Citation
Proposed code of fair competition for the fabric auto equipment industry as submitted on August 31, 1933

Material Information

Title:
Proposed code of fair competition for the fabric auto equipment industry as submitted on August 31, 1933
Portion of title:
Fabric auto equipment 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:
6 p. : ; 24 cm.

Subjects

Subjects / Keywords:
Automobiles -- Upholstery -- United States ( lcsh )
Automobiles -- Equipment and supplies -- United States ( lcsh )
Textile fabrics ( 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. 1404-1-11."

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:
004938093 ( ALEPH )
649428930 ( OCLC )

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Full Text




Registry No. 1404-1-11


NATIONAL RECOVERY ADMINISTRATION



PROPOSED CODE OF FAIR COMPETITION

FOR THE


FABRIC AUTO EQUIPMENT


INDUSTRY

AS SUBMITTED ON AUGUST 31, 1933


The Code for the Fabric Auto Equipment Industry
in its present form merely reflects the proposal of the above-mentioned
industry, and none of the provisions contained therein are
to be regarded as having received the approval of
the National Recovery Administration
as applying to this industry




UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1933

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






































SIURMITTEID BY

THE FABRIC AUTO EQUIPMENT ASSOCIATION
(II)













PROPOSED CODE OF FAIR COMPETITION FOR THE FABRIC
AUTO EQUIPMENT INDUSTRY

For the purpose of effectuating the policy of the United States
Government as declared in Title 1, Section 1, of the National Indus-
trial Recovery Act, the members of the Fabric Auto Equipment
Industry hereby apply to the President pursuant to Section 3 of the
said Act, to approve the following Code of Fair Competition for
the Fabric Auto Equipment Industry, within the area herein de-
fined, and. subject to such approval, they hereby agree to all of the
terms of this Code.

ARTICLE I-APPLICATION OF THE CODE

1. This Code of Fair Competition (hereinafter referred to as the
"Code") shall apply to all manufacturers of Seat and Slip Covers,
Tire Covers, Top Covers, Side Curtains, Auto Cushions, Auto Awn-
ings, Automotive Mechanics' Garments, Fabric Accessories for auto-
mobiles, as defined in Schedule 1 hereto attached and made a part
hereof. who are doing business in the United States.
2. This Code shall apply to all business done in said Fabric Auto
Equipment Industry by members of the industry in the manner de-
fined in Article II, except export business.

ARTICLE II-DEFINITIONS

1. Automotive fabrics are defined for the purposes of the Code of
Fair Competition to include the following products: Seat and Slip
Covers, Tire Covers. Top Covers, Side Curtains, Auto Cushions,
Auto Awnings, Automotive Mechanics' Garments, Fabric Accessories
for Automobiles. Of these products, the Fabric Auto Equipment
Industry represents 80% of the total production of the country East
of the Rockies.
2. Nothing contained in this Code of Fair Competition shall be
construed as prohibiting any member of the industry from exercising
all its and,'or their lawful patent rights or as requiring any member
of the industry to do any act in conflict with the terms of a patent
licensing agreement legally binding upon such member.

ARTICLE III-SPECIFIC AGREEMENTS WITH THE GOVERNMENT

1. Participation in this Code, and any subsequent revision of, or
addition to the Code, shall be extended to any person, partnership.
association, or corporation in the fabric auto equipment industry who
shall accept his share of the cost and the responsibility, as well as the
benefit, of such participation. This may be effected by membership
in the Fabric Auto Equipment Association or by the payment to this
9945-33 (l








