Citation
Amendment to code of fair competition for the dress manufacturing industry as approved on April 10, 1934

Material Information

Title:
Amendment to code of fair competition for the dress manufacturing industry as approved on April 10, 1934
Portion of title:
Dress manufacturing industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
6 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Dressmaking -- United States ( lcsh )
Clothing trade -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 228-01."
General Note:
"Approved Code No. 64--Amendment No. 1."

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
005024457 ( ALEPH )
63654256 ( OCLC )

Downloads

This item has the following downloads:


Full Text




Approved Code No. 64-Amendment No. I Registry No. 228-01


NATIONAL RECOVERY ADMINISTRATION




AMENDMENT TO

CODE OF FAIR COMPETITION

FOR THE


DRESS MANUFACTURING

INDUSTRY


AS APPROVED ON APRIL 10, 1934


WE DO OUR PART


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


Fr ale b intendent of Docments, Washin n D.C. -Prie 5 ent
For sale by the Saperintendent of Documents. Washington, D.C. - Price 5 cents


Approved Code No. 64-Amendment No. I


Registry No. 228-01


I .


I' /


























This publication is for sale by the :uperinteident ot Documents, Government
Printing Office, Washington, D.(.., and by di-trict 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.
Bustou, Mass.: 1801 Customhouse.
Buffalo, N.Y.: Chamber of Cummeice Building.
Charleston, S.C.: Chbmber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Ciomerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Inl.: 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. 64-Amendment No. 1


AMENDMENT TO CODE OF FAIR COMPETITION
FOR THE

DRESS MANUFACTURING INDUSTRY

As Approved on April 10, 1934


ORDER

AMENDMENT TO THE CODE OF FAIR COMPETITION FOR THE DRESS
M1ANUFACTU-RING 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 amendments
to a Code of Fair Competition for the Dress Manufacturing Indus-
try, and hearings having been duly held thereon and the annexed
report on said amendments, 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 find that amendments and the Code as con-
stituted after being amended comply in all respects with the perti-
nent provisions and will promote the policy and purposes of said
Title of said Act, and do hereby order that except as hereinafter
provided said amendments be and they are hereby approved, and
that the previous approval of said Code is hereby modified to
include an approval of said Code in its entirety as amended; it is
FURTHER ORDERED that except as herein expressly specified,
the approval of said amendments shall constitute a supplement to
and not a repeal of existing provisions in the Code;
IT IS FURTHER ORDERED that said amendments shall be-
come effective as part of the Code ten (10) days after the date
hereof.
HUGH S. JOHNSON,
Administrator for Industrial Recovery.
Approval recommended:
SOL. A. ROSENBLATT,
Division Administrator.
APRIL 10, 1934.
52119----48-54----84 11













REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SiR: The Public Hearing on an amendment to the Code of Fair
Competition for the Dress Industry as proposed by the Code Au-
thority for this Industry was conducted on Monday, March 26, 1934,
in Room 2062, Department of Commerce Building, Washington, D.C.
Each person who requested an appearance was fairly heard in
public in accordance with the usual requirements. Present were au-
thorized representatives of the Code Authority for this Industry,
representatives of the National Retail Dry Goods Association, and
representative members o(f the Industry.
The propo-als of modifications to amend Article IX of the Dress
Code, approved October P31, 1933, were the subject of conferences be-
tween the Code Authority and representatives of the Retailers Pro-
tective Asociation of the N.R.D.G.A. and the Chairman of the Mer-
chandise Managers' Group of this Association, at which agreement
was reached respecting the substance of the several modifications
proposed.
The Deputy Administrator in his final report to me on said amend-
ment to said Code having found has herein set forth and on the basis
of all the proceedings in this matter:
I find that:
(a) The amendment to said Code and the Code as amended are
well designed to promote the policies and purposes of Title I of the
National Industrial Recovery Act including the removal of obstruc-
tions to the free flow of interstate and foreign commerce which tend
to diminish the amount thereof, and will provide for the general wel-
fare 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
sanction and supervision, by eliminating unfair competitive prac-
tices, by promoting the fullest possible utilization of the present
productive capacity of industries, by avoiding undue restriction of
production (except as may be temporarily required), by increasing
the consumption of industrial and agricultural products through
increasing purchasing power, by reducing and relieving unemploy-
ment, by improving standards of labor, and by otherwise rehabili-
tating industry.
(b) The Code as amended complies in all respects with the perti-
nent provisions of said Title of said Act, including without limita-
tion Subsection (a) of Section 3, Subsection (a) of Section 7, and
Subsection (b) of Section 10 thereof.
(c) The Code empowers the Code Authority to present the afore-
said amendment on behalf of the industry as a whole.
(d) The amendment and the Code as amended are not designed to
and will not permit monopolies or monopolistic practices.







