Code of fair competition for the unit heater and/or unit ventilator manufacturing industry as approved on February 10, 1934

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Title:
Code of fair competition for the unit heater and/or unit ventilator manufacturing industry as approved on February 10, 1934
Portion of title:
Unit heater and/or unit ventilator manufacturing industry
Physical Description:
p. 355-368 : ; 24 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
United States Government Printing Office
Place of Publication:
Washington, D.C
Publication Date:

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Subjects / Keywords:
Air heaters -- Law and legislation -- United States   ( lcsh )
Heating and ventilation industry -- United States   ( lcsh )
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federal government publication   ( marcgt )
non-fiction   ( marcgt )

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General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1304-04."
General Note:
"Approved Code No. 272."

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University of Florida
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All applicable rights reserved by the source institution and holding location.
Resource Identifier:
oclc - 647976513
ocn647976513
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NATIONAL RECOVERY ADMINISTRATION



CODE OF FAIR COMPETITION
FOR THE

UNIT HEATER

AND/OR UNIT VENTILATOR

MANUFACTURING INDUSTRY


AS APPROVED ON FEBRUARY 10, 1934


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1934


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


Approved Code No. 272


Registry No. 1304-04

























This publication is for sale by the Superintendent of Documents, Government
Printing Office, W;lliilton:ii. D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Fedteral 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, Tex.: 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.
Minlne-polis, Minn.: 213 Federal Builline.
Nov' 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 Fedtral Office Building.












Approved Code No. 272


CODE OF FAIR COMPETITION
FOR THE

UNIT HEATER AND/OR UNIT VENTILATOR
MANUFACTURING INDUSTRY

As Approved on February 10, 1934


ORDER

APPROVING CODE OF FAIR COMPETITION FOR THE UNIT HEATER AND/OR
UNIT VENTILATOR MANUFACTURING 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 Unit Heater and/or Unit Ventilator Man lu-
facturing Industry, and hearings having been duly held thereon
and the annexed report on said Code, containing findings with
respect, thereto, having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, I, Hugh S. Johnson, Administrator for Industrial Recovery,
pursuant to authority vested in me by Executive Orders of the
President, including Executive Order No. 6543-A, dated December
30, 1933, and otherwise do hereby incorporate by reference said
annexed report and do And that said Code complies in all respects
with the pertinent provisions and will promote the policy and pur-
poses of said Title of said Act; and do hereby order that said Code
of Fair Competition be and it is hereby approved; provided, how-
ever, that the provisions of Article VII, Rule 4, insofar as they
prescribe a waiting period between the filing with the Code Au-
thority and the effective date of revised price lists or revised terms
and conditions of sale be, and they are hereby, stayed pending my
further Order either within a period of sixty days from the effective
date of this Code or after the completion of a study of open price
associations now being conducted by the National Recovery Admin-
istration.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
Approval recommended:
W. A. HARRIMAN,
Division A dmin istrator.
WASHINGTON, D.C.,
February 10, 1934.


39353--376-44-34


(355)











REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SIR: This is a report on the Code of Fair Competition for the Unit
Hoeter and/or Unit Ventilator Manufacturing Industry as revised
after a public hearing, conducted in Washington, D.C., on December
28, 1933, in accordance with the provisions of the National Industrial
Recovery Act.

PROVISIONS AS TO WAGES AND HOURS

All, except office employees, shall be paid a minimum rate of forty
cents per hour. Apprentices shall not exceed in number five per cent
of the total number of an employer's wage earners. Office employees
shall be paid a minimum wage of fifteen dollars per week. Office
boys and girls shall be paid not less than eighty percent of this rate
and shall not exceed in number five percent of an employer's total
number of office employees.
Handicapped workers may be employed at wages below the
minimum. Female employees performing substantially the same
work as male employees shall receive equal pay. Adjustment of
wage rates above the minimum will be made within thirty days after
the approval of this Code.
Forty hours shall be the maximum number of working hours for
any week and eight hours for any day except during any six weeks
in a six months' period forty-eight hours in one week shall be per-
missible. Executives, their staffs and supervisors, who regularly
receive thirty-five dollars or more per week, and outside salesmenn are
excepted fri'uii this provision. Employees engaged solely at mainte-
nance and repair work, truckmen, firemen and engineers may work
nine hours a day or forty-four hours a week except during any six
weeks in a six months' period forty-eight hours in one week is per-
missible. Watchmen shall not be employed in excess of fifty-six
hours in any one week. Office employees, except those receiving
thirty-five dollars per week or more, shall not be employed in excess
of an average of forty hours per week over each period of five weeks,
nor more than forty-eight hours in any one week.
All employees, except office employees, shall be paid at the rate
of time and one half for time worked in excess of forty hours per
week.
ECONOMIC EFFECTS OF THE CODE