organization of an amount equal to the dues paid by its members for
the creation and administration of this Code of Fair Competition.
2. The members of the industry who subscribe to this Code are
hereinafter referred to as the "parties hereto ", and they agree that
the provisions of the Code shall be the standards of fair competition
for the Fabric Auto Equiprient' Industry in the territory designated
herein, and that every violation of the standards established in the
Code shall be deemed an unfair method of competition in commerce
within the meaning of the Federal Trade Commission Act as
amended and shall subject the party guilty of any such violation to
penalties as provided in Title 1 of the National Industrial Recovery
Act.
3. The parties hereto agree with each other, and agree jointly and
severally with the Government of the United States, as a considera-
tion of obtaining the President's approval of this Code:
4. That the p1 ties hereto will impose no inequitable restriction
on admission to membership in the Association or group of which
they are a part, and that the parties hereto are truly representative
of the Fabric Auto Equipment Industry.
5. That this Code is not designed to promote monopolies or to
eliminate or oppress small enterprises, and will not operate to dis-
criminate against them, and will tend to effectuate the policy of Title
1 of the National Industry Recovery Act.
6. That the parties hereto will abide by such conditions (including
requirements for the making of reports and the keeping of accounts)
for the protection of customers, competitors, employees, and others,
and in the furtherance of the public interest, as the President in his
discretion deems necessary to effectuate the policy declared in said
Act.
ARTICLE IV-LABOR CODE
1. Employees of the Fabric Auto Equipment Industry shall have
the right to organize and bargain collectively through representatives
of their own choosing, and shall be free from the interference,
restraint, or coercion of employers of labor, or their agents, in the
designation of such representatives or in self-organization or in other
concerted activities for the purpose of collective bargaining or other
mutual aid or protection.
2. No employee and no one seeking employment in the Fabric Auto
Equipment Industry shall be required as a condition of employment
to join any company union or to refrain from joining, organizing, or
assisting a labor organization of his own choosing.
3. Employers in the Fabric Auto Equipment Industry shall comply
with the maximum hours of labor, minimum rates of pay, and other
conditions of employment approved or prescribed by the President
of the United States.
4. The provisions of Article III hereof, however, are not to be
deemed to impair in any particular the constitutional rights of the
employee or employer to bargain as may be mutually satisfactory to
them. Nothing in this- code is to prevent the selection, retention,
discharge, or advancement of employees on the basis of their indi-
vidual merit.








5. The President of the United States may from time to time cancel
or modify any order, approval, license, rule, or regulation issued
under Title I of the National Industrial Recovery Act.

AiTICLE V-THE FABRIC AUTO EQUIPMENT ASSOCIATION
1. The parties hereto who are members of an incorporated associa-
tion known as the Fabric Auto Equipment Association (hereinafter
referred to as the "Association ") shall continue as members of said
Association subject to withdrawal therefrom, as provided in the
Constitution of the Association.
2. The approval of this Code by the President shall constitute a can-
celation of the Constitution and By-Laws of the Association as now
in effect, and from the date of said approval the Constitution and
By-Laws of said Association shall be in the form hereto attached,
and the parties to this Code who are members of said association agree
to take all action necessary to make said Constitution and By-Laws
effective immediately upon the approval of this Code by the
President.
3. The Association will serve as an agency for collecting statistical
data as to costs, production, sales, and other matters affecting the
industry as to which the Government may require information, and
the manufacturers engaged in the industry shall furnish such in-
formation and make such reports to the Association as may be
necessary in order to enable the Association to collect and furnish
to the Government the information required under the terms of the
National Industrial Recovery Act. The manufacturers shall keel)
their accounts in such form as may be necessary to enable them to
furnish information desired by the Government.

ARTICLE VI-PROTECTION OF EMPLOYEES AND OF THE PUBLIC INTEREST

1. The Association, acting through its Executive Committee and
agents duly appointed, shall proceed with due diligence to gather
from members of the industry information as to cost of production,
accounting systems, wages, working hours, and other relevant data
for the purpose of preparing and submitting to the President for
approval an agreement between members of the industry which will
adequately protect employees, consumers, competitors, members of
the trade, and others in furtherance of the public interest as con-
templated by Title 1, Section 4, of the National Industrial Recovery
Act.
ARTICLE VII--HOURS AND WAGES

