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Apprved odeNo. 76 Rgisry N. 135-0
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AIR VALVE INDUSTRY
AS APPROVED ON MARCH 31, 1934
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Approved Code No. 376
Registry No. 1335-06
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. 376
CODE OF FAIR COMPETITION
AIR VALVE INDUSTRY
As Approved on March 31, 1934
APPROVING CODE OF FAIR COMPETITION FOR THE AIR VALVE INDUSTRY
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 Air Valve Industry, and hearings having
been duly held thereon and the annexed report on said 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, 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.
HUGH S. JOHNSON,
Admindstrator for Industrial Recovery.
A. R. GLANCE,
Division Adrmini trator.
March 31, 1934.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the Code of Fair Competition for the
Air Valve Industry as revised after a public hearing conducted in
Washington, D.C. on March 12, 1934, in accordance with the provi-
sions of the National Industrial Recovery Act.
PROVISIONS AS TO WAGES AND HOURS
Except for accounting, clerical and office employees, office boys
and office girls, apprentices and handicapped persons, all male em-
ployees shall be paid not less than forty cents per hour; all female
employees shall be paid not less than thirty-five cents per hour,
except, when female employees perform substantially the same work
as male employees then they shall receive the same rate of pay as
male employees; and where they displace men, they shall receive the
same rate of earnings as the men they displace. Accounting, clerical
and office employees shall be paid at the rate of not less than fifteen
dollars per week. Office boys and office girls shall be paid not less
than eighty percent of the above provided minimum wage for ac-
counting, clerical and office employees, and the total number of such
office boys and office girls shall not exceed more than five percent of
the total office employees of an employer, except that any employer
may employ at least two such persons. The number of apprentices
employed by any employer shall not exceed more than five percent
of the total number of factory employees of such employer. Persons
whose earning capacity is limited because of age, physical or mental
handicap may be employed on light work at a wage below the mini-
mum established by this Code. Equitable adjustment of compensa-
tion of employees receiving more than the minimum rates of pay
shall be made by all employers who have not heretofore made such
adjustments, within thirty days after approval of this Code.
Forty hours shall be the maximum number of working hours for
any one week or eight hours for any one day except that during any
six weeks in any six months' period, forty-eight hours per week is
permissible. The foregoing limitations shall not apply to the fol-
lowing: those engaged in executive, managerial and supervisory
capacities who regularly receive thirty-five dollars or more per week,
outside salesmen; employees engaged solely in maintenance repair
work, truckmen, firemen and engineers who shall be permitted to
work not more than nine hours in any one day or forty-four hours
in any one week, except that during any six weeks in any six months'
period forty-eight hours per week is permissible; watchmen, who
may be employed not more than fifty-six hours in any one week;
accounting, clerical or office employees who may be employed nine
hours per day but not more than forty hours per week. All em-
ployees, except accounting, clerical or office employees, those engaged
in executive, managerial or supervisory capacities, outside salesmen
and watclhmen, shall be paid one and one-half times the normal rate
of pay for hours worked in excess of eight hours per day or forty
hours per week.
EC(ON1M1IC EFFECTS OF THE CODE
Annual sales of the Industry decreased fifty-eight percent. from
1929 to 1933. The products of the Industry are used principally in
new building operations. The Re.earch and Planning Division's
report states that'the Industry employed four hundred and forty
nine wage earners in 1928 and only two hundred and sixty two in
1933, employment. decreasing forty-two percent during that period.
The President's Reemployment Agreement effected a slight increase
Additional workers will be absorbed as new construction and re-
placement continue. The minimum wage rate established by this
Code and the provision for an equitable adjustment of wages above
the minimum will materially increase the purchasing power of the
employees in this Industry and the trade practice provisions of this
Code are expected to remedy the unfair trade practices that have
existed in the past in this Industry.
The Assistant Deputy Administrator in his final report to me on
said Code having found as herein set forth and on the basis of all
the proceedings in this matter;
I find that:
(a) Said Code is well designed to promote the policies and pur-
poses of Title I of the National Indu-trial 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 indus-
try 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 induIstries,
by avoiding undue restriction of production (except as may be
temporarily required), by increasing the consumption of industrial
and agricultural products through increasing purchasing power, by
reducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not. more than 5',000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the per-
tinent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Sub:ection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant as-
sociation 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 op-
press small enterprises and will not operate to discriminate against
(f) Those eno-aged in other steps of the economic process have not
been deprived ofthe right to be heard prior to approval of said Code.
