetings.
SECTION 4. In addition to membership as above provided, there
may be three (3) members, without vote, to be appointed by the
SECTION 5. The representatives who may be appointed by the
Administrator together with the Administrator shall be given notice
of and may sit at all meetings of the Code Authority.
SECTION 6. Each member of the industry entitled to participate
in the selection of the members of the Code Authority shall be en-
titled to one vote for each one hundred thousand dollars ($100,000)
of shipments of products of the industry reported for the previous
calendar year, provided that no such member shall have more than
five (5) votes and provided further that each such member shall have
at least one vote irrespective of the amount of shipments reported for
the previous calendar year.
SECTION 7. Members of the industry shall be entitled to partici-
pate in and share the benefits of the activities of the Code Authority
and to participate in the selection of the members thereof by assent-
ing and complying with the requirements of this Code and sus-
taining their reasonable share of the expenses of its administration.
Such reasonable share of the expenses of administration shall be
determined by the Code Authority, subject to review by the Admin-
istrator, on the basis of volume of business and 'or such other factors
as may be deemed equitable.
SECTION 8. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the Code
Authority shall (1) impose no inequitable restrictions on member-
ship, and (2) submit to the Administrator true copies of its articles
of association, by-laws, regulations, and any amendments when
made thereto, together with such other information as to member-
ships, organization, and activities as the Administrator may deem
necessary to effectuate the purpose of the Act. -
SECTION 9. In order that the Code Authority shall at all times
be truly representative of the industry and in other respects comply
with the provisions of the Act, the Administrator may prescribe
such hearings as he may deem proper; and thereafter if he shall
find that the Code Authority is not truly representative or does not
in other respects comply with the provisions of the Act, may require
an appropriate modification in the method of selection of the Code
SECTION 10. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose. Nor
shall any member of the Code Authority be liable in any manner
to anyone for any act of any other member, officer, agent pr -m-
ployee of the Code Authority. Nor shall any member of the Code
Authority, exercising reasonable diligence in the conduct of his
duties hereunder, be liable to anyone for any action or omission
to act under this Code, except for his own wilful misfeasance or
SECTION 11. The Code Authority shall have the following powers
and duties to the extent permitted by the Act; provided, that, if
the Administrator shall determine that any action of the Code
Authority or any agency thereof may be unfair or unjust or con-
trary to the public interest, the Administrator may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by such code
authority or agency pending final action which shall not be effective
unless the Administrator approves or unless he shall fail to disap-
prove after thirty days' notice to him of intention to proceed with
such action in its original or modified form.
(a) To execute the provisions of this Code and provide for the
compliance of the Industry with the provisions of the Act.
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration and enforcement of the Code.
(c) To obtain from members of the industry such information
and reports as are required for the administration of the Code and
to provide for submission by members of such information and
reports as the Administrator may deem necessary for the purposes
recited in Section 3 (a) of the Act, which information and reports
shall be submitted by members to such administrative and/or gov-
ernment agencies as the Administrator may designate; provided
that nothing in this Code shall 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 mem-
ber of the industry or any other party except to such governmental
agencies as may be directed by the Administrator.
(d) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Author-
ity 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 Administrator for the coor-
dination of the administration of this Code with such other codes.
if any, as may be related to the industry.
(f) To secure from members of the industry an equitable and
proportionate payment of the reasonable expenses of maintaining
the Code Authority and its activities.
(g) To cooperate with the Administrator in regulating the use
of any NRA insignia solely by those members of the industry who
have assented to and are complying with this Code.
(h) To recommend to the Administrator further fair trade prac-
tice provisions to govern members of the industry in their relations
with each other or with other industries and to recommend to the
Administrator measures for industrial planning including stabiliza-
tion of employment.
SECTION 12. To require that any information submitted to the
Code Authority by a member of the industry shall be subject to
verification, by an examination of the pertinent books and accounts
and reports of such member by any person (not connected with
the Industry) designated by the Code Authority, and shall be so
verified if the Code Authority shall require it. The cost of each
such examination shall be treated as an expense of administering
the Code; provided, however, that if upon examination any such
information shall be shown to have been incorrect in any material
respect, such cost shall be paid by the member which furnished
SECTION 13. Any interested party shall have the right of complaint
to the Code Authority and of a prompt hearing and decision thereon
in respect to any decision, rule, regulation, or other course of action
of such Code Authority. Such complaint must be filed in writing
with the Code Authority within a reasonable period of time after
said decision, rule, regulation, or course of action is issued or taken.
The decision of such Code Authority may be appealed by any inter-
ested party to the Administrator.
SECTION 14. Any interested party shall have the right of appeal to
the Administrator, under such rules and regulations as he may pre-
scribe, in respect to any decision, rule, regulation, or other course of
action, issued or taken by the Code Authority.