1. On and after the effective date the minimum wage that shall
be paid by employers in the Fabric Auto Equipment Industry shall
be at the rate of $13.00 per week when employed in that section of
the industry north of the Mason and Dixon line, and $12.00 per week
when employed in that section of the industry south of the Mason
and Dixon line.
Exceptions shall be made in the case of beginners, who may be
employed up to ten weeks at not less than 75% of the minimum
wage, but in no case shall beginners constitute more than 15% of








the employees in any plant. Exceptions shall also be made for
cleaners and outside employees.
2. On and after the effective date employers in the Fabric Auto
Equipment Industry shall not operate on a schedule of hours of
labor for their employees-except repair-shop crews, engineers,
electl.ricin., firemen, office and -Ipervisory staff, shipping, watching
and outside crews, and cleaners-in excess of 40 hours per week,
and they shall not operate productive machinery in the Fabric Auto
Equliplment Industry for more than two shifts of 40 hours each per
week.
3. On and after the effective date employers in the Fabric Auto
Equipment Industry shall not elliploy any minor under the age of
16 years.
4. On and after the effective date, employers in the Fabric Auto
Equipment Industry shall not employ prison labor or use or offer for
sale the product of any penal institution.
5. On and after the effective datv, in establishments where there
are nuimeroius owners or partners, those who perform the manual
labor shall work in conformity with the inmaxinium hours and min-
imum wages provided in this Code.
6. On and after the effective date the practice of performing any
operation in a home, residence, or place other than a recognized
manufacturing plant of fabric auto equipment shall be a violation
of this Code.
7. The Code of Ethics attached hereto shall constitute a Code of
Ethics for the Fabric Auto Equipment Industry. The parties hereto
agree that they will not engage in any practice condemned or pro-
hibited in said Code of Ethics of therein designated as an unfair
trade practice. The Code of Ethics shall constitute an integral
paIrt of this Code of Fair Competition.
8. This Code of Ethics may be changed from time to time by vote
of two-thirds of the members of the A-.or.intion provided such
changes shall first have been approved by the Executive Committee
of the A,,oci:ation and shall be effective for the industry upon ap-
proval by the President of the United States.
ARTICLE VIII-ENFORCEMENT OF THE C'IDE

1. The Executive Committee of the Association shall designate
an agent or agents to investigate complaints of violations of this
Code. The members of the industry shall facilitate such investiga-
tion by opening their correspondence, books, and accounts for exam-
ination by the authorized representatives of the Association and by
furnishing relevant information. In the event of any wilful viola-
tion being disclosed the Executive Committee may present evidence
thereof to the proper department, agency or judicial branch of
the Government.
The foregoing Code of Fair Competition has been agreed to by
the members of the Fabric Auto Equipment Industry, acting
through their officers thereunto duly authorized.
ARTICLE IX-CODE OF ETHICS
1. Employees-(a) Eti fc;imj c.p,,l n/,ees from copiiit;fors.-Ma-
liciously enticing away an employee or employees of competitors








