This item is only available as the following downloads:
Approved Code No. 543
Registry No. 1724-27
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON JANUARY 18, 1935
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents. Washington, D. C. - Price 5 cents
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D. C., and by district offices of the Bureau of
and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N. Y.: Chamber of Commerce Building.
Charleston, S. C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tes.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Memphis. Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N. Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburgh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.
Approved Code No. 543
CODE OF FAIR COMPETITION
MOTOR VEHICLE MAINTENANCE TRADE
As Approved on January 18, 1935
CODE OF FAIR COMPETITION FOR THE MOTOR VmEICLE MAINTENANCE
An application having been duly made, pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for my approval of a Code
of Fair Competition for the Motor Vehicle Maintenance Trade, and
hearings having been held thereon, and the National Industrial Re-
covery Board having rendered its report containing an analysis of
the said Code of Fair Competition, together with its recommenda-
tions and findings with respect thereto, and the National Industrial
Recovery Board having found that the said Code of Fair Competi-
tion complies in all respects with the pertinent provisions of Title I
of said Act, and that the requirements of Clauses (1) and (2) of Sub-
Section (a) of Section 3 of the said Act have been met:
NOW, THEREFORE, I Franklin D. Roosevelt, President of the
United States, pursuant to the authority vested in me by Title I of the
National Industrial Recovery Act, approved June 16, 1933, and
otherwise do adopt and approve the reports, recommendations, and
findings of the National Industrial Recovery Board and do order that
the said Code of Fair Competition be and it is hereby approved;
provided, however, that all of the provisions of the said Code be
and they are hereby stayed for a period of sixty (60) days as to
members of the Motor Vehicle Retailing Trade insofar as they con-
flict with any provisions of the Motor Vehicle Retailing Trade Code,
in order to provide for the further study of such provisions by the
Code Authorities for the two Codes; and, after such Notice and
Hearing as the National Industrial Recovery Board may prescribe,
I do further order that a determination be made by it as to which of
the provisions of this Code or of the Code of Fair Competition for
the Motor Vehicle Retailing Trade, if any, shall prevail in order that
the purposes and policies of the National Industrial Recovery Act
may be further effectuated, and; provided further, that Sections 2
and 3 of Rule 1 of Article VII and Rule 15 of Article VII be and
they are hereby stayed pending the further order of the National
Industrial Recovery Board; and provided further that the provi-
sion of Section 13 (i) 2 of Article. VI of said Code for the Motor
Vehicle Maintenance Trade reading "to participate in the selection
of members of the National Code Authority or," be and it is hereby
stayed until such time as the National Code Authority is duly con-
stituted and organized in accordance with the provisions of the said
FRANKLIN D. ROOSEVELT.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HARRIMAN,
The WHITE HosUE,
January 18, 1935.
REPORT TO THE PRESIDENT
The White House.
Sm: This is a report on the Code of Fair Competition for the
Motor Vehicle Maintenance Trade in the United States as revised
after the hearing conducted in Washington on December 8, 1933, and
in accordance with the provisions of the National Industrial Recov-
PROVISIONS OF THE CODE AS TO HOURS, WAGES, AND GENERAL LABOR
This Code provides for a maximum work week of forty-four (44)
hours with the following exceptions and exemptions:
(a) Employees engaged in clerical or office work who may be per-
mitted to work two additional hours in two twenty-four hour periods
in any thirty day period.
(b) Watchmen who may be permitted to work not in excess of
fifty-six hours in any seven day period but not in excess of twelve
hours in any twenty-four hour period.
(e) Productive employees "available or on call" who, when
not assigned to specific tasks, shall be paid at not less than one-half
of the hourly rates of pay for their classifications providing that
the resulting rate is not less than thirty-six cents per hour.
(d) Employees engaged in outside selling.
e) Employees engaged in emergency maintenance or emergency
(f) Employees engaged in a managerial or executive capacity who
earn regularly thirty-five dollars per week or more.
An employee engaged in emergency maintenance or emergency
repair work shall be paid at least one and one-half times his rate of
pay for all over-time.
Owners, managers or other executives shall, when engaged in
performing any work not of a managerial or executive nature, con-
form to the maximum hours provided for employees performing such
This Code establishes a minimum rate of pay of fifteen dollars
per week in any city of over 500,000 population; fourteen dollars
and fifty cents in any city of between 250,000 and 500,000; fourteen
dollars in any city of between 2,500 and 250,000; and thirteen dollars
per week in other cities or areas, except that no productive employee
not on call" shall be paid less than fifty cents per hour and no
helper shall be paid less than forty cents per hour. Other excep-
tions apply to productive employees on call," commission salesmen,
and handicapped persons.
No person under eighteen years of age shall be employed in the
Trade at operations or occupations that are hazardous in nature or
dangerous to health and no person under sixteen years of age shall
be employed in the Trade in any capacity.
Employees shall have the right to organize and bargain collec-
tively through representatives of their own choosing, and no one
shall be required as a condition of employment to join any company
union or refrain from joining a labor organization of his own choos-
ing. No employee shall be discharged, demoted or otherwise discrim-
inated against by reason of making complaint or giving evidence of
alleged violation of this Code.
