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Aprve od o 17Rekr N.1330
NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON JANUARY 6, 1934
GOVERNMENT PRINTING OFFICE
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UNIV. OF FL LIW.
Approved Code No. 197
Registry No. 1303-07
This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.C., and by district offices of the Bureau of
Foreign and Domestic Commerce.
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.
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Cleveland, Ohio: Chamber of Commerce.
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Jacksonville. Fla.: Chamber of Commerce Building.
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Memphis, Tenu.: 229 Federal Building.
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Approved Code No. 197
CODE OF FAIR COMPETITION
RETAIL FARM EQUIPMENT TRADE
As Approved on January 6, 1934
ORDER APPROVING CODE OF FAIR COMPETITION FOR
THE RETAIL FARM EQUIPMENT TRADE
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 the Code of
Fair Competition for the Retail Farm Equipment Trade, and hear-
ings having been duly held thereon; and an analysis, report, recom-
mendation and findings on said Code by the Administrator directed
to the President, having been made, which are incorporated herein
by reference; and it being found that said Code complies in all
respects with the pertinent provisions and will promote the policy
and purposes of Title I of said Act, and specifically that the re-
quirements of Clauses (1) and (2) of Subsection (a) of Section 3
of said Act have been met:
NOW, THEREFORE, pursuant to the authority vested in the
President by Title I of the National Industrial Recovery Act, ap-
proved June 16, 1933, and otherwise; and pursuant to authority
vested in the undersigned Administrator for Industrial Recovery
by Executive Orders, including Order dated December 30, 1933, and
otherwise; it is ordered that the said Code of Fair Competition be
and it hereby is approved in the name of the President.
THE PRESIDENT OF THE UNITED STATES OF AMERICA,
By HUGH S. JOHNSON
Administrator for Indu.,trial Rccocery.
Division A dm ,( n ;.' frator.
January 6, 1934.
The TWhite House.
SIR: This is a report on the Code of Fair Competition for the
Retail Farm Equipment Trade of the United States, the hearing
having been held in Washington October 17, 1933, in accordance
with the provisions of the National Industrial Recovery Act.
PROVISIONS ON HOURS AND WAGES
The distribution of farm equipment is made, to a large extent,
through retail hardware dealers who are operating under the terms
of the Retail Code. It is, therefore, essential that the provisions for
hours and wages be identical with the Retail Code except for addi-
tional provisions for overtime during crop failure which create a
real emergency and for the employment of superannuated or par-
tially disabled employees.
ECONOMIC EFFECT OF THE CODE
The reduction in hours will show an increase of approximately 15
percent in number of employees with a consequent increase in pay-
roll. The adoption of the minimum wage rate will also be pro-
ductive of increases in many communities where employees have been
Approximately twenty thousand employees are regularly engaged
in the trade, serving rural communities through 12,000 implement
and hardware stores located in these rural trade areas.
Total sales of equipment through members of the trade amounted
to $519,000,000 in 1929. It is a trade so closely identified with
agriculture that. planting and harvest periods coupled with emer-
gency crop failures constitute peak periods.
Increased employment will be effected largely through the addi-
tion of part-time employees during the peak seasons. It is estimated
that approximately three thousand part and full time employees
will be added and that payrolls will be increased by at least $300,000
yearly as a result of the application of the Code to the trade.
It will be noted that although members of the trade in towns or
trade areas of less than 2,500 population and employing less than
five persons are exempt from the hour and wage requirements of
the code, the application of all other provisions is universal to all
I find that-
(a) The Code will promote the policies and purposes of Title I of
the Act, including removal of obstructions to the free flow of inter-
state and foreign commerce which tend to diminish the amount
thereof and will provide for the general welfare by promoting the
organization of industry 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 eliminating unfair competitive practice, by proniuting the full-
est possible utilization of the present productive capacity of indus-
tries, by avoiding undue restriction of production (except as may
be temporarily required), by increasing the 'onsuniption of indus-
trial and agricultural products through increasing punr~chising power,
by reducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Trade normally employs less than 50,000 employees; and
is not classified by me as a major indu.try.
