NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
(A Product Group of the Automotive Parts and
Equipment Manufacturing Industry)
AS APPROVED ON DECEMBER 20, 1934
WE DO OUR PART
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934
For sale by the Superintendent of Documents, Washington, D. C. Price 5 cents
Approved Code No. 105-Supplement No. 9
Registry No. 1404-54
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.
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Approved Code No. 105--Supplement No. 9
SUPPLEMENTARY CODE OF FAIR COMPETITION
GASKET MANUFACTURING INDUSTRY
As Approved on December 20, 1934
APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THB
GASKET MAN UFACTURING INDUSTRY
A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT MANU-
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 Supple-
mentary Code of Fair Competition for the Gasket Manufacturing
Industry, a Product Group of the Automotive Parts and Equipment
Manufacturing Industry, and hearings having been duly held
thereon and the annexed report on said Supplementary Code, con-
taining findings with respect thereto, having been made and directed
to the President:
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to au-
thority vested in it by Executive Orders of the President, including
Executive Order No. 6859, and otherwise, does hereby incorporate
by referen-e said anlnxed report and does find that said Supple-
mentary Code complies in all respects with the pertinent provisions
and will promote the policy and purposes of said Title of said Act;
and does hereby order that said Supplementary Code of Fair Com-
petition be and it is hereby approved.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HARRIMAN, Administrative Officer.
BARTON W. MURRAY,
Division Admn il.stralor.
WASHINGTON, D. C.,
/)r.ember 20, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on a Supplementary Code of Fair Competi-
tion for the Gasket Manufacturing Industry, a Product Group of the
Automotive Parts and Equipment Manufacturing Industry. A pro-
osed Code was submitted to the Administrator on April 3, 1934
y the Code Authority Committee of the Automotive Parts and
Equipment Manufacturing Industry for the Automotive Gasket
Institute, representing approximately 90% of the total volume of
sales and 57% of the number of members of the Industry.
A Public Hearing on the proposed Code was conducted in Wash-
ington on June 26, 1934 in accordance with the provisions of the
National Industrial Recovery Act. It was thereafter revised and
approved in its present form. This Code is designed primarily to
put into legal effect certain Fair Trade Practice Rules which long
have been recognized in the Industry, but which have been without
binding legal effect. The labor provisions of this Code are those
of the Basic Automotive Parts and Equipment Code. The purpose
of the Code is stated in Article I and Article II is devoted to
An Administrative Committee is established in Article III con-
sisting of the Executive Committee of the Automotive Gasket Insti-
tute, but one additional member may be added in the discretion of
the National Industrial Recovery Board to represent the non-
members of the Institute who comply with the Code. The Admin-
istrative Committee will administer the Code under supervision of
the National Recovery Administration.
Fair Trade Practices, designed to effect fair competition among
the members of the Industry, are set forth in Article IV.
The Deputy Administrator in his final report to the National
Industrial Recovery Board on said Supplementary Code having
found as herein set forth and on the basis of all the proceedings in
The National Industrial Recovery Board finds that:
(a) Said Supplementary Code is well designed to promote the
policies and purposes 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 provide for the general welfare by promoting the organi-
zation of industry for the purpose of cooperative action among the
trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanction and super-
vision, by eliminating unfair competitive practices, by promoting
the fullest possible utilization of the present productive capacity of
industries, by avoiding undue restrictions of production, (except
as may be temporarily required), by inirreaiing the cinll uiniption of
industrial andi agricultural products through increasing purchasing
power, by reducing and relieving unl.eplo ment, by improving
standards of labor, and by otherwise rehabilitating industry.
(b) Said Product Group normally employs not more than 50,000
employees; and is not classified by the National Industrial Recovery
Board as a major indu-try.
(c) The Supplementary Code, a- approved, complies in all re-
spects with the pertinent provisions of said Title of said Act,
including without limitation Sub.-ection (a) of Section 3, Subsection
(a) of Section 7 and Sub- ct.ion (b) of Section 10 thereof; and that
the applicant Product Group is an industrial Group truly repre-
sentative of the aforesaid Indii-;try; and that said Product Group
imposes no inequitl-ble re-t rirtions on admission to membership
(d) The SupJplemlentary Code is not designed to and will not per-
mit monopolie., or monopolistic practices.
(e) The Supplementary Code is not designed to and will not
eliminate or oppress small enterpri-t s and will not operate to dis-
criminate against them.
