Code of fair competition for the retail drug trade

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Title:
Code of fair competition for the retail drug trade compilation of provisions relating to the retail drug trade taken from the Code of fair competition for the retail trade approved by President Roosevelt on October 31, 1933
Physical Description:
iv, 13 p. : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. G.P.O.
Place of Publication:
Washington
Publication Date:

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Subjects / Keywords:
Pharmaceutical industry -- United States   ( lcsh )
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federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
At head of title: National Recovery Administration.
General Note:
Registry no. 1625-2-02A.

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Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004917222
oclc - 48024228
lccn - 33026724
System ID:
AA00007830:00001

Full Text


Registry No. 1625-2-02A
r


NATIONAL RECOVERY ADMINISTRATION



CODE OF FAIR COMPETITION

FOR THE


RETAIL DRUG TRADE


Compilation of provisions relating to the Retail Drug Trade
taken from the Code of Fair Competition
for the Retail Trade


APPROVED BY
PRESIDENT ROOSEVELT
OCTOBER 21, 1933





NRA.w


WE DO OUR PART


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1933


al by he Superintendent of Documens, Wahington, D. Price 5 cen
ler sale by ohe Superintendent of Documents, Washington, D.C. - Price 5 cent.























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

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(I)


















EXECUTIVE ORDER


CODE OF FAIR COMPETITION FOR THE RETAIL TRADE

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 Retail Trade, and hearings having been
held thereon and the Administrator having rendered his report con-
taining 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 compe-
tition complies in all respects with the pertinent provisions of title I
of said act and that the requirements of clauses (1) and (2) of sub-
section (a) of section 3 of 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 is hereby approved.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE,
October 21, 1933.
Approval recommended:
HUGH S. JOHNSON,
Administrator.
(1)
188760- 188-19--33












EXECUTIVE ORDER


In order to effectuate the policy of title I of the National Industrial
Recovery Act, approved June 16, 19:j3, and to provide for equitable
enforcement of agreements heretofore made with the President and
codes approved by the Pre-ident under said act, I, Franklin D.
Roosevelt, President of the United States, pursuant to the authority
vested in me by title I of said National Industrial Recovery Act,
hereby prescribe the following rules and regulations which shall have
the effect of modifying any invon.sistent, provisions of any order,
approval, rule or regulation heretofore issued under title I of said act.
1. The provisions of the President's reemployment agreement,
issued July 27, 1933, shall not be held to apply to employers engaged
only locally in retail trade or in local service industries (and not in
a business in or affecting interstate commerce) who do not employ
more than five persons and who are located in towns of less than
2,500 population (according to the 1930 Federal census) which are
not in the immediate trade area of a city of larger population, except
so far as such employers who have signed the President's reemploy-
ment agreement desire to continue to comply with the terms of said
agreement after the date of this order; and this release of such em-
ployers who have heretofore signed the President's reemployment
agreement shall be further extended so as to release to the same extent
all such employers of obligations not voluntarily assumed under the
provisions of a code of fair competition approved by the President.
This exemption is intended to relieve small business enterprises in
small towns from fixed obligations which might impose exceptional
hardship, but it is expected that all such enterprises will conform to
the fullest extent possible with the requirements which would be
otherwise obligatory upon them.
2. In view of general increases in prices which may or may not be
justified in specific instances by increased costs caused by compliance
with the President's reemployment agreement, or with approved
codes of fair competition, the Administrator for Industrial Recovery
is hereby directed to cause to be conducted such investigations as may
be necessary to determine the extent to which manufacturers and
producers have increased prices following, or in anticipation of, the
approval of codes of fair competition, or after the signing of the
President's reemployment agreement, and to set up adequate organi-
zations for the handling of complaints against such price increases
and of local complaints against retail price increases alleged to be
contrary to the requirements of codes of fair competition, or the
President's reemployment agreement, or in conflict with the policy
of the National Industrial Recovery Act.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE,
October 23, 1933.












