Code of fair competition for the wholesale automotive trade as approved on December 18, 1933 by President Roosevelt

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Material Information

Title:
Code of fair competition for the wholesale automotive trade as approved on December 18, 1933 by President Roosevelt
Portion of title:
Wholesale automotive trade
Physical Description:
p. 185-198 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

Subjects

Subjects / Keywords:
Automobile industry and trade -- Law and legislation -- United States   ( lcsh )
Wholesale trade -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1414-3-14."
General Note:
"Approved Code No. 163."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004922047
oclc - 639949705
System ID:
AA00007828:00001

Full Text





Registry No. 1414-3-14


NATIONAL RECOVERY ADMINISTRATION





CODE OF FAIR COMPETITION


FOR THE


WHOLESALE AUTOMOTIVE


TRADE

AS APPROVED ON DECEMBER 18, 1933

BY

PRESIDENT ROOSEVELT


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1. Executive Order

2. Letter of Transmittal

3. Code


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UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1933


bf the Suplistandent of Documents. Washington, D.C. Price 5 cents


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This publication Is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 2213 First National Bank Building.
Houston, Ttx.: Chamber of Commerce Building.
Indiannpolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fnl.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville. Ky.: 4118 Federal Building. .- -.
Memphis, Tenn.: 229 Federal Building. "
Minneaiulis, Minu.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N.Y.: 734 Customhouse.
Norfolk. Va.: 406 East Plume Street.
Philadelphia, Pa.: 933 Commercial Trust Building.
Pitrsburgh. Pa.: Chamber of Commerce Building.
Portland, O:eg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francison, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Building.













Approved Code No. 163

CODE OF FAIR COMPETITION
FOR THE

WHOLESALE AUTOMOTIVE TRADE

SAs Approved on December 18, 1933
BY
PRESIDENT ROOSEVELT





Executive Order

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 my approval of a Code
of Fair Competition for the Wholesale Automotive Trade, and hear-
ings having been held thereon and the Administrator having rendered
his report containing an analysis of the said Code of Fair Com-
petition together with his recommendations and findings with re-
spect thereto, and the Administrator having found that the said
Code of Fair Competition complies in all respects with the pertinent
provisions of Title I of said Act, and that the requirements of
clauses (1) and (2) of subsection (a) of Section 3 of the said Act
have been met:
NOW, THEREFORE, I, Franklin D. Roosevelt, President of
the United States, pursuant to the authority vested in me by Title I
of the National Industrial Recovery Act, approved June 16, 1933,
and otherwise, do adopt and approve the report, recommendations,
and findings of the Administrator and do order that the said Code
of Fair Competition be, and it is hereby, approved.
FRANKLIN D. ROOSEVELT.
Approval recommended:
HUGH S. JOHNSON,
Administrator.
THE WHITE HOUSE,
December 18, 1933.
(185)


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DECEMBER 9, 1933.
The PRESIDENT,
The White House.
Smi: The proposed Code of Fair Competition for the Wholesale
Automotive Trade was submitted to the Administrator on August 9,
1933, by the Motor and Equipment Wholesalers Association, Incor-
porated, in cooperation with the National Standard Parts Associa-
tion, the National Automotive Parts Association, the Automotive
Electric Association, the Automotive Engine Rebuilders Association,
and the National Wheel and Rim Association, representing approxi-
mately 70% of the total volume of sales and members of the Trade.
The Hearing was conducted in Washington on October 21, 1933,
and the Code was revised during the recess of this Hearing and is
submitted in its present form for approval. Every person who re-
quested an appearance was properly heard in accordance with statu-
tory and regulatory requirements.
The Trade is nation-wide in character and has had a large increase
in number of establishments in the past few years as indicated by
the figures submitted showing 2,503 wholesale outlets in 1929 com-
pared with more than 5,000 at the present time with a correspond-
ing increase in the number of persons employed from 32,062 in 1929
to 63,500 in 1932. It supplies replacement parts, accessories, service
tools, equipment, and products to more than 200,000 outlets for main-
taining and servicing the more than 20,000,000 motor vehicles which
are now in use.
During the past four years the Trade experienced an indicated
decline in sales of between 40% and 50%. Over this same period,
according to figures submitted by the Trade, the unit sale dropped
from $16.45 to $3.69. This has resulted in maintaining the number
of employees per establishment in spite of the decline in volume of
business.
It is estimated that, giving due consideration to reemployment
already effected, the Labor provisions in this Code will result in
reemployment of more than 6,000 workers and a proportionate in-
crease in payroll.