IMPORTANCE OF THE TRADE
The Motor Vehicle Maintenance Trade renders repair and main-
tenance service to the general public on passenger cars, busses,
taxicabs, hearses, ambulances, fire apparatus, and commercial vehi-
cles including trucks and truck tractors, for use on the highways.
This Trade is nation-wide in character and has steadily increased in
numbers through a period of years until, at present, it is estimated
that there are approximately 185,000 establishments engaged in the
repair and maintenance of motor vehicles, in whole or in part. Of
these 185,000 establishments, some are likewise engaged in other
trades involving motor vehicles. It has been estimated that the
Trade has a total annual sales volume of labor, parts, accessories
and supplies of roughly $2,500,000,000 and that its employees ap-
proximate 500,000 persons. This approximate total annual volume
of $2,500,000,000 includes sales of approximately $775,000,000 volume
in parts, accessories and supplies by the trade which does strictly
maintenance work. It has been estimated that upwards of 450,-
000,000 units of repair jobs were performed during the past year.
The Deputy Administrator in his final report to us on said Code
having found as herein set forth and on the basis of all the proceed-
ings in this matter:
The National Industrial Recovery Board finds 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 trade groups, by
inducing and maintaining united action of labor and management
under adequate governmental sanctions and supervision, by elimi-
nating unfair competitive practices, by promoting the fullest possible
utilization of the present productive capacity of industries, by avoid-
ing undue restriction of production (except as may be temporarily
required), by increasing the consumption of industrial and agricul-
tural products through increasing purchasing power, by reducing
and relieving unemployment, by improving standards of labor and
by otherwise rehabilitating industry.
(b) The Code as approved complies in all respects with the per-
tinent provisions of said Title of said Act, including without limi-
tation Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof; and that the applicant group
is an industrial group truly representative of the aforesaid Trade;
and that said group imposes no inequitable restrictions on admis-
sion to membership therein.
(c) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(d) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(e) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to the approval of said
(f) The Motor Vehicle Maintenance Trade normally employs up-
wards of five hundred thousand persons and is classified by us as a
For these reasons, therefore, the National Industrial Recovery
Board recommends the approval of this Code.
For the National Industrial Recovery Board:
W. A. HARRIMIA,
JANUARY 18, 1935.
CODE OF FAIR COMPETITION FOR THE MOTOR
VEHICLE MAINTENANCE TRADE
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 Motor Vehicle Maintenance Trade, and
shall be the standards of fair competition for this Trade and bind-
ing upon every member thereof.
SECTION 1. The term "Motor Vehicle Maintenance Trade" or
"trade as used herein is defined to mean and include:
(a) The rebuilding, repairing, overhauling, reconditioning, re-
moval, adjusting and/or replacing of parts of any motor vehicle
chassis or any part thereof, including general blacksmith work inci-
dental to such operations, and including inspections to determine
the necessity for or extent or nature of any such operations by way
of service to the general public for a consideration implied or ex-
pjressed, and may include (but subject solely to the provisions of
this Code and not to those of the Code of Fair Competition for the
Auto Rebuilding and Refinishing Trade) any repairs upon the hood,
hood sill, fenders, running board, shields (front, side, and rear
aprons), and the radiator core and tank, and the repainting of re-*
paired parts, but excludes the repainting of the motor vehicle
(b) The sale of parts and accessories and supplies (except such
products as are defined under the Code of Fair Competition for the
Petroleum Industry) by members of this trade as herein defined for
the purpose of installation of such parts, accessories, and supplies
as incidental to the operations as hereinabove set forth; and/or
(c) The transferring of customers' motor vehicles and/or parts
thereof by members of this trade, as herein defined, to and from any
places which circumstances may require as incidental to any of
the above mentioned operations.
The term "trade as used herein includes such related branches
and/or sub-divisions which may from time to time be included under
the provisions of this Code after such notice and hearing as the
National Recovery Administration may prescribe.
SECTION 2. The term "Motor Vehicle" as used herein is defined
to mean automobiles including: passenger cars, buses, taxi-cabs,
hearses, ambulances, fire apparatus, commercial vehicles, trucks, and
truck-tractors for use on the highways, but excluding motorcycles.
SECTION 3. The term member of the trade" as used herein in-
cludes, but without limitation, any individual, partnership, associa-
tion, corporation or other form of enterprise engaged in the trade,
either as an employer or on his or its own behalf.
SECTION 4. The term "employee as used herein includes any and
all persons engaged in the trade, however compensated, except a
member of the trade.
SECTION 5. The term "employer as used herein includes anyone
by whom such employee is compensated or employed.
SECTION 6. (a) The term salesman as used herein is defined to
mean and include an employee engaged in the selling and/or pro-
moting the sale of the products and/or services of this trade, and
the functions of selling or promoting the sale are hereinafter re-
ferred to as selling."
(b) The activities of selling are divided into two classes, the first
including those activities requiring the presence of a salesman on or
in the premises of the member of the trade, and the second requiring
the presence of the salesman away from the premises of the member
of the trade, except for the demonstration of the product and/or
service to be sold or for the making, recording or execution of an
estimate, order or other document in connection with any sale or for
the receiving of instructions. For the purposes of this Code all time
of a salesman occupied in the first class is referred to as "inside
selling and all time in the second class as outside selling."
