Approved Code No. 150 Registry No. 1003-03 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

ASPHALT AND MASTIC TILE 

INDUSTRY 

f ..... 

AS APPROVED ON DECEMBER 7, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

I l ( 

I I 1 

1. Executive Order 

2. Letter of Transmittal 

3. Code 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

I I 

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

V 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau of Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C.: Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

CleYeland, Ohio : Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 2213 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

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. : 933 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Buildiug. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo. : 506 Olive Street. 

S n Francisco, Calif. : 31-0 Customhouse. 

Seattle. Wash.: 809 Federal Building. 
Approved Code No. 150 

CODE OF FAIR COMPETITION 

FOR THE 

ASPHALT AND MASTIC TILE INDUSTRY 

As Approved on December 7, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

An application having been :iuly made, pursuant to and in full 

compliance with the provisions of title I of the National Industrial 

Recovery Act, approved June 16, 1933, for my approval of a Code of 

Fair Competition for the Asphalt and Mastic Tile Industry, and 

hearings having been held thereon a.nd the Administrator having 

rendered his report containing an analysis of the said code of fair 

competition together with his recommendations and findings with 

respect thereto, and the Administrator having found that the said 

code of fair competition complies in all respects with the pertinent 

provisions of title I of said act and that the requirements of clauses 

( 1) and ( 2) of subsection (a) of section 3 of the said act have 

been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, President of the 

United States, pursuant to the authority vested in me by title I of the 

National Industrial Recovery Act, approved June 16, 1933, and 

otherwise, do approve the report and recommendations and adopt the 

findings of the Administrator and do order that the said code of fair 

competition be and it is hereby approved. 

Approval recommended: 

HUGH s. JOHNSON, 

Administrator. 

THE WHITE HousE, 

December 'l, 1933. 

FRANKLIN D. ROOSEVELT. 

(617) 

25691 °-244-150--33 
The PRESIDENT, 

NOVEMBER 18, 1933. 

The White House. 

Sm: This is a report on the Code of Fair Competition for tbe 

Asphalt and Mastic Tile Industry in the United States as revised 

after the hearing held in Washington on November 14, 1933, in 

accordance with the provisions of tlie National Industrial Recovery 

Act. - · · 

PROVISIONS OF THE CODE AS TO w AGES AND HOURS 

This Code provides for a maximum of forty hours of work per 

week, averao-ed over a twenty-six-week l?eriod, and for a maximum 

of forty-eight hours in any one week, W1th one and one third times 

the normal wage rate for time worked in excess of eight hours per 

day. The following are excepted: 

(a) Executive, supervisory, and technical employees, receiving 

no less than $35.00 per week, outside salesmen and personal secretaries of executives; 

(b) Employees on emergency maintenance or repair work, who 

are to be paid one and one third times the normal wage rate for time 

worked in excess of forty-eight hours per week; 

(c) Watchmen, who are not to be employed more than twelve 

hours per day nor six days per week. 

The Code provides for minimum rates of pay of 40 cents per hour 

in the North, 30 cents per hour in the extreme South, and 35 cents 

per hour in an intermediate zone. It provides for minimum rates 

of pay for offioo employees ranging from $15.00 to $14.00 per week, 

according to the population of the city, in the trade area of which 

they are employed. 

The employment of persons under 18 years of age in manufacturing operations and under 16 years of age in other operations is 

prohibited. 

Provision is made for the employment of aged or disabled employees at such wages and for such hours as stated in a certificate 

issued by a State authority designated by the United States Department o:f Labor, provided that the number of such employees does 

not exceed 5% of the total employed by any employer. 

ECONOMIC EFFECTS OF THE CODE 

This is a small industry employing less than 400 persons, but one 

which was growing rapidly until the year 1931. Pres~nt employment is approximately 25 % less than in 1931 and approximately the 

same as in 1929. The volume of sales has declined approximately 

50% since 1931 and income from sales has declined by a much higher 

percentage due to the lower unit prices now prevailing. 