ARTICLE I-DEFINITIONS

Accurately defines specific terms used in the Code.

ARTICLE II-WAGES

The minimum wage for all employees, except office, salaried, and
handicapped employees and learners and apprentices, is at the rate
of 40 cents per hour. The minimum wage for office or salaried em-
ployees is $15.00 per week in cities of over 500,000 population, and
$14.00 in cities of less than 500,000 population or in the immediate
(186)


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187

vicinity thereof. Handicapped persons shall be paid not less than
80% of the minimum wage subject to certificate authorized by the
United States Department of Labor. Learners and apprentices
shall be paid not less than 80% of the minimum wage and they
shall not exceed 5% of the total number of employees. The mini-
mum wage is established irrespective of the method of compensation
for all classes of employees. Provision is made for equitable adjust-
ments in all pay schedules of employees above the minimum and
female employees shall receive the same pay as male employees for
similar work.
ARTICLE III-HOURS

Employees, excepting executive, administrative, and supervisory
employees receiving not less than $35.00 per week, and traveling and
commissioned sales people, are limited to a maximum of 44 hours
per week and 8 hours per day, except that for two weeks in each
six months' period for inventory purposes, the maximum shall be 48
hours per week.
ARTICLE IV-CHILD LABOR

Provides that no person under sixteen years of age may be em-
ployed and no person under eighteen years of age may be employed
in a hazardous occupation.
ARTICLE V-PRICES

Provides for a uniform system of cost accounting subject to
variations necessary to meet conditions affecting any individual
member of the Trade. Provides further, that no member of the
Trade shall sell below his individual cost.
ARTICLE VI

Provides that a committee consisting of representatives of the
Code Authority of the Trade, the National Automobile Chamber of
Commerce, the Automotive Parts and Equipment Manufacturing
Industry, and the Motor Vehicle Retailing Trade shall make a com-
plete study of alleged unfair and discriminatory practices in the
Trade. The committee shall report its findings to the Adminis-
trator within ninety days from the date of approval of this Code.
If, upon the basis of such report, the Administrator shall find that
such unfair and discriminatory practices do exist, the provisions
for maintenance of resale schedules of branded or trade marked mer-
chandise set forth in this Article shall become effective; provided,
however, that the Administrator may make such modification as may
be indicated by the facts found and recommendations made.

ARTICLE VII-TRADE PRACTICE RULES

: Sets forth Fair Trade Practices for the Trade.
i.


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188


ARTICLE VIII-ORGANIZATION AND PROCEDURE

Establishes a Code Authority consisting of a specified number of
representatives of the Associations which submitted this Code and
such additional representatives as may be selected to represent inter-
ests not members of such Associations. The Administrator may,
designate not more than three representatives to participate in the
conferences of the Code Authority. Provides for obtaining statistics.

ARTICLE IX-AMENDMENTS

Sets forth provisions respecting modification and amendments,
provision required in Section 10 (b) of Title I of the National
Industrial Recovery Act.

ARTICLE X-GENERAL

Sets forth the mandatory provisions respecting right of employees
to organize and bargain collectively and a provision that no member
of the Code shall be held to have consented to any modification
thereof or to any provision or interpretation of the National Indus-
trial Recovery Act if declared unconstitutional by the Supreme
Court of the United States. Defines the effective date.