The economic welfare of this industry depends upon building
activity. Unit heaters are used mainly for factory or industrial use,
whereas unit ventilators are intended largely for school and office
ventilation and/or heating. Annual sales have decreased seventy-
two percent from 1929 to 1932.
Invested c:tpital and production capacity have increased about
thirty-five per cent since 1929. The number of wage earners em-
(.3511) *






357


played by this industry decreased fifty-four percent over the same
period. The Research and Planning Div'i.ion states that the indus-
try employed 1,770 wage earners in 1929.
The maximum hours as provided by this Code will not reabsorb
all the former employees, but a substantial increase in the demand
for the products of this industry followed by an increase in man-
hour requirements will stimulate employment. The Code provides
for the upward adjustment of wages above the minimum, therefore,
the purchasing power of the Industry's employees should be in-
creased. Trade practice provisions of the Code are expected to rem-
edy the unfair competition that has existed in the past within the
Industry.
FINDINGS

The Deputy Administrator in his final report to me on said
Code having found as herein set forth and on the basis of all the
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 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 indus-
try for the purpose of cooperative action among the 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 pos-
sible utilization of the present productive capacity of industries by
avoiding undue restriction of production (except as may be tempo-
rarily required), by increasing the consumption of industrial and
agricultural products through increasing purchasing power, by re-
ducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by me as a major industry.
(c) The Code as approved complies in all respects with the perti-
nent provisions; of said Title of said Act, including without limitation
Subsection (a) of Section 3, Suibection (a) of Section 7, and Sub-
section (b) of Section 10 thereof; and that the applicant association
is an industrial association truly representative of the aforesaid In-
dustry; and that said association imposes no inequitable restrictions
on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other step., of the economic proe have rt,
been deprived of the right to be heard prior to approval of said
Code.
For these reasons, therefore, I have approved this Code.
Respectfully,
HUGH S. JOHNSON,
Adlmin istrator.
FEBRUARY 10, 1934.













CODE OF FAIR COMPETITION FOR THE UNIT HEATER
AND/OR UNIT VENTILATOR MANUFACTURING IN-
DUSTRY
ARTICLE I-PURPOSES

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 Unit Heater and/or Unit Ventilator
Manufacturing Industry, and shall be the standard of fair compe-
tition for such industry and shall be binding upon every member
thereof.
ARTICLE II-DEFI N TONS

1. The term Unit Heater and/or Unit Ventilator Manufacturing
Industry ", as iued herein, includes the manufacture, and the assem-
b:ling and sale by the manufacturer of unit heaters and/or unit
ventilators, as herein defined, and such related branches or sub-
divisions as may from time to time be included under the provisions
of this Code with the approval of the President, after such notice
and hearing as may be prescribed.
2. The term "Unit Heater ", as used herein means a combination
of a steam or hot-water air-heating unit and a fan or blower, having
a common enclosure and intended to be placed within or adjacent
to a space to be heated, and in which generally no ducts are attached
to the outlets or inlets. A Unit Ventilator is similar in principle
of operation to a unit heater but is designed to use all or part of
outdoor air. Unit Heaters are mainly intended for factory or
industrial use, whereas Unit Ventilators are intended largely for
school and office ventilation and/or heating. Where a question arises
as to whether a particular device is a Unit Heater or a Unit Venti-
lator, the decision shall rest with the Code Authority, hereinafter
defined, subject to the approval of the Administrator.
3. The term Member of the Industry ", includes, but without
limitation, any individual, partnership, association, corporation, or
other form of enterprise engaged in the industry, either as an
employer or on his or its own behalf.
4. The term "Member of the Code ", as herein used, means and
includes any member of the industry who shall expressly signify
assent to this Code.
5. The term "Code Authority", as herein used, means the body
established in Article VI of this Code, to cooperate with the
Administrator in the administration of this Code.
6. The term "Employee", as used herein, includes any and all
persons engaged in the industry however compensated, except a
" Member of the Industry."
7. The terms "President", "Act", and Administrator ", as used
herein, mean, respectively, the President of the United States, Title
(358)