with the intent of unduly hampering, injuring, or embarrassing a
competitor or competitors in the conduct of their bu, iness i.- an
unfair trade practice.
2. ~,Merchandise-(a) .Misb'rdling.-Misrepresentation as t t the
weight, quantity, qit, lty, size, or grade of any product sold or
offered for sale is an unfair trade practice. Failure to mark or brand
each product with respect to the quantity, quality or grade thereof
with the intent of misleading purchasers or prospective customers is
an unfair trade practice.
(b) Seconds.-No first-quality merchandise can be sold as sec-
onds. All seconds must be labeled or marked so ;is to be visible by
the purchaser.
3. Iino;chig-(a) Om)nis;ot of data.-Any items pertaining to the
sale omitted from the invoice, such as allowance of overriding dis-
count payable at some future date, shall be considered an unfair
trade practice. Extra terms or allowance must be noted on invoice
and in no case shall terms exceed 2%r cash discount.
(b) 'nauthorizcd dedctions.-Permitting a customer to make
any deductions from the invoice not covered by the terms of sale in
making his remittance shall be considered an unfair trade practice.
(c) Free goods.-No manufacturer shall ship or in any way de-
liver free goods of any kind to any customer for resale by that
customer.
(d) Samples.-Samples of completed products must be invoiced.
(e) Other products.-No manufacturer shall subnormally price
any products manufactured or sold by him for the purpose of fur-
thering sale of any other products.
(f) The present 2% excise tax is to be shown on the invoice as a
separate item excepting in the case of those manufacturers who sell
to the jobbing or wholesale trade who are to include the excise tax
in their selling price. The following articles are subject to the 29C.
excise tax: Auto Seat and Slip Covers; Top Recovers; Top Decks;
Side Curtains; Rear Curtains; Top Boots; Auto Floor Carpets;
Auto Awnings; Inside Auto Shades and any other auto fabrics cut
to size. All tire covers, advertising or nonadvertising covers with
tread bands, paper or fabric, are taxable. Tire cover fronts are not
taxable; the painting and art work if shown separate on invoices is
not taxable.
4. Transportation-(a) Diversion of shipmernts..-All merchan-
dise to be sold F.O.B. factory.
5. Advertising-(a) Misrepresentation.-Advertisements, s t a t e-
ments, or references which directly or indirectly reflect falsely upon
the merchandise, policies, or financial standing of any competitor
or which are detrimental to the best interests and welfare of the
industry are unfair trade practices.
6. Subsidies-(a) Lavish. entertainmen.t.-fManufacturers shall
not encourage nor permit lavish entertainment of a customer by
themselves or their employees.
(b) Bets, gratuities, loans, etc.-No officials, salesman, or other
employee shall make bets or in any way gamble with any customer
or customer's employees for the purpose or with the intent of losing,
nor shall any salesman or employee give any gratuity, cash, or pres-
ent of substantial value to any customer or prospective customer or




UNIVERSITY OF FLORIDA
11 I lll Ii Ill II 111 111111 I II IIIU I IIII IlI I
6 3 1262 08584 3489

customer's employee. No officials, salesman, or employee shall make
loans of any kind to any customer or prospective customer or cus-
tomer's employees.
(c) Consignments.-There shall be no consignments of goods made
to any customer.
(d) Splitting commissions.-Salesmen or other employees shall
not split nor otherwise share their commissions or compensation with
any present or prospective customer or customer's employees.
(e) Excessive allowance and adjustments.-No manufacturer shall
make any excessive allowance to a customer for alleged defective
merchandise, alleged shortages, or for adjusting complaints of any
kind.
7. Cut-throat competition.-Selling goods below manufacturers'
own cost is an unfair trade practice. Costs shall be calculated on the
following basis which must include market quotation of all materials
within two weeks of the date quotation is made, plus all direct labor
costs, plus 35% as a minimum selling price. For example, the cost
of a tire cover would be the cost of fabric, thread, elastic, seamino
cord, shipping carton, individual carton or wire hoop, paint, ani
other materials, together with labor, such as cutting, sewing, finish-
ing, packing, making stencil, imprinting, and all other direct labor
plus an additional 35% to cover administrative, warehousing, trans-
portation, collection, taxes, depreciation, depleting, and obsolescence.
It is generally recognized that the proper mark-up is 50 to 70%
and the minimum figure of 35% is only mentioned to be used where a
company is figuring on a large order in which there are no advertis-
ing or selling expenses involved.
8. Sundries.-(a) Resales.-The manufacturer will encourage his
own customers to mantatain a fair margin of profit in resales and to
make possible a profitable handling of his products by other similar
customers.
(b) Arbitration.-Where the costs of executing contracts entered
into in the Fabric Auto Equipment Industry prior to the presentation
to Congress of the National Industrial Recovery Act are increased
by the application of the provisions of that Act to the industry, it is
equitable and promotive of the purposes of the Act that appropriate
adjustments of such contracts to reflect such increased costs be arrived
at by arbitral proceedings or otherwise, and the Fabric Auto Equip-
ment Association, the applicant for this Code, is constituted an agency
in effecting such adjustments.
(c) Blanket orders and future orders.-It is a violation of this
Code for a manufacturer of advertising tire covers to sell and de-
liver a quantity of tire covers at a price lower than the price actually
applying to the quantity shipped at each time and such action is an
unfair trade practice.
(d) General.-No practice or subterfuge contrary to the spirit of
this Code of Ethics shall be indulged in by any employee of any
manufacturer.