CODE OF FAIR COMPETITION FOR THE RETAIL DRUG TRADE
[ARTICLE I.] DEFINITIONS
[SECTION 1.] Retail drug trade.-The term retail drug trade as
used herein shall mean all selling to the consumer and not for the
purpose of resale in any form of drugs, medicines, cosmetics, toilet
preparations, drug sundries, and/or allied items, in the continental
United States excluding the Panama Canal Zone. It is provided,
however, that the term retail drug trade shall not include the
dispensing of drugs, medicines, and medical supplies by a physician,
dentist, surgeon, or veterinarian in the legitimate practice of his
profession.
[SECTION 2.] Drug retailer.-The term "drug retailer" as used
herein shall mean any individual or organization engaged wholly or
partially in the retail drug trade.
[SECTION 3.] Retail drug establishment.-The term "retail drug
establishment' as used herein shall mean any store or department
of a store engaged in the retail drug trade, but shall not include
stores or departments in which the principal business is the selling
at retail of products other than drugs, medicines, cosmetics, toilet
preparations, drug sundries, and/or allied items.
[SECTION 4.] Drugs.-The term drug as used herein shall mean
all medicinal substances and preparations recognized in the United
States Pharmacopoeia and National Formulary or any supplements
thereto, and all substances and preparations intended for external
or internal use in the cure, mitigation, treatment, or prevention of
disease in man or other animals, and all substances and preparations
other than food (but including medicinal or quasi-medicinal prepara-
tions, such as those sold or produced primarily for their vitamin
content), intended to affect the structure or any function of the body
of man or other animals.
[SECTION 5.] Cosmetics and toilet preparations.-The term "cos-
metics" and the term "toilet preparations" as used herein shall
mean toilet articles and perfumes, toilet waters, face powders, face
creams, rouges, shaving creams, dentifrices, soaps, and similar sub-
stances and preparations designed and intended for application to
the person for the purpose of cleansing, improving the appearance
of, refreshing or preserving the person.
[SECTION 6.] Drug sundries.-The term drug sundries" as used
herein shall mean such articles as are used in conjunction with but
not included in drugs", cosmetics ", or toilet preparations ".
[SECTION 7.] Registered pharmacist, assistant pharmacist, appren-
tice pharmnacst.-The terms registered pharmacist ", assistant
pharmacist", and apprentice pharmacist", as used herein shall
have the meaning given to them under the laws of the respective
states of the United States and of Alaska.
(1)








[SECTIOoN 8.] Curb boys or girls.-The term curb boys or girls "
as used herein shall mean employees engaged exclusively in serving
curb customers.
[SECTION 9.] Employee.-The term "employee" as used herein
shall mean any person employed by any retailer but shall not include
persons employed principally in the selling at retail of products not
included within the definition of retail trade.
[SECTrION 10.] Definitions of personnel.-(a) Executive: The term
" executive" as used herein shall mean an employee responsible for
the management of a business or a recognized subdivision thereof.
(b) Professional person: The term "Professional person" as used
herein shall mean lawyers, doctors, nurses, research technicians, ad-
vertising specialists, and other persons engaged in occupations re-
quiring a special discipline and special attainments.
(c) Outside salesmen: The term outside salesmen as used herein
shall mean a salesman who is engaged not less than sixty (60) per-
cent of his working hours outside the establishment, or any branch
thereof, by which he is employed.
(d) Outside collector: The term outside collector as used herein
shall mean a collector of accounts who is engaged not less than sixty
(60) percent of his working hours outside the establishment, or any
branch thereof, by which he is employed.
(e) Watchmen and guards: The terms watchmen and guards"
as used herein shall mean employees engaged primarily in watching
and safeguarding the premises and property of a retail establishment.
(f) Store detective: The term "store detective" as used herein
shall mean an employee engaged exclusively in detective work.
(g) Maintenance employee: The term "maintenance employee as
used herein shall mean an employee essentiall to the upkeep and/or
preservation of the premises and property of a retail establishment.
(h) Outside service employee: The term "outside service em-
ployee" as used herein shall mean an employee engaged primarily
in delivering, installing, or servicing merchandise outside the estab-
lishment, and shall include stable and garage employees.
(i) Junior employee: The term junior employee as used herein
shall mean an employee under eighteen (18) years of age.
(j) Apprentice employee: The term apprentice employee" as
used herein shall mean an employee with less than six (6) months'
experience in the retail trade.
(k) Part-time employee: The term part-time employee as used
herein shall mean an employee who works for less than the maximum
work week.
[SECTION 11.] South.-The term South" as used herein shall
mean Virginia, West Virginia, Maryland, North Carolina, South
Carolina, Georgia, Florida, Kentucky, Tennessee, Alabama, Missis-
sippi, Arkansas, Louisiana, Oklahoma, New Mexico, Texas, and the
'District of Columbia.
[SECTION 12.] Population.-Population shall be determined by ref-
erence to the Fifteenth Census of the United States (U.S. Depart-
ment of Commerce, Bureau of Census, 1930).