(c) The Code as revised complies in all respects with the pertinent
provisions of Title I of the Act, including without limitation Sub-
section (a) of Section 3, Subsection (a) of Section 7, and Siilbection
(b) of Section 10 thereof; and that the Retail Farm Equipment
group was and is a trade group truly cprepro-ltative of the aforesaid
Trade; and that said group imposes no inequitable restrictions on
admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have not
been deprived of the right to be heard prior to approval of said Code.
For these reasons, this Code has been approved by me.
HUGH S. JOHNSON,
A dmn ht itra.tor.
January 6, 1934.
CODE OF FAIR COMPETITION
RETAIL FARM EQUIPMENT TRADE
To effectuate the policies of Title I of the National Industrial
Recovery Act, the following provisions are submitted as a Code of
Fair Competition for the retail farm-equipment trade, and, upon
approval of the Administrator, shall be the standard of fair compe-
tition for such trade, and shall be binding upon every member
(a) The term "retail farm-equipment trade" as used herein, in-
cludes distributing at retail of all equipment and repair parts for
the operation, upkeep, and development of the farm, including rais-
ing, harvesting, and storing of crops, dairying, stock, and poultry
raising, or any other agricultural pursuit.
(b) The qualifications of a dealer are that he shall have a
suitable place of business with an adequate stock to serve the com-
munity in which he operates; shall have the proper means commen-
surate with the volume of business in that community of displaying
goods in current demand; shall carry a reasonable supply of repairs
,properly to serve his customers: shall have a sufficient investment in
his business that he may be able to perform the duties above out-
lined; and furnish the usual legitimate service necessary properly to
promote his business and conduct his affairs upon such a basis as
will assure permanency of business relationship.
Nothing in this section (b) shall be construed to exclude in any
way as a member of the trade and-'or from the operation of this code
anyone who distributes at retail equipment and/or repair parts for
the operation, upkeep, and development of the farm, as defined in
section (a) of this Article II.
(c) The term employee as used herein, is anyone engaged in
the trade in any capacity receiving compensation for his services,
irrespective of the nature. or method of payment, of such compen-
(d) The term "employer as used herein, includes anyone by
whom any such employee is compensated or employed.
(e) The term member of the trade" includes anyone, including
individuals, firms, coopartnerships, corporations, cooperative asso-
citations, commis.llion agencies, agents, contract dealers, and manu-
facturers' retail store representatives and all other legal entities
engaged in the trade.
(f) The terms "President ", "Act ", and "Administrator ", as used
herein shall mean, respectively, the President, of the United States,
the National Industrial Recovery Act, and the Administrator for
Industrial Recovery under Title I of said Act.
(g) The term "South as used herein shall mean Virginia, West
Virginia, Maryland, North Carolina, South Carolina, Georgia,
Florida, Kentucky, Tennessee, Alabama. Mis-sissippi, Arkansas,
Louisiana, Oklahoma, New Mexico, Texas, and the District of
(h) Population shall be determined by reference to the 1030 Fed-
(i) Junior employee: The term junior employee as used herein
shall mean an employee under eighteen (18) years of age.
(j) Apprentice Employee: The term "apprentice employee" as
used herein shall mean an employee with less than six (6) months
experience in the retail trade.
(a) Membership in the Federation of Implement Dealers' Asso-
ciations of the United States is and shall be open to any dealer
engaged in the distribution at retail of farm equipment and repair
parts as defined above, through membership in an affiliated associa-
tion, or through individual membership.
(b) No inequitable restrictions on admission to membership are or
may be imposed by the Federations or any of their constituent asso-
ciations hereinbefore or hereinafter referred to.
(c) Membership by a dealer in the Federations of Implement
Dealers' Associations of the United States, or any of their constituent
associations shall not be requisite for the purchase of farm equipment.