For these reasons, therefore, I have approved this Code.
HUGH S. JOHNSON,
A dminmist rat or.
March 31, 1934.
CODE OF FAIR COMPETITION FOR THE AIR VALVE
1. 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 Air Valve Industry, and shall be the
standard of fair competition for such Industry, and shall be binding
upon every member thereof.
1. The term "Air Valve Industry as used herein means and in-
cludes the manufacturing and distributing by manufacturers under
their own trade names of air and vacuum valves for venting steam
radiators and pipe lines and auxiliary equipment.
2. President" means the President of the United States of
3. "Association means the Air Valve Association, a trade as.-ocia-
4. The terms "Act ", and "Administrator as used herein shall
mean respectively Title I of the National Industrial Recovery Act,
and the Administrator for Industrial Recovery.
5. The term Employee as used herein includes anyone en-
gaged in the Industry in any capacity receiving compensation for
his services, irrespective of the nature or method of payment of such
6. The term Employer as used herein includes anyone by whom
any such employee is compensated or employed.
7. Effective Date means the second Monday after this Code is
approved by the President.
8. Member of the Industry or Member means any individual,
partnership, association, corporation or other form of enterprise
engaged in the Industry as above defined, either as an employer
or on his or its own behalf.
SECTION 1. No employee, excluding accounting, clerical and office
employees, shall be employed in excess of forty (40) hours in one
week, or eight (8) hours in any twenty-four (24) hour period,
except that during any six (6) weeks in any six (6) months period
employees may be employed not more than forty-eight (48) hours
per week, providing one and one-half times the normal rate of
pay shall be paid for hours worked in excess of eight (8) hours
per day and forty (40) hours per week. The foregoing limitations
shall not apply to:
(a) Those engaged in executive, managerial and supervisory
capacities (except foremen) who regularly receive thirty-five (35)
dollars or more per week.
(b) Outside salesmen.
(c) Employees engaged solely at maintenance and repair work,
truckmen and engineers, who may be permitted to work not more
than nine (9) hours in any one day, or forty-four (44) hours in any
one week. These employees may also be permitted to work forty-
eight (48) hours per week during any six (6) weeks in any six (6)
months period. One and one-half times the normal rate of pay shall
be paid persons embraced in this subsection (c) for hours worked
in excess of eight (8) hours per day and forty (40) hours per week.
(d) Watchmen, who may be employed not more than fifty-six
(56) hours in any one (1) week, except watchmen in closed plants
to whom this limitation shall not apply.
(e) Cases of emergency such as the production of equipment or
repairs for breakdown service, or when additional skilled employees
are not available and the restriction of hours of skilled workers
would unavoidably reduce production or limit the work available to
other workers. One and one-half times the normal rate of pay shall
be paid for hours worked in excess of eight (8) hours per day and
forty (40) hours per week.
SECTION 2. No accounting, clerical or office employee shall be em-
ployed in excess of forty (40) hours a week or nine (9) hours per
day. Eight (8) hours shall constitute a normal working day.
SETION. 3. No employer shall knowingly permit any employee to
work for any time which, when totaled with that already performed
with another employer or employers exceeds the maximum permitted
SECTION 1. No male employee shall be paid at less than the rate
of forty (40) cents per hour and no female employee shall be paid at
less than the rate of thirty-five (35) cents per hour, except that:
(a) Accounting, clerical and office employees shall be paid at not
less than $15.00 per week.
(b) Office boys and office girls shall be paid at not less than eighty
(80) per cent of the above provided minimum wage for accounting,
clerical and office employees, provided that the total number of such
office boys and girls receiving less than such minimum wage shall
not exceed, in any calendar month more than five (5) per cent of the
total office employees of the employer, except that any employer may
employ at least two (2) such persons as above provided.
