Code of fair competition for the commercial vehicle body industry as approved on July 16, 1934


Material Information

Code of fair competition for the commercial vehicle body industry as approved on July 16, 1934
Portion of title:
Commercial vehicle body industry
Physical Description:
p. 159-172 : ; 24 cm.
United States -- National Recovery Administration
U.S. Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:


Subjects / Keywords:
Commercial vehicles -- Bodies -- United States   ( lcsh )
Commercial vehicle industry -- United States   ( lcsh )
federal government publication   ( marcgt )
non-fiction   ( marcgt )


Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1405-01."
General Note:
"Approved Code No. 486."

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004938111
oclc - 649458417
System ID:

Full Text










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

Apj proved Code No. 486 Registry No. 1405-01

proved Code No. 486

Registry No. 1405-01


/ I s. ...

This publication is for sale by the Superintendent of Documents, Government
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Approved Code No. 486
As Approve-d on July 16, 1934

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 a Code of
Fair Competition for the Commercial Vehicle Body Industry, and
hearing 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, that this Code of Fair Competition shall not be
applicable to the repairing of the products of the industry by em-
ployees of the owner of such products other than a manufacturer
for sale of such products, or where such repairing is done within
the definition of another Code of Fair Competition approved prior
to the date hereof; and
PROVIDED, further, that within ninety (90) days after the
effective date of this Code, the Code Authority shall make a special
study and report to the Administrator, to determine whether the
minimum wages provided in Article IV are adequate; and
PROVIDED, further, that in addition to the membership in the
Code Authority as provided in Section 2 of Article VI of this Code,
the Administrator may require the selection, by a method approved
or prescribed by him, of two persons to represent non-members of
the National Association.
Adm.inirsttraor for Industrial Recovery.
Approval recommended:
Division A administrator.
July 16, 1934.




The White House.
SiR: The proposed Code of Fair Competition for the Commercial
Vehicle Body Industry was submitted to the Administrator on July
29, 1933, by the National Association of Commercial Vehicle Body
Manufacturers, Incorporated, representing approximately 80% of
the production of commercial body manufacturers.
The Hearing was conducted in Washington on January 12, 1934,
and the Code was revised during the recess of this Hearing and is
submitted in its present form for approval. Every person who
requested an appearance was properly heard in accordance with
statutory and regulatory requirements.
The Industry is nation-wide in scope and has enjoyed a large
increase in number of establishments, particularly among the smaller
units. Owing to the lack of a National Trade Association in former
years, accurate data on invested capital, employees engaged and
annual sales are not available. However in 1931 there were 501
concerns, as contrasted with approximately 1,500 in 1933. About
25,000 workers were employed in 1929 against 15,100 in February,
1934. Present invested capital is estimated to be in the neighborhood
of $50,000,000, while aggregate annual sales of $43,358,000 in 1929
compare with $41,780,000 in 1932.
Wages, particularly in the South, were in many instances as low
as 100 per hour. Immediate relief was afforded by the PDesident's
Reemployment Agreement, so that the present wage scale, with
certain exceptions, approximates the wages established by this Code.
ARTICLE I. Pu.rposes.-States the purpose of the Code.
ARTICLE II. Deflnitions.-Accurately defines specific terms appli-
cable to the Commercial Vehicle Body Industry as used in this Code.
ARTICLE III. Hours.-The maximum hours are limited to 40 hours
per week, except that to take care of exceptional demand employees
may work 48 hours per week during any six weeks in any period of
26 weeks.
A further exception is made in the case of watchmen who are
limited to a maximum of 56 hours per week, and emergency crews,
employed because of highway accidents, who are limited to a maxi-
mum of 56 hours in any one week, but not more than 40 hours per
week averaged over a four weeks' period. Employees engaged in a
managerial or executive capacity who receive not less than $35.00
per week, and traveling salesmen, are not subject to any hourly
ARTICLE IV. Wages.-The minimum wage for employees, except
for certain classifications enumerated hereafter, is 371Y2 per hour
in cities of more than 250,000 population, 350 per hour in cities or
towns of less than 250,000 population, except that in certain Southern