(a) Inmmediately following the effective date of this Code as pro-
vided in Article XIV, the Administrator shall appoint a tem-
porary Code Authority which shall consist of six members, three of
whom shall be appointed from the members of the Code Committee
of the National Farm Implement Dealers' Association and three
from the Code Committee of the Eastern Federation of Farm Equip-
ment Dealers, and not more than three members, without vote, to
represent, the Administrator or such groups or interests as may be
agreed upon. Such temporary Code Authority so established shall
serve for a period of not to exceed sixty days immediately following
the said effective date of the Code and shall have all the powers,
duties, and obligations herein provided for the Central Code
(b) Within sixty days immediately following the effective date
of the Code, as provided in Article XIV, the permanent Central
Code Authority shall be organized and constituted to succeed to
all the powers, duties, and obligations of the temporary Code
Authority provided in Section (a) of this Article. The Central Code
Authority shall consist of one member from each constituent associ-
ation of the Federations of Implement Dealers Associations of the
United States, to be elected by the respective associations, each mem-
ber to have equal vote, and not to exceed seven additional members to
be elected by members of the trade who are nonmembers of the
Federations and who have agreed to conform with the provisions of
and bear their reasonable share of the cost of administering the Code,
each said nonmember to have equal vote. The Administrator may
appoint not more than three members of said Central Code Authority,
without vote, to represent him or such groups or interests as may be
(c) Members of the trade shall be entitled to participate in and
share the benefits of the activities of the Code Authority and to par-
ticipate in the selection of the members thereof by assenting to and
complying with the requirements of this Code, and sustaining their
reasonable share of the expenses of its creation and administration.
The reasonable share of the expense of creation and administration
shall be determined by the Code Authority, subject to review by the
Administrator, on the basis of volume of business and/or such other
factors as may be deemed equitable to be taken into consideration.
(d) The Central Code Authority shall have the following duties
and powers to the extent permitted by this Act, subject to the right
of the Administrator on review to approve or disapprove any action
taken by the said Central Code Authority.
The Central Code Authority shall be charged with the administra-
tion of the provisions of this Code, and with the duties thereof,
through agents or otherwise; of conducting hearings and adjusting
complaints, considering proposals for amendments to this Code,
making recommendations thereon, and otherwise administering its
The Central Code Authority shall elect from its membership an
Executive Committee of five members, with representation thereon
from each division.
Because of the wide variance in agricultural conditions and prac-
tices of the eastern and western sections of the United States, there
are hereby created for the purpose of administration the following
The Eastern Division of the Federations is comprised of the
following constituent associations:
New England Farm Equipment Dealers' Association
New York Farm Equipment Dealers' Association
Eastern Farm Equipment Dealers' Association
Virginia Farm Equipment Dealers' Association
North Carolina Farm Equipment Dealers' Association
Western Pennsylvania Farm Equipment Dealers' Association
The Western Division of the Federations is comprised of the
following constituent associations:
Western Retail Implement anld Hardware Association
Miunesot; Implement Dealers' Association
Iowa Implement Dealers' Association
Wisconsin Implement Dealers' Association
Michigan Farm Equipment Association
Illinois Implement Dealers' Association
North Dakota Implement Dealers' Association
South Dakota Implement Dealers' Association
Mississippi Valley Farm Equilplent Association
Mid-West Implement Dealers' Association
Pacific Northwest Hardware and Implement Association
Indiana Implement Dealers' Association
Kentucky Hardware and Implement Association
Mountain States Hardware and Implement Association
Oregon Retail Hardware and Implement Association
California Retail Hardware a:nl Implement Association
Panhandle Hardware and Implement Association
Idaho Retail Hardware and Implement Association
Montana Implement and Hardware Association
Ohio Implement Dealers' Association
Texas Hardware and Impllement Association
The Executive Committee shall appoint a niiraging director for
each of the two divisions, eastern and western, each such managing
director to appoint his own :assistants and define the territory to be
served by each director.
The Executive Committee shall also appoint a board of three
members of the Central Code Authority from each of the two di-
visions. each such board to act in a strictly advisory capacity to the
managing director of its own divi.sin.
The Central Code Authority may establish other divisions and
define the territory to be served by each, and such divisions shall
be accorded representation on the Central Code Authority.