[ARTICLE II.] EFFECTIVE DATE

The effective date of this Code shall be the second Monday after
its approval by the President of the United States.
[ARTICLE III.] GENERAL L.\OR PROVISIONS

[SECTION 1.] Collective bargaining.-(a) Employees shall have the
right to organize and bargain collectively through representatives
of their own choosing, and shall be free from the interference, re-
straint, 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) No employee and no one seeking employment shall be re-
quired as a condition of employment to join any company union or
to refrain from joining, organizing, or assisting a labor organization
of his own choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
[SECTION 2.] Child labor.-On and after the effective date of this
Code, no person under the age of sixteen (16) years shall be em-
ployed, except that persons fourteen (14) and fifteen (15) years of
age may be employed either-
(a) for a period not to exceed three (3) hours per day on six
(6) days per week, or
(b) for one day per week, such day not to exceed eight (8)
hours.
In either case, all such hours of work shall be between 7 A.M. and
7 P.M. and shall not conflict with the employee's hours of day school.
It is provided, however, that no person under the age of sixteen (16)
years shall be employed in delivering merchandise from motor
vehicles.
It is further provided that where a State law prescribes a higher
minimum age no person below the age specified by such State law
shall be employed within such State.
[ARTICLE IV.] STORE HOURS AND HOURs OF LABOR
[SECTION 1.] Basic store oand working hours.-On and after the
effective date of this Code establishments in the retail trade shall
elect to operate upon one of the following schedules of store hours
and hours of labor:
Group A.-Any establishment may elect to remain open for
business less than fifty-six (56) hours but not less than fifty-
two (52) hours per week, unless its store hours were less than
fifty-two (52) hours prior to June 1, 1933, in which case such
establishment shall not reduce its store hours; no employee of
these establishments shall work more than forty (40) hours
per week, nor more than eight (8) hours per day, nor more
than six (6) days per week.
Group B.-Any establishment may elect to remain open for
business fifty-six (56) hours or more per week but less than








sixty-three (63) hours per week; no employee of such estab-
lishment shall work more than forty-four (44) hours per
week, nor more than nine (9) hours per day, nor more than
six (6) days per week.
Group O.-Any establishment may elect to remain open for
business sixty-three (63) hours or more per week; no em-
ployee of such establishment shall work more than forty-eight
(48) hours per week nor more than ten (10) hours per day,
nor more than six (6) days per week.
Group D.-In place of any of the schedules of store hours
and hours of labor set forth [above], retail drug establish-
ments may elect to remain open for business seven (7) days a
week for a total of eighty-four (84) hours or more per week,
but on no day for less than eight (8) hours; no employee of
such establishment, except as provided [below], shall work
more than fifty-six (56) hours per week, nor more than ten
(10) hours per day, nor more than thirteen (13) days in any
two consecutive weeks.
No employee shall work for two or more establishments a greater
number of hours, in the aggregate, than he would be permitted to
work for that one of such establishments which operates upon the
lowest schedule of working hours.
No employee not included in the foregoing paragraphs, and not
specifically excepted hereinafter, shall work more than forty (40)
hours per week, nor more than eight (8) hours per day, nor more
than six (6) days per week.
[SECTION 2.] Sc7idfle of hours to be posted.-On or within one
week after the effective date of this Code every retail establishment
shall designate under which of the Groups set forth in the preceding
Section it elects to operate and shall post and maintain in a conspic-
uous place in the establishment a copy of such election showing its
store hours and employee working hours.
[SECTION 3.] Changes in store hours and employee working
hours.-
(a) No establishment may change from the Group in which it has
elected to operate except upon December 31 of every year.
(b) Any establishment, however, may at any time increase its
store hours, provided it maintains the basic employee work week of
the Group in which it originally elected to operate.
(c) Any establishment may, for a period not to exceed three (3)
months during the Summer, temporarily reduce its store hours, but
the weekly wages of its employees shall not on that account be
reduced.
[SECTION 4.] E.xrcpfons to maximum periods of labor.-
(a) Professional persons, outside salt-.r en, outside collectors,
watchmen, guards, and store detectives.-The maximum periods of
labor prescribed in Section 1 of this Article shall not apply to pro-
fessional persons employed and working at their profession, or to
outside salesmen, outside collectors, watchmen, guards, and store
detectives.
(b) Mainftnance and outside service employees.-The maximum
periods of labor prescribed in Section 1 of this Article shall not
apply to maintenance and outside service employees; but such em-