3

(e) The amendment and the Code as amended are not designed to
and will not eliminate or ate to discrininate a gain.tt tlhcei.
(f) Those enig:;gedt in otlier st--.ps of the economic process have not
been deprived of the right to 1Ie hear 1 prior to approval of said
amendment.
For these reasons, these trade practice provisions have been
approved.
Respectfully,
HIU c S. .JOHNSON,
Adm is trator.
APRIL 10, 11934.













AMENDMENT TO CODE OF FAIR COMPETITION FOR
THE DRESS MANUFACTURING INDUSTRY

I. The following is substituted for the first, paragraph of Article
IX of the Code:
For all purposes of this Code the provisions hereinafter set forth
shall constitute unfair trade practices. Any member of the Industry
who shall directly, or indirectly through any officer, employee, agent,
or representative, knowingly use, employ, or permit to be employed
or be engaged in any of such unfair trade practices, shall be guilty
of violation of the Code and be subject to the penalties provided in
the Act."
II. The following is substituted for Section 1 of Article IX and
is designated as Section 1:
1. No member of the Industry shall accept returned merchandise
for credit under any circumstances except, in accordance with the
following:
"(a) Members of the industry may accept merchandise for credit
which has been shipped by a customer within five working days from
the date of receipt by the customer in his store, only for the follow-
ing reasons: errors in shipment, delay in delivery, defective material
or workmanship or any breach of contract. Members of the indus-
try shall not accept merchandise for credit unless accompanied by a
letter or regular return form mailed by the customer to the manu-
facturer and received by the manufacturer prior to the arrival of
the merchandise stating the contents of the package, reason for the
return and the date on which the merchandise was received. Any
dispute shall be subject to arbitration in accordance with procedure
agreed upon by the Dress Code Authority and the National Retail
Code Authority.
"(b) Members of the Industry may accept merchandise for credit
which has been shipped by the customer after five working days
from the date of receipt by the customer in his store, only for the
following reasons: defective material or workmanship or breach of
contract which cannot be detected by a reasonable inspection within
the stated five working days. Members of the Industry shall not
accept merchandise for credit shipped after the stated five working
days unless accompanied by a letter or regular return form in dupli-
cate, mailed by the customer, one copy to the manufacturer and one
copy to the Dress Code Authority at 1440 Broadway, New York,
New York, or such other place as shall be designated by the Code
Authority, and received by the manufacturer prior to the arrival
of the merchandise, stating the contents of the package, the reason
for the return and the date the merchandise was received.
"(c) Merchandise returned after the stated five days period in
areas designated by the Code Authority shall be held, Intact or un-
opened by the manufacturer, subject to examination by an impartial
representative of the Dress Code Authority who shall direct the