For the admnili.stration of this code in each division or subdivision
of the association, the Central Code Authority shall appoint appro-
priate agencies and delegate to them all necessary power and au-
thority for the administration of this code within each division and
(e) To obtain from members of the trade such information and
reports as are required for the administration of the Code and to
provide for submission by mnemlbers of such information and reports
as the Administrator may deem necessary for the purposes recited in
Section 3 (a) of the Act, which information and reports shall be
submitted Iby membleri to tuch administrative and/or government
agencies as the Administrator may designate; provided that nothing
in this Code shall relieve any member of the industry of any existing
obligations to furnish reports to any government agency. No indi-
vidual reports shall be disclosed to any other member of the trade
or any other party except to such governmental agencies as may be
directed by the Administrator.
ARTICLE V--MAXIMUM WORKING HOURS
SECTION 1. On and after the effective date of this Code establish-
ments in the retail trade shall elect to operate upon one of the fol-
lowing schedules of hours of labor.
(a) Any establishment may elect to remain open for business less
than fifty-six (56) hours but not less than fifty-two (52) hours per
week, unless its store hours were less than fifty-two (52) hours prior
to June 1, 1933, in which case such establishment shall not reduce its
store hours,; no employee of an establishment electing to operate in
alcordance with this Section (a) shall work more than forty (40)
hours per week, nor more than eight. (8) hours per day, nor more
than six (6) days per week.
(b) Any establishment may elect to remain open for business fifty-
six (56) hours or more per week but less than sixty-three (63) hours
per week; no employee of such establishment shall work more than
forty-four (44) hours per week, nor more than nine (9) hours per
day, nor more than six (6) days per week.
(c) Any establishment may elect to remain open for business
sixty-three (63) hours or more per week; no employee of such es-
tablishment shall work more than forty-eight (48) hours per week,
nor more than ten (10') hours per day, nor more than six (6) days
No employee shall work for two or more establishments a greater
number of hours, in the aggregate, than he would be permitted to
work for that one of such establishments which operates upon the
schedule of fewest operating hours.
No employee not included in the foregoing Sections (a), (b), and
(c) and not specifically excepted hereinafter, shall work more than
forty (40) hours per week, nor more than eight (8) hours per day,
nor more than six (6) days per week.
SEC. 2. On or within one week after the effective date of this Code
every retail establishment shall designate under which of the Groups
set forth in the preceding Section 1 it elects to operate and shall post
and maintain in a conspicuous place in the establishment a copy of
such election showing its store hours and employee working hours.
SEc. 3. (a) No establishment may change from the Group in which
it has elected to operate except upon December 31 of any year.
(b) Any establishment, however, may at any time increase its store
hours, provided it maintains the basic employee work week of the
Group in which it originally elected to operate.
(c) Any establishment may, for a period not to exceed three (3)
months during the Summer, temporarily reduce its store hours, but
the weekly wage of its employees shall not on that account be reduced.
SEC. 4. (a) Priofc.isional persons, outside salesmen, outside col-
lectors, fifld and repair service men, and watchmen.-The maximum
period of labor prescribed in Section 1 of this Article shall not apply
to professional persons employed and working at their profession, or
to outside salesmen. outside collectors, field and repair service men,
(b) alltit enace and outside ricevie vm ployrces.-The maximum
periods of labor prescribed in Section 1 of this Article shall not apply
to maintenance and outside service employees; but such employees
shall not work more than six (6) hours per week above the maxi-
mum hours per week otherwise prescribed by Section 1 unless they
are paid at the rate of time and one-third for all hours over such
additional six (6) hours per week.
(c) Executives.-Subject to the conditions set forth in Section 5
of this Article, exe-Lctives receiving $35.00 or more per week in cities
of over 500,000 population, or receiving $30..l0 or more per week in
cities of 100,000 to 500,000 population, or receiving $27..0 or more
per week in cities of 25,000"to 100,000 population, or receiving $25.00
or more per week in cities, towns, villages, and other plIces under
25,000 population, may work in excess of the maximnilu periods of
labor prescribed in Section 1 of this Article. In the South, execu-
tives paid not less than ten (10) percent below the wage- so specified
may work in excess of such maximum periods.