(c) Nothing in this Article IV shall apply to or affect a bona fide
apprentice employed under a system or course of training which,
when completed, will make the apprentice a skilled mechanic. At no
time shall new apprentices be admitted to apprenticeship by any
employer when such action will bring their total number to more
than five (5) per cent of the total number of factory employees of
SECTION 2. This Article establishes a minimum rate of pay which
shall apply, irrespective of whether an employee is actually compen-
sated on a time rate, piece-work, or other basis.
SECTION 3. The Code Authority may present for approval of the
Administrator, after notice and hearing, recommendations as to
upward adjustments in minimunl wages for specific localities.
SECTION 4. Equitable adjustment of compensation of employees
receiving more than the minimum rates of pay shall be made by all
employers who have not heretofore made such adjustments, and all
employers shall within thirty (30) days after approval of this Code,
report in full to the Code Authority concerning such adjustments
whether made prior to or subsequent to such approval; provided,
however, that in no event shall hourly rates of pay be reduced.
SECTION 5. Female employees perfo(rmning substantially the same
work as male employees shall receive the same rate of pay as male
employees, and where they displace men, they shall receive the same
rate of earnings as the men they displace. The Code Authority shall
within ninety (90) days after the effective date of this Code file
with the Administrator a description of all occupations in the Indus-
try in which both men and women are employed.
SECTION 6. A person whose earning capacity is limited because of
age, physical or mental handicap, or other infirmity may be em-
ployed on light work at a wage below the minimum established by
this Code, if the employer obtains from the State Authority, desig-
nated by the United States Department of Labor, a certificate author-
izing such person's employment at such wages and for such hours
as shall be stated in the certificate. Such authority shall be guided
by the instructions of the United States Department of Labor in
issuing certificates to such persons. Each employer shall file monthly
with the Code Authority a list of all such persons employed by him,
showing the wages paid to, and the maximum hours of work for
SECTION '. Wages shall be exempt from any payments for pen-
sions, insurance, or sick benefits other than those voluntarily paid
by wage earners, or required by State laws. Employers agree that
wages shall be paid at least at the end of every two-week period,
and salaries at least at the end of every month and that no employer
shall withhold wages.
SECTION 8. The employer or his agent shall accept no rebates di-
rectly or indirectly on such wages nor give anything of value or
extend favors to any person for the purpose of influencing rates of
wages or the working conditions of his employees.
ARTICLE V-GENERAL LABOR PROVISIONS
SECTION 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 hazard-
ous in nature or dangerous to health. The Code Authority shall
submit to the Administrator within ninety (90) days after the
effective date of this Code a list of such operations or occupations.
In any State an employer shall be deemed to have complied with this
provision as to age if he shall have on file a certificate or permit duly
signed by the authority in any State empowered to issue employment
or age certificates or permits showing that the employee is of the
SECTION 2. In compliance with Section 7 (a) of the Act it is pro-
(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 purpose of
collective bargaining or other mutual aid or protection.
(b) 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, org',nizing. or assisting a labor organization
of hi:. owna clho,-ing.
i(,) Employer.- liall (comply with the maximum hours of labor
minimum rates of pay. and other conditions of employment approved
or prescribed by the President.
SECTION 3. No eiliployer shall reclassify employees or duties of
occupations performed or engage in any other subterfuge for the
purpose of defeating the purposes or provisions of the Act or of
SECTION 4. Every employer shall provide for the safety and health
of employees during the hours and at the places of their employment.
Standards for safety and health shall be submitted by the Code
Authority to the Administrator within six months after the effective
date of the Code.
SECTION 5. No provision in this Code shall supersede any State
or Federal Law which imposes more stringent requirements on em-
ployers as. to age of employees, wages, hours of work, or as to
safety, sanitary or general working conditions, or insurance, or fire
protection, than are imposed by this Code.
SECTION 6. Official copies of labor provisions of this Code shall
be kept conspicuously posted at all times in each shop, establishment,
or separate unit, where easily accessible to all employees.
SECTION 7. No employee shall be permitted to work more than
six (6) days in any seven (7) day period.
SECTION 1. To further effectuate the policies of the Act, a Code
Authority is hereby constituted to cooperate with the Administrator
in the administration of this Code.