Full Text

PAGE 1

Registry No. 1404-1-11 NATIONAL RECOVERY ADMINISTRATION PROPOSED CODE OF FAIR COMPETITION FOR THE FABRIC AUTO EQUIPMENT INDUSTRY AS SUBMITTED ON AUGUST 31, 1933 , A I u. The Code for the Fabric Auto Equipment Industry in=its present form merely reflects the proposal of the above-mentioned industry, and none of the provisions contained therein are to be regarded as having received the approval of the National Recovery Administration as applying to this industry UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1933 For sale by the Superintendent of Documents, Washington, D.C. - • --Price 5 cents

PAGE 2

UBMITTEO BY 'rHE FABRIO AUTO EQUIPMENT ASSOCIATION (II)

PAGE 3

,._ PROPOSED CODE OF F AlR COMPETITION FOR THE FABRIC AUTO EQUIPMENT INDUSTRY F r the I urpo e of effectuating the policy of the United States oYernm nt a u declar cl in Title 1, ection 1, of the National Inclu trial R ov ry Act, the members of the Fabric Auto Equipment In lu try her by apply to the Pre ident pur uant to Section 3 of the ail t to approve the following Code of Fair Competition for th Fabric Auto Equipment Indu try, within the area herein de fined a1 d. ubject to uch approval, they hereby agree to all of the term of thi ode. ARTICLE I-APPLICATION OF THE CODE 1. Thi Co le of Fair Competition (hereinafter referred to as tl.te Cole ') shall apply to all manufacturers of Seat and Slip Covers, Tire Co, ers, Top Covers, Side Curtains, Auto Cushions, Auto Awning Automotive Me cha nics' Garments, Fabric Accesso ries for auto mobile , a defined in Schedule 1 hereto attached and made a part h ereof . who are doing business in the United States. 2. This Co le shall apply to all business done in said Fabric Auto Equipment Industry by members of the industry in the manner de fined in Article II, except export bu ine ss. ARTICLE II-DEFINITIONS 1. Automotive fabrics are defined for the purpo e of the Code of Fafr ompetition to include the following products: Seat and Slip Cover Tire Covers, Top Covers, Side Curt ins, Auto Cushion , Auto Awning , Automotive Mechanics' Garments, Fabric Accessories for Autom bile . . Of the e l roduct the Fabric Auto Equipment Inclu try repre ents 80 % of the total production of the country Ea t of the Rockie . 2. othinoontaine l in this Code of Fair Competition hall be on true l a. prohibiting any member of the industry from exercising :111 it an 1 /or their lawful patent rjo-ht. or a requiring any member f the inclu tr. 7 to do any act in conflict with the terms of a patent li en ing aoT ment 1 o-ally bin ling upon . nrh member. Ann 'LE III-PE 'IFIC AGREE IENT, WITH THE GovER::-;' MENT 1. Participation in thi l and any ub equ nt revi i n of, or a ldition to th ocl hall b xten led to any p r . on partn r hip. a o iation or corporation in the fabri auto quipm nt in lu try who hall a pt hi . har of the co t an l th re 1:5011 ibili , a well a . the ben fit, of uch parti ipati n. Thi may b effect 1 by member hip in , he Fabric Auto Equipment As ociation or by the payment to this 9945-33 (1)