states the minimum wage is 321/1 per hour, irrespective of popula-
tion. Female employees replacing men, or performing similar work,
are to receive the same wages as male employees. Apprentices may
be employed for a period not exceeding one year, at not less than
80% of the prevailing minimum wage. Employees in accounting,
clerical, office, service and sales work are to be paid not less than
$15.00 per week in cities of 250,000 population or over, and not less
than $14.00 per week in cities of less than 250,000 population, except
that in certain Southern states the minimum is $14.00 per week
irrespective of population. Provision is made for the employment
of handicapped persons. The minimum rate of pay applies irre-
spective of whether an employee is paid on a time rate, piece-work,
or other basis. Equitable adjustments of all pay schedules above
the minimum are to be made.
ARTICLE V. General Labor Provisions.-Provides that no person
under 16 years of age may be employed and that no person under
18 years of age may be employed at hazardous or dangerous occupa-
tions or operations. Also includes the mandatory provision re-
specting the rights of employees to organize and bargain collectively.
Provides further for the regulation of reclassification of employees
the posting of copies of this Code in accessible places, standards or
safety and health and the observance of State Laws.
ARTICLE VI. Administration.-Establishes a Code Authority of
not more than nine members appointed by the Board of Directors
of the National Association, and one from each present or future
National Trade Division approved by the Administrator. Outlines
the duties and powers of the Code Authority.
ARTICLE VII. Trade Practices.-Sets forth fair trade practices for
this Industry, including a prohibition against selling below cost.
ARTICLE VIII. General.-Provides for the safeguarding of dan-
gerous equipment used in painting. Limits purchasing from indi-
viduals or firms to those operating under a Code if such individuals
are subject to an approved Code. Sets forth provisions respecting
modification and amendments, including the mandatory provision of
Section 10 (b) of Title I of the Act.
ARTICLE IX. Export Trade.-Provides for the exemption of ex-
port trade or sales or shipments for export trade from the provisions
of this Code relating to terms of sales, etc.
ARTICLE X. Monopolies.-No provision of this Code is to be so
applied as to permit monopolies or monopolistic practices, or to
eliminate, oppress, or discriminate against small enterprises.
ARTICLE XI. Effective Date.-Defines the effective date.
The Deputy Administrator in his final report to me on said Code
having found as herein set forth and on the basis of all the pro-
ceedings 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 manage-


ment under adequate governmental sanctions and supervision, by
eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may betempo-
rarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, 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
pertinent provisions of said Title of said Act, including without
limitation Sub-section (a) of Section 3, Sub-section (a) of Section 7,
and Sub-section (b) of Section 10 thereof, and that the applicant
association is an industrial association truly representative of the
aforesaid industry, and that said association imposes no inequitable
restrictions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(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, this Code has been approved.
Huan S. JOHNsON,
JULY 16, 1934.



To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are established as a Code of
Fair Competition for the Commnercial Vehicle Body Industry, and
shall be the standards of fair competition for said Industry and
shall be binding upon every member thereof.


1. The term Commercial Vehicle Body Industry" or Indus-
try as used herein is defined to mean the manufacture and sale,
and/or repairing of horse-drawn vehicles (except horse-drawn farm
vehicles), all types of motor vehicle bodies used commercially, (ex-
cept those manufactured by or sold to the manufacturer or assembler
of motor vehicle chassis), and trailer and semi-trailer bodies, (except
such bodies as are manufactured by the manufacturers of trailers
and semi-trailers, provided such bodies are attached to and sold as
an integral part of trailers and semi-trailers by the manufacturers
2. The term repairing" as used herein shall include, in addition
to general repairing, emergency road service, painting, lettering, art-
work and such chassis repairing as is incidental thereto.
3. The term productive work as used herein is defined to mean
all employment used in the operation of metal, wood, and fabric
working machinery, cutting and welding equipment, paint spraying
equipment and all other equipment and tools ordinarily used in a
vehicle body plant and used in the preparation of material, manu-
facturing, assembling and finishing of the products to be sold, serv-
iced and repaired.
4. The term employee as used herein includes any and all per-
sons engaged in the Industry, however compensated, except a mem-
ber of the industry.
5. The term '"employer" includes anyone for whose benefit such
an employee is so engaged.
6. The term member of the Industry means, but without limita-
tion, any person, partnership, association, corporation or other legal
entity engaged in the Industry, either as an employer or on his or its
own behalf.
7. The term National Association" as hereinafter referred to
shall be defined to mean the National Commercial Vehicle Body
SSee paragraph 3 of order approving this Code.


r 8. The terms "President ", "Act" and "Administrator" as used
herein mean respectively, the President of the United States, Title I
of the National Industrial Recovery Act, and the Administrator
for Industrial Recovery.
9. "Population" for the purposes of this Code, shall be deter-
mined by reference to the latest Federal Census.