359


I of the National Industrial Recovery Act, and the Administrator
for Industrial Recovery.
8. The term "Association ", as used herein, shall mean the Indus-
trial Unit Heater Association.
ARTICLE III-HOURS

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 (-4) hour period, ex-
cept 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 employed in executive and managerial capacity, and
service engineers when'and as long as their expenses are paid by
their employer, who regularly receive thirty-five ($35.00) dollars
or more per week.
(b) Outside salesmen.
(c) Employees engaged solely at maintenance and repair work,
truckmen, firemen 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
during any six (6) months' period. 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.
(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.
SEC. 2. No accounting, clerical, or office employee shall be employed
in excess of an average of forty (40) hours a week over a calendar
five (5) weeks period, nor more than forty-eight (48) hours in any
one week.
SEC. 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
herein.
SEC. 4. No employee shall be permitted to work more than six (6)
days in any seven (7) day period.
ARTICLE IV-WAGES
SECTION 1. No employee shall be paid at less than the rate of
forty (40) cents per hour, except that:
(a) Accounting. clerical, and office employees may be paid at not
less than fifteen ($15.00) dollars per week.
(b) Office boys and office girls may be paid at not less than eighty
(80) percent 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) percent of the







360


total number of office employees of the employer, except that any em-
ployer 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 apparent itci 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) percent of the total number of factory employees of
such employer.
SEC. 2. This Article establishes a minimum rate of pay which
shall apply, irrespective of whether an employee is actually com-
pensated on a time rate, piece-work, or other basis.
SEC. 3. The Code Authority may present for approval of the
Adminiistrator, after notice and hearing, recommendations as to
upward adjustments in minimum wages for specific localities.
SEC. 4. Equitable adjustment of compensation of employees re-
ceiving more than the minimum rates of pay herein prescribed shall
be made by all employers who have not heretofore made such
adjustments, and all employers shall within sixty (60) days after
approval of this Code, report in full to the Code Authority con-
cerning such adjiitiiiniits whether made prior to or sulb-,equent to
such approval, provided, however, that in no event shall hourly
rates of pay be reduced.
SEC. 5. Female employees performing substantially the same work
as male employees shall receive the same rate of pay as male
employees.
SEC. 6. A person whose earning capacity is limited because of age
or physical or other handicaps may be employed on light work
at a waue below the minimum established by this Code if the em-
ployer obtains from the State authority designated by the United
States Department of Labor a certificate authorizing his employ-
ment at such wages and for such hours as shall be stated in the
certificate. Each employer shall maintain on file with the Code
Authority a list of all such persons employed by him.
SEC. 7. Wages shall be exempt from any payments for pensions,
insllrallce, or sick benefits other than those voluntarily paid by the
wage earners, or required by State laws. Wages shall be paid at
least at the end of every two weeks' period, and salaries at least
at the end of every month.
SEC. 8. The employer or his agent shall accept no rebates directly
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 PROvISIONn
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 haz-
ardous in nature or dangerous to health. The Code Authority shall
submit to the Administrator before March 1, 1934, a list of such
operation, s 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






361


empowered to issue employment or age certificates or permits show-
ing that the employee is of the required age.
SEC. 2. In compliance with Section 7 (a) of the Act it is provided
that:
(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 refrain
from joining, organizing, or assisting a labor organization of his
own choosing.
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment approved
or prescribed by the President.
SEC. 3. No employer shall reclassify employees or duties of occu-
pations performed or engage in any other subterfuge for the pur-
pose of defeating the purposes or provisions of the Act or of this
Code.
SEC. 4. Every employer shall make reasonable, provisions for the
safety and health of his employees at the place and during the hours
of their emplloymenlt.
SEC. 5. No provisions 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 protec-
tion, than are imposed by this Code.
SEC. 6. All employers shall post complete copies of the labor pr-
visions of this Code in conspicuous places accessible to employees.