PAGE 4

2 organization of an amount equal to the dues paid by its members for the creation and administration of this Code of Fair Competition. 2. The members of the industry who subscribe to this Code are hereinafter referred to as the " parties hereto ", and they agree that the provis ions of the Code shall be the standards of fair competition for the Fabric Auto Equip1nent' , Industry in the territory designated herein, and that every violation of the standards established in the Code shall be deemed an unfair method of competition in commerce within the meaning of the Federal Trade Commission Act as amended and shall subject the party guilty of any such violation to penalties as provided in Title 1 of the National Industrial Recovery Act. 3. The parties hereto agree with each other, and agree jointly and severally with the Government of the United States, as a consideration of obtaining the President's approval of this Code: 4. That the parties here to will impose no inequitable restriction on admission to membership in the Association or group of which they are a part, and that the parties hereto are truly representative of the Fabric Auto Equipment Industry. 5. That this Code is not designed to promote monopolies or to eliminate or oppress small enterprises, and will not operate to discriminate against them, and will tend to effectuate the policy of Title 1 of the National Industry Recovery Act. 6. That the parties hereto will abide by such conditions (including requirements for the making of reports and the keeping of accounts) for the protection of customers, competitors, employees, and others, and in the furtherance of the public interest, as the President in his discretion deems necessary to effectuate the policy declared in said Act. ARTICLE IV-LABOR CooE 1. Employees of the Fabric Auto Equiprn.ent Industry shall have the right to organize and bargain collectively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. 2. No employee and no one seeking employment in the Fabric Auto Equip1nent Industry shall be required as a condition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of his own choosing. 3. Employers in the Fabric Auto Equipment Industry shall comply with the maximum hours of labor, minimum rate of pay, and other conditions of employment approved or prescribed by the President of the United States. 4. The provisions of Article III hereof, however, are not to be deemed to impair in any particular the constitutional rights of the e mployee or employer to bargain as may be mutually satisfactory to them. Nothing in this code is to prevent the sele ction, retention, discharge, or advancement of employees on the basis of their indi Yidual merit.

PAGE 5

J. Th Pr ident of the United Stat s may from time to time can el r modify any ord r, approval licen e rule, or regulation i ued un ler Title I of th ational Indu trial Recovery Act. \hrr LE -THE F BRIC AuT EQUIPMENT As OCIATI0J.. 1. The partie. h reto who are members of an incorporated a ociati n known a the Fabric Auto Equipment Association (hereinafter r erred to as the "Association") shall continue as members of aid A . ociation ubject to withdrawal therefrom, as provided in the onstitution of the Association. 2. The approval of this Code by the President shall constitute a can celation of the Constitution and By-Laws of the A sociation as now in :ffect and from the date of said approval the Constitution and By-Laws of sajd As ociation shall be in the form hereto attached, an l the parties to this Code who are members of said association agree to take all a ction necessary to make said Constitution and By-Laws e:ffe tiYe immediately upon the approval of this Code by the Pr ident. 3. The As ociation will serve a an agency for collecting statistical lata a to costs, production, sales, and other matters affecting the indu try a to which the Government may require information, and the manufacturers engaged in the industry shall furnish such information and make such reports to the Association as may be nece sary in order to enable the As ociation to collect and furnish to the GoYernment the information required under the terms of the X ational In lu. -trial RecoYery Act. The manufacturers shall keep their account in uch form as may be necessary to enable them to furni h information lesired by the Government. ARTICLE VI-PROTECTION OF EMPLOYEES AND OF THE PUBLIC INTERE ~1.' 1. The A oci ation acting through its Executive Committee and agents duly appointed, hall proceed with due diligence to gather :from member of the indu try in:formation as to cost of production, accounting } tern , wage , working hour and other relevant data for th purpo e of preparing and submitting to the President for approYal nn agr ement betw e en members of the industry which will adequate l y 1 rotect employee , con umer , competitors, members of th tra le, and other in furtherance of the public interest a contemplated by Title 1, Section 4, of the National Industrial Recovery . A . t . ARTICLE VII-Ho RS AND WAGES 1. On an l aft r the effective late the minimum wage that shall be pai 1 b emplo ers in the Fabric Auto Equipment Indu try shall be at the rate of $13.00 per week when employed in that section of the in In tr: north of h e l\!Ia on an l Dixon lin , and $12.00 per week -wh n mplo. cl in that . e c tion of the industry outh of the Mason and Dixon lin . Exception hall be ma le in the c a e of b ginners, who may be emplo rel up to t n week at not le than 7~% of the minimum wage but in no case hall beginners constitute more than 15% of