SECTION 2. The Code Authority shall consist of the members of
the Board of Directors of the Association, provided for in the by-laws
of the Association, together with a member selected from the Industry
at large. In addition to membership as above provided, there may
be not more than three (3) members, without vote and without
expense to the Industry, to be appointed by the Administrator, to
serve for such term or terms as he may specify. No two members
of the Code Authority shall be affiliated with any single member
of the Industry.
SECTION 3. The Association is hereby designated as the agency to
conduct the election of the Member at large of the Code Authority
by members of the Industry who are not members of the Association,
within thirty (30) days after the effective date of this Code, and
any subsequent elections for the successors of such Member at large.
Such member shall be elected to serve for a term of one (1) year,
or until his successor is elected. In the event that the position of
Member at large on the Code Authority becomes \varant, a special
meeting shall be called by the Code Authority within thirty (30)
days for an election to fill the vacancy. Notice of the time and place
of all elections shall be sent by registered mail, at least ten (10)
days in advance of any election, to all members of the Industry who
are non-members of the Association and who are eiois.tered with the
Secretary of the Association or whose names and addresses can be
ascertained by diligent inquiry, and voting at :uch election may be
by person, by proxy, or by letter ballot. Each member of the In-
dustry who is not a member of the Association shall have one vote.
A plurality of the number of votes cast shall be necessary for
SECTION, 4. In the event that all memllbers of the Industry hereafter
join the Association no further election of the Member at large for
non-members shall be held until -.uch time as members of the Industry
who are not members of the Association exist.
SECTION 5. The Code Authority shall havy the following further
powers and duties to the extent permitted by the Act, the exercise
of which shall be reported to the Administrator:
(a) To insure the execution of the provisions of this Code and
provide for the compliance of the Industry with the provisions of
the Act under such rules and regulations as may be prescribed by
(b) To adopt by-laws and rules and regulations for its procedure
and for the administration and for facilitating the enforcement of
(c) To appoint conimittees to carry out its duties such as the fol-
lowing: Admniistration, Compliance. Finance, Ind ustrial Relations,
Trade Relation.. Subdivisional. and such other committees as may
(d) To obtain from members of the Industry such information
and reports (sworn or unsworn as the Code Authority may specify)
as are required for the administration of the Code. No individual in-
formation, statistics or reports shall be disclosed to any other mnem-
ber of the Industry or any other party except to such governmental
agencies as may be directed by the Administrator.
(e) To establish, if found desirable, subject to the approval of
the Administrator. classifications, dimensional standards. and qual-
ity and. or performance specifications for products of the Indtustry.
(f) To use such trade associations and other agencies as it deems
proper for the carrying out of any of its activities provided for
herein, provided that nothing herein shall relieve the Code Authority
of its duties or responsibilities under this Code and that such trade
associations and agencies shall at all times be subject to and comply
with the provisions hereof.
(g) To make recommendations to the Administrator for the coor-
dination of t.he administration of this Code with such other codes, if
any, as may be related to the Industry.
(h) To secure from members of the Industry assenting to the Code
an equitable and proportionate payment of the reasonable expenses
of maintaining the Code Authority and its activities.
(i) To cooperate with the Administrator in regulating the use of
any National Recovery Administration insignia solely by those mem-
bers of the Industry who have assented to, and are complying with,
(j) To recommend to the Administrator further fair trade prac-
tice provisions to govern members of the Industry in their relations
with each other or with other industries and to recommend to the
Administrator measures for industrial planning, including Stabiliza-
tion of Employment, Uniform Cost. Accounting, Industry Merchan-
dising Plans, System of Exchange of Credit Information, Inequali-
ties Affecting the Stability of the Industry, which recommendations
after such notice and hearing as the Administrator may specify shall
become effective upon approval by the Administrator or the Presi-
dent with the same force and effect as if originally made a part
(k) 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 production and
distribution employers under this code and under such others to the
end that such fair trade practices may be proposed to the Adminis-
trator as amendments to this code and such other codes.
SECTION 6. In order that the Code Authority shall at all times
be truly representative of the Industry and in other respects com-
ply with the provisions of the Act, the Administrator may provide
such hearings as he may deem proper; and thereafter if he shall
find the Code Authority is not truly representative or does not in
other respects comply with the provisions of the Act, may require
an appropriate modification in the method of selection of the Code
Authority, or any sub-Code Authority.