ployees shall not work more than six (6) hours per week above the
maximum hours per week otherwise prescribed by Section 1 unless
they are paid at the rate of time and one-third for all hours over
such additional six (6) hours per week.
(c) Executives.-Subject to the conditions set forth in Section 5
of this Article, executives receiving $35.00 or more per week in cities
of over 500,000 population, or receiving $30.00 or more per week in
cities of 100,000 to 500,000 population, or receiving $27.50 or more
per week in cities of 25,000 to 100,000 population, or receiving $25.00
or more per week in cities, towns, villages, and other places under
25,000 population, may work in excess of the maximum periods of
labor prescribed in Section 1 of this Article. In the South execu-
tives paid not less than ten (10) per cent below the wages just
specified may work in excess of such maximum periods.
(d) Peak per;ods.-At Christmas, inventory, and other peak
times, for a period not to exceed two (2) weeks in the first six (6)
months of the calendar year and not to exceed three (3) weeks in
the second six (6) months, an employee whose basic work week is
forty (40) hours may work not more than forty-eight (48) hours
per week and nine (9) hours per day; an employee whose basic work
week is forty-four (44) hours may work not more than fifty-two
(52) hours per week and nine and one-half (91) hours per day; an
employee whose basic work week is forty-eight (48) hours may work
not more than fifty-six (56) hours per week and ten (10) hours per
day. All such work may be without'the payment of overtime.
[e] Exception in case of pharmacists.-The maximum hours of
labor prescribed [in Section 1 of this Article] shall not apply to
registered pharmacists, assistant pharmacists, and apprentice phar-
macists, employed and working as such, who may work ten (10) per-
cent above the maximum hours otherwise applicable, or more in cases
of emergency.
[SECTION 5.] Limitation upon number of persons working unre-
stricted hours.-Notwithstanding the provisions of the foregoing
sections of this Article, and regardless of the number of persons
otherwise permitted to work unrestricted hours, the total number of
workers in any establishment (whether such workers are executives,
proprietors, partners, persons not receiving monetary wages, or oth-
ers) who shall be permitted to work unrestricted hours shall not
exceed the following ratio: In establishments comprised of twenty
(20) workers or less the total number of workers who may work
unrestricted hours (not including those workers specified in Section
4 (a) of this Article) shall not exceed one worker for every five (5)
workers or fraction thereof; in establishments comprised of more
than twenty (20) workers the total number of workers who may
work unrestricted hours (not including those workers specified in
Section 4 (a) of this Article) shall not exceed one worker for every
five (5) workers for the first twenty (20) workers, and shall not
exceed one worker for every eight (8) workers above twenty (20).
[SECTION 6.] Hours of work to be consecutive,.-The hours worked
by any employee during each day shall be consecutive, provided that
an interval not longer than one hour may be allowed for each regu-
lar meal period, and such interval not counted as part of the em-
18876--188-190-33-2








ployee's working time. Any rest period which may be given em-
ployees shall not be deducted from such employee's working time.
[SECTION 7.] Extra working hour on one day a week.-On one day
each week employees may work one extra hour, but such hour is to
be included within the maximum hours permitted each week.
[SI:ClTION 8.] Conflict with State laws.-When any State law pre-
scribes for any class of employees shorter hours of labor than those
1pnr'-iribed in this Article, no employee included within such class
shall be employed within such State for a greater number of hours
than such State law allows.

[ARTICLE V.] WAGES
[SECTION 1.] Basic schedules of wages.-On and after the effective
date of this Code, the minimum weekly rates of wages which shall be
paid for a work week as specified in Article V-whether such wages
are calculated upon an hourly, weekly, monthly, commission, or any
other basis-shall, except as hereinafter provided, be as follows:
(a) Within cities of over 500,000 population, no employee shall be
paid less than at the rate of $14.00 per week for a forty (40) hour
work week, or less than at the rate of $14.50 per week for a forty-
four (44) hour work week, or less than at the rate of $15.00 per
week for a forty-eight (48) hour work week.
(b) Within c/ts of from 100,000 to 500,000 pop dutlon,, no em-
ployee shall be paid less than at the rate of $13.00 per week for a
forty (40) hour work week, or less than at the rate of $13.50 per
week for a forty-four (44) hour work week, or less than at the rate
of $14.00 per week for a forty-eight (48) hour work week.
(c) Within cities of from 25,000 to 100,000 population, no em-
ployee shall be paid less than at the rate of $12.00 per week for a
forty (40) hour work week, or less than at the rate of $12.50 per week
for a forty-four (44) hour work week, or less than at the rate of
$13.00 per week for a forty-eight (48) hour work week.
(d) Within cities, towns, villages of from 2,500 to 25,000 popula-
tion, the wages of all classes of employees shall be increased from the
rates existing on June 1, 1933, by not less than twenty (20) percent,
provided that this shall not require an increase in wages to more
than the rate of $11.00 per week and provided further that no em-
ployee shall be paid less than at the rate of $10.00 per week.
(e) Within towns, villages, and other places with less than 2,500
population, the wages of all classes of employees shall be increased
from the rates existing on June 1, 1933, by not less than twenty (20)
percent, provided that this shall not require an increase in wages to
more than the rate of $10.00 per week.
[f] Basic rates for retail drug establishments electing to operate
in Gi o;p, D.-No employee of a retail drug establishment which has
elected to operate in Group D as set forth above, shall, except as pro-
vided in [Sections 2 and 3 of this Article], be paid for a fifty-six
(56) hour work week less than at the rate of $16.00 per week in cities
of over 500.000 population, or less than at the rate of $15.00 per week
in cities of from 100,000 to 500,000 population, or less than at the
rate of $14.00 per week in cities of from 25,000 to 100,000 population;
in cities, towns, and villages of from 2,500 to 25,000 population, the