* 1. On and after the effective date no employee in the Industry
shall be permitted to work in excess of forty (40) hours in any
seven (7) day period, whether employed by one or more employers,
except as herein below otherwise provided.
2. Employees may be permitted to work in excess of the maximum
hours provided in Section 1 of this Article during any six (6)
weeks m any twenty-six (26) weeks period, provided that during
such six (6) weeks such overtime shall not exceed eight (8) hours
in any seven (7) day period.
3. Watchmen shall not be permitted to work in excess of fifty-six
(56) hours in any one week.
4. Outside emergency crews engaged in emergency repair work
made necessary because of accidents or breakdowns on the highways
shall not be permitted to work in excess of fifty-six (56) hours in
any one week nor more than one hundred sixty (160) hours in any
four weeks period.
5. The provisions of this Article limiting hours of work shall not
apply to traveling salesmen, nor to persons who are paid not less
than thirty-five dollars ($35.00) per week employed in a managerial
or executive capacity.
6. No employee shall be permitted to work more than six (6)
days in -any seven-day period.
7. Every employer and every partner in any partnership engaged
in the Industry shall be subject to the provisions as to hours of labor
prescribed for employees in this Code insofar as they perform the
functions of such employees.


1. On and after the effective date the minimum wage that shall
be paid employees in the Industry, except as otherwise provided in
Paragraphs 2, 3, 4, and 5 of this Article, shall be at the rate of
thirty-seven and one-half cents (37/24) per hour in all cities with
a population of 250,000 or over, thirty-five cents (350) per hour in
all cities and towns with a population less than 250,000 except in the
following states:
North Carolina Florida Texas
South Carolina Tennessee Mississippi
Georgia Louisiana Oklahoma
Alabama Arkansas
in which states the minimum hourly rates shall be thirty-two and
one-half (321/2) cents per hour.
See paragraph 4 of order approving this Code


2. Female employees performing substantially the same work
as male employees shall receive the same rate of pay as male em-
ployees; and where they displace men, they shall receive the same
rate of earnings as the men they displace.
3. The hours and wages of regularly indentured apprentices in
skilled trades or occupations of the industry may depart from the
standards hereinabove prescribed; provided that the terms of em-
ployment and the course of instruction of such apprentices shall
conform to standards uniform throughout the trade or industry and
approved by the Administrator.
4. Employees in accounting, clerical, office, service and sales work
shall receive not less than fifteen dollars ($15.00) per week in any
city of 250,000 population or over, or in the immediate trade area of
such city, nor less than fourteen dollars ($14.00) per week in any
city of less than 250,000 population, except that in the states of
North Carolina Florida Texas
South Carolina Tennessee Mississippi
Georgia Louisiana Oklahoma
Alabama Arkansas
the minimum shall be fourteen dollars ($14.00) per week irrespec-
tive of population.
5. A person whose earning capacity is limited because of age or
physical or mental handicap may be employed on light work at a
wage below 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 employment 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.
6. This article establishes a minimum rate of pay which shall
apply irrespective of whether an employee is actually compensated
on a time rate, piece work, or other basis.
7. Each employer shall make an equitable adjustment of all pay
schedules above the minimum and not later than thirty (30) days
after the effective date of this Code, each employer in the Industry
shall report to the Administrator, through the Code Authority here-
inafter provided for, the action taken by such employer since June
16, 1933 in adjusting the hourly wage rates for all employees receiv-
ing more than the minimum rates. Such adjustment shall not re-
duce the hourly wage rate of any such employee.
1. 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 occupations which are hazardous in
nature or dangerous to health.
The Code Authority shall submit to the Administrator for ap-
proval within sixty (60) days after the approval 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 valid certificate or permit duly signed by the Authority in
each State empowered to issue employment or age certificates or
permits showing that the employee is of the required age.