SECTION 7. The Association, or any other trade association, di-
rectly or indirectly participating in the selection or activities of the
Code Authority, shall (1) impose no inequitable restrictions 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 mem-
bership, organization, and activities as the Administrator may deem
necessary to effectuate the purposes of the Act..
SECTION 8. In addition to the information required to be sub-
mitted to the Code Authority, all or any of the persons subject to
such code, shall furnish such statistical information as the Admin-
istrator may deem necessary for the purposes recited in Section
3 (a) of said Act to such Federal and State agencies as the Admin-
istrator may designate; nor shall anything in this code relieve any
person of any existing obligation to furnish reports to Government
SECTION 9. Members of the Industry shall be entitled to partici-
pate in and share the benefits of the activities of the Code Authority
and to participate in the selection of the members thereof, by assent-
ing to and complying with the requirements of this Code and sus-
training their reasonable share of the expenses of its administration.
The reasonable share of the expenses of administration shall be
determined by the Code Authority, subject to review by the Admin-
istrator, on the basis of volume of business, and/or such other factors
as may be deemed equitable to be taken into consideration.
SECTION 10. The Code Authority shall cause to be formulated an
accounting system and methods of cost finding and/or estimating
capable of use by all members of the Industry. After such system
and methods have been formulated, and approved by the Admin-
istrator, full details concerning them shall be made available to all
members. Thereafter all members shall determine and/or estimate
costs in accordance with the principles of such methods.
SECTION 11. Nothing contained in this Code shall constitute the
members of the Code Authority partners for any purpose. Nor
shall this Code be construed to render any member of the Code
Authority liable in any manner to anyone for any act of any other
member, officer, agent or employee of the Code Authority. Nor
shall this Code be construed to render any member of the Code
Authority, exercising reasonable diligence in the conduct of his
duties hereunder liable to anyone for any action or omission to
act under this Code, except for his own wilful misfeasance or
ARTICLE VII-PunLIcrIT or PRICES, TERMS AND CONDITIONS OF SALE
SECTION 1. Within thirty (30) days after the effective date of this
Code each member of the Industry shall publish his prices, terms and
conditions of sale on all products, with the prices, terms and condi-
tions of sale affecting each class of customer in the territory to which
such prices, terms and conditions of sale apply. Coincident with such
publication, each member of the Industry shall file with the Code
Authority and the Code Authority shall immediately distribute to
all members of the Industry a complete schedule of such prices,
terms and conditions of sale.
SECTION 2. In the event of any change by any member of the In-
dustry in any price, terms or condition of sale, he shall file full and
complete copies of every change with the Code Authority; all such
changes shall become effective immediately upon such filing unless
and until the Code Authority shall designate periods within which
any such changes shall become effective, subject to the approval of
the Administrator, but in no case shall any such period exceed seven
(7) days after the date of the filing of the change. Copies of all
changes filed shall be immediately distributed by the Code Authority
to the members of the Industry. Information on such price changes
shall be available to the trade to which it is applicable, on the effec-
tive date of such change, and each such member shall coincidentally
file such information in the office designated by the Code Authority
for immediate distribution by the Code Authority to the members of
SECTION 3. In the event that any member of the Industry shall
not receive sufficient notice of the filing by any other member of any
change in prices or terms and conditions of sale as will enable the
member first mentioned to meet the said change on the effective date
thereof, such member may file with the Code Authority such changes
in his prices, terms and conditions of sale as may be required to meet
the change filed by the other member. Changes so filed shall become
effective on the same (late as the effective date of the change of the
member first filing as aforesaid, or if such change has already become
effective, then the changes subsequently filed shall become effective
SECTION 4. No member of the Industry shall sell, pay a rebate, or
allow a deduction at any time to any person except in accordance
with his prices, terms and conditions of sale then in effect and pub-
lished in the manner described herein. Each member of the Indus-
try shall have the right, individually, to publish new prices, terms
and conditions of sale, from time to time, as herein provided.