SECTION 7. The term "productive employee as used herein is
defined to mean and include any employee (including a helper) en-
gaged in any of the operations described in paragraph (a) of Sec-
tion 1 of this Article.
SECTION 8. The terms President" and "Act" as used herein,
mean respectively, the President of the United States and Title I
of the National Industrial Recovery Act. The term National Re-
covery Administration as used herein means such person or per-
sons, board or agency, as may from time to time be delegated by the
President, pursuant to Section 2 (b) of the Act, to administer the
SECTION 9. The term population for the purposes of this Code
shall be determined by reference to the latest Federal Census. The
term trade areas as used herein are defined to mean those trade
areas established by the Federal Census in the publications entitled
"Metropolitan Districts, Bureau of the Census, Washington, D. C.,
1930 or as may be defined by the National Code Authority, subject
to the approval of the National Recovery Administration.
SECTION 1. Ma.v'?im,,. Ho'.r..-No employee shall be permitted to
work in excess of forty-four (44) hours in any seven (7) day period
or eight (8) hours in any twenty-four (24) hour period or six (6)
days in any seven (7) day period, except as herein otherwise pro-
SECTION 2. E;ceptio.s to Section 1.-(a) A person employed in
clerical or office work may be permitted to work two (2) additional
hours in each of but not more than two (2) twenty-four (24) hour
periods in any thirty (30) day period.
(b) A watchman may be permitted to work not in excess of fifty-
six (56) hours in any seven (7) day period nor in excess of twelve
(12) hours in any twenty-four (24) hour period nor in excess of six
(() days in any seven (7) (lay period.
(c) Each member of the trade may employ not in excess of two (2)
productive employees on call during the hours between 7 P. M.
and 7 A. M., inclusive, at such rates of pay as are herein provided by
Section 3 of Article IV, provided however that neither of such two (2)
employees shall be permitted to work (1) for any time on call in
excess of twelve (12) hours in any twenty-four (24) hour period, nor
seventy-two (72) hours in any seven (7) day period, nor six (6) days
in any seven (7) day period; or (2) for any time at specific work in
excess of eight (8) hours in any twenty-four (24) hour period, nor
forty-four (44) hours in any seven (7) day period, nor six (6) days
in any seven (7) day period; or (3) if employed "on call" and at
specific work during the same period, for any time on call"' in excess
of the difference between the time employed at specific work (within
the limitations as hereinbefore prescribed) and twelve (12) hours in
any twenty-four (24) hour period and seventy-two (72) hours in any
seven (7) day period, and six (6) days in any seven (7) day period.
SEcTIoN 3. The provisions of Section 1 of this Article shall apply to
a salesman engaged in inside selling in whole or in part.
SECTION 4. (a) The provisions of this Article respecting hours of
employment shall not apply to salesmen engaged only in "outside
selling" during any twenty-four (24) hour period, nor to employees
engaged in emergency maintenance or emergency repair work, nor to
persons employed in a managerial or executive capacity who earn
regularly thirty-five ($35.00) dollars or more per week (except as
herein otherwise provided by Section 6 of this Article).
(b) Any employee engaged in emergency maintenance or emergency
repair work shall be paid at least one and one-half (11) times his
rate of pay for his classification or occupation for all time in excess
of eight (8) hours in any twenty-four (24) hour period or forty-four
(44) hours in any seven (7) day period.
SECTION 5. (a) An employee shall be deemed to be continuously in
the employ of his employer during all periods of time his employer
requires him to be on call or to be available" waiting for the
performance of specific work.
(b) Employment on call or available" waiting for the per-
formance of specific work is not to be construed as affecting the
classification or occupation of an employee.
SECTION 6. Members of the trade, themselves, shall not work nor
permit their executives or managers to work, when engaged in per-
forming any work not. of a managerial or executive nature, in excess
of the maximum hours herein prescribed for other employees per-
forming such work.
SECTION 7. No employer shall knowingly permit any employee to
work for any time which, when added to time spent at work for
another employer or employers, exceeds the maximum permitted
SECTION 8. No employer shall permit any employee, engaged in
performing work of more than one classification or occupation, to
work for any time in excess of the least of the maximum number of
hours prescribed herein for any such classifications or occupations.
SECTION 9. For the purposes of calculating the time of any twenty-
four (24) hour period for which wages are due and payable and
for calculating the maximum hours, the time of employment shall
be reckoned continuously from the starting time in any such twenty-
four (24) hour period except for a meal-time period of not more
than one (1) hour.
.SECTION 1. Mininum? WTage.-No employee shall be paid less than
at the rate of fifteen dollars ($15.00) per week in any city of over
500,000 population or in the immediate trade area of such city; nor
less than at the rate of fourteen dollars and fifty cents ($14.50) per
week in any city of between 250,000 and 500,000 population or in the
immediate trade area of such city; nor less than at the rate of four-
teen dollars ($14.00) per week in any city of between 2,500 and
250,000 population or in the immediate trade area of such city; nor
less than at the rate of thirteen dollars ($13.00) per week in any
other city or area; except as herein otherwise provided.
SECTION 2. Minimum Wage for Productive Employees.-No pro-
ductive employee (except as herein otherwise provided by Section 3
of this Article) shall be paid less than at the rate of fifty cents
($0.50) per hour, except that a helper may be paid not less than at
the rate of forty cents ($0.40) per hour.