FINDINGS

The Administrator finds that:
(a) This Code complies in all respects with the pertinent phrases
of Title I of the Act including without limitation subsection (a)
of Section 7 and subsection (b) of Section 10 thereof, and that;
(b) The Associations which submitted this Code together with
those persons who participated in its subsequent revisions are truly
representative of the Wholesale Automotive Trade and their Bylaws
contain no inequitable restrictions on membership, and that;
(c) The Code is not designed to promote monopolies or to elim-
inate or oppress small enterprises and will not operate to dis-
criminate against them and will tend to effectuate the policy of Title
I of the National Industrial Recovery Act.
It is recommended, therefore, that this Code be approved.
Respectfully,
HUGH S. JoHNsoN,
Administrator.








CODE OF FAIR COMPETITION
FOR THE
WHOLESALE AUTOMOTIVE TRADE

To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code
of Fair Competition for the Wholesale Automotive Trade, and shall
be binding upon every member thereof.
ARTICLE I-DEFINITIONS

.The terms "wholesale automotive trade and "trade as herein
used shall mean the selling of automotive merchandise to retailers
by any person, whether such person purchases or manufactures such
merchandise. The terms shall likewise include the machining or
secondary processing of automotive merchandise, such as cylinder
reboring, piston grinding, piston pin fitting, or the reconditioning,
repairing, or installing of any component part or unit of equip-
ment by one who sells as aforesaid.
The term "member of the trade shall mean anyone engaged in
the wholesale automotive trade as hereinabove defined, either as an
employer or on his own behalf.
The term member of the Code as used herein means any mem-
ber of the Trade who assents to this Code.
The term wholesaler shall mean anyone engaged in the whole-
sale automotive trade as hereinabove defined who purchases the auto-
motive merchandise which he sells.
The term automotive merchandise" as used herein is defined
to include any and all parts, equipment, tools, accessories, and sup-
plies used in the repair and maintenance of motor vehicles (meaning
automobiles, including passenger cars, trucks, truck tractors, busses,
taxicabs, hearses, ambulances, and other commercial vehicles for
use on the highway, excluding motorcycles, fire apparatus, and trac-
tors other than truck tractors) stationary, internal-combustion en-
gines and aeronautical and marine engines, excepting tire and
petroleum products and such other products related to the motor
vehicle industry as may be specifically covered by any code applying
to the wholesale distribution thereof duly approved by the President.
The term employee as used herein includes any person engaged
in any phase of the trade in any capacity in the nature of employee
irrespective of the method of payment of his compensation.
The term "employer" as used herein includes anyone for whose
benefit such an employee is so engaged.
The term "National Administrative Committee" as herein used
is a committee of the Wholesale Automotive Trade composed of
representatives of the following National Trade Associations: The
Motor and Equipment Wholesalers Association, 400 West Madison
S Street, Chicago, Illinois; The National Standard Parts Association,
Eaton Tower, Detroit, Michigan; The National Automotive Parts
Association, 2211 Woodward Avenue, Detroit, Michigan; The Auto-
S motive Electric Association, Cleveland, Ohio; the Automotive Engine
S(189)


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190


Rebuilders Association, Indianapolis, Indiana; National Wheel &
Rim Association, Chicago, Illinois.
The term President" as used herein means the President of the
United States.
The terms "Act" and "Administrator as used herein mean re-
spectively Title I of the National Industrial Recovery Act, and the
Administrator for Industrial Recovery.
ARTICLE II-WAGES