ARTICLE VIII--PUBLICITY OF TRADE QUALIFICATIONS
SECTION 1. Within thirty (30) days after the effective date of
this Code, and until a merchandising plan shall be approved for the
Industry, each member of the Industry shall publish and file with
the Code Authority all qualifications which have been established by
him to determine the prices, terms or conditions of sale made appli-
cable by him to the different classes of his trade, for products
covered by this Code. He shall publish and file promptly with the
Code Authority any changes made by him in such qualifications and
any additional qualifications.
SECTION 2. Each member shall file at such times, in such manner
and at such places as may be designated by the Code Authority, the
names and locations of his trade who buy at less than his published
prices, grouped according to his own stated qualifications then in
effect. The names and locations so filed shall be available to
customers and to the members of the Industry, provided that the
name of the manufacturer submitting any such names and locations
shall not be disclosed without his consent.
ARTICLE IX-SPECIFIC TRADE PRACTICES
RULE 1. All sales of products covered by this Code shall be made
on the basis of a written quotation or bill of sale. Said quotation or
bill of sale shall be correctly dated and shall be in accordance with
current published prices and shall be so listed as to enable checking
with the current price sheet. Outstanding quotations for specific
projects may be protected for a period of thirty (30) days beyond
date of price change (or in the case of quotations made for specified
projects, having a definite date for public opening of bids, protection
may be given for sixty (60) days beyond bid opening), provided a
list of such outstanding quotations is filed with the Code Authority
within ten (10) days after price change.
RULE 2. All quotations shall be plainly marked Subject to change
without notice and void after sixty (60) days," and all written quota-
tions shall so state, subject, however, to Rule 1.
RULE 3. It shall be deemed an unfair method of competition to
sell or dispose of any product of this industry on any lower basis
than that of the current published price sheet of each individual
manufacturer, less such discounts as apply under these Rules, except
as provided in Rule 9.
RULE 4. It shall be deemed an unfair method of competition to
make a particular sale of products of the Industry contingent upon
the sale of any other goods or materials not covered by this Code.
RULE 5. It shall be deemed an unfair method of competition to
make or cause or permit to be made or published any false, untrue,
or deceptive statement by way of advertisement or otherwise con-
cerning the materials of construction used in, the operating charac-
teristics of, or the quality, size, origin, or preparation of any product
of the industry, sold or offered for sale.
RULE 6. It shall be deemed an unfair method of competition to
mark or brand any product of the industry in any manner which
has the tendency to miislead or deceive customers or prospective cus-
tomers as to the substance, grade, quality, size, quantity, origin, or
preparation of any product of the industry sold or offered for sale.
RULE 7. It shall be deemed an unfair trade practice to accept
blanket orders; therefore, all quotations and orhider must specify an
itemized bill of goods. If, after a quotation has hben made, the spec-
ified requirements are changed, a new quotation shall be issued based
upon published prices prevailing at that time. If, after an order
has been accepted the requirements are changed, deductions shall be
credited on the basis of prices prevailing at the time order was placed
and additions shall be charged at the price prevailing at the time
additions are made.
RULE 8. No employer shall sell or exchange any product of the
Industry, manufactured by him, at a price, or upon terms and condi-
tions, which will result in the purchaser paying for the goods re-
ceived, less than the allowable cost thereof to the seller, determined
in accordance with the system and methods of costing formulated
under the provisions of Section 10 of Article VI; provided, however,
that dropped lines, or seconds, or inventories which must be con-
verted into cash to meet emergency needs may be disposed of by
any employer, at any price and on any terms and conditions, but
only if such employer, not less than two (2) weeks before such dis-
posal, has filed with the Code Authority, a statement in writing,
setting forth the fact of, and reasons for, such proposed disposal, and
Code Authority has not, before the termination of such two (2)
weeks' period, in writing disapproved the proposed disposal; pro-
vided that no article so approved for sale as obsolete, or for emer-
gency needs shall be reinstated without approval of the Code Au-
thority; and, provided further, that a member of the Industry sell-
ing or wishing to sell, below his own allowable cost to meet the com-
petition of a competitor whose allowable costs are lower, may do so
provided that he has first so reported to the Code Authority and in
such report has cited the facts of the competition which caused him
to take such action.