Each employer may employ one (1) helper but the total number of
helpers employed by any employer shall, at no time, exceed the ratio
of one (1) helper to each five (5) other productive employees (or the
major fraction thereof).
SECTION 3. MiM'imum Wage for Time of Employee "On Call" or
"Available ".-A productive employee while "on call" between the
hours of 7: 00 P. M. and 7: 00 A. M., inclusive, as hereinbefore men-
tioned in Section 2 of Article III and/or an employee "available"
waiting for the performance of specific work shall be paid for all
time "on call" and/or available" at not less than one-half (1) his
hourly rate of pay for his classification or occupation, provided, how-
ever, that, in no event shall such on call or available rate be less
than thirty-six cents ($0.36) per hour.
SECTION 4. Drawing Account for Commission Sales men.-A sales-
man employed on a commission basis shall be guaranteed a drawing
account of not less than:
(a) Seventeen dollars and fifty cents ($17.50) per week in any city
of over 500,000 population or in the immediate. trade area of such
(b) Fifteen dollars ($15.00) per week in any city between 250,000
and 500,000 population or in the immediate trade area of such city; or
(c) Twelve dollars and fifty cents ($12.50) per week in any city
between 2,500 and 250,000 population or in the immediate trade area
of such city; or
(d) Ten dollars ($10.00) per week in any other city or area. Draw-
ing accounts shall be paid in the same manner and at the same time
as herein provided by Section 9 of this Article for the payment of
SECTION 5. Employees engaged in performing work of more than
one classification or occupation shall be paid for all time during any
twenty-four (24) hour period at not less than the highest of the mini-
mum rates for such classifications or occupations in which such
employee is engaged.
SECTION 6. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
SECTION 7. This Code provides for rates of pay which shall apply
irrespective of whether an employee is compensated on a time rate,
piecework, commission or other basis.
SECTION 8. A person whose earning capacity is limited because of
age, physical or mental handicap, or other infirmity, 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 em-
ployment at such wages and for such hours as shall be stated in the
certificate. Each employer shall file monthly with the National Code
Authority a list of all such persons employed by him, showing the
wages paid to, and the maximum hours of work for such employee.
SECTION 9. Each member of the trade shall make payment of all
wages and 'or other form of compensation due in lawful currency
or by negotiable check, payable on demand. Wages and/or other
form of compensation shall be due and payable at the end of each pay
period, at least at semi-monthly intervals.
SECTION 10. No employee whose normal full-time weekly hours
for the four weeks ending July 1, 1934, are reduced pursuant to the
provisions of this Code by less than twenty per cent (20%) shall have
his or her full-time weekly earnings reduced. No employee whose
said full-time weekly hours are reduced pursuant to the provisions of
this Code by twenty per cent (20%) or more shall have his or her said
weekly earnings reduced by more than ten per cent (10%). In no
event shall hourly rates be reduced, irrespective of whether compensa-
tion is actually paid on an hourly, weekly or other basis, nor shall any
wages be at less than the minimum rates herein provided.
ARTICLE V-GENERAL LABOR PROVISIONS AND OTHER PROVISIONS
SECTION 1. No person under eighteen (18) years of age shall be
employed in the trade at operations or occupations which are hazard-
ous in nature or dangerous to health. No person under sixteen (16)
years of age shall be employed in the trade in any capacity. In any
State any employer shall be deemed to have complied with this pro-
vision as to age if he shall have on file a certificate or permit duly
signed by the Authority in such State empowered to issue employment
or age certificates or permits showing that the employee is of the re-
quired age. Within ninety (90) days after the effective date of this
Code, the National Code Authority shall submit to the National Re-
covery Administration a list of such operations or occupations in the
trade which are hazardous in nature or dangerous to health.
SECTION 2. (a) 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 em-
ployers of labor, or their agents, in the designation of such repre-
sentatives 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, organizing, or assisting a labor organization of his own
(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.
SECTION 3. No employer shall reclassify employees or duties of
occupations performed or engage in any other subterfuge so as to
defeat the purposes or provisions of the Act or of this Code.
SECTION 4. Every employer shall make reasonable provisions for the
safety and health of his employees at the place and during the hours
of their employment. Standards for safety and health shall be sub-
mitted by the National Code Authority to the National Recovery
Administration for approval within three (3) months after the effec-
tive date of this Code. The standards approved shall thereafter be a
part of this Code and binding as such.
SECTION 5. No provision of this Code shall supersede any State or
Federal law which imposes on employers more stringent requirements
as to age of employees, wages, hours of work, or as to safety, health,
sanitary or general working conditions or insurance or fire protection
than are imposed by this Code.
SECTION 6. All employers shall post and keep posted copies of this
Code and/or any amendments thereto in conspicuous places accessible
to all employees. Every member of the trade 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 National Recovery Administration.
SECTION 7. No employee shall be dismissed, demoted, or otherwise
discriminated against by reason of making a complaint or giving evi-
dence with respect to an alleged violation of this Code.
