Citation
Supplementary code of fair competition for the automotive shop equipment manufacturing industry (a product group of the automotive parts and equipment manufacturing industry) as approved on November 30, 1934

Material Information

Title:
Supplementary code of fair competition for the automotive shop equipment manufacturing industry (a product group of the automotive parts and equipment manufacturing industry) as approved on November 30, 1934
Portion of title:
Automotive shop equipment manufacturing industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
U.S. Government Printing Office
Publication Date:
Language:
English
Physical Description:
12 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Automobile repair shops -- Equipment and supplies ( lcsh )
Automobile supplies industry -- United States ( lcsh )
Genre:
federal government publication ( marcgt )
non-fiction ( marcgt )

Notes

Additional Physical Form:
Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 1404-55."
General Note:
"Approved Code No. 105--Supplement No. 7."

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:
004938109 ( ALEPH )
649452715 ( OCLC )

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Full Text






NATIONAL RECOVERY ADMINISTRATION



SUPPLEMENTARY
CODE OF FAIR COMPETITION

FOR THE

AUTOMOTIVE SHOP

EQUIPMENT MANUFACTURING

INDUSTRY


(A Product Group of the Automotive Parts and
Equipment Manufacturing Industry)


AS APPROVED ON NOVEMBER 30, 1934










U.S

WE Dp OUR PART
r .




--- .UED.. STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1934


For sale by the Superintendent cr DJcurmenls. Washingion. D. C. - Price 5 cents


Approved Code No. 105-Supplement No. 7


Registry No. 1404-55
























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.
Buoton, Mass.: 1801 Customhouse.
Buffalo, N. Y.: ;Chamber of Commerce Building.
(Charleton, S. C.: Chamber of Commerce Building.
Chic;go, Ill.: Suite 1706, 201 North Wells Street.
Cleveland. Ohio: Chamlber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: S01 First National Batk Building.
IHouston, 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 Suth Bro;d\way.
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.: 506t Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.












Approved Code No. 105-Supplement No. 7


SUPPLEMENTARY CODE OF FAIR COMPETITION
FOR THE

AUTOMOTIVE SHOP EQUIPMENT
MANUFACTURING INDUSTRY

As Approved on November 30, 1934


ORDER

APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE
AUTOMOTIVE SHOP EQUIPMENT MANUFACTURING INDUSTRY

A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT MANUFAC-
TURING 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 Supple-
mentary Code of Fair Competition for the Automotive Shop Equip-
ment Manufacturing Industry, a Product Group of the Automotive
Parts and Equipment Manuifacturing Industry, and hearings having
been duly held thereon and the anmexe,1 report on said Supplemen-
tary Code, containing findings with re:-pct. thereto, having been
nmde and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including Ex-
ecutive Order No. GS59, and otherwise, does hereby incorporate by
reference said annexed report and does find that said Supplementary
Code complies in all respects with the pertinent provisions and will
promote the policy and purposes of said Title of said Act; and does
hereby order that said Supplementary Code of Fair Competition be
and it is hereby approved.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HA Ru'IMAN, Administrative Officer.
Approval re:oncmirlended:
BARTON W. IJ UR.AY,
Division Administrator.
WASHINGTON, D. C.,
November 30, 1934.
100032 -1325-110-34 (1












REPORT TO THE PRESIDENT


The PRESIDENT,
The White House.
SIR: Thi- Supplementary Code of Fair Competition for the Auto-
motive Shop Equipment Manufacturing Industry, a Product Group
of the Automotive Parts and Equipment Manufacturing Industry,
was submitted to the Administrator on April 6, 1934, by the Code
Authority Committee of Automiotive Parts and Equipment Manu-
facturing Indu.-try. r'epre.- ending approximately 75:. of the total vol-
ume of sales and TlIu i of the members of the Industry.
The Hearing wa. conducted in Washington on June 27, 1934,
and the Supplementary Code was revised October 24, 1934, and is
submitted in its present form for approval. Every person who re-
quested an appearance was properly heard in accordance with t.he
statutory and regulatory requirements.
While the Product Group is nation-wide in character, it has not
experienced any increa-e in the number of establishments during
the past few years.
Article I states the purpose of the Supplementary Code.
Article II accurately defines specific terms employed in the Sup-
plementary Code. This Product Group of the Automotive Parts
and Equipment Manulfacturing Industry adopts the labor provisions
of its Basic Code as approved November S, 1933.
Article III establishe- an Administrative Committee consisting
of a memb r and an alternate elected by the members of each sub-
divition in iic i':-Urilne w:ith the voting provisions provided in the
By-Laws of A miuimotive Pirts and Equilpment Manufacturers Inc.,
and one non-v,.ting r nimber may be appointed by the National In-
duistrial Recovry IBarId. It also provides machinery for obtaining
statistics and the adiininistration of the C'ode.
Article IV sets forth the fair trade practices of this Supple-
nm:ntary Code. which have been e-pecially designed to effect fair
competition in this Prodluct groupp of the Industry.
Article V provides agai n-t monopolies and monopolistic prac-
tices and provide for the submission ,)f supplementary provisions
to this Supplenr-l'nar y Code or amendments thereof, and contains
the mandatory provisions contained in Section 10 (b) of Title I of
the Act, anil states the effective date of the Supplenientary Code
shall mean the tenth day after it has been approved.
FINDINGS
The Deputy Admini 4trator in his final report to the National
Industrial Recovevry lBo1rd on s:i id Sulppletnentary C'ode having
found as herein -et foIth and on the basis of all the proceedings in
this niatter:








The National Industrial Recovery Board finds that:
(a) Said Supplementary Code is well designed to promote the
policies and purposes 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 provide for the general welfare by promoting the organiza-
tion of industry for the purpose of cooperative action among the
trade groups, by inducing and maintaining united action of labor
and management under adequate governmental sanction and super-
vision, by eliminating unfair competitive practices, 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 unemployment, by improving
standards of labor, and by otherwise rehabilitating indu.-stry.
(b) Said Product Group normally employs not more tl an 50,000
employees; and is not classified by the National Industrial Recovery
Board as a major industry.
(c) The Supplementary Code, as approved, complies in all re-
spects with the pertinent provisions of said Title of said Act, in-
cluding without limitation Subsection (a) of Section 3, Subsection
(a) of Section 7 and Subsection (b) of Section 10 thereof; and that
the applicant Product Group is an industrial group truly representa-
tive of the aforesaid Industry; and that said Product Group imposes
no inequitable restrictions on admission to membership therein.
(d) The Supplementary Code is not designed to and will not
permit monopolies or monopolistic practices.
(e) The Supplementary Code is not designed to and will not
eliminate or oppress small enterprises and will not operate to dis-
criminate 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
Supplementary Code.
For these reasons, therefore, the National Industrial Recovery
Board has approved this Supplementary Code.
For the National Industrial Recovery Board:
W. A. CHAIRMAN
Administrative Offioer.
NOVEMBER 30, 1934.