wages of all classes of employees of such establishments shall be in-
creased from the rates existing on June 1, 1933, by not less tlian
twenty (20) percent, provided that this shall not require an in-
crease in wages to more than the rate of $11.00 per week, and pro-
vided further that no employee shall be paid less than at the rate of
$10.00 per week; in towns, villages, and other places with less than
2,500 population, the wages of all classes of employees of such estab-
lishments shall be increased from the rates existing on June 1, 1933,
by not less than twenty (20) percent, provided tlit this shall not
require an increase in wages to more than the rate of $10.00 per week.
The minimum wages paid to professional peruons, outside sales-
men, outside collectors, watchmen, guards, store detectives, and main-
tenance and outside service employees shall be upon the basis of the
basic employee work week upon which the establishment by which
they are employed has elected to operate.
The minimum wages of any employee not included in the fore-
going paragraphs and not specifically excepted hereinafter shall be
upon the basis of a forty (40) hour work week.
[SECTION 2.] Juniors and apprentices.-Junior and apprentice em-
ployees may be paid at the rate of $1.00 less per week than the
minimum wage otherwise applicable; it is provided, however, that
no employee shall be classified both as a junior and as an apprentice
employee, and it is further provided that the number of employees
classified as junior and as apprentice employees, combined, shall not
exceed a ratio of one such employee to every five employees or frac-
tion thereof up to twenty (20), and one such employee to every ten
(10) employees above twenty (20).
Exception for establishments employing cib boys or ghils.-The
minimum wages prescribed [above] may not apply to curb boys or
girls employed by retail drug establishments when such employees
are paid upon a commission basis.
[SECTION 3.] Southern wage different'ld.-In the South, within
cities of over 25,000 population, the minimum wages prescribed in the
foregoing sections may be at the rate of $1.00 less per week; within
cities, towns, and villages of from 2,500 to 25,000 population the
wage of all classes of employees shall be increased from the rates
existing on June 1, 1933, by not less than twenty (20) percent, pro-
vided that this shall not require an increase in wages to more than
the rate of $10.00 per week, and provided further that no employee
shall be paid less than at the rate of $9.00 per week except as pro-
vided in Section 2 of this Article; within cities, towns, villages, and
other places under 2,500 population the wages of all clas-e of em-
ployees shall be increased from the rates existing on June 1, 1933,
by not less than twenty (20) percent, provided that this shall not
require an increase in wages to more than the rate of $9.00 per week.
[SECTION 4.] Part-time employees.-Part-time employees shall be
paid not less than at an hourly rate proportionate to the rates pre-
scribed in the foregoing sections of this Article.
[SECTION 5.] Weekly wages above minimum not to be redtuced.-
The weekly wages of all classes of employees receiving more than the
minimum wages prescribed in this Article shall not be reduced
from the rates existing upon July 15, 1933, notwithstanding any re-
duction in the number of working hours of such employees.








[SECTION 6.] Conflict with State laws.-When any State law pre-
scribes for any class of employees of either sex a higher minimum
wige than that prescribed in this Article, no employee of such class
of either sex employed within that State shall be paid less than such
State law requires.

[ARTICLE VI.] LIMITATIONS UPON PRICE INCREASES; PRIOR
CONTRACTS
[SF:(_TI.N- 1.] Limitation upon price in/crcC1,eas.-No retailer shall
increase the price of any merchandise sold after the effective date of
this Code over the price existing June 1, 1933, by more than is made
necessary by the amount of increases in production, operating, re-
pllacet lnt, and/or invoice costs of merchandise, and/or by taxes or
other costs resulting from action taken pursuant to the National
Industrial Recovery Act and/or the Agricultural Adjustment Act
since June 1, 1933, and in setting such price increases retailers shall
give full weight to probable increases in sales volume. It is pro-
vided, however, that if any price on June 1, 1933, was a distress
price, an equitable adjustment may be made.
[SECTION 2.] Adjustment of prior cointrac/i .-Where costs of exe-
cuting contracts entered into before June 16, 1933, by any retailer for
the purchase of goods at fixed prices for delivery during the dura-
tion of this Code are increased by the application of the provisions
of the National Industrial Recovery Act and/or the Agricultural
Adjustment Act, it is deemed equitable and promotive of the pur-
poses of the Act that appropriate adjustments of such contracts to
reflect such increased costs actually incurred be arrived at by mutual
agreement or arbitral proceedings or otherwise, and the National
Retail Trade Council provided for in Article I hereinafter is con-
stituted an agency to assist in effeting such adjustments.