The following provisions as to wages are established for whole-
salers:
A. (1) Except as provided in Section B of this Article, the mini-
mum rate of pay that shall be paid to any employee shall be forty
cents per hour; except that learners and apprentices, with less than
three months' experience in the trade may be paid not less than 80%
of said minimum rate, but the number of learners and apprentices
employed by any wholesaler receiving less than the minimum rate
shall not exceed 5% of the total number of employees of such whole-
saler; provided, however, the wholesaler may so classify at least one
employee.
(2) This section establishes the minimum rate of pay which shall
be paid for an hour's work, irrespective of whether an employee is
actually compensated on time rate, piece work, or any other basis,
except as specified in Section B.
When a piece work employee is required to be on duty a specified
time he shall receive, even though not productively engaged for such
time, the minimum rate of pay herein specified.
B. The minimum compensation that shall be paid to any office or
salaried employee in the wholesale automotive trade shall be at the
following rates:
1. In cities over 500,000 population, or in the immediate vicinity
thereof, at the rate of fifteen dollars ($15.00) per week.
2. In cities of less than 500,000 population, or in the immediate
vicinity thereof, at the rate of fourteen dollars ($14.00) per week.
C. Equitable adjustments in all pay schedules of employees above
the minimum shall be made within 30 days after effective date of
this Code by any employers who have not heretofore made such
adjustments, and the first reports of wages required to be filed under
this Code shall contain all wage increases made since May 1, 1933.
D. Wages shall be paid weekly or semimonthly in lawful money
or by negotiable check.
E. A person whose earning capacity is limited because of age or
physical or mental handicap may be employed at light work at a
wage not less than 80% of the minimum established by this Code, if
the employer obtains from the State authority designated by the
United States Department of Labor, a certificate authorizing his em-
ployment at such wages and for such hours as shall be stated in the
certificate. Each employer shall file with the Code Authority a list
of all such persons employed by him.
F. Female employees performing substantially the same work as
male employees shall receive the same rate of pay as male employees.






191

AnTIcLB III-HouRs
The following provisions as to hours are established for whole-
salers:
(A) Employees, excepting executive, administrative, and super-
visory employees receiving not less than $35.00 per week and travel-
ing and commission sales people shall not work or be permitted to
work in excess of forty-four hours in any one week, or for more than
eight hours in any twenty-four hour period, except that they may
work, or be permitted to work a maximum of forty-eight hours per
week for a period of two weeks in each six months for inventory
purposes. No executive, employer, or partner in a partnership, when
working beyond forty-four hours per week, may perform the work
or take the place of any employees subject to the maximum hour
limitations of this Code.
(B). The maximum hours herein above provided mark the total
number of hours during which any employee may be employed in
the trade, whether by one or more employers.
(C) No employee or other person shall be classified in any one of
the exempted classes herein above defined, unless he performs func-
tions performed by employees thus classified on June 16, 1933.
(D) Hours shall be worked consecutively with reasonable time
out for lunch.
(E) No employee whose normal full-time weekly hours for the
four weeks ending July 1, 1933, are reduced by less than 20% shall
have his or her full-time earnings reduced. No employee whose
normal full-time weekly hours are reduced 20% or more shall have
his or her full-time weekly earnings reduced by more than 10%.
ARTICLE IV-CHILD LABOR
No person under sixteen years of age may be employed by any
wholesaler. No person under eighteen years of age shall be em-
ployed in the trade in occupations which are hazardous in nature or
dangerous to health.
ARTICLE V-PRICES
(A) The Code Authority shall establish a uniform system of cost
accounting, suitable for and applicable to the wholesale automotive
trade. Upon approval thereof by the Administrator, such system of
cost accounting shall be used by every member of the trade, with such
variations therefrom or exceptions thereto as may be required by
the conditions affecting any individual member of the trade and as
may be approved by the Code Authority.
(B) No member of the trade shall sell or exchange any auto-
motive merchandise at a price or upon such terms or conditions as
will result in the customer paying for the goods received less than
the cost to the seller, determined in accordance with the uniform
system of cost accounting hereinabove described, except as provided
in Section F in Article VII; and further provided that this pro-
vision shall not be construed in such manner as to interfere with
the sale and/or exchange of merchandise between one member of
the trade and another; and further provided this provision shall
not apply when manufacturers resale schedules may be less than
herein provided.