Most of the labor provisions of this Code have already been 

adopted by the industry. Since June of this year, the number of 

employees has increased approximately 25%, the average hourly 

earnings about 20% and the total weekly earnings of employees about 

(618) 
619 

5%. The minimum wages propo ed in the Code are from 80% to 

100% higher than the lowest wages paid by some manufacturers in 

June of this year. 

Price cutting in this industry has reached a point where sale are 

frequently made below the actual cost of materials. The Code hould 

help to correct this evil. 

FINDINGS 

The Administrator finds that-

( a) The Code as recommended co.mplies in all respects with the 

pertinent provisions of Title I of the Act, including without limitation, sub ection (a) of Section 7 and sub ection (b) of Section 10 

thereof; and that 

(b) The applicant group imposes no inequitable re trictions on 

admission to membership therein and is truly repre entative of the 

Asphalt and Mastic Tile Indu try; and that 

( c) The Code as recommended is not designed to promote monopolies or to eliminate or oppre s small enterprises and will not operate to discriminate against them, and will tend to effectuate the 

poiicy of Title I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code be approved. 

Respectfully, 

HUGH s. JOHNSON' 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

ASPHALT AND MASTIC TILE INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial Recovery Act the following provisions are established as a Code of 

Fair Competition for the Asphalt and Mastic Tile Industry. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "Products" means Asr_:>halt Tile, Asphalt 

Tile Bases, Tile Adhesives, Underlayment Materials (including Felt 

and Primer\, and Finishes. Asphalt Tile is a thermoplastic material manufactured of asphalts, or plastics, or resins, or any combination of these materials, together with mineral and/or vegetable 

fillers or reinforcing materials, and mineral and/or vegetable color 

pigmentshin the shape of tiles or sheets in its finished form, and less 

than one alf inch in thickness and used for flooring purposes. 

SEc. 2. The term "Industry", as used herein, includes the business of manufacturing, and selling by manufacturers, the Products, 

and such branches or subdivisions thereof as may from time to time 

be included under the rirovisions of this Code. 

SEc. 3. The term ' Member of the Industry" includes anyone 

engaged in the Industry as above defined, either as an employer or 

on his own behalf. 

SEC. 4. The term "Member of the Code" includes anyone who 

has signified his assent to this Code by complying with the provisions of Paragraph (g) of Section 1 of Article VI. 

SEc. 5. The term "Employee", as used herein, includes anyone 

engaged in the Industry in any capacity receiving compensation for 

his services, irrespective of the nature or method of payment of 

such compensation. 

SEc. 6. The term "Employer", as used herein, includes anyone 

by whom any such employee is compensated or employed. 

SEc. 7. The term "Association" means the Asphalt and Mastic 

Tile Association, an unincorporated association having an office at 

41 East 42nd Street, New York City. 

SEc. 8. The terms "President", "Act", and "Administrator" as 

used herein, shall mean, respeotively, the President of the United 

States, the National Industrial Recovery Act, and the Administrator 

of Titl~ I of said Act. 

(620) 
621 

SEo. 9. The term "The effective date of the Code" means the 

second Monday after the Code shall have been approved by the 

President. 

SEo. 10. Population, for the purposes of this Code, shall be determined by reference to the 1930 Federal Census. 

ARTICLE III-HOURS 

SECTION 1. Except as provided for in Section 2 of this Article no 

employee shall work or be permitted to work in excess of an average 

of more than forty (40) hours per week in any twenty-six (26) week 

period-that is, 1,040 hours in any twenty-six (26) week periodand in no event more than forty-eight (48) hours in any one week, 

nor more than six (6) days in any one week. In the event an employee is worked more than eight (8) hours in ::my one day, one and 

one third times the normal wage rate shall be paid for the time 

worked in excess of ~ight hours in one day. 

SEc. 2. The provisions of the foregoing section shall not apply to: 

(a) Any employee on emergency maintenance, or emergency repair 

work involving break-downs or protection of life or property, who, 

however, shall be paid at the rate of one and one third times the 

normal wage rate for time worked in excess of forty-eight ( 48) hours 

in any one week. 