PAGE 6

4 1he emp loyee s in any plant. Exceptions shall also be made for cleaners and outside employees. 2 . On and after the effective date employers in the Fabric Auto Equipment Industr y shall not operate on a chedule of hours of labor for their employees-except repair-shop crews, engineers, electricians, firemen, office and supervisory staff, shipping, watching ancl outside crevvs, and cleaner -in excess of 40 hours per week, and they shall not operate productive machinery in the Fabric Auto Equipment In lustry for more than two shifts of 40 hour each per week. 3. On and after the effertiYe date e ml)loye r in the Fabric Auto Equipment Industry shall not employ any minor under the age of 16 years. 4. On and after the effective date, employers in the Fabric Auto Equipment Industry shall not employ prison labor or use or offer for sale the product of any penal institution. 5. On and after the e ffectiv e date, in establishments where there are numerous owners or partners . thos e who perform the manual labor shall work in conformity with the maximum hours and minimum wages provided in this Code. 6. On and after the effective date the practice of performing any operation in a home, re sidence, or place other than a recognized manufacturing plant of fabric auto equipment shall be a violation of this Code. 7. The Code of Ethics attached hereto shall constitute a Code of Ethics for the Fabric Auto Equipment Industry. The parties hereto agree that they will not engage in any practice condemned or prohibited in said Code of Ethics of therein designated as an unfair trade practice. The Code of Ethics shall constitute an integral part of this Code of Fair Competition. 8. This Code of Ethics may be changed from time to time by vote of two-thirds of the members of the Association provided such changes hall fir s t have been approved b y the Executive Committee of the Association and shall be effective for the industry upon approval by the President of the Unite l States. ARTICLE VIII-ENFORCEME TT OF THE CODE 1. The Executive Committee of the Association shall designate an agent or agents to investigate complaints of violations of this Code. The members of the industry shall facilitate such investigation by opening their correspondence, books, and accounts for examination by the authorized representatives of the Association and by furnishing r elevant information. In the event of any wilful violation being disclosed the Executive Committee may present evidence thereof to the proper department, agency or judicial branch of the Government. The foregoing Code of Fair Competition has been agreed to by the memb r of the Fabric Auto Equipment Industry, acting through their officers thereunto duly authorized. ARTICLE IX-CODE OF ETHIC ' l. Em, ployees-(a) Enticing e n ployees from., c onip etitors.-Ma liciou sly enticing away an employee or employees of competitors

PAGE 7

with th intent of uncluly hampering, injuri1w, or mbarra. ing a )llll titor or omp ,titors in the tln t of th ir busi1Ps. is an unfair trac.1 pra ti . 2. Jfc 1clw)/{1i '-(a) Jfisbl'ancling.-J\lisr pre. entation a to the ,v i ht, quantity quality, ize, or Tade 0 any pro luct ol l or ff r d for al is an unfair trade practi e. Failure to mark or bran l ea h produ t with re pect to the quantity quality or grade thereof with th intent of mi leading purcha er or pro pective cu tomer i an unfair trade practice. ( b) , econc1 '.-No fir t-quality mer han Ii can be sold as ec on l . .1. 11 se mh; mu t b-' label cl or mark c.1 s as to be vi ible by th l ur ha er. ; t lnL•oicin_q-(a) Omission of dat a . -Any item pertaining to the .:al omitted from the invoice, uch a allowance of overriding di -count payabl at ome future date, shall be considered an unfair tra 1 practice. Extra terms or allowance must be noted on invoice and in no ca e hall terms exceed 2 cash di count. (b) Unautho1•ized d eductions.-Permitting a customer to make any de luction from the i1woice not covered by the terms of ale in making hi remittance hall be c n idered an unfair trade practice. ) Free goods.-o rn.anufacturer hall ship or in any way de li, er free good of any kin 1 to any customer for resale by that u tomer. ( l) ' a1nples.-Samples of completed products must be invoiced. (e) Othe1 prroclucts.-No manufacturer shall subnormally price any products manufactured or sold by him for the purpo e of furthering sale of any other products. (f) The present 2 % excise tax is to be shown on the invoice as a separate item excepting in the case of tho e manufacturers who sell to the jobbing or wholesale trade who are to include the excise tax in their selling price. The followino articles are subject to the 2; ex i e tax: Auto Seat and Slip Covers; Top Recovers Top De k ; ide Curtains Rear Curtains; Top Boots; Auto Floor Carpets; Auto Awnings; Inside Auto Shades and any other anto fabric cut to ize. All tire covers, advertising or nonadvertising cover with tread bands, paper or fabric, are taxable. Tire cover fronts are not taxable the painting and art work if shown eparate on invoices is not taxable. 4. T1anspo1tation (a) Diver sion of ship1n en ts.-All merchan li e to be old F:O.B. factory. 5. Advertisi? g -(a) 111isrepresentation.-A lverti ement tat e-ment or ref rence which directly or indirectly reflect falsely upon the merchandi e, policies, or financial standing of any competitor or which ar d trimental to the be t interests and welfare of the in lu try are unfair trade practice . 6. ub iclies-(a) La ish entertaiwnent.-Manufactnrer hall n t encourage nor permit lavish entertainment of a cu tom r by th m Ives or their mployee . (b) Bets g1atwi,ties loans, etc.-N o officials, salesman, or other mployee hall make b t or in any way oamble with any cu tomer or cu tomer mployees for the purpo e or" ith the int nt f lo ing, nor hall any sale man r employee giYe any aratuit, , a:h, or pre: ent of sub tantial valn to any n tom r or l ro , pectiv u tomer or