ARTICLE VI-ORGANIZATION

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.
SEC. 2. The Code Authority shall consist of the nmenbers from
time to time of the Executive Committee of the Association, provided
for in the bylaws of the Association, together with a imetnber
selected at large from the Industry. 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 (2) members of the Code Authority shall be
affiliated with any single member of the Industry.
SEC. 3. The Association is hereby designated as the agency to
conduct an election of the Member at large of the Code Authority
by members of the Industry who are not members of the Association,
within fifteen (15) days after the effective date of this Code, and
any subsequent elections for the successors of such lMenber at large.
Such member shall be elected to serve for a term of one (1) year.
In the event that the position of Member at large on the Code







362


Authority becomes vacant, a special meeting shall be called 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 fiot
members of the A.-.oc-iation and who are registered with the Secre-
tary of the Association and voting at such election may be by person,
by proxy, or by letter ballot. Each member of the Industry who is
not a member of the Association shall have, one (1) vote. A plurality
of the number of votes cast shall be necessary for election.
SEC. 4. The Code Authority shall have 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 exelltion of the provisions of this Code and
provide for the compliance of the Industry with the provisions of
the Act, subject to such rules and regulations as may be promulgated
from time to time by the Administrator.
(b) To adopt bylaws and rules and regulations for its procedure
and for the administration and enforcement of the Code.
(c) To obtain from members of the Industry such information
and reports (sworn or unsworn as the Code Authority may specify)
as are required for the administration of the Code. No individual
information, statistics, or reports shall be disclosed to any other mem-
ber of the Industry, or any other party except to such governmental
agencies as may be directed by the Adminis-trator.
(d) 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.
(e) To make recommendations to the Administrator for the coor-
dination of the administration of this Code with such other codes,
if any, as may be related to the Industry.
(f) To secure from members of the Industry an equitable and pro-
portionate payment of the reasonable expenses of maintaining the
Code Authority and its activities.
(g) To cooperate with the Administrator in regulating the use
of any N.R.A. insignia solely by those members of the Industry who
have ansented to, and are complying with, this Code.
(h) To recommend to the Administrator further unfair trade
practice provisions to govern members of the Industry in their re-
lations with each other or with other industries and to recommend
to the Administrator measures for industrial planning, including
stabilization of employment.
SEC. 5. In order that the Code Authority shall at all times be
truly representative of the Industry and in other respects comply
with the provisions of the Act, the Administrator may provide such
hearing- as he may deem proper; and thereafter, if he shall find the
Code Authority is not truly representative or does not in other re-
spects comply with the provisions of the Act, may require an appro-
priate modification in the method of selection of the Code Authority,
or any sub-Code Authority.






363


SEC. 6. Each association directly or indirectly participate ing in
the selection or activities of the Code Autlhority shall (1) impose no
inequitable restrictions on membership, and (2) submit to tlhe Ad-
ministrator true copies of its articles of association, bylaws, regula-
tions, and any amendments when made thereto, together with such
other information as to membership, organization, and activities as
the Administrator may deem necessary to effectuate the purposes of
the Act.
SEC. 7. In addition to the information required to be submitted
to the Code Authority and the Administrator, there shall be fur-
nished to government agencies such statistical information as the
Administrator may deem necessary for the purpose recited in Section
3 (a) of the Act.
SEC. 8. lMembers of the Industry shall be entitled to participate
in and share the benefits of the activities of the Code Authority and
to participate in the selection of the members thereof, by absenting
to and complying with the requirements of this Code and sustain-
ing their reasonable share of the expenses of its administration. Tlie
reasonable share of the expenses of administration shall be deter-
mined by the Code Authority, subject to review by the Adminis-
trator, on the basis of volume of business and/or such other factors
as may be deemed equitable to be taken into consideration.
SEC. 9. Nothing contained in this Code shall constitute the mem-
bers 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 nonfeasance.