(f) ThIse engaged in othi-r s-teps of the economic process have
not been deprived of the right, to be heard prior to approval of said
For these reasons, therefore, the National Industrial Recovery
Board has approved this Supplementary Code.
For the National Industrial Recovery Board:
W. A. HARRIMAN,
DECEMBER 20, 1934.
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE GASKET MANUFACTURING INDUSTRY
A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT
Pursuant to the provisions of Article II of the Code of Fair Com-
petition for the Automotive Parts and Equipment Manufacturing
Industry, duly approved by the President on November 8, 1933, the
following provisions covering fair trade practices and the adminis-
tration thereof are hereby established as the standards of Fair Com-
petition for the Gasket Manufacturing Industry, which has been
organized into an administrative unit as a Product Group of the
Automotive Parts and Equipment Manufacturing Industry, and
shall be binding upon every member of said Product Group.
The term "Product Group as used herein is defined to mean
production and/or manufacture of ga.-kets used in the manufacture
of and in replacement in automobiles, trucks, busses, tractors, in-
ternal comilJtio)n engines, and such other allied products as are
natural affiliates, including industrial and marine engines; except-
ing, however, the production and/or manufacture of such articles
when produced or manufactured by a manufacturer for use exclu-
sively in his own finished product, and provided always that this
definition shall not include any products hereinabove described or
parts thereof or therefore not designed for and used mainly as auto-
motive original equipment, replacement parts and/or accessories and
which are included within the scope of the definition of any other
industry as defined in any approved Code of Fair Competition.
The term Member" or "Member of the Product Group" as
used herein includes, but without limitation, any individual, partner-
ship, association, corporation, or other form of enterprise engaged
in the production and/or manufacture and/or the sale as a manufac-
turer of the products of the Product Group, (hereinafter termed
" Products ") either as an employer or on his or its own behalf.
The term In.titute as used herein is defined to mean the Auto-
motive Galsket Institute, a trade association at present having its
headquarters' office in Detroit, Michigan.
The term Original Equipment Business" as used herein is de-
fined to mean the manufacture and/or sale of gaskets by members
to the manufacturers of automobiles, trucks, busses, tral-tors, internal
comlbulttion engines and such other allied products as are natural
affiliates including industrial and marine engines, regardless of
whether used by the purchaser for original installation or sold by the
purchaer for replacement in products of his own manufacture.
The term "Replacement Business" as used herein is defined to
mean the manufacture and/or sale by in( iniilrs of replacement gaskets
except as provided in the above definition of Original Equipment
The term Basic Code as used herein is defined to mean the Code
of Fair Competition for the Autonmtive Parts and Equipment
Manufacturing Industry, a.- approval. by the President on Novem-
ber 8, 1933, and as amended.
The term Code Authority as used herein is defined to mean the
Code Autlority de-ignattd in the Code of Fair Competition for Au-
tomotive Parts and Equiipment, Manu factoring Industry.
(1) (a) The Executive Committee of the Institute is hereby desig-
nated the Admninistrative Committee to assist the Code Authority
and the National Industrial Recovery Board in the administration
of the fair trade practice provisions hereinafter set forth and the
provisions of the Basic Code, to which these fair trade practices are
a supplement. One additional member may, in the discretion of the
National Industrial Recovery Board, be added to represent the non-
members of the Institute who comply with this supplementary Code,
such additional menlb,.r to be selected by such non-members of the
Institute by a fair method approved by the National Industrial
(b) In addition to the membership as above provided, there may
be one additional nmmblcr, without vote, to be appointed by the Na-
tional Industrial Recovery Board, to serve without expense to the
Product Group for such term as the National Industrial Recovery
Board may specify.
(2) (a) It being found neces-sary, in order to support the admin-
istration of this Supplcmentary Code and to maintain the standards
of fair competition established here, un'r and to effectuate the policy
of the Act, the Administrative Comulittee is authorized:
(1) 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 hreiinnfter provided and which
shall be held in trust for the pIrposes of this Supplementary Code;
(2) To submliit to the National Industrial Recovery Board for its
approval, subject to such notice and opportunity to be heard as it
may deem necessary, (a) an itemized budget of its estimated ex-
penses for the foregoing purposes, and (b) an equitable basis upon
which the funds necessary to support such budget shall be con-
tributed by members of the Product Group;
(3) After such budget and basis of contribution have been ap-
proved by the National Industrial Recovery Board, to determine and
obtain equitable contribution as above set forth by all members of
the Product Group, and to that end, if necessary, to institute legal
proceedings therefore in its own name.