192

ARTICLE VI
It has been alleged that certain unfair and discriminatory prac-
tices exist in the trade which tend to eliminate or oppress small
enterprises and to promote monopolies. Accordingly, it is provided
that the Code Authority shall designate a representative or repre-
sentatives who, in cooperation with such representative or rep-
resentatives as may be designated by the National Automobile
Chamber of Commerce, the Code Authority for the Automotive
Parts and Equipment Manufacturing Industry, and the Emergency
National Committee for the Motor Vehicle Retailing Trade, shall
make a complete study of the aforesaid alleged unfair and dis-
criminatory practices.
The number of such representatives shall be determined by the Ad-
ministrator, but the respective designating authorities shall be-
entitled to equal representation. The Administrator shall have the
power to designate a chairman for such committee who may or may
not be one of such representatives. If the National Automobile
Chamber of Commerce, or the Code Authority for the Automotive
Parts and Equipment Manufacturing Industry, or the Emergency
National Committee for the Motor Vehicle Retailing Trade should
refuse or neglect to designate representatives, the study shall
nevertheless proceed.
The facts found, together with such recommendations as may be
calculated to effectuate the policy of Title I of the National Indus-
trial Recovery Act, shall be reported by such Committee to the Ad-
ministrator as soon as possible, but in any event within ninety days
from the date of approval of this Code. If, upon the basis of such
report, the Administrator shall find that such unfair and discrimina-
tory practices do exist and that the execution of the provisions here-
inafter set forth will effectuate the purposes of the Act and will not
be contrary to the public interest, and shall notify the respective
authorities hereinabove described to that effect, the following pro-
visions shall become effective as a part of this Code immediately upon
such notification:
(1) The sale by any member of the Trade of any branded or trade-
marked merchandise at a price lower or on terms more favorable
than the prices and terms in the currently published suggested resale
schedules of the manufacturer thereof, is an unfair method of compe-
tition.
(2) The sale by any member of the Trade of any article of auto-
motive merchandise known to the Trade to be identical with and to
be manufactured by the manufacturer of some branded or trade-
marked article at a price lower or on terms more favorable than the
prices and terms in the currently published suggested resale sched-
ules of said manufacturer for said branded or trade-marked article,
is an unfair method of competition.
(3) The sale by any member of the Trade of any article of auto-
motive merchandise in such manner as to indicate to the purchaser
thereof that such article is identical with and manufactured by the
manufacturer of some branded or trade-marked article at a price:
lower or on terms more favorable than the prices and terms in the
currently published suggested resale schedules of said manufacturer





193

for said branded or trade-marked article, is an unfair method of
competition.
P!! provided, however, that the Administrator, in connection with
such notification to the respective authorities aforesaid, may make
such modification of the aforesaid provisions as may be indicated by
the facts found and recommendations made.
ARTICLE VII-TRADE PRACTICE RULES
The following are unfair methods of competition and if engaged
in by any member of the trade shall constitute a violation of this
Code:
(A) Marking, branding, or failure to brand, or the describing of
merchandise in catalogues or circulars for the purpose or with the
effect of misleading or deceiving purchasers or prospective pur-
chasers in any material particular is an unfair method of competition.
'(B) The making of statements by advertisement or otherwise and
selling or offering to sell any automotive merchandise with intent to
deceive purchasers or prospective purchasers is an unfair method of
competition.
(C) To prevent unfair methods of competition, the Code Author-
ity shall, subject to the disapproval of the Administrator, establish
a fair and equitable classification of accounts, and such classifica-
tion shall be adhered to by all members of the Trade. No member
of the Trade shall sell merchandise to any customer at prices lower
than are offered to all other customers of the same class for the same
quantity, grade, quality, or style. Provided, however, that due
allowance may be made for differences in transportation costs, it
being understood that transportation costs may be equalized by any
individual member of the trade acting independently as between
recognized wholesaling centers.
If any application of the foregoing classification should work
unjust hardship upon any member of the Trade or any customer,
such members of the Trade or customer may appeal to the Code
Authority, which shall have power to make such reclassification as
justice requires. If the Code Authority should refuse relief or
should fail to take action upon any appeal within fifteen (15) days,
such member or customer may appeal to the Administrator, who
shall have power to grant relief.
(D) No cash discount of greater than 2% shall be allowed by
any member of the Trade. No cash discount shall be allowed where
payment of an invoice is made by warrant, note, or trade acceptance,
or where there is an unpaid balance due, unless such balance is due
to and confined to items in dispute.
The Code Authority may recommend to the Administrator such
other provisions in regard to uniform credit terms, as shall seem
necessary to help stabilize the trade. Upon approval thereof by the
Administrator, after such hearing as may be prescribed, such pro-
visions shall become part of this Code.
(E) Accepting an order for a large quantity of merchandise at a
large quantity price with the intention of making delivery of less
than the quantity ordered is unfair method of competition.
S(F) When a member of the Trade deems it necessary to liquidate
surplus, slow-moving stock of merchandise, dropped lines, seconds,