ARTICLE VI-CODE ADMINISTRATION
ORGANIZATION, POWERS AND DUTIES OF THE NATIONAL CODE AUTHORITY
iSECTION 1. A National Code Authority is hereby established for
the administration of this Code within the United States exclusive of
any territory or possession, thereof, to be selected in the following
SECTION 2. The National Code Authority shall consist of fourteen
(14) trade members to be selected from members of the trade, eligible
as provided by Section 13 (i) of this Article at the time of selection, as
SECTION 3. For purposes of administration of this Code, there are
hereby created (1) forty-nine (49) territorial divisions comprising
the several States and the District of Columbia, each such division
being hereinafter referred to as a State and (2) fourteen (14) Regions
Region 1. Washington, Oregon, Idaho
Region 2. California, Nevada, Arizona
Region 3. Wyoming, Utah, Colorado, Montana
Region 4. North Dakota, South Dakota, Nebraska, Minnesota, Iowa
Region 5. Kansas, Oklahoma, Texas, New Mexico
Region 6. Missouri, Arkansas, Louisiana, Mississippi
Region 7. Georgia, Florida, Alabama
Region 8. North Carolina, South Carolina, Tennessee
Region 9. Wisconsin, Illinois
Region 10. Michigan, Indiana, Kentucky
Region 11. Ohio, West Virginia
Region 12. Pennsylvania, Maryland, Delaware, District of Colum-
Region 13. New York, New Jersey
Region 14. Maine, New Hampshire, Vermont, Massachusetts,
Rhode Island, Connecticut.
SECTION 4. Within forty-five (45) days after the effective date of
this Code the members of the trade in each of the forty-nine (49)
States shall elect a State Committee consisting of not fewer than
seven (7) members selected from members of the trade whose prin-
cipal place of business is located within such State, and who are
eligible as provided by Section 13 (i) of this Article at the time of
election. Members of the State Committees shall be elected to serve
for terms not in excess of one (1) year. Notice of the time and place
of each such election shall be sent to all members of the trade in the
states and to the National Recovery Administration at least twenty
(20) days in advance of each such election. Voting at each election
may be by person, by proxy or by letter ballot. Each member of the
trade shall have equal voting rights. A member of the trade shall be
entitled to vote only in the State in which his principal place of busi-
ness is located. Within ten (10) days after the election of the State
Committee as provided, the members of each State Committee shall
elect from its members a Chairman and a Vice-Chairman who shall
act as an alternate in the absence of the Chairman.
SECTION 5. Within sixty-five (65) days after the effective date of
this Code, the Chairmen of all such State Committees in each Region
as described herein by Section 3 of this Article, shall elect from such
Chairmen, a member of the National Code Authority.
SECTION 6. The manner and method of conducting each election
provided for in Sections 4 and 5 of this Article shall be subject to
the approval (prior to any such election) of the National Recovery
Administration. The Temporary National Code Authority as here-
inafter provided is hereby designated as the agency to conduct the
first election of the State Committees, the Chairmen of the State
Committees and the members of the National Code Authority.
SECTION 7. Pending the constitution and organization of the first
National Code Authority as herein provided, the Emergency Na-
tional Committee, a body duly constituted by the Automotive fainte-
nance and Garage Industry for the submission of a Code of Fair
Competition to the National Recovery Administration, shall, subject
to the approval of the National Recovery Administration, appoint one
(1) member, selected from members of the trade in each of the
Regions as described herein by Section 3 of this Article, eligible as
provided by Section 13 (i) of this Article, to serve as a member of
a Temporary National Code Authority, during its tenure and/or
until a member shall have been duly selected as hereinbefore pro-
vided by the Chairmen of such appointed member's Region for the
permanent National Code Authority. Such members shall coinsti-
tute a Temporary National Code Authority which shall have all the
powers and duties of the National Code Authority as set forth in
this Code and in addition shall, subject to the approval of the Na-
tional Recovery Administration, have the power to appoint the. mem-
bers of Temporary State Committees, to serve until or unless a State
Committee shall have been constituted as hereinbefore provided.
Members of any Temporary State Committee shall be selected from
members of the trade whose principal places of business are located
within such State. Each such Temporary State Committee shall
have all the powers and duties as set forth in this Code for a State
SECTION 8. In addition to the membership as hereinbefore pro-
vided, there may be not more than three (3) members without vote,
and without expense to the trade to be known as Administration
Members to be appointed by the National Recovery Administration
to serve for such terms as it may specify. The representatives who
may be appointed by the National Recovery Administration together
with the National Recovery Administration shall be given notice of
and such representatives may sit at all meetings of any Code
Authority and/or any Administrative Committee and/or any State
SECTION 9. Each trade or industrial association directly or indi-
rectly participating in the selection or activities of the National
Code Authority shall (1) impose no inequitable restrictions on mem-
bership, and (2) submit to the National Recovery Administration
true copies of its articles of association, by-laws, regulations, and
any amendments when made thereto, together with such other infor-
mation as to membership, organization, and activities as the National
Recovery Administration may deem necessary to effectuate the
purposes of the Act.
SECTION 10. In order that the National Code Authority shall at
all times be truly representative of the trade and in other respects
comply with the provisions of the Act, the National Recovery Admin-
istration may prescribe such hearings as it may deem proper; and
thereafter if it shall find that the National 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 National Code Authority.