(d) Peak pe-riod.,.-At harvest, inventory, and other peak times,
for a period not to exceed two (2) weeks in the first six (6) months
of the calendar year and not. to exceed three (3) weeks in the second
six (6) months, an employee whose basic workweek is forty (40)
hours may work not more than forty-eight (48) hours per week and
nine (9) hours per day; an employee whose basic workweek is forty-
four (44) hours may work not more than fifty-two (52) hours per
week and nine and one half (9) hours per day; an employee whose
basic workweek is forty-eight (48) hours may work not more than
fifty-six (56) hours per week and ten (10) hours per day. All such
work may be without the payment of overtime.
SEC. 5. In case of crop failure or the destruction of crops by hail,
black rust, or pests, such as boll weevil, He.sian fly, grasshoppers,
corn borer, chinch bugs and the like, creating an abnormal demand
for equipment. for replanting or reseeding to other crops, any em-
ployee may be permitted to work more than eight (8) hours per day
:'t the regular daily rate of pay.
SEC. 6. Notwithstanding the provisions- of the foregoing sections of
tnls Article, and regardless of the number of persons otherwise per-
mitted to work unrestricted hours, the total number of workers in
,ny establishment (whether such workers are executives, proprietors
partners, persons not receiving monetary wages, or others) who shall
be permitted to work unrestricted hours shall not exceed the following
ratio: In establishments comprised of twenty (20) workers or less
tLe total number of workers who may work unrestricted hours (not
including those workers specified in Section 4 (a) of this Article)
shall not exceed one worker for every five (5) workers or fraction
,i)ereof; in establishments comprised of more than twenty (20)
workers the total number of workers who may work unrestricted
hturs (not including those workers specified in Section 4 (a) of this
Article) shall not exceed one worker for every five (5) workers for
tie first twenty (20) workers, and shall not exceed one worker for
every eight (S) workers above twenty (20).
SEC. 7. Hours of work to be con.-w ut'l'.-The hours worked by
any employee during each day shall be consecutive, provided that an
interval not longer than one hour may be allowed for each regular
meal period, and such interval not counted as part of the employee's
working time. Any rest period which may be given employees shall
not be deducted from such employee's working tuie.
SEC. 8. Extra irorkil'nT hour on one day a ereck.-On one day each
week employees may work one extra hour, but such hour is to be
included within the maximum hours permitted each week.
ArrriL E VI-WAGES
SECTION 1. Beavs s8hbcedid' of w'ages.-On and after the effective
date of this Code. the minimum weekly rates of wages which shall
be paid for a work week as specified in Article V-whether such
wages are calculated upon an hourly, weekly, monthly, commission,
or any other ba-is-sh;ll, except as hereinafter provided, be as
(a) Within cities of over 500,000 population, no employee shall
be paid less than at the rate of $14.00 per week for a forty (40) hour
work week, or less than at the rate of $14.50 per week for a forty-
four (44) hour work week, or less than at the rate of $15.00 per week
for a forty-eight (48) hour work week.
(b) Within cities of from PI10,000 to 500,000 population, no em-
ployee shall be paid less than at the rate of $13.00 per week for a
torty (40) hour workweek, or less than at the rate of $13.50 per
week for a forty-four (44) hour workweek, or less than at the rate
of $14.00 per week for a forty-eight (48) hour workweek.
(c) Within cities of from 25.000 to 100.000 population, no employee
shall be paid less than at the rate of $12.00 per week for. a forty
(40) hour workweek, or less than at the rate of $12.50 per week
for a forty-four (44) hour workweek, or le-s than at the rate of
$13.00 per week for a forty-eight (48) hour workweek.
(d) Within cities, towns, villages of from 2,500 to 25,000 popula-
tion the wages of all classes of employees shall be increased from
the rates existing on June 1, 1933, by not less than twenty (20)
percent, provided that this shall not require an increase in wages
to more than the rate of $11.00 per week and provided further that
no employee shall be paid less than at the rate of $10.00 per week.
(e) Within towns, villages, and other places with less than 2,500
population. the wages of all classes of employees shall be increased
from the rates existing on June 1, 1933, by not less than twenty (20)
percent, provided that this shall not require an increase in wages to
more than the rate of $10.00 per week; subject, however, to the
President's Executive Order of October 23, 1933, relating to the em-
ployment of five persons or less in towns of 2,500 population or less,
which is attached hereto and made a part hereof as Schedule A.