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194


or inventories which must be converted into cash to meet emergency
needs, such merchandise may be disposed of in such manner and on
such terms and conditions as the Code Authority may approve and
as are necessary to move such merchandise into buyers' hands, pro-
vided that all invoices covering sales of merchandise so sold shall
plainly display the following wording: "Special Close-out Prices."
Failure to observe this rule or increasing such stock during liquida-
tion at the special prices is an unfair method of competition. If the
Code Authority should deny approval as aforesaid, or should fail
to notify the member of the trade affected of its decision within 10
days after application for approval, such member of the trade may
appeal to the Administrator, who may grant approval.
It is recommended with reference to the above rule that any whole-
saler finding himself in this position should first offer the surplus of
merchandise to the manufacturer or seller thereof, and, failing dis-
posal of such merchandise by this method, should offer same to his
competitors in the district or local group.
(G) The consignment of goods is an unfair trade practice unless
the consignor obtains the approval of the Code Authority. If the
Code Authority refuses approval or should fail to notify the mem-
ber of the trade affected of its decision within 10 days after applica-
tion for approval such member of the trade may appeal to the
Administrator, who may grant approval. Consignment as used
herein shall include, but without limitations, the carrying of floating
ledger balances.
(H) To give, directly or indirectly, or to permit to be given, or to
offer money or anything of value to customers, prospective customers,
employees, or representatives of customers or prospective customers,
as an inducement to influence sales or to influence such customers or
employees to refrain from dealing or contracting to deal with com-
petitors, is an unfair method of competition. This rule includes the
giving or permitting to be given, or holding oneself as giving so-
called Free Deals and free mechanical service except as pro-
vided by the manufacturers' warranty and/or sales policy in connec-
tion with the sale of merchandise or mechanical service by automo-
tive wholesalers.
(I) The practice of coercion in the wholesale distribution of au-
tomotive products in any form whatsoever or through the instru-
mentality of any devices whatsoever is unfair competition.
(J) Willfully inducing or attempting to induce the breach of ex-
isting contracts between competitors and their customers by any
false or deceptive means whatsoever, or interfering with, or obstruct-
ing the performance of any such contractual duties or services by any
such means, is unfair trade practice.
(K) The defamation of competitors by falsely imputing to them
dishonorable conduct, inability to perform contracts, questionable
credit standing, or by other false representations, or the false dis-
paragement of the grade or quality of their goods, is unfair trade
practice.
(L) Willfully withholding from or inserting in the invoice state-
ments which make the invoice a false record, wholly or in part, of
the transaction represented on the face thereof, is an unfair trade
practice.