SECTION 11. Nothing contained in this Code shall constitute the
members of the National Code Authority, the National Administra-
tive Committee or of any State, District or other committee, part-
ners for any purpose. Nor shall any such member be liable in any
manner to anyone for any act of any other member, officer, agent,
or employee of the National Code Authority or of any such com-
mittee. Nor shall any member of the National Code Authority or
of any such committee exercising reasonable diligence in the conduct
of his duties hereunder, be liable to anyone for any action or omis-
sion to act under this Code, except for his own wilful malfeasance
SECTION 12. If the National Recovery Administration shall at any
time determine that any action of the National Code Authority or
any agency thereof may be unfair or unjust or contrary to the public
interest, the National Recovery Administration may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by such Na-
tional Code Authority or agency pending final action which shall
not be effective unless the National Recovery Administration ap-
proves or unless it shall fail to disapprove after thirty (30) days'
notice to it of intention to proceed with such action in its original
or modified form.
POWERS AND DUTIES
SECTION 13. Subject to such rules and regulations as may be
issued by the National Recovery Administration and subject to the
provisions of Section 14 of this Article, the National Code Authority
shall have the following powers and duties, in addition to those
authorized by other provisions of this Code:
(a) To insure the execution of the provisions of this Code and
to provide for the compliance of the trade with the provisions of
(b) To adopt by-laws and rules and regulations for its procedure.
c) To obtain from members of die trade such information and
reports as are required for the administration of the Code. In addi-
tion to information required to be submitted to the National Code
Authority, members of the trade subject. to this Code shall furnish
such statistical information as the National Recovery Administration
may deen 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 trade of
any existing obligations to furnish reports to any Government
agency. No individual report shall be disclosed to any other
member of the trade or any other party, except to such other Gov-
ernmental agencies as may be directed by the National Recovery
(d) To use any trade or other association or agency which it
deems proper for the carrying out of any of its activities provided
for herein; provided, that nothing herein shall relieve the National
Code Authority of any of its duties or responsibilities under this
Code and that such trade or other associations or agencies shall at
all times be subject to and comply with the provisions hereof.
(e) To make recommendations to the National Recovery Adminis-
tration for the coordination of the administration of this Code with
such other Codes, if any, as may be related to or affect the trade
or members thereof.
(f) To cooperate with the National Recovery Administration in
regulating the use of any N. R. A. insignia.
(g) To recommend to the National Recovery Administration any
action or measures deemed advisable, including further fair trade
practice provisions to govern members of the trade in their rela-
tions with each other or with other trades, measures for industrial
planning, and stabilization of employment, and including modifica-
tions of this Code which shall become effective as part hereof upon
approval by the National Recovery Administration after such notice
and hearing as it may specify.
(h) 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 trade 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 National Recovery
Administration as amendments to this Code and such other codes.
(i) 1. It being found necessary in order to support the administra-
tion of this Code and to maintain the standards of fair competition
established hereunder and to effectuate the policy of the Act, the
National 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 National Recovery Administration for its
approval, subject to such notice and opportunity to be heard as it may
deem necessary (1) an itemized budget of its estimated expenses for
the foregoing purposes, and (2) an equitable basis upon which the
funds necessary to support such budget shall be contributed by mem-
bers of the trade;
(c) After such budget and basis of contribution have been approved
by the National Recovery Administration, to determine and obtain
equitable contribution as above set forth by all members of the trade,
and to that end, if necessary, to institute legal proceedings therefore
in its own name.
2. Each member of the trade shall pay his or its equitable contri-
bution to the expenses of the maintenance of the National Code
Authority, determined as hereinabove provided, and subject to rules
and A!gulations pertaining thereto issued by the National Recovery
Administration. Only members of the trade complying with the
Code and contributing to the expenses of its administration as here-
inabove provided, (unless duly exempted from making such contribu-
tions) shall be entitled to participate in the selection of members of
the National 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 Administration.1
3. The National 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 Na-
tional Recovery Administration; and no subsequent budget shall con-
tain any deficiency item for expenditures in excess of prior budget
estimates except those which the National Recovery Administration
shall have so approved.
(j) To initiate, consider and make recommendations for and assent
to modifications of or amendments to this Code on behalf of the
(k) To employ such agents and employees as it may deem neces-
sary for the administration of this Code.
(1) To establish subject to the approval of the National Recovery
Administration such further districts or areas as it may deem neces-
1 See paragraph 2 of order approving this Code.
sary for the administration of this Code and to provide for the
selection of any district or other area committee.
(m) To delegate, subject to the limitations provided herein by
paragraph (d) of this Section, such of its powers and duties (in
addition to those delegated herein) to the National Administrative
Committee, or any State or other Committee and to suspend and/or
cancel any such delegated powers and duties at any time.
(n) To summon the Chairmen of all State Committees to meet in
convention at a designated time and place at any time at the request
of the National Recovery Administration and/or at the request of
not fewer than sixteen (16) of the Chairmen of the State Committees.
(o) To provide appropriate facilities for arbitration, and subject
to the approval of the National Recovery Administration, to pre-
scribe rules of procedure and rules to effect compliance with awards
SECTION 14. Any action, recommendation, or other measure pro-
mulgated by the National Code Authority (except such actions,
recommendations, or other measures promulgated pursuant to any
rule or regulation issued or prescribed by the National Recovery
Administration) shall be limited to the extent that any resolution
properly presented to and receiving a two-thirds affirmative vote
of the Chairmen of the State Committees shall be binding on the
National Code Authority.