(b) Employees regularly employed in an executive, supervisory, or 

technical capacity receiving in no week in which they are employed 

less than Thirty-Five Dollars ($35.00) per week. This exception, 

however, shall not apply to foremen regularly engaged in manual 

labor. 

( c) Outside salesmen, and personal secretaries of executives. 

( d) Watchmen, with the reservation, however, that they shall 

not work more than twelve (12) hours in any one day, nor more 

than six ( 6) days in any one week. 

SEc. 3. No employer shall knowingly permit any employee to 

work any time which when totalled with that already performed 

with another employer or employers exceeds the maximum specified 

in this Article III. 

ARTICLE IV-W .\GES 

SECTION 1. No employee shall be paid at less than the following 

rates: 

30¢ per hour in the Southern Section of the Industry. 

35¢ per hour in the Middle Section of the Industry. 

40¢ per hour in the Northern Section of the Industry. 

This minimum wage shall apply to common labor or other totally 

unskilled .labor. Other classes of labor, including all pieceworkers, 

shall be compensated at a rate above this minimum. The above 

minimum rate shall be exempt from any charge and/or deduction 

by the employer. 

SEc. 2. The Southern Section of the Industry shall be defined as 

follows: The States of Florida, Georgia, Alabama, ~fissi sippi, 

Louisiana, Texas, Arizona, New ~1exico, and South Carolina. 

The Middle Section of the Industry shall be defined as follows: 

The States of North Carolina, Tennessee, Arkansas, Oklahoma. 

All of the other States of the Union are designated as the Northern Section of the Industry. 
622 

SEc. 3. Accounting, clerical, office, or sales employees ( excluding 

outside salesmen) in any office, department, or establishment shall 

not be paid less than at the rate of Fifteen Dollars ($15.00) per week 

in any city of 500,000 population or over, or in the immediate trade 

area of such city; and not less than at the rate of Fourteen Dollars 

and Fifty Cents ($14.50) per week in any city of between 25u,ooo 

and 500,000 population, or in the immediate trade area of such c ... ty; 

and not less than at the rate of Fourteen Dollars ($14.00) per week in 

any city of less than 250,000 population. 

SEC. 4. This Article establishes a minimum rate of pay regardless of whether an employee is compensated on a time-rate, piecework, or other basis. 

SEc. 5. Female employees performing substantially the same work 

as male employees shall receive the same rates of pay as male empl~yees. 

SEc. 6. Employers shall make payments of all wages due in lawful 

currency or by negotiable check therefor payable on demand at least 

twice a month. 

SEc. 7. Employers shall not reduce the rates of wages for employees whose rates are now in excess of the minimum rate of wages 

herein provided (notwithstanding that the number of hours worked 

in such employment may be hereby decreased) and where in any 

case an employer has not increased the rates of wages for such employees prior to the effective date of this Code by an equitable readJUstment of all such wage rates such employer shall readjust all such 

wage rates. This provision shall be interpreted in the same manner 

that paragraph 7 -of the President's Reemployment Agreement has 

been interpreted by the Administrator in Interpretations Nos. 1 

and 20. 

ARTICLE V-GENERAL PROVISIONS 

SECTION 1. No persons under 16 years of age shall be employed 

in the Industry nor anyone under 18 year.s of ag£- in manufacturing 

operations. 

In any State an employer shall be deemed to have complied with 

this provision if he shall have on file a certificate or permit duly 

issued by the Authority in such State empowered to issue employ - ment or age certificates or permits showing that the employee is of 

the required age. 

SEc. 2. Employees shall have the 11ght to organize and bargain 

collectively through representatives of their own choo,sing, 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 purposes 

of collective bargaining or other mutual aid or protection. 

SEc. 3. No employee and no one seeking employment shall be required as a condition o,f employment to join any company union or 

to refrain from joining, organizing, or assisting a labor organization 

o.f hi.sown choosing. 