195

S(M) The minimum hours of any store or service operation in the
I Wholesale Automotive Trade shall bb fifty-two hours in any one
week unless such hours were less than 52 hours per week before
July 1, 1933, in which case such hours less than 52 may apply.
No member of the trade shall perform any store or service opera-
tion on Sundays and/or holidays as are generally observed in any
given district as applying to that district.
Emergency sales or service may be performed in hours not speci-
fied in this section under such conditions as the Code Authority may
prescribe, subject to the disapproval of the Administrator.
ABTIcLE VIII-ORGANIZATION AND PROCEDURE
(A) There is hereby constituted a Code Authority for the purpose
of assisting the Administrator in administering, supervising, and
promoting the performance of the provisions of this Code by the
members of the Wholesale Automotive Trade.
(B) The Code Authority shall consist of twenty-two (22) mem-
bers of the trade selected in a manner herein provided for from
among the memberships of the associations specifically named in
designating the National Administrative Committee (defined in
Article I of this Code) in the following proportions:
Five representatives of the Motor and Equipment Wholesalers
Association;
Five representatives of the National Standard Parts Association;
Three representatives of the Automotive Electric Association;
Three representatives of the National Wheel & Rim Association;
Three representatives of the National Automotive Parts Associa-
tion;
Three representatives of the Automotive Engine Rebuilders
Association.
Additional members of the Code Authority may be selected from
members of the Trade to provide representation of interests not
in the membership of any of the herein named associations in
such manner and under such conditions as the Administrator may
prescribe.
The members of the Code Authority selected from the member-
ships of the herein named associations shall be chosen as follows:
The board of directors or corresponding authority of each asso-
ciation shall appoint a nominating committee not later than fifteen
(15) days from the date of approval of this code by the President.
Each said committee shall within twenty (20) days from the date
of its appointment submit to the secretary of its association names
of nominees to the Code Authority, numbering not less than twice
the number of representatives from said association. The secretary
of each association shall immediately transmit the names of such
nominees to the membership of his respective association.
Additional nominations may be made by the members of each
association by petition signed by not less than ten members, pro-
vided that said petition is filed with the secretary of the association
addressed to the headquarters of the association not later than
twenty (20) days after the date of notification by the secretary of
nominees by the nominating committee.






196

The secretary shall immediately transmit to the members a ballot
containing the names of all nominees, said ballot to be returned in
a self-addressed envelope directed to the Board of Directors or other
corresponding authority, care of headquarters of the association not
later than twenty (20) days from the date of its transmittal to mem-
bers. The Board of Directors or a duly authorized board of can-
vassers shall immediately canvas the result and certify same to the
national administrative committee, who shall immediately certify
said result to the Administrator.
Participation in the selection of members of the Code Authority
chosen from the memberships of the associations shall be limited to
duly accredited representatives in the associations of members there-
of who are members of the trade. Only such duly accredited repre-
sentatives shall be eligible for election to the Code Authority as
representatives of such associations.
The National Administrative Committee as constituted on the date
of approval of this Code shall be the Code Authority until procedure
governing election as herein above provided shall have been
complied with.
The Code Authority as constituted on the date of approval of this
Code and as determined in accordance with procedure herein pro-
vided shall have the power to delegate its authority as it may
determine subject to the disapproval of the Administrator, pro-
vided, however, that no such delegation shall relieve it of its duties
and responsibilities under this Code.
Vacancies in the membership of the Code Authority may be filled
by the Code Authority in such manner as it may prescribe subject to
the disapproval of the Administrator, provided that the person or
persons selected to fill such vacancy or vacancies be selected from
the membership of the association in which it or they occur.
The Code Authority as elected in the manner herein provided
shall serve until the date of the expiration of the Act, or sooner
if the President shall have declared the emergency under which the
Act was created to have ended.
(C) No inequitable restrictions upon membership in any of the
associations which designated the National Administrative Com-
mittee or in any other association, national or local, which par-
ticipates in the administration of this code, shall at any time be
imposed.
(D) The Code Authority shall have the powers and duties pre-
scribed in this Code, subject to the right of the Administrator, upon
review, to disapprove any action taken by the Code Authority.
With a view to keeping the Administrator informed as to the
observance or nonobservance of this code and as to whether appro-
priate steps are being taken to. effectuate the purposes of the Act,
each member of this trade shall furnish certified reports to the Code
Authority when and in such form as it shall, subject to the dis-
approval of the Administrator, prescribe. Each member of the Code
shall permit a disinterested agency, designated by the Code Au-
thority, with the approval of the Administrator, to make such exam-
ination of the relevant records of each member of this trade as may,
subject to the approval of the Administrator, be necessary for the
purpose of verifying the accuracy of such reports.