(b) Each member of the Product Group shall pay his or its
equitable contribution to the expenses of the maintenance of the
Administrative Committee, determined as hereinabove provided, and
subject to rules and regulations pertaining thereto issued by the Na-
tional Industrial Recovery Board. Only members of the Product
Group complying with this Supplementary Code and contributing
to the expenses of its administration as hereinabove provided, (unless
duly exempted from making such contribution), shall be entitled to
participate in the selection of members of the Administrative Com-
mittee or to receive the benefits of any of its voluntary activities or
to make use of any emblem or insignia of the National Recovery
(c) The Administrative Committee 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 Na-
tional Industrial Recovery Board; and no subsequent budget shall
contain any deficiency item for expenditures in excess of prior budget
estimates except those which the National Industrial Recovery Board
shall have so approved.
(3) (a) The Administrative Committee shall, subject to the ap-
proval of the Code Authority and the National Industrial Recovery
Board, have the power to adopt by-laws and rules and regulations for
its procedure and to obtain from members, directly or through an
impartial agency, such information and reports as are required for
the administration and enforcement of this Supplementary Code; to
cooperate with the National Industrial Recovery Board under such
rules and regulations as may be prescribed by it in regulating the
use of any N. R. A. insignia, and in hearing and adjusting com-
plaints; to initiate, consider and recommend to the Code Authority
for transmittal to the National Industrial Recovery Board further
fair trade practice provisions to govern the members of this Product
(b) If the National Industrial Recovery Board shall determine
that any action of the Code Authority and or the Administrative
Committee or any agency thereof may be unfair or unjust or con-
trary to the public interest, the National Industrial Recovery Board
may require that such action be suspended to afford an opportunity
for investigation of the merits of such action and further considera-
tion by such Code Authority and,'or the Administrative Committee
or agency pending final action which shall not be effective unless the
National Industrial Recovery Board approves or unless it shall fail
to disapprove after 30 days' notice to it of intention to proceed with
such action in its original or modified form.
(c) Each trade or industrial association directly or indirectly par-
ticipating in the selection or activities of the Administrative Com-
mittee shall (1) impose no inequitable restrictions on membership,
and (2) submit to the National Industrial Recovery Board true
copies of its articles of association, by-laws, regulations, and any
amendments when made thereto, together with such other informa-
tion as to membership, organization, and activities as the National
Industrial Recovery Board may deem necessary to effectuate the
purposes of the Act.
(d) In order that the Administrative Committee shall at all times
be truly representative of the Product Group, and in other respects
comply with the provisions of the Act, the National Industrial
Recovery Board may prescribe such hearings as it may deem proper;
and, thereafter, if it shall find that the Administrative Committee 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 Administrative Committee.
(4) All members of this Product Group shall be bound by the
provisions of the Basic Code. For this purpose, all provisions, in-
cluding specifically the wage, hour and labor provisions, of the Basic
Code are hereby declared to be a part of this Supplementary Code.
In case of any conflict between the provisions of this Supplementary
Code and the provisions of the Basic Code, the provisions of the
latter shall govern. As required by Section 7 (a) of Title I of the
National Industrial Recovery Act, it is hereby provided:
(1) That employees shall have the right to organize and bargain
collectively through representatives of their own choosing, and shall
be free from the interference, restraint, or coercion of employers of
labor, or their agents, in the designation of such representatives or
in self-organization or in other concerted activities for the purpose
of collective bargaining or other mutual aid or protection; (2) that
no employee and no one seeking employment shall be required as a
condition of employment to join any company union or to refrain
from joining, organizing, or assisting a labor organization of his own
choosing; and (3) that employers shall comply with the maximum
hours of labor, minimum rates of pay and other conditions of
employment, approved or prescribed by the President.
(5) The Administrative Commiittee shall cause to be formulated
methods of cost finding and accounting capable of use by all members
of the Product Group, and shall submit such methods to the National
Industrial Recovery Board for review. If approved by the National
Industrial Recovery Board, full information concerning such
methods shall be made available to all members of the Product
Group. Thereafter, each member of the Product Group shall utilize
such methods to the extent found practicable. Nothing herein con-
tained shall be construed to permit the Administrative Committee,
any agent thereof, or any member of the Product Group to suggest
uniform additions, percentages or differentials or other uniform
items of cost which are designed to bring about arbitrary uniformity
of costs or prices.