ARTICLE VII-TRADE PRACTICE RULES
For all purposes of the Code the acts described in this Article shall
constitute unfair practices. Any member of the industry who shall
directly, or indirectly through any officer, employee or agent know-
ingly use, employ, or permit to be employed any of such unfair
practices shall be guilty of a violation of the Code.
RULE 1. Inaccurate References to Competitors, etc.-No member
of the industry shall publish advertising which refers inaccurately in
any material particular to any competitors or their goods, prices,
values, credit terms, policies or services.
RLE 2. Inaccurate Advertising.-No member of the industry shall
publish advertising (whether printed, radio, display or of any other
nature), which is misleading or inaccurate in any material particular,
nor shall any member in any way misrepresent any goods (including
but without limitation its use, trade-mark, grade, quality, quantity,
origin, size, substance, character, nature, finish, material, content or
preparation) or credit terms, values, policies, services, or the nature
or form of the business conducted.
RULE 3. Commercial Br~bery.-No member of the industry shall
give, permit to be given, or directly offer to give, anything of 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 employer of such employee, the principal of such agent or the
represented party, without the knowledge of such employer, princi-
pal or party. This provision shall not be construed 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 4. Interference with Another's Contracsts.-No member of
the industry shall maliciously 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 obstruct the performance of such contractual duties or
Ruix 5. Secret Rebates.-No member of the industry shall offer
or make any secret or discriminatory payment or allowance of a
rebate, refund, commission, credit, unearned discount or excess al-
lowance, whether in the form of money or otherwise, nor shall a
member of the industry offer or extend to any customer secret or
discriminatory service or privilege for the purpose of influencing a
RULE 6. Giving Prizes, Premiu, n or Gifts.-No member of the
industry shall offer or give prizes, premiums, or gifts in connection
with the sale of products, or as an inducement thereto, by any scheme
which involves lottery, misrepresentation or fraud.
RULE 7. Defanmation.-No member of the industry shall defame
competitors by falsely imputing to them dishonorable conduct, in-
ability to perform contracts, questionable credit standing, or by
other false representations or by the false disparagement of the
grade or quality of their goods.
RuiE 8. Threats of Law Suits.-No member of the industry shall
publish or circulate unjustified or unwarranted threats of legal pro-
ceedings which tend to or have the effect of harassing competitors or
intimidating their customers. Failure to prosecute in due course
shall be evidence that any such threat is unwarranted or unjustified.
RULE 9. Espionage of Competitors.-No member of the industry
shall secure or attempt to secure confidential information concerning
the business of a competitor by a false or misleading statement or
representation or by false impersonation of one in authority by
bribery or any other unfair method.
RULE 10. Selling Below Cost.-No member of the industry shall
sell below his allowable cost.
The Code Authority shall formulate or cause to be formulated
standard 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
the provisions of this section. Upon approval of such methods or
systems by the Administrator, the Code Authority shall furnish
to each member of the industry complete details of such methods
or systems. Thereafter in determining costs (including estimated
costs), each member of the industry shall use a cost accounting
system which shall be at least as complete and detailed as the cost
accounting method or system recommended by the Code Authority
and approved by the Administrator.
The cost of used equipment or other products of this industry,
for which a trade-in allowance has been made by a member of the
industry selling new equipment to replace that taken in exchange,
shall at least be the amount of the allowance shown on the purchase
contract for such new equipment. This provision does not apply
to the sale of obsolescent or damaged products which products may
be sold at such prices and under such terms and conditions of sale
as shall be established by the Code Authority, subject to the disap-
proval of the Administrator.
RuaL 11. No member of the industry shall directly or indirectly,
discriminate in price between different purchasers of the products
of this industry; provided, however, that nothing contained in this
section shall prevent discrimination in price between purchasers of
the same class on account of difference in the grade, quality, or quan-
tity of the product sold, or that makes only due allowance for dif-
ference in the cost of selling or transportation.
RULE 12. Revised Quotations.-No member of the industry shall
submit revised quotations, proposals or bids of a quotation, proposal
or bid previously filed with a purchaser unless changes in the specifi-
cations or requirements of the purchaser justify such a revised quota-
tion, proposal or bid.
RuLE 13. No member of the industry shall sell any article not
manufactured by the member, but purchased by such member for
resale in connection with the sale of any products manufactured
by him at a price lower than the actual cost to the member of such
RULE 14. No member of the industry shall sell any products of
the industry f.o.b. destination unless the amount of the freight (if
prepaid by a member) is collected from the purchaser in addition
to and at the time of the first cash payment provided such products
are sold on extended terms.' Any member of the industry may
equalize freight with a competing member of the industry.
RULE 15. No member of the industry shall offer or give service on
his equipment for a period longer than one year from the date of
installation of the equipment, unless proper charge has been made by
the member for such excess service.