SUPPLEMENTARY CODE OF FAIR COMPETITION FOR
THE AUTOMOTIVE SHOP EQUIPMENT MANUFAC-
TURING INDUSTRY

A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT
MANUFACTURING INDUSTRY

ARTICLE I-PURPOSE

Pursuant to the provisions of Article II of the Code of Fair Com-
petition for the Automotive Parts and Equipment Manufacturing
Industry, duly approved by the President on November 8, 1933, the
following provisions covering fair trade practices and the adminis-
tration thereof are hereby established as the standards of Fair Com-
petition for the Automotive Shop Equipment Manufacturing
Industry, which has been organized into an administrative unit as
a Product Group of the Automotive Parts and Equipment Manu-
facturing Industry, and shall be binding upon every member of said
Product Group.
ARTICLE II-DEFINITIONS

The term Product. Group as used herein is defined to mean the
production and, or manufacture of automotive machine tools and
automotive apparatus designed for anil used in the maintenance
and or repair of a motor, industrial, marine, or aircraft vehicle or
internal combustion engine and usually sold for use in recondition-
ing same, and air compressors of ten (10) horsepower and under for
every purpose, excepting electric tools, not exclusively applicable to
motor car and internal combustion engine repair and,'or recondi-
tioning, greasing equipment, automotive lifts, and automotive jacks,
excepting however, the production and.'or manufacture of such
articles when produced or manufactured by a manufacturer for use
exclusively in his own finished product, and provided always that
this definition shall not include any products hereinabove described
or parts thereof or therefor not designed for and used mainly in the
maintenance, repair and or reconditioning of automotive vehicles
and or automotive internal combustion engines and which are in-
cluded within, the scope of the definition of any other industry as
defined in iny approved Code of Fair Com petition.
The subilivi-ions of thi.s Product Group1 are defined as follows:
1. Air Comp'iress.ors of 10 horselpcewer and under and tire inflating
devices.
2. Car Washers.
3. Brake Service. Chassis Frame, and Wheel Aligning Equipment.
4. Heavy Equipment.
5. Motur Rebuilding Equipment.
(4)








The term Member or Member of the Product Group as used
herein includes, but without limitation, any individual, partnership,
association, corporation, or other form of enterprise engaged in the
production and/or manufacture and/or assembly and/or the sale as
a manufacturer of the products of the Product Group (hereinafter
termed "Products"), either as an employer or on his or its own
behalf.
The term Group is defined to mean the Automotive Shop Equip-
ment Manufacturing Group, a "Product Group as herein defined,
at present having its headquarters' office in Detroit, Michigan.
The term "Basic Code" as used herein is defined to mean the
Code of Fair Competition for the Automotive Parts and Equipment
Manufacturing Industry, as approved by the President on November
8, 1933, and as amended.
The term Code Authority as used herein is defined to mean
the Code Authority designated in the Code of Fair Competition for
the Automotive Parts and Equipment Manufacturing Industry.

ARTICLE III-ADMINISTRATION

(1) The Administrative Committee of the Group shall consist of:
(a) A member and an alternate elected by the members of each
subdivision who shall be elected at the annual meeting of the Group
in accordance with the voting provisions provided in the by-laws of
Automotive Parts and Equipment Manufacturers, Inc. In the
absence of the member, the alternate shall have full voting powers.
(b) In addition to the imember-.hip as above provided, there may
be one additional member, without vote, to be appointed by the Na-
tional Industrial Recovery Board, to serve without expense to the
Product Group for such term as the National Industrial Recovery
Board may specify.
(2) The Ad, inistrrative Committee of the Group is hereby desig-
nated to assist. the Code Authority and the National Industrial Re-
covery Board in the administration of the fair tra,]e pra't'ce pro-
visiolln hereinafter set forth and the provisions of the Basic Code,
to which these fair trade practices are a supplement.
(3) (a) It being found necessary, in order to support the admin-
istration of this Supplementary Code and to maintain the standards
of fair competition established hereunder and to effectuate the policy
of the Act, the Administrative Committee is authorized:
1. To incur such reasonable obligations as are necessary and proper
for the foregoing piirpot-es and to meet, such obligations out of funds
which may be raised as hereinafter provided and which shall be held
in trust for the purposes of this Supplemlnntary Code;
2. To submit to the National In lustrinil Recoverv Board for its
approval, subject to such notice and opportunity to be heard as it
may deem necessary, (a) an itemized budget of its estiiiailt'l- expenses
for the foregoing purpo-es, and (b) an equitable basis upon which
the funds necessary to support such budget shall be contributed by
members of the Product Group;
3. After such budget and basis of contribution have been approved
by the National Industrial Recovery Board, to determine and obtain
equitable contribution as above set forth by all members of the Prod-








uct Group, and to that end, if necessary, to institute legal proceed-
ings therefore in its own name.
(b) Each member of the Product Group shall pay his or its
equitable contribution to the expenses of the maintenance of the
Administrative Committee, determined as hereinabove provided, and
subject to rules and regulations pertaining thereto issued by the
National Industrial Recovery Board. Only members of the Product
Group complying with this Supplementary Code and contributing to
the expenses of its administration as hereinabove provided, unless
duly exempted from making such contribution, shall be entitled to
participate in the selection of members of the Administrative Com-
mittee or to receive the benefits of any of its voluntary activities or
to make use of any emblem or insignia of the National Recovery
Administration.
(c) The Administrative Committee shall neither incur nor pay
any obligation substantially in excess of the amount thereof as
estimated in its approved budget, and shall in no event exceed the
total amount contained in the approved budget., except. upon approval
of the National Industrial Recovery Board; and no subsequent bud-
get shall contain any deficiency item for expenditures in excess of
prior budget estimates except those which the National Industrial
Recovery Board shall have so approved.
(4) (a) The Administrative Committee shall, subject to the ap-
proval of the Code Authority and the National Industrial Recov-
ery Board, have the power to adopt by-laws and rules and regula-
tions for its procedure and to obtain from members, through an
impartial agency, such information and reports as are required for
the administration and enforcement of this Supplementary Code;
to cooperate with the National Industrial Recovery Board under
such rules and regulations as may be prescribed by it in regulating
the use of any N. R. A. insignia, and in hearing and adjusting com-
plaints; to initiate, crnn-ider, and recommend to the Code Authority
for transmittal to the National Industrial Recovery Board further
fair trade practice provisions to govern the members of this Product
Group.
(b) If the National Industrial Recovery Board shall determine
that any action of the Code Authority and/or the Administrative
Committee or any agency thereof may be unfair or unjust or con-
trary to the public interest, the National Industrial Recovery Board
may require that such action be suspended to afford an opportunity
for investigation of the merits of such action and further considera-
tion by such Code Authority and/or the Administrative Committee
or agency thereof pending final action, which shall not be effective
unless the National Industrial Recovery Board approves or unless
it shall fail to disapprove after thirty days' notice to it of intention
to proceeds with such action in its original or modified form.
(c) Each trade or industrial association directly or indirectly par-
ticilpating in the selection or activities of the Administrative Com-
mittee shall (1) impose no inequitable restrictions on membership,
and (2) submit to the National Industrial Recovery Board true
copies of its articles of association, by-laws, regulations, and any
amendments when made thereto, together with such other informa-
tion as to membership, organization, and activities as the National