acceptance by the manufacturer or the return of the merchandise
to the customer. Any appeal from the decision of the impartial
representative shall be subject to arbitration in accordance with
procedure agreed upon by the Code Authority of the Dress Industry
and the National Retail Code Authority.
III. The following is sulbtituted for Section 2 of Article IX of
the Code and is designated as Section 2:
2. The articles of the Fair Trade Practices now or hereafter con-
tained in this Code Ishall constitute uniform conditions of sale of
the Industry, and it -lsall be an unfair trade practice for any one
engaged in the Industry to sell in violation of any of such trade
practice regulations."
IV. The following is substituted for Section 4 of the Code and
designated as Sectioi 4:
4. It shall be unfair trade practice to sell goods on open order
subject to consignment or by any other method which has the effect
of selling on consignment or memorandum or guaranteeing retail
turnover."
V. Section 5 of Article IX continues to be designated as Section
5, but it is modified to read as follows:
5. It shall be unfair trade practice to make, accept or demand
allowances, or refunds, rebates, donations, gifts, credits or unearned
discounts, (whether in the form of money or otherwise) and/or
special privileges or services not openly extended to all on like terms
and conditions."
VI. The following provision is inserted as Section 8 of Article IX
of the Code:
8. No member of the trade shall falsely advertise, (whether by
printing, radio, display, or by any other form) or falsely brand,
mark or pack any goods, in any manner which is misleading. Nor
shall any member of the Industry in any way misrepresent any goods
(including, but without limitation, their use, trademark, quality,
quantity, origin size, finish, material or serviceability) or credit
terms, values, policies, services or the nature or form of the business
conducted."
VII. The following provision is inserted as Section 9 of Article
IX of the Code:
"9. It shall be unfair trade practice to approach or entice the
employees of designing and selling departments of competitors with
the intent of hampering, injuring, and 'or embarrassing such com-
petitors in the conduct of their business; to secure confidential in-
formation concerning the business of a competitor by a false or
misleading statement or representation, by a false impersonation of
one in authority, bribery, or by any other unfair method."
VIII. The following provision is inserted as Section 10 of
Article IX of the Code:
10. It shall be unfair trade practice to make loans or give
gratuities, or special commissions or rewards to employees of jobbers,
retailers, resident or commission buyers."
IX. The following provision is inserted as Section 11 of Article
IX of the Code:
"11. It shall be unfair trade practice for those members of the
Dress Industry, normally selling to the trade for resale, to sell
merchandise to anyone except to recognized wholesale or retail dis-




Z99 Z9V8O Z9 C

VGOlO7" dO AIlS3AINnI
tributors. This shall not prevent, however, bona fide sales by mem-
bers to their own employees of merchandise which is for the personal
use of such employees, or to retail buyers at not less than the regular
wholesale prices, provided the buyers are employed in the department
in which the merchandise of the member of the industry is usually
sold."
X. The following provision is inserted as Section 12 of Article IX
of the Code:
12. All members of the Industry shall sell merchandise on the
shipping terms of f.o.b. city of manufacture which includes free
deliver to any shipping or forwarding point or store within the city
in which the manufacturer is located. In cases of disputed claims
on returned merchandise, transportation charges shall be paid by
whichever disputant loses the decision."
XI. The following provision is inserted as Section 13 of Article IX
of the Code:
13. No member of the Industry shall sell merchandise except
under contract which shall provide:
(a) that no purchase order for merchandise shall be subject to
cancellation BEFORE the specified and agreed upon shipping date
written on said order;
(b) that no purchase order shall be subject to cancellation AFTER
the agreed upon shipping date unless cancellation is in writing, and it
permits the manufacturer three additional working days from the
date of receipt of such cancellation, to complete and ship any and
all merchandise in work at that time;
(c) that if no notice of cancellation is received by the manufac-
turer from the customer, all merchandise remaining on order shall
be cancelled by the manufacturer two (2) weeks after the expiration
date of order.
XII. The following provision is inserted as Section 14 of Article
IX of the Code:
14. No member of the Industry, shall accept and execute any
order for merchandise which is placed by resident buyers unless
such order shall be a bona fide order for the sale and purchase of
said merchandise. No member of the Industry shall accept orders
from a resident buyer unless said resident buyer submits written
authorization that he is the agent of the customer and able to bind
his principal. Printed announcements in a trade paper shall con-
stitute public notice to this Industry of the change in the resident
buying office of a retailer."
XIII. The following provision is inserted as Section 15 of Article
IX of the Code:
15. It shall be unfair trade practice for any member of the In-
dustry to give advertising allowance to any customer or customer's
agent."
XIV. The following provision is inserted as Section 16 of Article
IX of the Code:
16. It shall be unfair trade practice for members to accept
charges for telegrams or long distance telephone messages from cus-
tomers with reference to the purchase or sale of goods."
Approved Code No. 64-Amendment No. 1. :;r
Registry No. 228-01.
0 :.. ..:




Full Text

PAGE 1

Approved Code No. 64-Amendrnent No. 1 Registry No. 228-01 NATIONAL RECOVERY ADMINISTRATION AMENDMENT TO CODE OF FAIR COMPETITION FOR THE DRESS MANUFACTURING INDUSTRY AS APPROVED ON APRIL 10, 1934 WE DO OUR PJ.Rl' UNITED ST ATES GOY.ERNMENT PRINTING OFFICE WASHINGTON: 1934 For sale by the Superintendent of Documents, Washintton, D.C. Price 5 cents

PAGE 2

This publication is for sale by the Superiut e nd e nt of Do c uments, Gov ernme nt Printing Offi c e, Washington, D.C., and by dhtri c t offi c es of th e Burea u 0f Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPAR TME NT OF COMMERCE Atl ama , Ga. : 504 Post Office Buil ding. Birmin gham, Ala.: 257 F edera l Bu!lui ng. B ostou, Mass . : 1801 C u sto mh ouse. . Buff alo , N.Y.: Ch a mber of C o mmerce Built.ling. Charleston, S.C.: Chamber of Commerce Building. Chic ago, Ill.: Suite 1706, 201 Nortll Wells Street. Cleveland, Ohi o : Chamber o f C o mm erc e. Dallas , Tex. : Chambe r of C o mm er 'e Building. Detr oi t, Mich.: 80 1 First National Ba nk B uil d ing. H o uston , Tex.: Cl1amber o f C om merce Build i n g . Indian apo lis, Incl. : Chamber of Commerce Building. Jack sonv ille, Fla.: Cba.mber of Commerce Buildi11g. Kans as City, l\Io.: 1028 Baltimore A ,enue. Los Angeles, Calif.: 1163 S o uth Broadway. Louisvill e, K}. : 408 Federal Building. Mem phis, Tenn. : 229 Federal Building. Minne apolis, Minn.: 213 Federal Building. New Orleans, La.: Room 225-A, Customhouse. New Y ork, N.Y.: 734 Customhouse. Norfolk , Va.: 406 East Plume Street. Phil adelp hi a, Pa.: 422 Commerc i a l Trust Building. Pittsbu rg h, P a .: Chamber of C omm er ce Building. Portland, Or eg .: 215 New Post Offi c e Building . St. L ou is , Mo. : 506 Olive Street. San Fr a n c i sc o , Calif.: 310 Customhouse. Seattle, Wash.: 809 Federal Office Building.