RULE 16. No member of the industry shall accept the bonds or
other securities involved in the financing of the business for which
the contemplated or actual purchase is made, in part or in whole
payment for equipment.
RuLE 17. No member of the industry shall discount contracts cov-
ering sales made by his distributors without his making proper
charge for this service in accordance with the practice of dancing
or discount companies rendering a similar service.
RULE 18. No member of the industry shall post-date or pre-date
any contract, invoice, quotation, or receipt, withhold from or insert
in any contract, invoice, quotation, or receipt any statement which
makes such contract invoice, quotation, or receipt an inaccurate
statement either in whole or in part or accept or offer to accept any,
such contract with the effect of injuring the business of a competitor
or violating the provisions of this Code.
RULE 19. Other Unfair Trade Practices.-Nothing in this Code
shall limit the effect of any adjudication by the Courts or holding
by the Federal Trade Commission on complaint, finding, and order
that any practice or method is unfair, providing that such adjudi-
cation or holding is not inconsistent with any provision of the Act or
of this Code.
ARTICLE VIII-PUBLICITY OF PRICES, TERMS AND CONDITIONS OF SALE
SECTION 1. Within thirty (30) days after the effective date of this
Code each member of the industry shall file and shall maintain on
file with the Code Authority, or with such agency as the Code Au-
thority may designate, the member's most recently published cata-
logues and specifications and a full and complete price list with
maximum discounts applicable thereto for all his standard products.
Such price list and/or maximum discounts shall be based f.o.b.
shipping point and include all terms and conditions of sale to each
of the member's class of trade, provided, however, that no such price
list and/or maximum discount applicable thereto shall provide for
prices less than the member's individual cost as may be determined
y Rule 10, of Article VII.
SECTION 2. In the event of any change by any member of the
industry in any price, maximum discount, specification, term or con-
dition of sale, he shall file full and complete copies of every such
change with the Code Authority, but not exceeding seven (7) days
in advance of the effective date of any such change.J
SECTION 3. Such catalogues, specifications, price lists, discounts
and terms and conditions of sale together with any changes thereto
shall be open to inspection at all reasonable times by any interested
SECTION 4. No member of the Industry shall sell, pay a rebate, or
allow a deduction at any time to any person except in accordance
with his prices, maximum discounts, terms and conditions of sale
then in effect and filed in the manner described herein, except as
provided in Rule 14 of Article VII. Each member of the Industry
shall have the right individually to file new prices, maximum dis-
counts, terms, and conditions of sale from time to time, as herein
SECTION 5. No member of the industry shall render any service
other than advice and consultation to any purchaser of any product
of the Industry in connection with the sale or installation of any
product unless a schedule of such services shall have been previously
filed with the Code Authority pursuant to Section 1 hereof, and un-
less fair compensation for such services shall be paid by such
SECTION 6. No member of the industry shall sell any industry
product contrary to his published prices, discounts, or terms of sale;
and since a substantial majority of the industry's products are sold
direct by the manufacturer to the consumer, and since the purpose
and effect of this Article would be otherwise defeated, it shall be
SSee paragraph 2 of order approving this Code.
an unfair method of competition for any member of the industry
to distribute to the user industry products indirectly through an
agent, dealer, broker, jobber, or otherwise, contrary to his published
prices, discounts, or terms of sale.2
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule or regula-
tion issued under said Act.
SECTION 2. This Code, except as to provisions required by the Act
may be modified on the basis of experience or changes in circum-
stances, such modifications to be based upon application to the Ad-
ministrator and such notice and hearing as he shall specify, and to
become effective on approval of the President.
ARTnILE X-MONOPOLIES, ETC.
No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
ARTICLE XI-PRICE INCREASES
Whereas, the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases except such as may be required to meet individual cost
should be delayed, but when made such increases should, so far as
possible, be limited to actual additional increases in the seller's costs.
ARTICLE XII-REGISTRATION OF MEMBERS OF THE INDUSTRY
Each member of the Industry shall within thirty (30) days of the
effective date of this Code register with the Code Authority. All
members of the Industry who may engage in the Industry thereafter
shall likewise register with the Code Authority.
Every member of the industry shall, within thirty (30) days from
the effective date hereof, or the date upon which such member be-
comes subject thereto, whichever is latest, register the full name
of its enterprise, together with a statement of the number of shops,
establishments or separate units thereof and their location, with
the Code Authority. Every such member of the industry who may
open for business an additional shop, establishment or separate unit
after such registration shall within thirty (30) days after such
opening, register the same in like manner.
AnTICLE XIII-EFFECwTn DATE
This Code shall become effective on the second Monday after its
approval by the President.
Approved Code No. 884.
Registry No. 1331-02.
Deleted as per paragraph 2 of order approving this Code.
UNIVERSITY OF FLORIDA
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