ARTICLE VII-SPECIFIC TRADE PRACTICES
RULE 1. Each member of the Industry shall publish and make
available, at all times, to each class of purchasers (except. distribu-
tors) with whom he does business, a printed price sheet showing the
list price of all types, varieties, and sizes of unit heaters, unit ven-
tilators, accessories, and appurtenances regularly on sale by him;
together with any and all discounts, including cash and/or quantity
discounts, transportation terms, guarantees, and any other terms or
conditions which may affect the net cost of any listed article to
the purchaser of the class to which the sheet is issued.
RULE 2. All published price sheets shall be plainly dated and shall
be considered published when filed in printed form with the Code
Authority in sufficient numbers for distribution to all members of
the Industry.
RULE 3. Any member of the Industry, upon publishing a price
sheet, shall immediately distribute the same to his regular customers.
RULE 4. A member of the Industry may publish revised price
sheets from time to time, as market conditions may warrant, upon
filing ten (10) days' notice with the Code Authority.*
See paragraph 2 of order aplprovin. this Code.







364


RULE 5. All published price sheets shall be plainly marked,
"Subject to change without notice."
RULE 6. Different classes of purchasers and their trade privileges
are recognized, but it is deemed essential to the prevention of unfair
trade practices to adopt a uniform method of classification as it
affects transactions in this Industry. For this purpose the following
classes only are recognized.
(a) Coii-uiner is the ultimate purchaser or user of unit heaters or
unit ventilators.
(b) Contractor is one who is regularly engaged in the business of
inistlling heating .sys.tems and equipment, including unit heaters or
unit ventilators, for the purpose of resale at a profit. A consumer
who employs an erecting crew for installing heating materials or
equipment on his own properties or for his own use shall not be
classed as a contractor. Federal, State, County, and iMunicipal pur-
chasers, including subdivisions thereof such as School Boards, Park
Comini-ions, and the like, may be classified as Contractors.
(c) Jobber is one who is regularly engaged in the business of
buying and reselling steam and hot water heating materials and
equipment, including unit heaters or unit ventilators, in and out of
stock, but who does no installing of the materials and/or equipment.
sold. Manufacturers purchasing unit heaters for resale as part of
their equipment may be classified as jobbers.
(d) Di-tributor is one who is regularly engaged in the business of
buying and reselling unit heaters or unit ventilators as a jobber, but
who is under contract with a particular manufacturer to sell said
manufacturer's line of unit heaters and/or unit ventilators to the
exclusion of other unit heaters and unit ventilators, and who agrees
to conform to all lawful limitations and restriction upon methods of
sale contained in said contract.
RULE 7. Nothing herein contained shall be construed to prevent
a member of the Industry from selecting his own customers and the
classes of customers through whom he wishes to market his goods,
but it is deemed conducive to unfair methods of competition to dis-
criminate between purchasers of the same class, or to discriminate
between the several recognized classes of purchasers on other than
a uniform basis except in the case of distributors or agents. To
effectuate this Policy:
(a) The heating contractor, as the commonly recognized dealer in
this class of materials, may be extended a trade discount, provided
the member extending the discount, issues a published price sheet to
contractors showing said discount and extends the same discount to
all contractors with whom he does business.
(b) The jobber, who in turn serves the heating contractor, may be
extended the contractor's trade discount plus an additional trade
discount of not to exceed ten (10) percent, provided the member ex-
tending said discount issues a published price sheet to jobbers show-
ing said discounts and extends the same discounts to all jobbers with
whom he does business.
(c) The distributor or agent, (as provided in Rule 6-d) under
contract to abide by the prices and terms of sale of the published
price sheet and these Rules of Fair Competition (Article 7 of this