(6) The Administrative Committee shall be empowered to obtain
from members of the industry such information and reports as are re-
quired for the administration of the Code. In addition to informa-
tion required to be submitted to the Code Authority, members of the
industry subject to this Code shall furnish such statistical informa-
tion as the National Industrial Recovery Board may deem necessary
for the purposes recited in Section 3 (a) of the Act to such Federal
and State agencies as it may designate provided that nothing in this
Code shall relieve any member of the industry of any existing obliga-
tions to furnish reports to any Government agency. No individual
report shall be disclosed to any other member of the industry or any
other party except to such other Governmental agencies as may be
directed by the National Industrial Recovery Board.
ARTICLE IV-TRADE PRACTICES
In addition to the provisions of Section C of Article VI of the
Basic Code, the following described acts shall constitute unfair prac-
tices and acts of unfair competition:
(1) Costs and price cutting.-(a) Wilfully destructive price cut-
ting is an unfair method of competition and is forbidden. Any
member of the Product Group or of any other industry or the cus-
tomers of either may at any time complain to the Administrative
Committee than any filed and.'or offered price constitutes unfair
competition as destructive price cutting, imperiling small enterprises
or tending toward monopoly or the impairment of code wages and
working conditions. The Administrative Committee shall within 5
days afford an opportunity to the member filing and/or offering the
price to answer such complaint and shall within 14 days make a
ruling or adjustment thereon. If such ruling is not concurred in by
either party to the complaint, all papers shall be referred to the
Research and Planning Division of NRA which shall render a report
and recommendation thereon to the National Industrial Recovery
(b) When no declared emergency exists as to any given product,
there is to be no fixed minimum basis for prices. It is intended
that sound cost estimating methods should be used and that con-
sideration should be given to costs in the determination of pricing
(c) When an emergency exists as to any given product sale below
the stated minimum price of such product, in.violation of the pro-
visions of paragraphs (d) and (e) hereof, is forbidden.
(d) If the National Industrial Recovery Board, after investiga-
tion shall at any time find both (1) that an emergency has arisen
within the Product Group adversely affecting small enterprises or
wages or labor conditions, or tending toward monopoly or other
acute conditions which tend to defeat the purposes of the Act; and
(2) that the determination of the stated minimum price for a speci-
fed product of the Product Group for a limited period is necessary
to mitigate the conditions constituting such emergency and to
effectuate the purposes of the Act, the Administrative C(ommittee
may cause an impartial agency to investigate costs and to recom-
mend to the National'Industrial Recovery Board a determination
of the stated minimum price of the product affected by the emer-
gency and thereupon the National Industr;al Recovery Board may
proceed to determine such stated minimum price.
(e) When the National Industrial Recovery Board shall have de-
termined such stated minimum price for a specified product for a
stated period, which price shall be reasonably calculated to mitigate
the conditions of such emergency and to effectuate the purposes of
the National Industrial Recovery Act, it shall publish such price.
Thereafter, during such stated period, no member of the Product
Group shall sell such specified products at a net realized price be-
low said stated minimum price and any such sale shall be deemed
destructive price cutting. From time to time, the Administrative
Committee may recommend review or reconsideration or the Na-
tional Industrial Recovery Board may cause any determination
hereunder to be reviewed or reconsidered and appropriate action
(2) Il/linucng Breach of Contract.-Wilfully and maliciously in-
ducing or attempting to induce the breach of existing contracts be-
tween competitors and their customers by any means or device what-
soever or interfering with or obstructing the pi-rf riiiim ,c of any
such contractual obligtitioins or service, with the purpose and effect
of hampering, injurinLw. or embarrassing competitors.
(3) Con.ivw rc;ial Bribery.-To give, permit to be given, or directly
offer to give, anything of value for the purpoel) of influencing or
rewarding the action of any employee, agent, or representative of
another in relation to the business of the employer of such employee,
the principal of such agent or the represented party, without the
knowledge of such employer, principal or party. Commercial brib-
ery provisions 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
(4) Branrling.-To brand falsely or fail to brand with member's
name, trade-mark, and/or number, group products sold in the
original equipment or replacement business except that failure to
brand shall not apply to non-metallic packing and/or gaskets, or
gaskets the nature or small size of which makes branding mechani-
cally impossible or unduly costly.
(5) I'.::'atirfa of Trade-Marks. -To imitate or copy a competitor's
trade-mark, marking or trade name, with the purpose or effect of
misleading or deceiving any purchaser or prospective purchaser.