Industrial Recovery Board may deem necessary to effectuate the pur-
poses of the Act.
(d) In order that the Administrative Committee shall at all times
be truly representative of the Product Group and in other respects
comply with the provisions of the Act, the National Industrial Re-
covery Board may prescribe such hearings as it may deem proper;
and thereafter if it shall find that the Admini-trative Committee
is not truly representative or does not in other respects comply with
the provisions of the Act, may require an appropriate modification
in the method of selection of the Administrative Committee.
(5) All members of this Product Group shall be bound by the
provisions of the Basic Code. For this purpose, all provisions of
the Basic Code, are hereby declared to be a part of this Supple-
menta ry Code. In case of any conflict between the provisions of this
Supplementary Code and the provisions of the Basic Code, the pro-
visions of the latter shall govern. As required by Section 7 (a) of
Title I of the National Industrial Recovery Act, Subsections (1),
(2) and (3) are specifically incorporated herein by reference, and
made a part hereof, with the same effect as if written herein, as the
wage, hour and labor provision, of this Supplementary Code.
(6) The Administrative Committee shall cause- to be formulated
methods of cost finding and accounting capable of use by all mem-
bers of the Product Group, and shall submit such methods to the
National Industrial Recovery Board for review. If approved by
the National Industrial Recovery Board, full information concern-
ing such methods shall be made available to all members of the
Product Group. Thereafter, each member of the Product Group
shall utilize such methods to the extent found practicable. Nothing
herein contained shall be construed to permit the Administrative
Committee, any agent thereof, or any member of the Product Group
to suggest uniform additions, percentages or differentials or other
uniform items of cost which are designed to bring about arbitrary
uniformity of costs or prices.
(7) The Administrative Committee shall be empowered to obtain
from members of the Industry such information and reports as are
required for the administration of the Code. In addition to infor-
mation required to be submitted to the Code Authority, members of
the Industry subject to this Code shall furnish such statistical infor-
mation as the National Industrial Recovery Board may deem neces-
sary for the purposes recited in Section 3 (a) of the Act, to such
Federal and State agencies as it may designate; provided that noth-
ing in this Code shall relieve any member of the Industry of any
existing obligations to furnish reports to any Government agency.
No individual report shall be disclosed to any other member of the
Industry or any other party, except to such other Governmental
agencies as may be directed by the National Industrial Recovery
Board.
ARTICLE IV-TRADE PRACTICES

In addition to the provisions of Section C of Article VI of the
Basic Code, the following described acts shall constitute unfair prac-
tices and acts of unfair competition:








(1) Costs and Price Cutting.-(a) Wilfully destructive price cut-
ting is an unfair method of competition and is forbidden. Any
member of the Product Group or of any other industry or the cus-
tomers of either may at any time complain to the Aaministrative
Committee that any tiled and or offered price constitutes unfair com-
petition as destructive price cutting, imperiling small enterprises or
tending toward monopoly or the impairment of code wages and
working conditions. The Administrative Committee shall within
five (5) days afford an opportunity to the member filing and,'or
offering the price to answer such complaint and shall within fourteen
(14) days make a ruling or adjustment thereon. If such ruling is
not concurred in by either party to the complaint, all papers shall
be referred to the Research and Planning Division of N. R. A. which
shall render a report and recommendation thereon to the National
Industrial Recovery Board.
(b) When no declared emergency exists as to any given product,
there is to be no fixed minimum basis for prices. It is intended
that sound cost estimating methods should be used and that con-
sideration should be given to costs in the determination of pricing
policies.
(c) When an emergency exists as to any given product, sale below
the stated minimum price of such product, in violation of the pro-
visions of paragraphs (d) and (e) hereof, is forbidden.
(d) If the National Industrial Recovery Board, after investiga-
tion shall at any time find both (1) that an emergency has arisen
within the Product Group adversely affecting small enterprises or
wages or labor conditions, or tending toward monopoly or other
acute conditions which tend to defeat the purposes of the Act; and
(2) that the determination of the stated minimum price for a speci-
fied product of the Product Group for a limited period is necessary
to mitigate the conditions constituting such emergency and to effectu-
ate the purposes of the Act, the Administrative Committee may cause
an impartial agency to investigate costs and to recommend to the
National Ind ut rial :Recovery Board a determination of the stated min-
imum price of the product affected by the emergency and thereupon
the National Industrial Recovery Board may proceed to determine
such stated minimum price.
(e) When the National Industrial Recovery Board shall have
determined such stated minimum price for a specified product for a
stated period, which price hall be reasonably calculated to mitigate
the conditions of such emergency and to effectuate the purposes of
the National Industrial Recovery Act, it shall publish such price.
Thereafter, during such stated peiodl, no nmirn-.lei of the Proluct
Group shall sell such specified products at a net realized price below
said stated minimum price and any such sale shall be deemed de-
structive price cutting. From time to time, the Admlinistrative Com-
mittee may recommend review or reconsideration or the National
Industrial Recovery Board may cause any determination hereunder
to be reviewed or reconsidered and appropriate action taken.
(2) Co r mf:rc;al BriT'ery.-To give, permit to ble given, or directly
offer to give, anything of value for tlie purpose? of influencing ,r
rewarding the action of any employee, agent or representative of
another in relation to.the business of the employer of such employee,








the principal of such agent or the represented party, without the
knowledge of such employer, principal or party. Commercial bribery
provisions shall not be construed to prohibit free and general distri-
bution of articles commonly used for advertising except so far as
such articles are actually used for commercial bribery as herein
defined.
(3) Inducing Brca.ch of Contracts.-To wilfully induce or attempt
to induce the breach of existing contracts between competitors or
their customers by any false or deceptive means, or interfere with or
obstruct the performance of any such contractual duties or services
by any such means, with the purpose and effect of hampering, injur-
ing or embarrassing competitors in their business.
(4) Ina-ccu.rate Labeling.-To list, brand, mark, or pack any prod-
ucts of the Product Group in any manner which is intended to or
does deceive or mislead purchasers in some material particular, or
the failure to brand such products for the purpose or with the effect
of misleading or deceiving purchasers in some material particular,
with respect to such products (including but without limitation their
brand, grade, quality, quantity, origin, size, substance, character,
nature, finish, material, content, or preparation).
(5) Inacc-urate Advert-ing.-To publish advertising (whether
printed, radio, display, or of any other nature), which is misleading
or inaccurate in any material particular, or in any material way to
misrepresent any products (including but without limitation their
use, trade-mark, grade, quality, quantity, origini, size, substance,
character, nature, finish, material, content, or preparation) or credit
terms, values, policies, services, or the nature or form of the business
conducted.
(6) Approval Selling.-To sell and/or ship the products of this
Product Group on approval.
(7) Replacing Competitor's Stockls.-To liquidate, purchase, or
accept another member's product from any buyer.
(8) Catalog Pages.-To supply catalog pages to customers in
excess of their normal requirements for their own salesmen and their
inside organization, unless a charge representing the cost of such
excess quantities is made to the customer.
(9) Guarantee of Products.-To sell the products of this Product
Group under any other Guarantee of Product than the following:
"The manufacturer guarantees all parts of the product shipped
under this agreement, for the period of time stated in his standard
price sheet, against defective material or workmanship (but not
against damage caused by accident, abu-e, or faulty installation)
when the product is installed in accordance with the manufacturer's
specifications, and will repair or replace free of charge (f. o. b. fac-
tory) all such defective parts if returned to the factory charges
prepaid, and if the defect is proven, transportation charges will be
paid both ways."
(10) Advert .ing and Promotional Schevwn ..-To patronize,
through allowances or otherwise, advertising or promotional schemes
in any form except where the payments therefore are for specific
promotion performances which are possible, practicable and capable
of being audited. Arranr-gements for any such services shall be in
agreements entirely separate and distinct from sales agreements