NATIONAL ADMINISTRATIVE COMMITTEE
SECTION 15. The National Code Authority may elect from its mem-
bership, three (3) members to serve as a National Administrative
SECTION 16. (a) Each State Committee shall constitute the agency
of the National Code Authority for the Administration of this Code
in such State under such powers and duties as may be delegated to it
as herein provided.
(b) Each State Committee may initiate and recommend to the
National Code Authority such measures, rules and regulations as it
may deem appropriate for the administration of this Code in such
State, including measures, rules and regulations affecting contiguous
States. Such measures, rules and regulations when adopted by the
National Code Authority, subject to the approval of the National
Recovery Administration, shall be binding upon all members of the
(c) Each State Committee shall have the power to employ such
agents and employees as it may deem necessary for the administration
of this Code, in the same manner as herein prescribed for the National
(d) Eiach State Committee shall have the power to establish such
districts as it may deem necessary for the administration of this Code,
in the same manner as herein prescribed for the National Code
(e) Each State Committee shall have the following powers and
duties, subject to such rules and regulations as may be issued by the
National Recovery Administration:
(aa) To appoint district committees, with the advice and coopera-
tion of members of the trade and/or associations of trade members
within any such district, for the purpose of assisting the State Com-
mittee in (1) the administration of this Code, (2) securing adherence
thereto and compliance therewith, (3) hearing and adjusting com-
plaints, (4) considering proposals for amendments to and exemptions
from this Code, and (5) otherwise carrying out within such districts,
by cooperation and through the State Committee, the purposes of the
Act and of this Code.
ARTICLE VII-TRADE PRACTIcES
RULE 1. COSTS AND PRICE CUTTING 2
SECTION 1. Cost Finding and Accounting.-The National Code Au-
thority shall cause to be formulated methods of cost finding, estimat-
ing and accounting capable of use by all members of the trade, and
shall submit such methods to the National Recovery Administration
for review. If approved by the National Recovery Administration,
full information concerning such methods shall be made available
to all members of the trade. Thereafter, each member of the trade
shall utilize such methods to the extent found practicable. Nothing
herein contained shall be construed to permit the National Code Au-
thority or any other administrative agency or agent thereof or any
member of the trade 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.
SECTION 2. Wilfully Destructl-ve Price Cutting.-The standards of
fair competition for the trade with reference to pricing practices are
declared to be as follows:
(a) Wilfully destructive price cutting is an unfair method of com-
petition and is forbidden. Any member of the trade or of any other
trade or the customers of either may at any time complain to the
National Code Authority or any State or District Committee that
any offered price constitutes unfair competition as destructive price
cutting, imperiling small enterprise or tending toward monopoly or
the impairment of code wages and working conditions. The Na-
tional Code Authority or any State or District Committee shall
within five (5) days afford an opportunity to the member offering
such price to answer such complaint and shall within fourteen (14)
days make a ruling or adjustment thereon. If such ruling is not con--
curred in by either party to the complaint, all papers shall be referred
to the Research and Planning Division of N. R. A. which shall render
a report and recommendation thereon to the National Recovery
(b) When no declared emergency exists as to any given product or
service, there is to be no fixed minimum basis for prices. It is intended
that sound cost estimating methods should be used and that considera-
tion should be given to costs in the determination of pricing policies.
(c) When an emergency exists as to any given product or service,
sale below the stated minimum price of such product or service, in
violation of Section 3 hereof, is forbidden.
s See paragraph 2 of order approving this Code.
SECTION 3. Emergcn.cy Provisions.-(a) If the National Recovery
Administration, after investigation shall at any time find both (1)
that an emergency has arisen within the trade 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 specified product or service within the trade for a limited
period is necessary to mitigate the conditions constituting such emer-
gency and to effectuate the purposes of the Act, the National Code
Authority or any State Committee may cause an impartial agency to
investigate costs and to recommend to the National Recovery Admin-
istration a determination of the stated minimum price of the product
and/or service affected by such emergency and thereupon the Na-
tional Recovery Administration may proceed to determine such stated
(b) When the National Recovery Administration shall have de-
termined such stated minimum price for a specified product and/or
service for a stated period, which price shall be reasonably calculated
to mitigate the conditions of such emergency and to effectuate the
purposes of the Act, it shall publish such price. Thereafter, during
such stated period, no member of the trade shall sell such specified
product and/or service at a net realized price below said stated mini-
mum price and any such sale shall be deemed destructive price cutting.
From time to time, the National Code Authority or any State Com-
mittee may recommend review or reconsideration or the National Re-
covery Administration may cause any determinations hereunder to be
reviewed or reconsidered and appropriate action taken.
SECTION 4. No member of the trade shall enter into any agreement,
understanding, combination or conspiracy to fix or maintain price
terms, nor cause or attempt to cause any member of the trade to change
his price terms by use of intimidation, coercion, or any other influence
inconsistent with the maintenance of a free and open market. For
the purposes of this Code the term price terms shall, but without
limitation, mean and include all prices, discounts, rebates, allowances,
and all other terms or conditions of sale.