2. The following provisions of Section 7 (a) of the Act are hereby
made a part of this Code:
(a) Employees shall have the right to organize and bargain col-
lectively 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 pur-
pose 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 organiza-
tion of his own choosing;
(c) Employers shall comply with the maximum hours of labor
minimum rates of pay, and other conditions of employment, approved
or prescribed by the President.
3. No employer shall reclassify employees or duties of occupations
performed or engage in any subterfuge for the purpose of defeating
the purposes or provisions of the Act or of this Code.
4. All employers shall post and keep posted copies of this Code
in conspicuous places accessible to all employees. Every member
of the Industry shall comply with all rules and regulations relative
to the posting of provisions of Codes of Fair Competition which
may from time to time be prescribed by the Administrator.
5. 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 of safety and health shall be sub-
mitted by the Code Authority to the Administrator for approval
within three (3) months after the effective date of this Code.
6. Within each state, members of the Industry shall comply with
any Federal laws or any laws of such state imposing more stringent
requirements, regulating the age of employees, wages, hours of work,
or health, fire or general working conditions, than under this Code.
1. To further effectuate the purposes of Title I of the National
Industrial Recovery Act a Code Authority is hereby set up to cooper-
ate with and assist the Administrator in the administration of this
2. The Code Authority shall consist of the following members:
Not more than nine (9) appointed by the Board of Directors of the
National Association;
One (1) appointed by each national trade division of the Industry
that may be set up within the National Association and approved by
the Administrator.
One (1) appointed by each national trade division of the Industry
organized outside the National Association and approved by the
Not more than three (3) appointed by the Administrator, but with-
out voting power;
One (1) appointed by the Board of Directors of the National As-
sociation who shall be the Secretary and Executive Officer of the
Code Authority but without voting power.3
See paragraph 5 of order approving this Code.


8. The Code Authority shall have the following duties and powers
subject to such rules and regulations as the Administrator may
(a) To insure the execution of the provisions of this Code and to
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 to such Federal and State agencies
as he may designate; provided that nothing in this Code shall relieve
any member of the Industry of any existing obligations to furnish
reports to any governmental agency. No individual reports shall
be disclosed to any other member of the Industry or any other party
except to such agencies as may be designated by the Administrator;
(d) To cause to be formulated an accounting system and methods
of cost finding and/or estimating capable of use by all members of
the Industry and upon approval by the Administrator to require
all members to maintain an accurate record of cost in such manner
as will make available to an impartial agency the information re-
quired by such system and methods
(e) To recommend to the Administrator fair trade practice pro-
visions to govern members of the Industry in their relations with
each other or with other industries and to recommend to the Admin-
istrator measures for industrial planning, including stabilization of
(f) To designate, upon complaint of violation of this Code, a dis-
interested and impartial agency to investigate such books and records
as may be necessary to gather data in respect to such alleged viola-
tion. For the purpose of obtaining necessary facts relating to a
complaint, the Code Authority may request the appearance of the
employer, employees and complainant involved in any complaint;
(g) To appoint a Trade Practice Committee which shall meet with
the Trade Practice Committees appointed under such other codes
as may be related to the Industry for the purpose of formulating
fair trade practices to govern the relationships between employers
under this Code and under such other codes to the end that. such fair
trade practices may be proposed to the Administrator as amend-
ments to this Code and such other codes.
4. It being found necessary in order to support the administration
of this Code and to maintain the standards of fair competition
established hereunder and to effectuate the policy of the Act, the
Code Authority is authorized:
(a) To incur such reasonable obligations as are necessary and
proper for the foregoing purposes, and to meet. such obligations out
of funds which may be raised as hereinafter provided and which
shall be held in trust for the purposes of the Code;
(b) To submit to the Administrator for his approval, subject to
such notice and opportunity to be heard as he may deem necessary
(1) an itemized budget of its estimated expenses for the foregoing