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UNIVERSIT Y OF FLORIDA 6 II I II IIIIII I l l Ill lllll lllll II IIIIII II IIIIII II 1111111111111111111 3 1262 08584 3489 customer's employee. No officials, salesman, or employee shall make loans of any kind to any customer or prospective customer or cus tomer's employees. ( c) Oonsignments.-There shall be no consignments of goods made to any customer. ( d) Splitting oommissions.-Salesmen or other employees shall not split nor otherwise share their commissions or compensation with any present or prospective customer or customer's employees. ( e) Excessive allowwnce and adjustm,ents.-N o manufacturer shall make any excessive allowance to a custo1ner for alleged defective merchandise, alleged shortages, or for adjusting complaints of any kind. 7. Out-throat ooni.petition.-Selling goods below manufacturers' own cost is an unfair trade practice. Costs shall be calculated on the following basis which must include market quotation of all materials within two weeks of the date quotation is made, plus all direct labor costs, plus 35% as a minimum selling price. For example, the cost of a tire cover would be the cost of fabric, thread, elastic, seaming cord, shipping carton, individual carton or wire hoop, paint, and other materials, together with labor, such as cutting, sewing, finish ing, packing, making stencil, imprinting, and all other direct labor plus an additional 35% to cover administrative, warehousing, transportation, collection, taxes, depreciation, depleting, and obsolescence. It is generally recognized that the proper" mark-up" is 50 to 70% and the minimum figure of 35% is only mentioned to be used where a company is figuring on a large order in which there are no advertising or selling expenses involved. 8. Sundries.-( a) Resales.-The manufacturer will encourage his own customers to maintain a fair margin of profit in resales and to make possible a profitable handling of his products by other similar customers. (b) Arbitration.-Where the costs of executing contracts entered into in the Fabric Auto Equipment Industry prior to the presentation to Congress of the National Industrial Recovery Act are increased by the application of the provisions of that Act to the industry, it is equitable and promotive of the purposes of the Act that appropriate adjustments of such contracts to reflect such increased costs be arrived at by arbitral proceedings or otherwise, and the Fabric Auto Equipment Association, the applicant for this Code, is constituted an agency jn effecting such adjustments. ( c) Blanket orders and futwre oYf'dJ.ers.-It is a violation of this Code for a manufacturer of advertising tire covers to sell and deliver a quantity of tire covers at a price lower than the price actually applying to the quantity shipped at each time and such action is an unfair trade practice. ( d) General.-N o practice or subterfuge contrary to the spirit of this Code of Ethics shall be indulged in by any employee of any manufacturer. 0