363


Code), may be extended any discinnt which a nwmiilwr elclctq to
extend.
RuiE 8. The conventional trade practice of allowing quantity
discounts is considered rational and fair provided it is lNt'd on a
quantity bought on one (1) order, thus resulting in a saving in cost
to the manufacturer and his distributor, and provided a uniform
schedule is adopted and is extended alike to all purchasers of all
classes.
A member of the Industry may, or may not, at his option extend
quantity discounts, but if he does, it shall be in strict accordance
with the schedule printed on his price sheet together with the state-
ment that it applies to all purchasers where the units are hoilht on
one (1) order and are shipped and invoiced at one (1) time, pro-
vided, however, that quantity discounts may be allowed on invoices
covering partial shipments of an order when
(a) The manufacturer is unable, for reasons beyond his control,
to make shipment of complete order at one time.
(b) The order is for units to be installed in one (1) building or
group of building for which the contract was let prior to the time
the order was placed and when the equipment must be shipped as the
building construction progresses.
(c) When the order specifies definite partial deliveries over a
period of not to exceed six (6) months, and provided that if pur-
chaser fails to accept the entire order within the time specified,
adjustment of volume discount. shall be made on the basis of the
volume actually shipped.
RuiE 9. All sales of unit heaters, unit ventilators, accesssories,
and/or appurtenances shall be m;de on the basis of a written quota-
tion or bill of sale. Said quotation or bill of sale shall be properly
dated and shall be in accordance with the current published price
sheet and shall be so itemized as to enable the checking of the same
from the current published price sheet. Outstanding quotations may
be protected for a period of thirty (30) days beyond date of price
change (or in the case of quotations made for direct purchases by
the Federal Government, protection may be given for sixty (60)
days beyond bid opening) provided a list of such outstanding
quotations be filed with the Code Authority within ten (10) days
after price change.
RULE 10. All quotations shall be subject to change without notice
and void after sixty (60) days, and all written quotations shall so
state, subject however to Rule 9.
RULE 11. It shall be deemed an unfair method of competition to
sell or dispose of a unit heater, unit ventilator, accessory or appur-
tenance on any lower basis than that of the current published price
sheet, less such discounts as apply under these Rules.
RULE 12. It shall be deemed an unfair method of competition to
make a particular sale of unit heaters, unit ventilators, accessories,
or appurtenances contingent upon the sale of any other goods or
materials.
RULE 13. 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 mislead or deceive customers or prospective cus-
tomers as to the buibstance, grade, quality, size. quantity, origin, or
preparation of any product of the Industry sold or offered for sale.







366


RULE 14. 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 15. All ratings of performance of unit heaters, and unit
ventilators shall be in accordance with the respective Codes for
Testing and Rating Unit Heat'm.r and Unit Ventilators as established
by the American Society of Heating & Ventilating Engineers except
that this rule shall not apply in the case of Unit Ventilators until on
and after July 1st, 1934.
RULE 16. The right of any manufacturer of unit heaters or unit
ventilators to build special sizes or types on special order is recog-
nized; but as such units are more costly to build and should sell for
higher prices than his regular line, it shall be deemed an unfair
method of compete ition to sell any special or c.l-tomn-built unit heater
or unit ventilator at the same price or less per unit of rating than the
next nearest size and type of the manufacturers' regular line.
RULE 17. It shall be deemed an unfair trade practice to sell unit
heaters or unit ventilators less certain parts on a basis other than
that by which the deduction for parts is proportional to the net cost
to the manufacturer of the parts, or to sell separate parts, except for
Ieplaiement, on a mark-up less than that employed in determining
the price of the complete unit heater or unit ventilator.
RULE 18. It shall be deemed an unfair trade practice to accept
blanket orders; therefore, all quotations and orders must specify an
itemized bill of goods. If, after a quotation has been made, the
specified requirements are changed, a new quotation shall be issued
based upon publi-hed prices prevailing at that time. If, after an
order has been accepted the requirements are changed, deductions
shall be credited on the basis of published prices prevailing at the
time order was placed and additions shall be charged at the prices
prevailing at the time additions are made.
RULE 19. With respect to that portion of his product which is
within the Iidui-try, every employer shall use an accounting system
for the purpose of determining allowable cost which conforms to
the principles of, and is at least as detailed and complete as, the
uniform method of accounting, and the uniform method of costing,
to be formulated or approved by the Code Authority and the Admin-
istrator with such variations therefrom as may be required by the
individual conditions affecting any employer or group of employ-
ers, and as may be approved by the Code authority and the
Administrator.
RULE 20. 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 a uniform method of costing above described;
provided, however, that dropped lines, or seconds, or inventories
which must be converted into cash to meet emergency needs may be
disposed of by any employer, at any price and on any terms and