The minimum wages paid to professional persons, outside sales-
men, outside collectors, watchmen, field and repair service men, and
maintenance and outside service employees shall be upon the basis
of the basic employee workweek upon which the establishment by
which they are employed has elected to operate.
The minimum wages of any employee not included in the forego-
ing paragraphs and not specifically excepted hereinafter shall be
upon the basis. of a forty (40) hour workweek.
A person whose earning capacity is limited because of age or
physical or mental handicap may be employed on light work at a
wage below the minimum established by this Code if the employer
obtains from the State Authority designated by the United States
Department of Labor a certificate authorizing his employment at
such wages and for such hours as shall be stated in the certificate.
Each employer shall file with the (ode Authority a list of all such
persons employed by him.
SEC. 2. Juniors and apprcntices.-Junior and apprentice employees
may be paid at the rate of $1.00 less per week than the minimum
wage otherwise applicable; it is provided, however, that no em-
ployee shall be classified both as a junior and as an apprentice
employee, and it is further provided that the number of employees
classified as junior and as apprentice employees, combined, shall not
exceed a ratio of one such employee to every five employees or frac-
tion thereof up to twenty (20), and one such employee to every ten
(10) employees above twenty (20).
SEC. 3. Soutlicrn. wage diffe:retaifa.-In the South, within cities
of over 25,(-)0 population, the minimum wages prescribed in the
foregoing sections may be at the rate of $1.00 less per week; within
cities, towns, and villages of from 2,500 to 25,000 population the
wages of all classes of employees shall be increased from the rates
existing on June 1, 1933, by not less than twenty (20) percent, pro-
vided that this shall not require an increase in wages to more than
the rate of $10.00 per week, and provided further that no employee
shall be paid less than at the rate of $9.00 per week except as pro-
vided in Section 2 of this Article; within cities, towns, villages,
and other places under 2,500 population the wages of all classes of
employees shall be increased from the rates existing on June 1, 1933,
by not less than twenty (20) percent, provided that this shall not
require an increase in wages to more than the rate of $9.00 per week.
SEC. 4. Part-time ,mploy.ycs.-Part-time employees shall be paid
not less than at an hourly rate proportionate to the rates prescribed
in the foregoing sections of this Article.
SEc. 5. Weekly wages above minimum not to be riv- tiv-l.-The
weekly wages of all classes of employees rec-eiving more than the
minimum wages prescribed in this Article shall not be reduced from
the rates existing upon July 15, 1933. notwithstanding any reduction
in the number of working hours of such employees.
ARTILE VII-GEN ERAL LABOR PRnCOISI.N S
SECTION 1. Collective baradin;ig.-(a) Employees shall have the
Iight to organize and bargain collectively through representatives
of their own choosing, and shall be free from the interference, re-
straint, or coercion of employers of labor, or their agents, in the
designation of such representatives or in self-organization or in other
concerted activities for the purpose of collective bargaining or other
mutual aid or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to
refrain from joining, 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 Administrator.
SEC. 2. Child labor.-On and after the effective date of this Code,
no person under the age of sixteen (16) years shall be employed,
except that persons fourteen (14) and fifteen (15) years of age may
be employed either-
(a) for a period not to exceed three (3) hours per day during six
(6) days in any one week, or
b) for one day per week, such day not to exceed eight (8) hours.
In either case, all such hours of work shall be between 7 a.m. and
'7 p.m. and shall not conflict with the employee's hours of day school.
It is provided, however, that no person under the age of sixteen (16)
years shall be employed in delivering merchandise from motor
SEC. 3. No provision of this Code shall supersede any law within
any State which makes more stringent requirements on employers as
to hours of work, wages, or age of employees than are imposed by
SEC. 4. Each employer shall post in conspicuous places, accessible to
employees, full copies of this Code.
SEc. 5. Employers engaged only locally in the trade (and not
in a business in or affecting interstate commerce) who do not employ
more than five persons and who are located in towns of less than 2,500
population which are not in the immediate area of a city or town
of larger population than 2,500 shall not be subject to the operation
of Articles V and VI and Sections 2 and 4 of this Article VII.