purposes, and (2) an equitable basis upon which the funds neces-
sary to support such budget shall be contributed by members of
the Industry;
(c) After such budget and basis of contribution have been ap-
proved by the Administrator, to determine and obtain equitable
contribution as above set forth by all members of the Industry, and
to that end, if necessary, to institute legal proceedings therefore in its
own name.
5. Each member of the Industry shall pay his or its equitable
contribution to the expenses of the maintenance of the Code Au-
thority, determined as hereinabove provided, and subject to rules
and regulations pertaining thereto issued by the Administrator.
Only members of the Industry complying with the Code and con-
tributing to the expenses of its administration as hereinabove pro-
vided (unless duly exempted from making such contribution), shall
be entitled to participate in the selection of members of the Code
Authority or to receive the benefits of any of its voluntary activities
or to make use of any emblem or insignia of the National Recovery
6. The Code Authority shall neither incur nor pay any obligation
substantially in excess of the amount thereof as estimated in its
approved budget, and shall in no event exceed the total amount
contained in the approved budget, except upon approval of the
Administrator; and no subsequent budget shall contain any deficiency
item for expenditures in excess of prior budget estimates except
those which the Administrator shall have so approved.
7. Nothing 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 or employee 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 willful malfeasance or nonfeasance.
8. Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Code Authority shall
(1) impose no inequitable restriction on membership, 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 membership, organization, and
activities as the Administrator may deem necessary to effectuate the
purposes of the Act.
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 hear-
ings 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 of the Code Authority.
10. If the Administrator shall at any time determine that any
action of a Code Authority or any agency thereof may be unfair
or unjust or contrary 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
S by such Code Authority or agency pending final action which shall
not be effective unless the Administrator approves or unless he shall
fail to disapprove after thirty (30) days' notice to him of intention
to proceed with such action in its original or modified form.
The following practices constitute unfair methods of competition
and are prohibited.
1. False Marking or Branding.-Falsely marking or branding any
product of this Industry which has the tendency to mislead or de-
ceive customers or prospective customers in some material
lar, whether as to the grade, quality, quantity, substance, character,
nature, origin, size, finish or preparation of any product of the
Industry, or otherwise.
2. Misrepresentation or False or Misleading A dvcrtisin.g.-Mak-
ing or causing or knowingly permitting to be made or published any
false, misleading, materially inaccurate or deceptive statement by
way of advertisement or otherwise, whether concerning the grade,
* quality, substance, character, nature, origin, size, finish, or prepara-
tion of any product of the Industry, the credit terms, policies or
services of any member of the Industry, or otherwise.
3. Faulty Description.-Making any sale or contract of sale of
any product under any description which does not fully describe such
product in terms customarily used in the Industry.
4. Commercial Bribery.-Giving, permitting to be given, or di-
rectly offering to give, anything of value for the purpose of influenc-
ing or rewarding the action of any employee, agent or representative
of another in relation to the business of the employer of such em-
ployee, the principal of such agent or the represented party, without
the knowledge of such employer, principal 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.
5. Giving of Prizes or Gifts.-Offering or giving prizes, gifts or
premiums in connection with the sale of products, or as an induce-
ment thereto, except as offered or given to all customers of the same
class; or offering or giving any premiums in connection with any
plan or any scheme which involves lottery, misrepresentation or
6. Rendering Free Semrice.-Rendering to any purchaser of any
product or in connection with the sale of such product any service,
except pursuant to warranty, unless fair compensation for such
service shall be paid by such purchaser.
7. Interference With Another's Con.tracts.-Inducing or attempt-
ing to induce the breach of an existing contract. between a competitor
and his customer or source of supply; or interfering with or ob-
structing the performance of such contractual duties or services.
8. Defaonation.-Defaming competitors by falsely imputing to
them dishonorable conduct, inability to perform contracts, question-
able credit standing; or by other false representations; or by falsely
disparaging the grade or quality of their goods, or the conditions
of employment among their employees.