10

between a member and his customer, and shall definitely specify ex-
actly how much shall be paid (in money or credit, goods or services)
for such promotional services, exactly what services shall be rendered
and the method which will be employed in auditing the performance
of such services.
(11) Co.signments.-(a) To ship stocks of the products of this
Product Group to distributors, contractors, manufacturers' agents,
and/or others except samples to member's salesmen, on consignment
or under the Floating Credit or Ledger Balance" plan. All ex-
isting agreements regarding such shipments shall be terminated
within sixty (60) days from the date of approval of this Supple-
mentary Code, with the exception of existing contracts which, by
their terms, cannot be terminated by that date, and copies of such
contracts shall be filed with the Administrative Committee.
(b) To deliver air compressor or car washer demonstrating sam-
ples from sample account to any customer.
(c) To ship merchandise without an order or without the approval
or the knowledge of the reseller under the guise of its being supplied
as a sample to be examined.
(12) Price Guaranty.-To guarantee the products of this Product
Group against advance or decline in price.
(13) Returwnd Products.-Obsolescence-To accept for credit the
return of products of this Product Group no longer appearing in a
member's current price list.. Group products still appearing in a
member's current price list may be so accepted, provided a charge is
made covering full transportation both ways, a reasonable handling
charge, a reasonable reconditioning charge, plus a minimum of at
least a double covering order, and provided permission is granted by
the member to have such products returned.
(14) Classification of Customers.-The Code Authority shall
cause to be formulated and keep current a classification of all types
of customers of the Industry. Such classification shall be subject to
the disapproval of the National Industrial Recovery Board and shall
contain: (a) A complete list of all of the classes of customers of the
Industry, including a class to cover every known type of customer;
and (b) definitions or descriptions of the several classes in terms of
functions performed, or in other appropriate terms such as purchas-
ers of defined quantities.
After submission to the National Industrial Recovery Board, if
there is no disapproval or request for suspension of action' within
twenty (20) days, full information concerning the classification
shall be made available to all members of the Industry. No one shall
by intimidation, coercion, or other undue influence cause or at-
tempt to cause the inclusion of any customer in or the exclusion of
any customer from any class of customers, or the exclusion of any
class of customers from the classification, or the use of uniform or
stipulated prices, discount, or differentials and each member of the
Industry may at all times classify his own customers in accordance
with his own judgment.
(15) Open Price Filing.-(a) Each member of the Product Group
shall file with a confidential and disinterested agent of the Admin-
istrative Committee or, if none, then with such an agent designated








by the National Industrial Recovery Board, identified lists of all
of his prices, discounts, rebates, allowances, and all other terms or
conditions of sale, hereinafter in this Section (15) referred to as
"price terms ", which lists shall completely and accurately conform
to and represent the individual pricing practices of said member.
Such lists shall contain the price terms for all such standard products
of the Product Group as are sold or offered for sale by said member
and for such nonstandard products of said member as shall be desig-
nated by the Administrative Committee. Said price terms shall in
the first instance be filed within fifteen (15) days after the date of
approval of this provision. Price terms and revised price terms
shall become effective immediately upon receipt thereof by said
agent. Immediately upon receipt thereof, said agent shall by tele-
graph or other equally prompt means notify said member of the
time of such receipt. Such lists and revisions, together with the
effective time thereof, shall upon receipt be immediately and simul-
taneously distributed to all members of the Product Group and to
all of their customers who have applied therefore and have offered
to defray the cost actually incurred by the Administrative Com-
mittee in the preparation and distribution thereof and be available
for inspection by any of their customers at the office of such agent.
Such lists or revisions or any part thereof shall not be made available-
to any person until released to all members of the Product Group and
their customers, as aforesaid; provided, that prices filed in the first
instance shall not be released until the expiration of the aforesaid 15
day period after the approval of this Supplementary Code. The
Administrative Conmmittee shall maintain a permanent file of all
price terms filed as herein provided, and shall not destroy any part of
such records except. upon written consent of the National Industrial
Recovery Board. Upon request the Administrative Committee shall
furnish t.o the National Industrial Recovery Board or any duly des-
ignated agent of the National Industrial Recovery Board copies of
any such lists or revisions of price terms.
(b) When any member of the Product Group has filed any re-
vision, such member shall not file a higher price within forty-eight
(48) hours.
(c) No member of the Product Group shall sell or offer to sell any
products of the Product Grolup for which price terms have been filed
pursuant to the provisions of this Section (15), except in accordance
with such price terms.
(d) No member of the Product Group shall enter into any agree-
ment, understanding, combination or conspiracy to fix or maintain
price terms nor cause or attempt to cause any member of the Product
Group to change his price terms by the use of intimidation, coercion,
or any other influence inconsistent with the inaintena;Ice of the free
and open market which it is the purpose of this Section (15) to
create.
(16) Terms of Sale.-Term.s of sale shall not be more favorable
than thirty (30) days net, 2% tenth proximo. The Ad1ministrative
Committee shall proceed to establi-h, after a survey of the practices
now in existence in the various subdivisions of this group, and sub-
ject to the approval of the Code Authority and the National Indus-






12

trial Recovery Board, a plan for deferred payment sales and, when
established, no more favorable terms than provided in this plan shall
be allowed by any member of the respective subdivisions.
(17) Lump Sum Bidding.-To submit bids on any other than a
unit price basis whenever lump sum bids are made on Product Group
products.
(18) Export Trade.-Except as may be subsequently set forth in
a specific or supplementary export supplement for this Product
Group, fhe provisions of this Supplementary Code now or hereafter
adopted with regard to prices, discounts, deductions, allowances, ex-
tras, commissions, or methods and, or terms of sale, are not to apply
to direct export sales or to sales in course of export. (i. e., sales
destined ultimately for export) or to sales of products used in the
manufacture of products for export. Export Trade shall be as
defined in the Export Trade Act adopted April 10, 1918.

ARTICLE V-GENERAL
(1) No provision of this Supplementary Code shall be so applied
as to permit monopolies or monopolistic practices, or to eliminate,
oppress, or discriminate against small enterprises.
(2) Such of the provisions of this Supplementary Code as are not
required to be included herein by the Act may, with the approval of
the National Industrial Recovery Board, be amended or eliminated
upon proposal by the Product Group or any member thereof if it
appear that the public needs are not being served thereby and as
changes in circumstances or experience may indicate.
(3) It is contemplated that from time to time supplementary pro-
visions of this Supplementary Code or amendments thereof will,
after approval by the Product Group and/or the subdivisions there-
of, be submitted by the Administrative Committee through the Code
Authority for approval to prevent unfair competition in price and
other unfair and destructive competitive practices and to effectuate
the purposes of the Act. Upon approval by the National Industrial
Recovery Board after such notice and hearing as it may prescribe,
such supplementary provisions or amendments shall become binding
as a part of this Supplementary Code.
(4) As required by Section 10 (b) of Title I of the National In-
dustrial Recovery Act, this Supplementary Code and all of the pro-
visions thereof are expressly made subject to the right of the Presi-
dent from time to time to cancel or modify any order, approval,
license, rule, or regulation issued under said Act.
(5) By assenting to this Supplementary Code no member of this
Product Group shall be held to have waived any of his cn.,titutional
rights.
(6) Violation by any member of this Product Group of any pro-
visions of this Suppl!iiimtntary Code is an act of unfair competition,
and the offender shall be subject to the penalties imposed by the Act.
(7) The "Effective Date" of this Supplementary Code shall be
the 10th day after it shall have been approved.
Alqir;\'ed Code No. 10f-S.upplehnmnt No. 7.
Registry No. 1404-55.