ARTICLE VIII-TRADE PRACTICES
The following practices constitute unfair methods of competition
for the members of the retail fnrm equipment trade and are pro-
(a) Price cutting.-No member of the trade shall sell any product
in the Trade at a price below his own individual cost. However, any
member may meet the price competition of any one whose costs under
this code provision are lower. Cost is defined as the wholesale in-
voice price, plus transportation cost, plus overhead. Overhead
shall include all elements of expense (including servicing) which
are involved in the conduct of the business as may be determined
by an accounting method to be proposed by the Code Authority and
approved by the Administrator.
Nothing in this Section (a), Article VIII, shall apply to the sale
of merchandise which is obsolete, damaged, or the sale of which is
being discontinued by said dealer, provided same are labelled, ad-
vertised, or offered for sale as such, but no discontinued merchandise
shall be sold below cost if a new dealer has offered to buy the same
under Section (d) of this Article.
(b) Advcrtising.-The making or causing or knowingly permit-
ting to be made or published any false, materially inaccurate, or
deceptive statements by way of advertising or otherwise, whether
concerning the grade, quantity, quality, substance, character, nature,
origin, size, finish, or preparation, of any merchandise offered for
sale by the trade, or the credit terms, values, policies, or service of
any member of the trade or otherwise, having the tendency or capac-
ity to mislead customers or prospective customers.
(c) Interference with contractual rclations.-~Wilfully inducing
or attempting to induce the breach of existing contracts between com-
petitors and their customers by any false or deceptive means what-
soever, or interfering with or obstructing the performance of any
such contractual relations or services by any such means, with the
purpose and effect of unduly hampering, injuring, or embarrassing
(d) Transfer of dealer agency coantracts.-To accept from the
manufacturer the transfer of a dealer agency contract without
offering to purchase from the former agent his marketable stock of
that line of merchandise at replacement prices of identical goods pro-
vided, however, that there shall be no such obligation to offer to
purchase from a dealer who has violated the provisions of his
contract with the manufacturer, or has voluntarily discontinued
contractual relations with such manufacturer.
(e) Secret rebates.-The secret payment or allowances of rebates,
refunds, commissions, or credits, or discounts, whether in the form of
money or otherwise, or the secret extension to any purchaser of
privileges or services not extended to all purchasers under like terms
(f) Prison-made goods.-Pending the formation of a compact or
code between the several states and the United States to insure the-
manufacture and sale of prison-made goods on a fair competitive
basis with goods not so produced, the following provisions of this
code shall be stayed for a period of ninety days, but not thereafter:
(1) To protect free labor against the competition of products pro-
duced in penal, charitable, or reformatory institutions or by the
inmates thereof, it is hereby declared to be an unfair act of comnpeti-
tion and a violation of this code to sell, offer for sale, or deliver
prison made products at prices lower than that at which similar
goods made by free labor can be sold under the provisions of this
(2)) Nothing herein shall be construed to supersede or interfere
with the operation of the Act of Congress approved January 19,
1929, being Public No. 669 of the 70th Congress and entitled "An
Act to Divest Goods, Wares, and Merchandise Manufactured. Pro-
duced, or Mined by Convicts or Prisoners of their Interstate Char-
acter in Certain Cases ", which Act is known as the Hawes-Cooper
Act. or the provisions of any state legislation enacted thereunder
or effective upon the effective (late of said Hawes-Cooper Act, the
said effective date being January 19. 1934.
(g) Trade-ins.-Selling trade-in merchandise or livestock below
the price allowed thereon by the inember of the trade plus the cost,
if any, of reconditioning such merchandise; provided, however, that
such sale price upon trade-in merchandise or livestock remaining
unsold at. the end of the first year after it was traded in may be re-
duced not to exceed 25 percent of the price allowed thereon, (plus
cost, if any, of reconditioning); provided, further, that trade-in
merchandise or livestock remaining unsold at the end of the second
year after it was traded in may be sold without restriction.
(h) Other unfair practices.-Nothing in this code shall limit the
effect of any adjudication by the courts or holding by the Federal
Trade Commission on complaint, finding and order that any practice
or method is unfair provided that such adjudication or holding is not
inconsistent with any provision of the Act or of this Code.