RULE 9. Consignment of goods or delayed billing shall be deemed
an unfair trade practice, except under conditions approved by the
RULE 10. It shall be deemed a violation of these Rules to enter
into or be a party to a written or verbal agreement or understanding
which serves directly or indirectly to affect the price or terms of
sale established by a current published price sheet, or which serves
in any way to defeat the spirit and purpose of these Rules. How-
ever, nothing herein contained shall be construed to prevent a mem-
ber of the Industry from cooperating with or instructing prospec-
tive purchasers as to the proper application or installation of said
RULE 11. All products covered by this Code shall be sold f.o.b.
factory shipping point, or the equivalent of freight may be allowed
or prepaid to freight station nearest to destination.
RULE 12. No member of the Industry shall sell his product subject
to a guarantee more favorable to the purchaser than the following:
(a) No guarantee to furnish parts to replace defective material
or workmanship shall extend beyond one year from date of shipment.
(b) Replacements of defective material shall be f.o.b. manufac-
turer's factory subject to manufacturer's inspection.
_(c) Foreign component part equipment guarantee shall be limited
to the warranty of its manufacturer.
RULE 13. It shall constitute an unfair trade practice for any mem-
ber, or any authorized employee or agent to furnish heating plans
and/or specifications to architects or others, unless such plans or
service shall be charged for as set forth by the Code Authority with
the approval of the Administrator; provided, that nothing in this
rule shall limit the right of members of this Industry to furnish
catalogues, dimensioned sketches, application drawings and the usual
trade or advisory information concerning the products of the Indus-
try and their application and use to Architects, Engineers, Con-
tractors, and others, either for general or specific cases.
RULE 14. No memller shall make any false or deceptive statements
regarding the business or business conduct of a competitor.
RULE 15. No member shall accept, for the purpose or with the
effect of influencing a sale, securities, bonds, mortgages, stock or
other personal or real property at other than the current market
value thereof as whole or part payment for services rendered or
RULE 16. No member shall induce or attempt. to induce the can-
cellation of any order for a specific installation given to any other
member by his or its customers.
RULE 17. No member shall make secret payment. or allowance to
customers of rebates, credits, refunds, commissions or unearned dis-
counts, whether in the form of money or otherwise.
RULE 18. No member shall sell equipment as listed in Section 1,
Article II without identifying trade mark or the name of the
manufacturer or distributor clearly marked thereon.
RULE 19. No member of the Industry shall give, permit to be
given, or directly offer to give, anything of value for the purpose of
influencing or rewarding the action of any employee, agent, or rep-
resentative 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. Com-
mercial bribery 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 hereinabove defined.
A 'TICLE X-GENERAL P: VISION S
SECTION 1. No provision of this Code shall be construed or applied
in such a lillliner as to-
(a) Promote or permit monopolies or monopolistic practices.
(b) Permit, or encourage unfair competition.
(c) Eliminate, oppress, or discriminate against small enterprises.
SECTION 2. This Code is hereby expressly made subject to the right
of the Pre.id ent. pursuant to Section 10 (b) of Title I of the Na-
tional Industrial Recovery Act, from, time to time to cancel or mod-
ify any irler, approval, license, rule or regulation i..iied under
Title I of said Act, and specifically but without limitation to his
right to cancel or modify his order approving this Code, or any
conditions imposed by him upon such approval.
SECTION 3. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or changs.- in circum-
stances, suich modifications to be based upon application to the Ad-
ministrator and isuch notice and hearing as he may specify, and to
become effective on approval of the Administrator. Any such appli-
cations may be made by the.Code Authority.
SECTItN 4. If the Administrator shall determine that any action
of a Code Authority or any agency thereof may be unfair or unjust
or contra ry to the public interest, the Administrator may require that
such action be suspended to afford an opportunity for investigation
of the merits of such nation and further consideration by such Code
Authority or agency pending final action which shall not be effective
unless the Administrator approves or unless he shall fail to disap-
prove after thirty (30) days notice to him of intention to proceed
with such action in its original or modified form.
This Code shall become effective on the second Monday after its
approval by the Presidrent.
Approved Code No. 376.
Registry No. 1335-06.
UNIVERSITY OF FLORIDA
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