[ARTICLE VII.] Loss LIMITATION PROVISION

[SECTION 1.] Loss ljlitatfion. provision.-In order to prevent un-
fair competition against local merchants, the use of the so-called loss
leader is hereby declared to be an unfair trade practice. These
" loss leaders are articles often sold below cost to the merchant for
the purpose of attracting trade. This practice results, of course,
either in efforts by the merchant to make up the loss by charging
more than a reasonable profit for other articles, or else in driving
the small merchant with little capital out of legitimate business. It
works back against the producer of raw materials on farms and in
industry and against the labor so employed.
1. This declaration against the use of loss leaders by the store-
keeper does not prohibit him from selling an article without any
profit to himself. But the selling price of articles to the consumer
should include an allowance for actual wages of store labor, to be
fixed and published from time to time by the Trade Authority here-
inafter established.
2. Such an allowance for labor need not be included in the selling
price of any article of food, or be applied by storekeepers doing busi-
ness only in communities of less than 2,500 population (according to
the 1930 Census) which are not part of a larger trade area.







Provided, however, That any retailer may sell any article of mer-
chandise at a price as low as the price set by any competitor in his
trade area on merchandise which is identical or essentially the same,
if such competitor's price is set in conformity with the foregoing
provision. A retailer who thus reduces a price to meet a competitor's
price as above defined shall not be deemed to have violated the pro-
visions of this section if such retailer immediately notifies the nearest
representative retail trade organization of such action and all facts
pertinent thereto.
[SECTION 2.] Exceptions.-(a) Nothwithstanding the provisions of
the preceding Section, any retailer may sell at less than the prices
specified above, merchandise sold as bona fide clearance, if adver-
tised, marked, and sold as such; highly perishable merchandise, which
must be promptly sold in order to forestall loss; imperfect or actually
damaged merchandise, or bona fide discontinued lines of merchan-
dise, if advertised, marked, and sold as such; merchandise sold upon
the complete final liquidation of any business; merchandise sold in
quantity on contract to public carriers, departments of government,
hospitals, schools and colleges, clubs, hotels, and other institutions,
not for resale and not for redistribution to individuals; merchandise
sold or donated for charitable purposes or to unemployment relief
agencies; and drugs or drug sundries sold to physicians, nurses, den-
tists, veterinarians, or hospitals.
(b) Nothing in the provisions of the preceding Section shall be
construed to prevent bona fide farmers' associations engaged in pur-
chasing supplies and/or equipment for their membership from mak-
ing patronage refunds to their membership.
(c) Where a bona fide premium or certificate representing a share
in a premium is given away with any article the base upon which
the minimum price of the article is calculated shall include the cost
of the premium or share thereof.

[ARTicLE VIII.] TRADE PRACTICES

All retailers shall comply with the following trade practices:
[SECTION 1.]Advertising and selling methods.-(a) No retailer
shall use advertising, whether printed, radio, or display or of any
other nature, which is inaccurate in any material particular or mis-
represents merchandise (including its use, trade-mark, grade, quality,
quantity, size, origin, material, content, preparation, or curative or
therapeutic effect) or credit terms, values, policies, or services; and
no retailer shall use advertising and/or selling methods which tend to
deceive or mislead the customer.
(b) No retailer shall use advertising which refers inaccurately in
any material particular to any competitor or his merchandise, prices,
values, credit terms, policies, or services.
(c) No retailer shall use advertising which inaccurately lays
claim to a policy or continuing practice of generally underselling
competitors.
(d) No retailer shall secretly give anything of value to the em-
ployee or agent of a customer for the purpose of influencing a sale,
or in furtherance of a sale render a bill or statement of account to
the employee, agent, or customer which is inaccurate in any material
particular.