No provision of this code shall be so applied as to permit monopo-
lies or monopolistic practices or to eliminate, oppress, or discrimi-
nate against small enterprises.
It shall be the policy of this trade to coordinate the administration
of this code with such codes, if any, as may be adopted by any sub-
divisions of this trade or related trade, with a view of providing
joint and harmonious action on all matters of common interest.
Violations of this Code or any subdivision thereof, or the violation
of any approved rules issued thereunder or of any agreement entered
into under this Code, or the violation through any false statement
or report made to the President or the Code Authority by any person
subject thereto shall, after determination thereof by the Administra-
tor, constitute an unfair method of competition and the offender shall
be subject to the penalties provided by law.
(a) This code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with the provi-
sions of subsection (b) of Section 10 of the National Industrial
Recovery Act, from time to time to cancel or modify any order,
approval, license, rule, or regulation issued under Title I of said Act
and specifically, but without limitation, to the right of the President
to cancel or modify his approval of this code or any conditions
imposed by him upon his approval thereof.
(b) This code, except as to provisions required by the Act, may be
modified on the basis of experience or changes in circumstances, such
modification to be based upon application to the Administrator and
such notice of hearing as he shall specify, and to become effective on
ARTICLE XIII-PRIcE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made impossible of consummation if prices of goods and
service increase as rapidly as wages, it is recognized that price in-
creases should be delayed and that, when made, the same should, so
far as reasonably possible, be limited to actual increases in the seller's
ARTICLE XIV-EFFECTIVE DATE
This code and amendments thereto shall be in effect beginning the
third Monday after approval thereof by the Administrator, and
shall apply to all members of the trade, excepting that those mem-
bers of the trade located in towns of less than 2,500 population are
permitted labor exemptions only as provided in Section 5, Article
Approved Code No. 197.
Registry No. 1303-07.
In order to effectuate the policy of title I of the National Industrial Re-
covery Act, approved June 16, 1933, and to provide for equitable enforcement
of agreements heretofore made with the President and codes approved by
the President under said act, I, Franklin D. Roosevelt, President of the United
States, pursuant to the authority vested in me by title I of said National
Industrial Recovery Act, hereby prescribe the following rules andl regulations
which shall have the effect of modifying any inconsistent provisions of any
order, approval, rule or regulation heretofore issued under title I of said act.
1. The provisions of the President's reemployment agreement, issued July 21,
1933, shall not be held to apply to employers engaged only locally in retail trade
or in local service industries (and not in a business in or affecting interstate
commerce) who do not employ more th:n five persons and who are located in
towns of less than 2,500 population (according to the 1930 Federal census)
which are not in the immediate trade area of a city of larger population, except
so far as such employers who have signed the President's reemployment agree-
ment desire to continue to comply with the terms of said agreement after the
date of this order; and this release of such r(mployers who have heretofore signed
the President's reemplly,,,ment agreement shall be further extended so as to
release to the same extent all such employers of obligations not voluntarily
assumed under the provisions of a code of fair competition approved by the Presi-
dent. This exemption is intended to relieve small business enterprises in small
towns from fixed obligations which might impose exceptional hardship, but it
is expected that all such entcllris.-s will conform to the fullest extent possible
with the requirements which would be otherwise obligatory upon them.
2. In view of general increases in prices which may or may not be justified
in specific instances by increased costs caused by compliance with the Presi-
dent's reemployment agreement, or with approved codes of fair competition, the
Administrator for Industrial Recovery is hereby directed to cause to be con-
ducted such investigations as may be necessary to determine the extent to
which manufacturers and producers have increased prices following, or in
anticipation of, the approval of codes of fair competition, or after the signing
of the President's reemployment agreement, and to set up adequate organiza-
tions for the handling of complaints against such price increases and of local
complaints against retail price increases alleged to be contrary to the require-
ments of codes of fair competition, or the President's reemployment agreement,
or in conflict with the policy of the National Industrial Recovery Act.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE,
October 23, 1983.
UNIVERSITY OF FLORIDA
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