367


conditions, but only if such employer, not less than ten (10) days
before such disposal, has filed with the Code Authority, a statement
in writing, setting forth the fact of, and rean-,n for, -u'rh propo..d1
disposal, and the Code Authority has not, before the termination of
such ten (10) days' period, in writing disapproved the proposed dis-
posal; and provided further, that a member of the Industry selling,
or wishing to sell, below his own allowable cost to meet the competi-
tion of a competitor whose allowable costs on products of equivalent
design, size, capacity, character, or quality are lower, may do so pro-
vided that he has first so reported to the Code Authority and in such
report has cited the competition which caused him to take such ac-
tion, and provided he publishes a revised price sheet. Nothing herein
shall be construed to relieve a member of the Industry from strict
adherence to Rule 9.
RULE 21. Consignment of goods or delayed billing shall be deemed
an unfair trade practice, except under conditions prescribed by the
Code Authority.
RuLE 22. 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 purposes of these Rules. However, noth-
ing herein contained shall be construed to prevent a member of the
Industry from cooperating with or instructing prospective purchas-
ers as to the proper application or installation of said member's
products.
RuLE 23. All unit heaters and/or unit ventilators, accessories, and
appurtenances shall be sold f.o.b. factory. Freight may be allowed
to freight station nearest to destination, or may be prepaid.
RULE 24. Varying discounts may be allowed for cash and for vary-
ing periods not to exceed (30) days from date of invoice if published
and with the understanding that such discounts are viewed as added
collection costs.
RULE 25. Published guarantees of unit heaters and unit ventila-
tors shall be subject to the following limitations:
(a) No guarantee on defective material or workmanship shall ex-
tend beyond one year from date of shipment.
(b) Replacements: F.O.B. manufacturer's factory subject to man-
ufacturer's inspection.
(c) No liability shall be assumed for consequential damages or
reinstallation labor.
(d) Foreign equipment guarantee shall be limited to the warranty
of its manufacturer.
RULE 26. A violation of any of the rules in this Article shall be
deemed an unfair method of competition.
RULE 27. 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 repre-
sentative 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




UNIVERSITY OF FLORIDA

II III IIIIIIII 1IIIIIIIII I I IIIIII III U11 1 1 1 1IIII II W1
368 3 1262 08584 1954

except so far as such articles are actually used for commercial
bribery as hereinabove defined.

ARTICLE VIII-GENERAL PROVISIONS

SECTION 1. No provision of this Code shall be construed or applied
in such a manner as to-
(a) Promote or permit monopolies or monopolistic practices.
(b) Permit or encourage unfair competition.
c) Eliminate oppress, or discriminate against small enterprises.
SEC. 2. This Code is hereby expressly made subject to the right
of the President, pursuant to Section 10 (b) of Title I of the National
Induistriil Recovery Act, from time to time to cancel or modify any
order, approval, license, rule, or regulation issued under Title I of
said Act, and specifically but without limitation to his right to
channel or modify his order approving this Code, or any conditions
imposed by him upon such approval.
SEC. 3. This Code, except as to provisions required by the Act,
may be modified on the basis of experience or change in circum-
!stances, such modifications to be based upon application to the
Administrator and such notice and hearing as he may specify, and
to become effective on approval of the President. Any such appli-
cation may be made by the Code Authority.
SEc. 4. If the Administrator shall determine that any action of
the Code Authority or any agency thereof is unfair or unjust or
contrary to the public interest, the Administrator may require that
such action be suspended for a period of not to exceed thirty (30)
days to afford an opportunity for investigation of the merits of
such action and further consideration by the Code Authority or
agency pending final action, which shall be taken only upon approval
by the Administrator.
ARTICLE IX

This Code shall become effective on the second Monday after its
approval by the President of the United States.
Approved Code No. 272. -
Registry No. 1304-04.


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