9. Espionage of Competitors.-Securing confidential information
concerning the business of a competitor by a false or misleading
statement or representation, by a false impersonation of one in
authority, by bribery, or by any other unfair method.
10. Terms of Sale.-(a) Making of conditions and terms of time
sale to consumers other than to conform in every respect to the con-
ditions and terms of a reputable finance corporation doing or offering
to do business in this industry in the trade area where the sale is
(b) Making other than time sales to consumers on new bodies,
other equipment and repairs, on terms other than net cash on deliv-
ery except where satisfactory credit arrangements are made. Not
less than six per cent (6%) interest per annum shall be charged
on all overdue accounts. Payments shall include all taxes applicable
to sales under (a) and (b) herein.
11. Secret Rebates.-Secretly offering or making any payment
or allowance of a rebate, refund, commission, credit, unearned dis-
count or excess allowance, whether in the form of money or other-
wise; or secretly offering or extending to any customer any special
service or privilege not extended to all customers of the same class,
for the purpose of influencing a sale.
12. False Billing and Quoting.-Knowingly withholding from or
inserting in any quotation or invoice any statement that makes it
inaccurate in any material particular.
13. Guarantee of Prices.-Making contracts, accepting orders or
other commitments guaranteeing prices, except upon bona fide orders
for definite quantities and definite times of delivery, or giving to
any purchaser of any product any guarantee in any form against
decline in the market price of such product.
14. Trade Mark Piracy.-Imitating the trade marks, trade names,
slogans or other marks of identification of competitors, having the
tendency and capacity to mislead or deceive customers or prospective
customers in any material particular.
15. Sales Below Cost.-On and after the effective date, making any
sale of or offering for sale any products of the Industry, or making
repairs thereto, or rendering service thereon at less than his cost as
determined under Article VI, Section 3, Paragraph (d), except in
cases of the usual warranty, provided, however, that any member of
the Industry may sell or service the products of the Industry below
his individual cost in order to meet the competition of any other
member of the Industry who is not violating the provisions of this
section. The provisions of this section shall not apply in cases where
bodies and component parts thereof become obsolete because of
dimension and appearance change, when they may be sold at distress
prices, provided, however, that such sales shall not in any one year
exceed fifteen percent (15%) by unit volume of the total sales of the
company affected. Should there be a surplus of obsolete bodies and
component parts now on hand exceeding fifteen percent (15%), such
information shall be submitted to the Code Authority for permission
to liquidate these bodies and parts as soon as possible and at the
best prices obtainable. Within six (6) months the Code Authority
shall submit for the approval of the Administrator a report on the
working of the distress sale provision with recommendations for any
change or modification of the percentage allowable.



1. The operation of paint spraying equipment in such places and
under such conditions, without adequate exhaust ventilation, as are
ordinarily considered contrary to building codes and the regulation
of fire prevention bureaus, is prohibited.
2. (a) On or after the effective date, no member of the industry
shall purchase any goods, wares or merchandise (hereinafter called
goods), or services, used in the industry, which are manufactured
or sold, in whole or in part, by a vendor who does not represent that
he is in full compliance with the approved code of fair competition,
agreement or license (if any) applicable to the industry of such
vendor; provided that any member of the industry, exercising due
diligence in any such purchase of goods or services to comply with
the provisions hereof, shall not be deemed in violation hereof. Deliv-
ery of a certificate of such vendor that he or it is complying in every
particular with the code, agreement or license applicable to such
vendor, the display of proper N.R.A. insignia, or the publication in a
newspaper or periodical of general circulation of such certificate of
compliance or insignia shall constitute a good and sufficient repre-
sentation of compliance hereunder.
(b) Upon application, or upon his own motion, the Administrator
may grant exceptions or exemptions from provisions hereof if it
shall appear:
(1) That the vendor of any such goods or services is not sub-
ject to a code of Fair Competition, agreement or license approved
under the Act; or
(2) That compliance herewith would create undue hardship
or injustice or would not tend to effectuate the purposes of this
Code or the policy of the Act.
(c) No member of the industry shall make or cause to be presented
or published any such representation which shall be false in any
material particular.
3. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of Subsection (b) of Section 10 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.
4. This Code, except as to provisions required by the Act, may
be modified on the basis of experience or changes in circumstances,
such modification to be based upon application to the Administrator
by the Code Authority and to become effective on approval of the
Administrator after such notice and hearing as he shall specify.

No provision of this Code relating to prices or terms of selling,
shipping or marketing, shall apply to export trade or sales or
shipments for export trade. Export Trade shall be as defined
in the Export Trade Act adopted April 10, 1918.

* 172


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No provision of this Code shall be so applied mas to peri::
monopolies or monopolistic practices, or to elimit"t oppress,
discriminate against small enterprises.-

This Code shall become effective on the second Monday aftil4
approval by the President.
Approved Code No. 486.
Registry No. 1405-01. .:



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