UNIVERSITY OF FLORIDA
II 3 2III 62 IIAIII lllllll11114
3 1262 08584 3398




Full Text

PAGE 1

Approved Code No. 105 -Supplernent No. 7 Registry No. 140 4-55 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENT ARY CODE OF FAIR COM PETITION FOR THE AUTOMOTIVE SHOP EQUIPMENT MANUFACTURING INDUSTRY (A Product Group of the Automotive Parts and Equipment Manufacturing Industry) AS APPROVED ON NOVEMBER 30, 1934 WE DO OUR PART f " I I 0-= u .. U~D STATES GOVERNMENT PRINTING OFFICE W A SHINGTO N : 1934 For s ale b y the Sup erintendent cf Dacaments, \Vashington. D. C . -------Price 5 cents V

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This publication is for sale b y the Superintendent of Documents, Government Printing Office, Washington, D. C., and by district office s of the Bureau of F o reign and Domestic C ommerce . DISTRICT OFFICES OF THE DEP ARTMEN'f OF COMMERCE Atlanta, Ga.: 50 4 Post Office Building. Birmingh a m , Ala. : 257 F e d e r a l Building. Boston, Mass.: 1 8 01 C u s t omhous e. Buffa l o , N. Y. : C11nmbe r of Commerc e Building. C harleston, S. C . : Chambe r o f Commerce Building. Chicngo, Ill.: Suite 17 0 6 , 201 N orth Wells Street. Cle v eland, Ohio : Chambe r o f Comme r c e. Dallas, T e x . : C h a m ber of Comme r ce Building . D etro i t , l\1ich.: 8 01 Firs t National B ank Building. Houston, T e x. : Chamber of C ommerce Building. India n a p olis, Ind. : Chamber of Commerce Building. Jack s on ville, Fla.: C h a mber of Commerce Building. Kansa. C ity, Mo.: 102 8 B altimore Avenue. Los .Angel e s, C alif. : 11 63 South Broadway. L ouisville, Ky. : 4 0 8 F e d eral Building. M emphis , T enn. : 228 F e d eral Building. Minneapolis, Minn. : 213 F e d e r a l Building. New Orleans, La.: R oom 225-.A, Cus t omhouse. N e w Y ork, N. Y.: 7 34 C u stomho u s e. N o r fol k, Va. : 40 G Eas t Plume Stree t. Phila d e l phia, Pa. : 4 22 Commercial Trust Building. Pittsburg h, Pa.: Chambe r of C omme r ce Building. Portland, Oreg.: 215 N e w P os t Office Building. St. L ouis, Mo.: 5 0 6 Olive Street. San Fran cisco, C alif. : 310 Customhouse. Seattle, Wash.: 809 Federal Office Building.

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Approved Code No. 105-Supplement No. 7 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE AUTOMOTIVE SH-OP EQUIPMENT lVIANUFACTURING INDUSTRY As Approved on November 30, 1934 ORDER APPROVING SuPPLEMENTARY ConE OF FAIR Col\IPETITION FOR THE AUTOMOTIVE SHOP EQUIPMENT MANUFACTURING INDUSTTIY A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT 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 Supplementary Code of Fair Competition for the Automo tive Shop Equipment Manufacturing Industry, a Product Group of the Automotive Parts and Equipment Manufacturing Industry, and hearings having been duly held thereon and the annexed report on said Supplementary Code, containing findings with respect thereto, having been made and directed to the President: NOvV, TI-IEREFORE, on behalf of the President o f the United States, the National Industria l R ecovery Board pursuant to authority vested in it by Executive Orders of the President, including Executiv , e Order No. 6859, and othe rwise, does hereby incorporate by reference said annexed r eport and does find that said Supplementary Code complies in all r espec ts with the pertinent provisions and will promote the policy and purposes of said Title of said Act; and does hereby order that said Supplementary Code of Fair Competition be and it is he reby approved. NATIONAL INDUSTRI AL RECOVERY BoARD, By "\V. A. HARRIMAN, Adniinistratvve Officer. Approval recommended: BAnToN ,V. J\1uRRAY, Division Administrator. "\VASHIXGTON, D. c., No1•ernber 30, 1934. 100032-1325-110-34 (1)

PAGE 4

REPORT TO THE PRESIDENT The PREsmENT, The 11 hite Hou se . Srn: This Supplementary Code of Fair Competition .for the Auto m otive Shop Equipment ~1anufacturing Industry, a Product Group of the Automotive Parts and Equipment ~1anufacturing Industry, was submitted to the Administrator on April 6, 1934 , b y the Code Authority Committee of Automotive Parts and Equipmen t Manufacturing Industry, representing approxjmately 75% of the total volume of sa les and 70% of the members o f the Ind u stry. The Hearing wa conducted in Washington on June 27, 1934, and the Supple mentary Code was revi e d O c tob e r 24, 1934, and i s submitte d in its present form for approval. Every p e r s on who re quested an appearance was properly heard i n accordance with the statutory and r egulatory r e quirem ents . vVhil e the Pro luct Group is nation-wide in character, it has not experience 1 any i ncrease in the n umbe r o f e,stablishments during the past few years . Article I state the purpose of the Supplementary Code . Article II accurately defines specific terms emp l oyed i n the Supplementary Code. This Produc t Group of the Automotive Parts and Equipment Manufacturing Industry adopts the l abo r provi sions of its Basic Code as approved November 8, 1933. Article III establishe,s an Administrative Committee consi sting of a membe1 and an alternate e lected by the members of each s ub division in accordance with the Yoting provis ions pro vided in the B y-Laws of Automo tiv e Part s and Equipment :Manufacturers Inc., and one non-voting member may be appointed by the National Industrial Recove r y Board. It a l s o provides machinery for obtaining statistics and t h e admini t ration of the Code. Article IV set s fort h the fair trade practice.s of this Supple m entary Code, which h ave bee n especi ally de signe d to effect fair competition in this P r oduc t Group of the Industry. Articl e V provides _against monopolie s and mono p olistic prac tice and provides fo r the submiss i o n o f supplementary prov i s ion to thi Supplementary Code or amendmen t.s thereo f , and contain the mandatory provisions contained in Section 10 (b) of Title I o f the Act and tates the effective date of t h e Supplementary Code shall mean the tenth day after i t h as been approved. FINDI GS The D eputy A lministrator in his fin a l r eport to the National Industrial RecoYery Board on said Suppl<'mentary Co le baYi n g f oun d as here i n set forth an 1 on the basis of all the proceeding in this matter : (2)

PAGE 5

3 The National Industrial Recovery Board finds that: (a) Said Supplementary Code is -n-ell de ignecl to promote the policies and purpo es of Title I of the ational Industrial Recovery Act including removal of ob tructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof, and will provide for the general welfare by promoting the organiza tion of industry for the purpo e of cooperative action among the trade groups, by indu"ing and maintaining united action of labor and management unde r adequate governmental sanction and supervision, by eliminating unfair competitive practice , by promoting the fullest po sible utilization of the present productive capacity of industrie , by avoiding undue r e triction of production ( except as may be temporarily required), by increa ing the consumption of industrial and agricultural products through increa ing purchasing power, by reducing and relieving unemployment by improving standard of labor, and by otherwi e rehabilitating industry. (b) Said Product Group normally employ not more than 50,000 employees; and is not cla ified by the ational Industrial R ecovery Board as a major indu try. (c) The Supplementary Code, a approved, complies in all r e spects with the pertinent provi ions of aid Title of aid Act, including without limitation ubsection (a) of ection 3, Subsection (a) of Section 7 and Sub ection (b) of Section 10 thereof; and that the applicant Product Group is an industrial group truly representa tive of the aforesaid Industry; and that said Product Group imposes no inequitable restrictions on admission to memb ership therein. ( d) The Supplementary C de i not designed to and will not permit monopolies or monopoli tic practices. ( e) The Supplementary Code i not de igned to and will not eliminate or oppres mall enterprise and will not operate to discriminate again t them. (f) Those engaged in other teps of the economic process have not been deprived of the rio-ht to be heard prior to approval of said Supplementary Code. For the e reasons, therefor,e, the National Industrial Recovery Board has approved this Supplementary Code. For the National Industrial Recovery Board: NOVEMBER 30, 1934. w. A. HARRIMAN, Administrative Offioer.