PAGE 3

Approved Code No. 64-Amendment No. 1 AMENDMENT TO CODE OF FAIR COMPETITION FOR THE DRESS MANUFACTURING INDUSTRY As Approved on April 10, 1934 ORDER AMENDMENT TO THE CODE OF FAIR COMPETITION FOR TlIB DRESS MANUFACTURING INDU TRY An application having been duly made pursuant to and in full compliance with the provisions of Title I 0 the National Industrial Recovery Act, approved June 16, 1933, or approval of amendments to a Code 0 Fair Competition or the Dress Manufacturing Indns try, and hearings having been duly held thereon and the annexed report on said amendments, containing findings with respect thereto, having been made and directed to the President: No,v, THEREFORE, on behalf of the President 0 the United States, I, Hugh S. Johnson, Administrator or. Industrial Recovery, pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise , do hereby incorporate, by reference, said annexed report and do find that amendments and the Code as con stituted after being amended comply in all respects with the perti nent provisions and will promote the policy and purposes 0 said Title 0 said Act, and do hereby order that except as hereinafter provided said amendments be and they are hereby approved, and that the previous approval of said Code is hereby modified to include an approval 0 aid Code in its entirety as amended; it is FURTHER ORDERED that except as herein expressly specified, the approval of said amendments shall constitute a s upplement to and not a repeal of exi ting provi ions in the Code ; IT IS FURTHER ORDERED that said amendments shall be come effective as part 0 the Code ten (10) days after the date hereof. HUGHS. JOHNSON, Ad1ni11istrator fer Industrial Re cover y. Approval recommended: SoL. A. RosENBLA TT Division Adm , inistrator. APRIL 10, 1934. 62119-482-54-34 (1)

PAGE 4

REPORT TO THE PRESIDENT Th e PRE S IDE N T, Th e vVh i t e Ho us e. Sm: The Publ ic H ea ring on an amendment to the Code of Fair C o m pet i t i o n for th e D res s Industry as prop o sed by the Code Au tho r i ty for t hi s Indu s try was conducted on l\1onday, March 26, 19 3 4, in Room 2 0 6 2 , D e partm e nt of Commerce Building , vVa s hingt o n, D.C. E ac h pe r so n w h o re qu e sted an appe a rance wa s fairly heard in public in acc ord ance with the usu a l r e quirem e nts. Pre s ent were au th o ri ze d re pr ese n ta t iYes o f the Code Authorit y for this Industry, r e p rese n tat iY es o f the N a t ional Retail Dr y Goods A ss ociation, and rep rese nt a tiv e m e mb e r s o f the Industry. Th e pr opo a l s of m o difications to amen d Article IX of the Dress C o d e , appr o v e d October 31, 1933, W re the subje c t of conferences be twe e n th e C o de Authority and repre s entative s of the Retailers Pro tective A sso ciati o n of th e N.R.D.G.A. and the Chairman of the Mer chandis e l\I a nager s ' Group of this As s ociation, at which agreement wa s rached respecting the substance of the several modifications proposed. The Deputy Administrator in his final report to me on said amend ment to said Code having found has herein set forth and on the basis of all the proceedings in this matter: I find that: . (a) The amendment to said Code and the Code as amended are well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act including the removal of obstruc tions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof, and will provide for the general wel fare 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 sanction and s upervision, by eliminating unfair competitive prac tices, by promoting the fullest possible utilization of the present productive capacity of industries, by avoiding undue restriction of production ( except as may be temporarily required), by increasing the consumption of industrial and agricultural l?roducts through increasing purcha s ing power, by reducing and relieving unemploy ment, by iJ.nproving s tandards of labor, and by otherwise rehabili tating indu s try. (b) The Code as amended complies in all respects with the perti nent provi ions of said Title of said Act, including without limita tion Sub e ction (a) of Section 3, Sub ection (a) of Section 7, and Sub ection (b) of Section 10 thereof. ( c) The Code empowers the Code Authority to present the aforesaid am e ndm e nt on behalf of the indu s try as a whole. .... (d) Th e a m e ndm e nt and the Code as amended are not deigned to and will n o t permit monopolies or monopoli ti c practic e s. (2)

PAGE 5

3 ( e) The amendment and the Code as amended are not designed to and will not eliminate or oppre s mall enterprises and will not oper ate to discriminate again t 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 amendment. For the e r a on , the-::e tra le practice provisions have been approved. Respe tfully, APnrL 10, 193-!. IIUGH s. JOHNSON, Administrator.