SEc. 4. Employers shall comply with the maximum hours vf labor, 

minimum rates of pay, and other conditions of employment approved 

or proocribed by the President. 
623 

SEO. 5. Within each State this Code shall not supersede any laws 

of such State jmposing more stringent requirements on employers 

regulating the age of employees, wages, hour.s of work, or health, fire, 

or gen ral working conditions than under this Code. 

SEo. 6. Employers shall not reclas ify employees or dutie of 

occupation performed by mploye~s so a to defeat the purposes 

of the Act. 

SEc. 7. Each employer hall post in con pi uou places in each 1 

department full copies of this Code. 

SE . 8. A person whos earnino- capacity i · limited be ause of ao-e 

or phy ical or mental handicap may be employed on light work 

at a wage below the minimum e tablishe 1 by this Code if the employer obtains :from the State authority de ignated by the United 

States Department of Labor a certificate authorizing his employment 

at such wages and for uch hours as shall be tated in the certificate. 

Each employer shall file with the Code Authority a li t of all such 

persons employed by him; the number of such employees hall not 

exceed five ( 5% ) percent. 

SEC. 9. Every employer shall make rea onable provision for the 

safety and health of his employees at the place and during the hours 

of their employment. 

ARTICLE VI-ADMINISTRATION 

To :further effectuate the policies of the Act a Code Authority is 

hereby constituted to administer the Code. 

SECTION 1. Organization and Constitution of Code Authority: 

(a) The Code Authority shall consist of three individuals or such 

other member as may from time to time be approved by the I 

Administrator, who shall be representatives of the Asphalt and 

Mastic Tile Industry. The Administrator, in his discretion, may 

appoint from one to three additional members to represent the 

Administrator, who shall not, however, be vested with voting rights 

and shall serve without expense to the Members of the Code. 

(b) All voting members of the Code Authority shall be selected 

from Members of the Code and shall be elected by a vote of two 

thirds of all the l\tfembers of the Code, and said members shall be 

selected between the date of approval of the Code by the President 

and the effective date thereof. 

( c) Every member of the Industry hall be eligible to membership in the As ociation, and there shall be no inequitable re trictions 

upon such memoors. Any member of the Industry desiring to 

become a Member of the Association may do so by signing and 

delivering to the Asphalt and Mastic Tile Asso~iation a letter 

substantially in the following form, to wit: 

The PRESIDENT, ASPHALT AND MASTIC TILE A socIATION 

41 East 42nd Street; New York, New York. 

DEAR Srn: The undersi_gned, desiring to become a member of the 

Association and of the Code of Fair Competition of the Asphalt 

and Ma tic Tile Industry, a copy of which i annexed hereto and 

marked "A", hereby assent to all of the provisions of said Code. 

25691°-2-14-150-33-2 
624 

In consideration of the benefits confered by such membership, the 

undersigned agrees to become a member of the Association and of 

the Code and agrees to be bound by all of the provisions of the 

Cod~ and of tlJe Constitution and By-Laws of the Association, effective as of the date on which the Code shall have been approved 

by the President of the United States, or as of the date on which this 

letter shall have been delivered, if delivery thereof shall have been 

made sub equent to the date on which the Code shall have been 

approved by the President. 

Yours very truly, 

By 

Its _____________________________ _ 

( d) The Asphalt and Mastic Tile Association shall ( 1) impose 

no inequitable restrictions upon members, and (2) shall submit to 

the Administrator two copies of its Articles of Association, Bylaws, 

and Regulations, and any amendments when made thereto, together 

with any other information as to membership, organization, and 

activities as the Admini trator may deem nece sary to effectuate 

the purposes of the Act. 

( e) In order that the Code Authority shall at all times be truly 

representative of the Industry and in other respects comply with 

the provisions of the Act, the Ad1ministrator may provide such 

hearings as he may deem proper; and thereafter, if he shall find 

that the Code Authority 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 Code 

Authority. 

(f) The Code Authority shall adopt its own rules of procedure 

and may delegate its authority or such part thereof to such agencies 

as it shall select, subject to review and approval or modification by 

the Administrator. 