PAGE 6

SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE AUTOMOTIVE SHOP EQUIPMENT MANUFACTURING INDUSTRY A PRODUCT GROUP OF THE AUTOMOTIVE P .ARTS .AND EQUIPMENT MANUF .ACTURING INDUSTRY ARTICLE I-PURPOSE Pursuant to the provisions of Article II of the Code of Fair Com petition for the Automotive Parts and Equipment Manufacturing Industry, duly approved by the President on November 8, 1933, the following provisions covering fair trade practices and the administration thereof are hereby established as the standards of Fair Competition for the Automotive Shop Equipment Manufacturing Industry, which has been organized into an administrative unit as a Product Group of the Automotive Parts and Equipment Manufacturing Industry, and shall be binding upon every member of said Product Group. ARTICLE II-DEFINITIONS The term "Product Group" as us ed herein is defined to mean the production and/or manufacture of automotive machine tools and automotive apparatus designed for and used in the maintenance and/or repair of a motor, industrial, marine, or aircraft vehicle 01 internal combustion engine and usually sold for use in reconditioning same, and air compres~ors of ten (10) horsepower and under for every purpose, excepting electric tools, not exclusively applicable to motor car and internal combustion engine repair and/or r ec ondi tioning, greasing equipment, automotive lifts, and automotive j acks, excepting however, the production and/or manufacture of suc h articles when produced or manufactured by a manufacturer for use rxclusively in his own finished product, and provided always that this definition shall not include any pro':lucts herein above de cribed or parts thereof or therefor not de igned for and used mainly in the maintenance , repair and/or reconditioning of automotive v e hicles nnd /or automotive internal combu tion engines and which are in clud e d within the scope of the definition of any other in lustry as clefined in any approved Code of Fair Competition. The subdiYi s ion of this Product Group are define 1 a follow : 1. Air Cc,mpressors of 10 hor epc.wer and under and tire inflating devices. 2. Car vVashe rs. 3 . Brake Service, Chass i Frame, and vVheel Aligning Equipment. 4. Heayy Equipment. 5. :Motor R ebuilding Equipment. (4)

PAGE 7

5 The term " Member " or " Member of the Product Group " as used herein includ es, but without limitation, any individual, partnership, association, corporation, or other form of enterprise engaged in the production and/or manufacture and/or assembly and/or the sa l e as a manufacturer of the products of the Produc t Group (hereinafte r termed "Products"), either as an mployer or on his or its own behalf. The term" Group 'is defined to m ea n the Automotive Shop Equip• ment 1\Ianufacturing Group, a ~, Product Group " a.s herein defined, at present having its h eadquarter ' office in Detroit, 1\1ichigan. The term " B asic Code " as used h0rein is defined to mean the Code of Fair Competition for the Automotive Parts and Equipment J\,fanufacturing Indu try, as approved by the President on NoYember 8, 1933, and as amended. The term "Code Authority" a u sed herein is defined to mean the Code Authority designated in the Code of Fair Competition for the Automotive Parts and Equipment J\.1anufacturing Industry. Ann CLE III-AD1\IIKIS'IRA 'IION (1) The Administrative Committee of the Group shall consi t of: (a) A member and an alternate elected by the member of each subdivision who shall be elected at the annual meeting of the Group in a cco r lance with the voting provision provided in the by-law o-f Automotive Parts and Equipmen t Manufacturers, Inc. In the absence of the member, the al ernate . hall have full voting pow e r s . (b) In addition to the m em b ership a aboYe provided there may be one additional member without Yote to be appointed by the National Indu trial R ecovery Board, to s rYe without expense to the Product Group for u ch term as the National Indu trial Recovery Board may s p ecify . (2) The Administrative Committee of the Group is h e r eby clesig• natecl to a s ist the Code Authority and the National Indnstrial Re• covery Board in the administration o f the :fair trad pra f ce provision hereinafter set forth and the provisions of the B asic Code, to which these fair trade practice are a suppl ement . (3) (a) It b eing f ound n ere ~sary, in order to snpport the aclmin i tration of this Supplementary Code and to maintain the stanclar ls of fair competition e tabli heel hereunder and to effectuate the p li cy of the Act. t h e Admini trative Committ e i authorized: 1. To incur such rerrs onable obligaticn a. are n ce::::sary ancl propP r .for the foregoing purpo ses and to meet su c h obligations out of funds which may be rai ed as hereinafter proYi led and -n-hich shall bn held in trust for the p urposes of thi Supplementary Cod e ; 2. To submit to the National Inclu trial R ecoYerY B o ur l f o r its approYal, su bject to s uch notice and opportunity to be heard a s it may deem nece sary, (a) an itemized budget of it. e ~timate d exp c n s for the foregoing purpos es, and (b) an equitable ba is upon which the funds n eces sary to support such budge t shall be contributed by memb e r of the Pro-du c t Group; 3. After s u c h budge t and b a i s of contribution have b e en approYed by the National Industria l R ecovery Board, to determine and obtain equitabl e contribution a above se t forth by all membe r s of the Prod-

PAGE 8

6 uct Group2 and to that end, if necessary, to institute legal proceed ings theretor in its own name. (b) Each member of the Product Group shall pay his or its equitable contribution to the expenses of the maintenance of the Administrative Committee, determined as h ereina bove provided, and subject to rules and regulations pertaining thereto issued by the National Industrial R ecovery Board. Only members of the Product Group complying with this Supplementary Code and contributing to the expenses of its administration as h ereinabove provided, unless duly exempted from making such contribution, shall be entitled to participate in the selection of members of the Administrative Committee or to receive the benefits of any of its voluntary activities or to make use of any emblem or ins ignia of the National Recovery AdJninistration. ( c) The Administrative Committee shall neither incur nor pay any obligation substantially in excess of the amount the reof as estimated in its approved budge t, and shall in no event exceed the total amount contained in the approved budget, except upon approval of the National Industrial Recovery Board; and no subsequent budget shall contain any deficiency item for expenditures in excess of prior budget e timates ex ept those which the National Industrial Recovery Board shall have o approved. (4) (a) The Administrative Committee shall, subject to the approval of the Code Authority and the National Industrial Recovery Board, have the power to adopt by-laws and rules and regulations for its procedure and to obtain from members, through an jmpartial agency, such information and reports as are required for the administration and enforcement of this Supplementary Code; to cooperate with the National Industrial R ecovery Board under such rules and regulations as may be prescribed by it in r egulating the u e of any N. R. A. insignia, and in hearing and adjusting complaints; to initiate, consider, and re commend to the Code Authority for transmittal to the National Industrial Recovery Board further fair trade practice provisions to govern the members of this Product Group. (b) If the National Industrial R covery Board shall determine that any action of the Code Authority and/or the A lministrative Committee or any agency thereof may be unfair or unjust or contrary to the public interest, the National Industrial Recovery Board may require that uch a"tion b e sus p ended to afford an opportunity for investigation of the merits of s u c h action and furthe r considera tion by suc h Code Authorjty and/or the Administrative Committee or agency thereof pending final action, which shall not be effect ive unles the National Indu trial Recovery Board approves or unless it shall fail to disapprove after thirty days' notice to it of intention to yroceed with suc h action in its original or modified form. ( c) Each trade or indu trial a ociation dire tly or in Erectly participating in the e le ction or activitie s of the Admini trative om mittee shall (1) impo e no inequ itable re stri tion on membership, and (2) ubmit to the National Indu trial Recovery Board true copies of its articles of a._ sociation, by-law , r egulation , and any amendments when made th reto together with such other information as to membership, organization, an l activities as the National