PAGE 6

Al\fEND1'1ENT TO CODE OF FAIR COlVIPETITION FOR THE DRESS MANUFACTURING INDUSTRY I. The following is substituted for the first paragraph of Article IX of the Code: "For all purposes of this Code the provisions hereinafter set forth shall constitute unfair trade practices. Any member of the Industry who shall directly, or indirectly through any officer, employee, agent, or representative, knowingly use, employ, or permit to be employed or be engaged in any of such unfair trade practices, shall be guilty of violation of the Code and be subject to the penalties provided in the Act." II. The following is substituted for Section 1 of Article IX and is designated as Section 1: " 1. No member of the Industry shall accept returned merchandise for credit under any circumstances except in accordance with the following: "(a) 1\!Iembers of the industry may accept merchandise for credit which has been shipped by a customer within five working days from the date of receipt by the customer in his store, only for the follow ing reasons: errors in shipment, delay in delivery, defective material or l,orkmanship or any breach of contract. Members of the indus try shall not accept merchandise for credit unless accompanied by a letter or regular return form mailed by the customer to the m,anu facturer and received by the manufacturer prior to the arrival of the merchandise stating the contents of the package, reason for the return and the date on which the merchandise was received. Any dispute shall be subject to arbitration in accordance with procedure agreed upon by the Dress Code Authority and the National Retail Code Authority. "(b) Members of the Industry may accept merchandise for credit which has been shipped by the customer after five working days from the date of receipt 'by the customer in his store, only for the following reasons: defective material or workmanship or breach of contract which cannot be detected by a reasonable inspection within the stated fiye working days. 1'1embers of the Industry shall not accept merchandise for credit shipped after the stated five working days unless accompanied by a letter or regular return form in dupli cate, mailed by the customer, one copy to the manufacturer and one copy to the Dress Code Authority at 1440 Broadway, New York, New York, or such other place as shall be designated by the Code Authority, and received by the manufacturer prior to the arrival of the merchandise, stating the contents of the package, the reason for the return and the date the merchandise was received. " ( c) 1'1erchandise returned after the stated five days period in areas designated by the Code Authority shall be held, intact or un opened by the manufacturer, subject to examination by an impartial r e pre entative of the Dress Code Authority who shall direct the (4)

PAGE 7

5 acceptance by the manufacturer or the return of the merchandise to th e customer. Any appeal from the decision of the impartial repr ese ntative shall b e subject to arbitration in accordance with procedure agreed upon by the Code Authority of the Dress Industry and the National R etai l Code Authorjty." III. The follo\Tin g is substit u ted for Section 2 of Article IX of the Code and is designated as Section 2: "2 . The articles of the Fair Trade Practices now or hereafter con tained in this Code s hall constitute uniform co nditions of sale of the Industry, and it ~hall be an unfair trade practice for any one engaged in the Industry to se ll in violation of any of such trade practice regulation s ." IV. The following is s ub st ituted for Sect ion 4 of the Code and desi gnate d as S e ction 4: " 4. It shall be unf air tr.ade pra ctice to ell goods on open order subject to consignment or by a11y other method which has the effect of selling on con s ignm ent or memorandum or guaranteeing retail turnover." V. Section 5 of Article IX continues to be de s ignated as Section 5, but it is modified to r ea d as follow s : "5. It shall be unfair trade practice to make, accept or demand allowan ces , or refunds, r e bates, donations, gifts, credits or unearned discounts, (whether in the form of money or otherwise) and/or special privileges or services not openly extended to all on like terms and conditions." VI. The following pro vi "ion is in se rt ed as Section 8 of Article IX of the Code: "8. No member oi the trade shall falsely advertise, (whether by printing, radio, display, or by any other form) or falsely brand, mark or pack any goods, in any manner which is misleading. Nor shall any member of the Industry in any way misrepresent any goods (including, but without limitation, their u se, trademark, quality, quantity, origin size, finish, material or serviceability) or credit terms, Yalues, policies, serv i ces or the nature or form of the business conducted." VII. The following provision is in serted as Section 9 of Article IX of the Code: "9. It shall be unfair trade practice to approach or entice the employees of designing and sell ing departments of competitors with the intent of hampering, injuring, and/or embarrassing such com petitors in the conduct of their business; to secure confidential in formation concerning the business of a competitor by a false or misleading statement or representation, by a false impersonation of one in authority, bribery or by any other unfair method." VIII. The following provision is inserted as Section 10 of Article IX of the Code : ' 10. It shall be unfair trade practice to make loans or give gratuities, or special commissions or rewards to emp loyees of jobbers, retailers, resident or commission buyers." IX. The following provision is inserted as Section 11 0 Article IX of the Code : "11. It shall be unfair trade practice for tho e member of the Dre Industry, normally selling to the trade for resale, to sell merchandise to anyone except to recognized wholesale or retail dis