(e) No retailer shall place obstacles in the way of the purchase of
a product which a consumer orders by brand name by urging upon
the consumer a substitute product in a manner which disparages the
product ordered.
[f] No drug retailer shall substitute another article or any part
thereof for the kind ordered, without due notice to and consent of
the customer.
[g] No drug retailer shall advertise to fill prescriptions at a uni-
form price irrespective of cost of ingredients or quantity prescribed.
[h] No drug retailer shall permit any demonstrator or sales em-
ployee, whose salary is wholly or partially paid by a manufacturer
or distributor, to work in his establishment unless such demonstrator
or sales employee is clearly and openly identified as the agent of such
manufacturer or distributor.
[SECTION 2.] NRA label.-No retailer shall purchase sell, or ex-
change any merchandise manufactured under a Code of Fair Compe-
tition which requires such merchandise to bear an NRA label, unless
said merchandise bears such label. Any retailer rightfully pos-
sessing the insignia of the NRA who has in stock or purchases simi-
lar merchandise which has been manufactured before the effective
date of the Code of Fair Competition requiring such merchandise to
bear an NRA label may attach thereto the NRA insignia.
[SECTION 3.] Prison-made goods.-Pending the formulation of a
compact or code between the several States of the United States to
insure the manufacture and sale of prison-made goods on a fair com-
petitive basis with goods not so produced, the following provisions of
this Section will be stayed for ninety (90) days, or further at the
discretion of the Administrator:
(a) Where any penal, reformatory, or correctional institution
either by subscribing to the code or compact hereinbefore referred
to, or by a binding agreement of any other nature, satisfies the
Administrator that merchandise produced in such institution or by
the inmates thereof will not be sold except upon a fair competitive
basis with similar merchandise not so produced, the provisions of
paragraph (b) hereof shall not apply to any merchandise produced
in such manner in the institutions covered by such agreement.
(b) Except as provided in the foregoing paragraph, no retailer
shall knowingly buy or contract to buy any merchandise produced
in whole or in part in a penal, reformatory, or correctional institu-
tion. After May 31, 1934, no retailer shall knowingly sell or offer
for sale such merchandise. Nothing in this Section, however, shall
affect contracts, which the retailer does not have the option to cancel,
made with respect to such merchandise before the approval of this
Code by the President of the United States.
(c) Nothing in this Section shall be construed to supersede or
interfere with the operation of the Act of Congress approved Jan-
uary 19, 1929, being Public No. 669 of the 70th Congress and en-
titled "An Act to Divest Goods, Wares, and Merchandise Manu-
factured, Produced or Mined by Convicts or Prisoners of their In-
terstate Character in Certain Cases ", which Act is known as the
Hawes-Cooper Act, or the provisions of any State legislation en-
acted under, or effective upon, the effective date of the said Hawes-
Cooper Act, the said effective date being January 19, 1934.








[SECTION 4.] Company scrip.-The following provisions of this
Section shall not become effective until March 1, 1934. Pending such
effective date the Administrator shall appoint a Committee of not
more than three persons to investigate the economic and social im-
plications of these provisions. Said Committee may make recom-
mendations, based upon its investigations, and such recommendations
shall, upon approval by the President of the United States, become
effective in the place of these provisions:
(a) No retailer shall accept as payment for merchandise any non-
negotiable scrip, company checks, or other evidence of wage payment
issued by any individual or private profit organization in payment
of wages or as an advance upon unearned wages. A negotiable
instrument issued by any individual or private profit organization in
payment of wages shall be accepted only if it is payable in cash
within one month of the date of issue. This paragraph shall not
apply in cases where the cash funds of any individual or organiza-
tion are rendered temporarily unavailable due to the closing by
state or federal order of the bank in which such funds are deposited.
(b) No retailer shall extend credit in the form of goods, money, or
services to any person other than its own employees engaged exclu-
sively in the retail trade, upon any employer's guarantee of part
or allof said person's future wages, or pursuant to a wage-deduction
arrangement entered into with said employer, unless an identical
guarantee or wage-deduction arrangement is available to all retailers.

[ARTICLE IX.] ADiINISTRATION

[SECTION 1,] Retail Drug Trade Authority.-The Retail Drug
Trade Authority shall consist of the Administrator or his deputy,
and three members appointed by the President of the United States,
who shall advise and assist the Administrator or his Deputy. Mem-
bers of the Retail Drug Trade Authority shall be members, without
vote, of the National Retail Drug Trade Council, provided for
hereinafter.
[SECTION 2.] National Retail Drug Trade Council.-(a) Compo-
sition.-The National Retail Drug Trade Council shall consist of
one representative from the American Pharmaceutical Association,
one representative from the Drug Institute of America, Incorpo-
rated, two representatives from the National Association of Retail
Druggists, and such representation from any national association of
the retail drug trade as may be approved by the Administrator.
Such representatives shall be elected, in accordance with a fair
method approved by the Administrator, by the respective national
trade associations.
(b) General powers.-The National Retail Drug Trade Council
shall in addition to the specific powers herein conferred, have all
general powers necessary to assist the Administrator or his deputy
m the administration and enforcement of this Code insofar as it
relates to the retail drug trade.
(c) Reports and investigations.-The National Retail Drug Coun-
cil shall, subject to the approval or upon the request of the Admin-
istrator, require from all drug retailers such reports as are necessary
to effectuate the purposes of this Code insofar as it relates to the