PAGE 9

7 Industrial Recovery Board may deem necessary to effectuate the purposes of the Act. ( d) In order that the Admini trative Committee shall at all times be truly representative of the Product Group and in other respects comply with the provisions of the Ac\ the National Industrial Re covery Board may prescribe such hearings as it n1ay deem proper; and thereafter if it shall find that the Admini trative Committee is not truly repre entative or doe not in other re spects comply with the provision of the Act, may require an appropriate modification in the method of election of the Administrative Committee. (5) All memb e r s of this Product Group hall be bound by the provi ions of the Basic Code. For this purpo e, all provi ion s of the Basic Code, are hereby declared to b e a part of this Supplementary Code. In case of any conflict between the provisions of this Supplementary Code and the provi ion of the Basic Code, the pro visions of the latter hall govern. As required by Section 7 (a) o:f Title I of the National Industrial Recovery Act, Sub ections (1), (2) and (3) are specifically incorporated herein by reference, and made a part hereof, with the ame effect as if written herein, as the wage, hour and labo r provi ion of this Supplementary Code. (6) The Admini trative Committee hall cau e to be formulated methods of cost finding and accounting capable of use by all mem bers of the Product Group and hall submit such methods to the Nati onal Industrial Recovery Board for review. I f approved by the National Indu trial Recff'i ery Board, full information concern ing such methods shall be made available to all members of the Product Group. Thereafter, ea h member of the Product Group shall util ize such methods to the extent found practicable . Nothing herein contained hall be construed to permit the Administrative Committee, any agent thereof or any member of the Product Group to suggest uniform additions, percentages or differential or other uniform items of cost which are designed to bring about arbitrary uniformity of costs or price . ( 7) The Administrative Committee hall be empowered to obtain f r om m e mbers of the Indu try uch information and reports as are required for the administration of the Code . In addition to information required to be submitted to the Code Authority, members o f the Indu try subject to this Code shall furni h uch statistical information as the National Industrial Recovery Board may dee m neces sary for the purposes recited in Sedion 3 (a) of the Act to such Federal and State agencies as it may designate; provided that nothing in this Code shall relieve any member of the Industry of any existing obligations to furni h reports to any Government agency. No individual report shall be disclosed to any other m em ber of the Industry or any other party, except to such other Governmental agencies a may be directe l by the ational Industrial Recovery Board. ARTICLE IV-TRADE PRACTICES I n aduition to the provi ions of Section C of Article VI of the Basic Code, the following described acts shall constitute unfair prac tices and acts of unfair compet i tion :

PAGE 10

8 (1) Costs and Price Outting.-(a) vVilfully destructive price cutting is an unfair method of competition and is forbidden. Any member of the Product Group or of any other industry or the cus tomers of either may at any time complain to the Administrative Committee that any filed and/or offered price constitutes unfair competition as destructiv-e price cutting, imperiling small enterprises or tending toward monopoly or the impairment of code wages and "'\Torking condition . The Administrative Committee shall TI'ithin five (5) days afford an opportunity to the member filing and/or offering the price to an wer such complaint and shall within fourteen (14) days make a ruling or adjustment thereon. If such ruling is not concurred in by either party to the complaint, all papers shall be referred to the Research and Planning Division of N . R. A. which shall rende r a report and recommendation thereon to the National Industrial Recovery Board. (b) "\Vhen no d eclare d emergency exists as to any given product, there is to be no fixed minimum basis for prices. It is intended that sound cost estimating methods should be us0d and that consideration should be given to costs in the determination of pricing policies. ( c) When an emergency exists as to any given product, sale below the stated minimum price of such product, in violation of the provisions of paragraphs ( d) and ( e) hereof, is forbidden. ( d) If the National Industrial Recovery Board, after investigation shall at any time find both (1) that an emergency has arisen within the Product Group aclversely affecting small enterprises or wages or labor conditions, or tending toward monopoly or other acute conditions which tend to defeat the purposes of the Act; and (2) that the determination of the stated minimum price for a spec i fied product of the Product Group for a limited period is necessary to mitigate the conditions constituting such emergency and to effectu ate the purposes of the Act, the Administrative Committee may cause an impartial agency to investigate costs and to recom mend to the National Indu~trial R ecovery Board a determination of the tated minimum price of the product affected by the emergency and thereupon the National Industrial R ecovery Board may proceed to determine such stated minimum price . ( e) \Vh e n the National Industrial R ecovery Board shall have determined such stated minimum price f or a spe ified product for a stated period, which price sh a ll be reasonably calculated to mitigate the condit ion s of suc h emergency and to effectuate the purpo s of the .r ational Indu. trial Recovery Act, it shall publiPh u<'h price . The r eafte r, during suc h stated per'iod no m'"'mbe1 of the Product Group hall sell such spec ifi ed products at a n t 1-ea lized pric below sa id tated minimum price and any uch ale hall be clecme(l de s tructiY e price cutting. From time to time, the Aclmini tratiY Com mittee may recommend review or recon ideration or the National Industri a l R ecovery Board may cau e any determination her un 1 r to be reviewed or reconsi lered and appropriate action taken. (2) Oomniercial Bribery.-To giv , permit to b given, or lire tly offer to oive anything of value for the purpo 2 of influencing , r r ewardina the action of any emp l oy , uoent or repre~ ntatiY e f another in rel a tion to the bnsiness of the employ r of uch emplo3 e,

PAGE 11

9 the principal of such agent or the represented party, without the knowledge of such employer, principal or p~rty. Commercial br~bery provisions sh~ll not be construed to prohibit f~~e and general distri bution of articles commonly used or advertising except so far as such articles are actually used for commercial bribery as herein defined. (3) Inducing Breach of (J_on_tracts.-To wilfully induce o r '.1ttempt to induce the breach of existing contracts between competito r s or their customer s by any false or deceptive means, or interfere with or obstruct the p erformance of any such contractual duties or services by any such means, with the purpose and effect of hampering, injuring or embarrassing competitors in their business. ( 4) Inaccur ate Lab eling.-To list, brand, mark, or pac k any prod ucts of the Product Group in any manner which is intended to or does deceive or mislead purchase r s in some material particular, o r the failure to brand such products for the purpose or with the effect of misleading or deceiving purchasers in some material particular, with respect to such products (including but without limitation their brand, grade, quali ty, quantity, origin, s ize, substance, character, nature, finish, material, content, or preparation). ( 5) I naccurate Advertising.-To publi h advertising ( whether printed, radio, display, or of any other nature), which is misleading or inaccurate in any material particular, or in any material way to misrepresent any products (including but without limitation their use, trade-mark, grade, quality, quantity, o rigin, s i ze, substance, character, nature, finish, material, content, or preparation) or credit terms. values, policies, se rvices, or the nature or form of the bu iness conducted. (6) Approval Selling.-To sell and/or ship the products of this Product Group on approval. (7) R e placin_g Competitor's Stocks.-To liquidate, purchase, or acceI?t another member's product from any buyer. (8) Catalog Pages.-To supply catalog pages to customers in excess of their normal requirements for their own salesmen and their inside organization, unless a charge representing the cost of such exce ss quantities is made to the customer. (9) Guarantee of P 1oducts.-To sell the products of this Product Group under any other Guarantee of Product than the followjng: "The manufacture r guarantees all parts of the product shipped under this agreement, for the p eriod of time stated in his standard price sheet, against defective materia l or wo rkmanship (but not agains t damage caused by accident, ab u se, or faulty installation) w11en the product is installed in accordance with the manufacturer's specifications, and wiJl repair or r eplace free of cLarge (. o. b. factory) all such defective parts if returned to the factory charges prepaid, and if the defect i s proven, transportation charges will be paid both ways . " (10) Advertising and Pr01not ional Schemes.-To patronize, through a llowan ces or otherwise, advertising or promotional schemes in any form except where the payments therefor are for s pecific promotion performances which are pos ible, practi cable and capable of b eing audite d . Arrangements for any s u ch services shall b e in agreements entirely separate and distinct from sales agreements