PAGE 8

6 ZZ98 Z8t80 zgz~ t I I \I l l \I l l 11 1 1 1 111 1 I l l 1111 1 II 1 1 1 111 I I 111 1 111 1 11 I ll I l l 111111 II I I I 'v'Ol~Ol:l :J O ,UIS ~3 i\1Nn tributors. This s hall not prevent, however, bona fide sales by mem be r s to th e ir own e mployees of m e rchandise which is for the personal u se of s u c h e mplo yees , or to retail buyers at not le s s than the regular wh ol esa l e pri c e s , provid e d the bu ye r s are employed in the department i n w hi c h th e m e r c handi s e of th e memb e r of the industry is u s ually s o l d . ' X. Th e f o llowing provi s ion is in se rted as S e ction 12 of Article IX of t h e Code: " 1 2 . All m e mber s of th e Indu s try s hall sell mer c handise on the s hippin g term s of f.o.b. city of manufacture which include s frne d e liv e r to any s hipping or forwarding point or store within the city in ,,hi c h the manuf a ctur e r is located. In cases of disputed claims o n r e turn e d m e r c handi s e, transportation charges shall be paid by whi c he v er di s putant loses the decision . " XI. The following provision is in s erted a s Section 13 of Article IX of th e Code: "13. No member of the Indu s try shall sell merchandise except under c ontr a ct whi c h s hall provide: ( a) that no pur c ha s e order for merchandise shall be subject to canc e llation BEFORE the s pecified and agreed upon shipping date written on s aid order; (b) that no purcha s e order shall be subject to cancellation AFTER the agr e ed upon shipping date unless cancellation is in writing, and i t p e rmit s the manufacturer three additional working days from the date of receipt of such cancellation, to complete and ship any and all merchandis e in work at that time; ( c ) that if no notice of cancellation is received by the manufac turer from the customer, all merchandise remaining on order shall be c an ce lled by th e manufacturer two (2) weeks after the expiration date of order. XII. Th e following provi s ion is inserted as Section 14 of Article IX of the Code: . " 14. No member of the Industry, shall accept and execute any ord e r for merchandise which is placed by resident buyers unless su c h orde r s hall be a bona fide order for the sale and purchase of said m e r c handise. No member of the Industry shall accept orders from a r es ident buyer unless said resident buyer submits written authoriz a tion that he i s the agent of the customer and able to bind hi s p r incipal. Printed announcements in a trade paper s . hall con s titute public notice to this Industry of the change in the re s ident buying office of a retailer." XIII. Th e following provision is inserted as S e ction 15 of Article IX of the Code : " 15. It s hall be unfair trade practice for any member of the In du s try to give adverti s ing allowance to any customer or customer's ag e nt." XIV. Th e following provision is inserted as Section 16 of Article IX of the C ode : " 16. It s hall be unfair trade practice for members to accept charge s for t e l eg ram s or long distance telephone messages from cus tom e r s with r e feren c e to the purchase or sale of goods . " Appr o ved Code N o . 64-Amendment No. 1 . R e gistry No. 228-01. 0