retail drug trade, and may, upon its own initiative or upon com-
plaint of any person affected, make investigation as to the function-
ing and observance of any provisions of the Code relating to the
retail drug trade and report the results of such investigation to the
Administrator.
(d) Recommendations.-The National Retail Drug Trade Coun-
cil may from time to time present to the Administrator recom-
mendations (including interpretations), based on conditions in the
retail drug trade, which will tend to effectuate the operation of the
provisions of this Code, and the policy of the National Industrial
Recovery Act. Such recommendations shall, upon approval by the
Administrator, become operative as part of this Code.
(e) Local committees.-The National Retail Drug Trade Council
shall, subject to the approval of the Administrator, supervise the
setting up within local trading areas of local committees for the pur-
pose of assisting in the administration and enforcement of this Code
within such local areas insofar as it relates to the retail drug trade.
(f) Expenses.-The expenses of the National Retail Drug Trade
Council shall be equitably assessed and collected by the Council,
subject to the approval of the Administrator.
[SECTION 3.] Interpretations.-The Administrator may from time
to time, after consultation with the National Retail Drug Trade
Council, issue such administrative interpretations of the various pro-
visions of this Code relating to the retail drug trade as are necessary
to effectuate its purposes, and such interpretations shall become oper-
ative as part of this Code unless the Administrator shall otherwise
specify.
[SECTION 4.] Exceptions in cases of unusual or undue hardship.-
Where the operation of the provisions of this Code imposes an un-
usual or undue hardship upon any drug retailer or group of drug
retailers, such drug retailer or group of drug retailers may make
application for relief to the Administrator or to his duly authorized
agent, and the Administrator or his agent may, after such public
notice and hearing as he may deem necessary, grant such exception
to or modification of the provisions of this Code as may be required
to effectuate the purposes of the National Industrial Recovery Act.

[ARTICLE X.] GENERAL
[SECTION 1.] Membership in associations.-Membership in the na-
tional retail associations represented upon the National Retail Trade
Council, or in any affiliated associations, shall be open to all retailers
of that portion of the retail trade which said associations respec-
tively represent and said associations shall impose no inequitable
restrictions upon admission to membership therein.
[SECTION 2.] Information to be furnished Government Agencies.-
In addition to information required to be submitted to the National
Retail Trade Council, there shall be furnished to Government agen-
cies such statistical information as the Administrator may deem
necessary for the purposes recited in Section 3 (a) of the National
Industrial Recovery Act.
[SECTION 3.] Prohibition against monopolies.-The provisions of
this Code shall not be interpreted or applied to promote monopolies







or monopolistic practices or to eliminate or oppress small enterprises
or to discriminate against them.
[SECTION 4.] Prohibition ,taihnst use of subtwcfuge.-No retailer
shall use any subterfuge to frustrate the spirit and intent of this
Code, which is, among other things, to increase employment by
universal covenant, to remove obstructions to commerce, to shorten
hours of work, and to raise wages to a living basis.
[SECTION 5.] Right of President to can.icl or modif.-This Code
and all the provisions thereof are expressly made subject to the right
of the President, in accordance with the provisions of Section 10 (b)
of Title I of the National Industrial Recovery Act, from time to
time, to cancel or modify any order, approval, license, rule. or regu-
lation, issued under Title I of said Act.
[SECTION 6.] Modificatioins and supplemcn tanr plor.';oiaro.--Such
of the provisions of this Code as are not. required to be included
herein by the National Industrial Recovery Act may, with the ap-
proval of the President, be modified or eliminated as changes in con-
ditions or experience may indicate. It is contemplated that from
time to time supplementary provisions to this Code or additional
Codes will be submitted for the approval of the President to prevent
unfair competitive practices and to effectuate the other purposes and
policies of Title I of the National Industrial Recovery Act.
[SECTION 7.] Expiration.-This Code shall continue in effect until
June 16, 1935, or the earliest date prior thereto on which the Presi-
dent shall by proclamation, or the Congress shall by joint resolution
declare that the emergency recognized by Section 1 of the National
Industrial Recovery Act has ended.




UNIVERSITY OF FLORIDA


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