PAGE 12

10 between a memb~r and his customer, and shall definitely specify ex actly how much shall be paid (in money or credit, goods or services) for such promotional services, exactly what services shall be rendered and the method which will be employed in auditing the performance of such services. (11) Consignments.-(a) To ship stocks of the products of this Product Group to distributors, contractors, manufacturers' agents, and/or others except samples to member's salesmen, on consignment or under the "Floating Credit or Ledger Balance" p l an. All ex isting agreements regarding such shipments shall be terminated within sixty (60) days from the date of approval of this Supplementary Code, with the exception of existing contracts which, by their terms, cannot be terminated by that date, and copies of such contracts shall be filed with the Administrative Comm i ttee. (b) To deliver air compressor or car washer demonstrating sam ples from sample account to any customer . (c) To ship merchandise without an order or without the approval or the knowledge of the reseller under the guise of its being suppl ied as a sample to be examined. (12) Price Guaranty. -To guarantee the products of this Product Group against advance or decline in price. (13) Returne d Products.-Obsolescence -To accept for credit the return of products of this Product Group no l onger appearing in a member's current price list. Group products still appearing in a member's current price list may be so accepted , provided a charge is made covering full transportation both ways, a reasonab l e handling charge, a reasonable reconditioning charge, p l us a minimum of at least a double covering order, and provided permission is granted by the member to have such products returned. (14) Classification of Custorners.-The Code Authority shall cause to be formulated and keep current a classificat . ion of all types of customers of the Industry. Such classification shall be sub j ect to the disapproval of the National Industrial Recovery Board and shall contain: (a) A complete list of all of the classes of customers of the Industry, including a class to cover every known type of customer; and (b) definitions or de scriptions of the several classes in terms of functions performed, or in other appropriate terms such as purchasers of defined quantities. After submission to the National Industrial Recovery Board, if there is no disapproval or request for suspension of action within twenty (20) days, full information concerning the classification ~hall be made available to all memb e rs of the Industry. No one shall by intimidatio n, coercion, or other undue influence cause or attempt to cause the inclusion of any customer in or the exclusion of any customer from any class of customers, or the exclusion of any class of customers from the classification, or the use of uniform or stipulated prices, discount, or diff e r entials and each member of the Industry may at all time s classify his own customers in accordance with his own judgment. (15) Op en Price Filing.-(a) Eac h member of the Product Group shall file with a confidential and disinterested agent of the Administrative Committee or, if none, then with such an agent designated

PAGE 13

11 by the National Indu trial Recovery Board, identified lists of all of his prices, di counts, rebates, allowance , and all other t-erms or conditions of sale, hereinafter in thi Section ( 15) referred to as 'price term ", which li ts shall completely and accurately conform to and represent the individual pricing practices of said member. Such lists shall contain the price term for all such standard products of the Product Group as are old or offered for sale by said member and for uch non tandard product of aid member .a shall be designated by the Admini tratfre Conu11ittee. Said price terms shall in the fir t instance be filed within fifteen ( 1 5) days after the date of approval of thi provision. Price terms and re,ised price term hall become eff ecti, e imn1ediately upon receipt thereof by said agent. Immediately upon receipt thereof, said ag nt hall by telegraph or other equally prompt means notify said member of the time of such receipt. Such list and re,i ions, together with the effective time thereof, shall upon receipt be immediately and simultaneously distributed to all member of the Product Group and to all of their cu tomers who have applied therefor and have offered to defray the co t actually incurred by the Admini trative Committee in the preparation and distribution thereof and be available for inspection by any of their cu tomers at the office of such agent. Such lists or revi ion or any part thereof shall not be made available to any per on until released to all members of the Product Group and their customers, a aforesaid pro, ided, that prices filed in the fir t in tance shall not be relea ed until the expiration of the afore aid 15 day period after the approval of this Supplementary Code. The Administrative Committee shall n1aintain a permanent file of all price terms filed as herein provided, and shall not de troy any part of such records except upon written con ent of the ational Indu trial Recovery Board. Upon reque t the Admini trative ommittee shall furnish to the J ational Indu trial Recovery Board or any duly designated agent of the J ational Indu trial Recovery Board copie of any such list or re i ion of price terms. (b) When any member of the Product Group ha filed any re vision, such member shall not file a higher price within forty-eight ( 48) hours. ( c) No member of the Product Group hall sell or offer to sell any products of the Product Group for which price terms have been filed pur uant to the provi ions of this Section (15), except in accordance with su h price term . (d) No member of the Product Group shall enter into any agreement, under tanding, combination or conspiracy to fix or maintain price term nor cause or .attempt to cause any member of the Product Group to change his price term by the use of intimidation, coercion, or any other influence incon istent with the maintenance of the free and open market which it i the purpose of thi ection (15) to create. (16) Terms of Sale.-Term of ale shall not be more favorable than thirty (30) day net, 2% tenth proximo. The Administr.ative Committee hall proceed to e tabli h, after a s11r, y of the practices now in existence in the various subdivisions of this group, and sub ject to the appro,al of the Code Authority and the :::.tional Indus-

PAGE 14

12 trial Recovery Board, .a plan :for de:ferred payment sa l es and, whe n established, no more favorable terms than provided in this plan shall be allowed by any member of the respective subdivisions. (17) Lwmp Sum Bidding.-To submit bids on any other than a unit price basis whenever lump sum bids are made on Product Group products. (18) Export Trade . -Except as may be ubsequent l y set forth in a specific or supplementary export supplement for this Product Group, the provisions of this Supplementary Code now or hereafter adopted with regard to prices, discounts, deductions, allowances, ex tras, commissions, or methods and/or te.rms of sale, are not to appl y to direct export sales or to sales in cour s e of export (i. e . , sales destined ultimately for export) or to sales of products used in the manufacture of products for export. "Export Trade" shall be as defined in the Export Trade Act adopted April 10, 1918 . ARTICLE V-GENERAL (1) No provi~ ion of this Supplementary Code shall be so applied as to permit monopolies or monopolistic practices, or to e liminate, oppress, or discriminate against mall enterprises . (2) Such of the provisions of this Supplementary Code as are no t required to be included herein by the Act may, with the approval of the National Industrial Recovery Board, be amended or eliminated upon proposal by the Product Group or any member thereof if i t appear that the public needs are not be ing served thereby an
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UNIVERSITY OF FLORIDA 111II1111111111111111111111 II 1111111111111111111111111111111111 I 3 1262 08584 3398