(6) Itwccurate A die rtiing.-To publish advertising (whether
printed, radio, display, or of any other nature), which is misleading
or inaccurate in any material particular, or in any material way to
misrepresent any product, including but without limitation its use,
trade-mark, grade, quality, quantity, origin, size, substance, charac-
ter, nature, finish, material content, or preparation) or credit terms,
values, policies, services, or the nature or form of the business
(7) Substitution.-To furnish articles more or less expensive,
of bettaror inferior quality, or of larger or smaller size, than
specined, without clearly indicating the nature of the substitution.
(8) Description of Product.-To make 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.
(9) Price Guaranty.-To sell or offer to sell to a purchaser or
prospective purchaser Group Products under any form of guaranty
against adv dance or decline in price of said product except as pro-
vided in Article IV, Paragraph (10), Contracts for Future
(10) Contracts for Future Delibery.-In the original equipment
business to make contracts or accept orders for a period of delivery
longer than six months.
(11) Defective Material.-To allow credit for any defective arti-
cle until the fact of such defect shall have been established by an
authorized representative of the selling member and the article
shall have been destroyed or returned to such member; or to allow
credit for charges for labor or consequential damage in connection
with defective material.
(12) Rtfurned Meirch rnd,;.e.-(a) To accept or give credit for
returned merchandise not in salable condition.
(b) To accept or give credit for returned merchandise in good
condition at a price greater than the purchase price less a fair and
reasonable rehandling charge plus a reasonable charge for obsoles-
cence whiich charges shall be individually filed with the Administra-
tive Committee. In every case the purchaser shall pay the return
transportation charges. The foregoing shall not apply to merchan-
dise shipped through error, defective material, or certain specified
items that a member may ask all of his customers to return.
(13) Replacing C'ompetitor's Stock.-To agree to liquidate, pur-
chase, or accept another member's products from any buyer.
(14) Catalog Earpense.-To pay for space in a catalog issued by
a customer or to supply at less than cost of paper and printing,
quantities of catalog sheets and/or price lists intended for binding
in a customer's catalog or for distribution in quantity to customer's
trade. The foregoing does not preclude supplying, without charge,
a reasonable quantity of catalog sheets and, or price lists for sales-
men's binders, counter use, or office reference.
(15) Advertising Allouwances.-To purclh -e.,.,. contribute
to the advertising of a customer in newspapers, riagazines, programs,
the customer's own house organ, or other publications unless such
purchase of space or contribution is a part of a general advertising
program adopted by the member and is available to all of his
(16) Display Equipnmenf.-To supply to a cust-, 'er store equip-
ment such as large cabinets, display boards, racks and shelving or
parts thereof, other than racks for sheet packing, except in accord-
ance with the provisions of Section (20) hereof.
(17) Consignments.-To place group products on consignment or
under the "Floating Credit" or "Ledger Balance" plan.
(18) Warehousing.-To fail to comply with the following pro-
visions covering sales from warehouses in the replacement business.
(a) Members shall not sell from warehouses to customers who
do not carry a representative stock of the member's products.
(b) Members shall not carry a warehouse stock with any cus-
tomer or in premises owned or controlled in whole or in part by any
customer provided that nothing herein shall prohibit the warehous-
ing of stocks in any established public warehouse whether or not a
customer has an interest therein.
(c) Members shall totally own warehouse stocks which must not
in any sense be consigned.
(d) Members operating warehouses shall conduct their own sales
through their own representatives, do their own billing and make
their own collections.
(19) Classification of Customers.-The Code Authority shall
cause to be formulated and keep current a classification of all types of
customers of the industry. Such classification shall be subject to the
disapproval of the National Industrial Recovery Board and shall
contain: (a) A complete list of all of the classes of customers of
the industry, including a class to cover every known type of cus-
tomer; and (b) definitions or descriptions of the several classes in
terms of functions performed, or in other appropriate terms such
as purchasers of defined quantities.
After submission to the National Industrial Recovery Board, if
there is no disapproval or request for suspension of action within
twenty (20) days. full information concerning the classification
shall be made available to all members of the industry. No one
shall by intimidation, coercion, or other undue influence cause or
attempt to cause the inclusion of any customers in or the exclusion
of any customer from any class of custonlrs, or the exclusion of any
class of customers from the classification, or the use of uniform
or stipulated prices, discount, or differentials and each member of
the industry may at all times classify his own customers in accord-
ance with his own judgment.