No member of the trade shall publish advertising (whether printed,
radio, display, or of any other nature) which is misleading or inaccu-
rate in any material particular nor shall any member in any way
misrepresent any goods or services (including, but without limita-
tion, their use, trademark, grade, quality, quantity, origin, size, sub-
stance, character, nature, finish, material, content or preparation
thereof) or credit terms, value, policies, or the nature or form of the
No member of the trade shall knowingly post-date or pre-date any
contract, invoice, quotation or receipt; knowingly withhold from or
insert in any contract, invoice quotation or receipt any statement
which makes such contract., invoice, quotation or receipt a misleading
or inaccurate statement in any material particular; or accept or offer
to accept any such contract for the purpose of and with the effect of
injuring the business of a competitor or of violating or evading any
provision of this Code.
No member of the trade shall brand, mark, pack, or otherwise mis-
represent any goods or services in any manner which is intended to or
does deceive or mislead purchasers in any material particular with
respect to such goods or services (including, but without limitation,
the brand, grade, quality, quantity, origin, size, substance, character,
nature, finish, material, content or preparation thereof).
No member of the trade shall defame a competitor by falsely im-
puting to him dishonorable conduct, inability to perform contracts,
questionable credit standing, or by other false repre.-entations, or by
falsely disparaging the grade or quality of his goods and/or services.
No member of the trade shall give, permit to be given or offer to
give, money or any other thing of value for the purpose 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. 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.
No member of the trade shall wilfully induce or attempt to induce
the breach of existing contracts between competitors and their cus-
tomers by any false or deceptive means, or interfere with or obstruct
the performance of any such contractual duties or services by any such
means, with the purpose and effect of hampering, injuring or em-
barrassing competitors in their business.
No member of the trade shall offer or make any payment or allow-
ance of a rebate, refund, commission, credit, unearned discount or
excess allowance, whether in the form of money or otherwise, nor shall
a member of the trade offer or extend to any customer any special
service or privilege not extended to all customers of the same class, for
the purpose of influencing a sale.
No member of the trade shall offer or give prizes, premiums or gifts
of any nature including the products or services of this trade or any
other trade or industry in connection with the sole of the products
and/or services of this trade, or as an inducement thereto (unless such
prizes, premiums or gifts are offered or given to all buyers, or poten-
tial buyers of the same class) ; or by any scheme which involves lottery,
misrepresentation, fraud and/or commercial bribery in any form.
No member of the trade shall fail to include a complete, accurate
and itemized list of all materials, parts or services and the selling
prices thereof in either the contract, invoice. quotation, or receipt
covering any sale or offer for sale thereof. All new and/or second-
hand materials and/or parts shall be so designated.
No member of the trade shall fail to render an invoice or bill for
each sale of the products or services of this trade.
No member of the trade shall combine in quotations or contracts
for the sale of the products or services of this trade, a quotation or
contract for the sale of the products or services of any other trade
or industry, for the purpose or with the effect of concealing the true
selling prices of the products or services of this trade.
No member of the trade shall furnish any inaccurate or mislead-
ing information to the National Recovery Administration, the Na-
tional Code Authority, the National Administrative Committee, any
State or District Committee or any agency thereof.
No member of the trade shall require that the sale or lease of any
product or service of this trade or of any other trade or industry,
shall be requisite or prerequisite to the purchase or sale of any of
the products or services of this trade.
No member of the trade shall recall or revise or offer to recall or
revise any written quotation, proposal or bid submitted to a buyer
or potential buyer of any product or service of this trade for the
purpose of submitting more favorable price terms, unless the buyer
had proposed a revision in the quantity and/or quality of the prod-
ucts and/or services to be purchased.3
No member of the trade shall furnish any product or service of this
trade to any person (except to charity), except for such considera-
aSee paragraph 2 of order approving this Code.
tion, expressed or implied, as may be included by a quotation, con-
tract, guarantee, warranty or other agreement, covering such product
or service, except as otherwise provided in Rule 9.
ARTICLE VIII--PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price
increases, except such as may be required to meet individual cost,
should be delayed, and when made such increases should, so far as
possible, be limited to actual additional increases in the seller's costs.
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of Subsection (b) of Section 10 of the Act, from time to
time to cancel or modify any order, approval, license, rule, or regula-
tion issued under Title I of said Act.
SECTION 2. Such of the provisions of this Code as are not required
to be included herein by. the Act may, with the approval of the
President, be modified or eliminated in such mannner as may be indi-
cated by the needs of the public, by changes in circumstances, or by
experience. All the provisions of this Code, unless so modified or
eliminated, shall remain in effect until June 16, 1935.
No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discriminate
against small enterprises.
ARTICLE XI-EFFECIVE DATE
"Effective Date" herein means, and this Code shall become effec-
tive on, the first Monday after its approval by the President.
Approved Code No. 543.
Registry No. 1724-27.
UNIVERSITY OF FLORIDA
3 I1HI 1I1 1111111111111 i ll 1111111111111111111111
3 1262 08582 8506
xml version 1.0 encoding UTF-8
REPORT xmlns http:www.fcla.edudlsmddaitss xmlns:xsi http:www.w3.org2001XMLSchema-instance xsi:schemaLocation http:www.fcla.edudlsmddaitssdaitssReport.xsd
INGEST IEID EGGAZC7MY_RDVKCA INGEST_TIME 2012-04-02T13:09:50Z PACKAGE AA00009886_00001
AGREEMENT_INFO ACCOUNT UF PROJECT UFDC