197


S(E) The Administrator may designate not more than three rep-
resentatives to participate in the conferences of the Code Authority
with respect to the application of this Code and such representatives
shall have access to all data and statistics collected by the Code
Authority as hereinabove provided. The Code Authority shall hold
itself in readiness to assist the Administrator and to meet with the
Administrator's representatives from time to time as required, to
S consider and study any suggestions or proposals presented upon
behalf of the Administrator or any member of the trade regarding
the operation, observance, or administration of this Code. Such
representatives shall receive such notice of meetings of the Code
Authority as is given to members of the Code Authority.
(F) Any and all information with respect to sales volume, costs,
and other details of operations as may be furnished by the members
of the trade to the Code Authority shall be considered confidential
and shall not be supplied or made available to others except to the
duly appointed and constituted representative of the President.
(G) In addition to information required to be submitted under
this Code there shall be furnished to government agencies such sta-
tistical information as the Administrator may deem necessary for
the purposes recited in Section 3 (a) of the Act.
(H) Each member of the Code shall bear his proportionate share
toward the cost of preparation and administration of the Code,
including the cost of assembly and analysis of such reports and
data as may be required under the Code and the cost of the main-
tenance of the Administrative agency and its activities. Said pro-
portionate share shall be determined by the Code Authority with
the approval of the Administrator. Only members of the Code may
participate in the activities of the Code Authority.
(I) In order that the Code Authority shall at all times be truly
representative of the trade 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 Authority.

ARTICLE IX-AMENDMENTS

(A) This Code and all provisions thereof are expressly made sub-
ject to the right of the President, in accordance with the provision
of Section 10 (b) of the National Industrial Recovery Act, from
time to time to cancel or modify any order approval, license, rule
or regulation, issued under Title I of said Act, and specifically but
without limitation to the right of the President to cancel or modify
his approval of this Code or any conditions imposed by him upon
his approval thereof.
... (B) Such of the provisions of this Code as are not required to be
included therein by the National Industrial Recovery Act may, with
the approval of the President, be modified or eliminated as changes
in circumstances or experience may indicate, upon application of the
Code Authority and approval by the President after such hearings
as may be prescribed. It is contemplated that from time to time

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UNIVERSITY OF FLORIDA


3 1262 08336 699 6
198

supplementary provisions or supplementary codes to this ode will
be submitted for the approval of the President to prevent unfair
competition in price and other unfair and destructive coip'i0tive
practices and to effectuate the other purposes and policies of Title I
of the National Industrial Recovery Act consistent with the prt vi
sions hereof.
ARTICLE X-GzN RAL

(A) No provision in this Code shall be interpreted or applied
in such manner as to promote monopolies, permit or encourage uni-
fair competition, eliminate or oppress or discriminate against small'
enterprises.
(B) If any employer of labor in the wholesale automotive in- .
dustry is also an employer of labor in any other industry, the pro-
visions of this Code shall apply to and affect only that part of his
business which is included in the wholesale automotive industry.
(C) (1) 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
Eelf-organization or in other concerted activities for the purpose of
collective bargaining or other mutual aid or protection; (2) no em-
ployee and no one seeking employment shall be required as a codidi-
tion of employment to join any company union or to refrsainifom
joining, organizing, or assisting a labor organization of his own
choosing; and (3) employers shall comply with the maximum hours
of labor, minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
(D) Nothing contained in this Code shall constitute the member
of the Code Authority partners for any purpose; nor shall this Code
be construed to render any member of the Code Authority liable
in any manner to anyone for any act of any other member, officer,
agent, or employee of the Code Authority; nor shall this Code be
construed to render any member of the Code Authority exercising
reasonable diligence in the conduct of his duties hereunder liable'to
anyone for any action or omission to act under this Code except for
his own willful misfeasance or nonfeasance.
(E) No member of this Code shall be held to have consented to
any modification thereof or to any provision or interpretation of the
National Industrial Recovery Act if declared unconstitutional by the
Supreme Court of the United States.
(F) All employers shall post the labor provisions of this Code in
conspicuous places accessible to employees.
(G) No provision in this Code shall supersede any State or Fed-
eral 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 insurance, or fire protec- .
tion, than are imposed by this Code.
(H) The effective date of this Code shall be the 10th day after the
date of its approval by the President of the United States. : '"
Registry No. 1404-3-14..
Approved Code No. 163. ::

AR. i.
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