(20) Open Price Filing-Replacement Business.-(a) Each mem-
ber of the Product Group shall file with a confidential and disinter-
ested agent of the Administrative Committee or, if none, then with
such an agent designated by the National Industrial Recovery
Board, identified lists of all of his prices, discounts, rebates, allow-
ances, and all other terms or conditions of sale for Replacement
Business as herein defined, hereinafter in this Section (20) referred
to as price, +o'ms ", which lists shall completely and accurately con-
form to and rt i.' ft individual pricing practices of said mem-
ber. Such lists shall contain the price terms for alf such standard
products of the Product Group as are sold or offered for sale by said
member and for such non-standard products of said members as shall
be designated by the Administrative Committee. Said price terms
shall in the first instance be filed within 15 days after the date of
approval of tl.1~ provision. Price terms and revised price terms
shall become effective immediately upon receipt thereof by said agent.
Immediately upon receipt thereof, said agent shall by telegraph or
other equally prompt means notify said member of the time of such
receipt. Such lists and revisions, together with the effective time
thereof, shall upon receipt be immediately and simultaneously dis-
tributed to all members engaged in Replacement Business and to all
of their customers who have applied therefore and have offered to
defray the cost actually incurred by the Administrative Committee
in the preparation and distribution thereof and be available for in-
spection by any of their customers at the office of such agent. Said
lists or revisions or any part thereof shall not be made available to
any person until released to all members engaged in Replacement
Business and their customers, as aforesaid; provided, that prices
filed in the first instance shall not be released until the expiratioir of
the aforesaid 15 day period after the approval of this Supplementary
Code. The Administrative Committee shall maintain a permanent
file of all price terms as herein provided, and shall not destroy
any part of such records except upon written consent of the National
Industrial Recovery Board. Upon request the Administrative Com-
mittee shall furnish to the National Industrial Recovery Board or
any duly designated agent of the National Industrial Recovery
Board copies of any such lists or revisions of price terms.
(b) When any member of the Product Group has filed any revi-
sion, such member shall not file a higher price within forty-eight (48)
(c) No member of the Product Group shall sell or offer to sell any
products of the Product Group for which price terms have been
filed pursuant to the provisions of this Section (20), except in accord-
ance with such price terms.
(d) No member of the Product Group shall enter into any agree-
ment, understanding, combination or conspiracy to fix or maintain
price terms nor cause or attempt to cause any member of the Product
Group to change his price terms by the use of intimidation, coercion,
or any other influence inconsistent with the maintenance of the free
and open market which it is the purpose of this Section (20) to
(21) Terms of Payment.-In the replacement business to extend a
cash discount more favorable than 2% 10th proximo.
(22) Export Busriness.-Except as may be subsequently set forth
in an export provision supplementary to the Basic Code of the Auto-
motive Parts and Equipment Manufacturing Industry or to this
Supplementary Code, the Provisions of this Supplementary Code
with regard to prices, discounts, allowances and terms are not to
apply to direct export sales or to articles in the course of export,
i. e., sales destined ultimately for export. "Export Trade" shall
be as defined in the Export Trade Act adopted April 10, 1918.
(1) No provision of this Supplementary Code shall be so applied
as to permit monopolies or monopolistic practices, or to eliminate,
oppress, or discriminate against small enterprises.
(2) Such of the provisions of this Supplementary Code as are not
required to be included herein by the Act may, with the approval of
the National Industrial Recovery Board, be modified or eliminated
on the proposal by the Product Group or any member thereof if it
appear that the public needs are not being served thereby and as
changes in circumstances or experience may indicate.
(3) It is contemplated that from time to time supplementary
provisions to this Supplementary Code or modifications thereof will,
after approval by the Product Group, be submitted by the Adminis-
trative Committee through the Code Authority for their approval
to prevent unfair competition in price and other unfair and destruc-
tive competitive practices and to effectuate the purposes of the Act.
Upon approval by the National Industrial Recovery Board after such
notice and hearing as it may prescribe, such supplementary provisions
or modifications shall become binding as a part of this Supple-
(4) As required by Section 10 (b) of Title I of the Act, this Sup-
plementary Code and all of the provisions thereof are expressly
made subject to the right of the President from time to time to
cancel or modify any order, approval, license, rule, or regulation
issued under said Act.
(5) By assenting to this Supplementary Code no member of this
Product Group shall be held to have waived any of his constitutional
(6) Violation by any member of this Product Group of any pro-
vision of this Supplementary Code is an act of unfair competition,
and the offender shall be subject to the penalties imposed by the
(7) The "Effective Date" of this Supplementary Code shall be
the 10th day after it shall have been approved.
Approved Code No. 105---Supplement No. 9.
Registry No. 1404-54.
UNIVERSITY OF FLORIDA
SI 3I 1262 08584 34011 11111 111111
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