(g) Members of the Industry shall be entitled to participate in 

and share the benefits of the activities of the Code Authority and to 

participate in the selection of the members thereof by assenting to 

and complying with the requirements of this Code and bearing their 

proportionate share of the reasonable expenses of its administration. 

The reasonable share of the expenses of administration shall be 

determined by the Code Authority, subject to review by the Administrator. Such expenses shall be determined on the basis of volume 

of business and/or such other factors as may be deemed equitable to 

be taken into consideration. SEc. 2. The Code Authority shall have the following duties and 

powers to the extent permitted by the Act, subject to the right of 

the Administrator on review to disapprove or modify any action 

taken by the Code Authority. 

(a) With a view to keeping the President and the Members of the 

Code informed as to the observance or nonobservance of the Code, and as to whether Members of the Code are taking appropriate steps 
625 

to effectuate the declared policy of the Act, the Code Authority 

shall: 

Study condition in the Indu try and from time to time, subject 

to approval of two third (%) of the members of the Industry, make 

such recommendation to the A lmini trator a it deem de irable 

to further the policie of the Act, and whi h , after u ·h h arino- ru 

the President may pre cribe and upon his approval, hall bee me 

a part of this Code and shall ha v fnll force an l effect a pro vi ions 

hereof; and 

Report to the Administrator at . uch tim and concerning uch 

conditions in the Industry a the Admini. trator may from time to 

time require, and every 1fember of the Code shall file in the office 

of the Asphalt and Ma tic Tile As ociation at such time, in such 

form, and for such periods as required by the Code Authority, duly 

certified reports with respect to wages, honrs of labor condition of 

employment, number of employees, production, and other matter~ 

pertinent to the proper supervision of the Indu try as determine 1 

by the Code Authority. 

(b) All confidential information of a1~y nature requested by the 

Code Authority shall be collected by the Manager of the A phalt an l 

~1astic Tile Association or other agency not a member of the In lu -

try elected by the Code Authority, and such information shall be 

kept confidential except when required by the Code Authority for 

the proper enforcement of the Code and with the further exception 

that all such information hall be fully available to the Adminis-: 

trator. Only such information may be so requested by the Code 

Authority which i appropriate to the proper supervision of the 

Industry or to the enforcement of this Code. 

( c) The Code Authority shall designate an agent or agent , not 

members of the Industry, to investigate complaints of violation of 

the Code. The members of the Code shall f acilitate all such inve~ tigation by opening their correspondence, books, and accounts relating 

to alleged violation for examination by such authorized agent and 

by furnishing relevant information. 

If, upon investigation, any complaint by a Member of the <:ode 

of a violation of the Code hall be determined by the Code Authority 

to be substantiated in any material respect, the Member of the Code 

guilty of such violation hall pay the cost thereof; otherwise the cost 

thereof shall be borne by the complainant. 

All such information shall be kept confidential by the :-tgent, 

except that in the event of any such violation being substantiated 

by the investigating agency the Code Authority shall be informed 

and shall present evidence thereof to the proper department agency, 

or judicial branch of the Government. 

The guilty member shall also be subject to all penaltie provi leJ 

for in the Act. 

SEc. 3. Appeals.-(a) Any intere ted party shall have the rio·ht 

of complaint to the Code Authority and a prompt hearino- and decision hall be made thereon under uch rule and regulation a it 

shall pre cribe, in re pect to any a t of any agent or rwenry de ·ignated by the Code Authority to act in its behalf. 

(b) Any intere ted party hall have th right of appeal to the 

Admini trator, under uch rules and regulations as he hall pre-
626 

scribe, with respect to any decision, rule, regulation, order or finding 

made by the Code Authority. . SEc. 4. In addition to information required to be submitted to the 

Code Authority, there shall be furnished to government agencies 

such stati tical information as the Administrator may deem necessary for the purpose recited in Section 3 (a) of the National Industrial Recovery Act. 

A RTICLE VII-PUBLICITY OF PRICES 

SECTION 1. On or before the effective date hereof each manufacturer shall publish and file with the Code Authority his current prices, 

discounts, and other conditions of sale, if any, which shall be uniform throughout the United States, and the Code Authority shall 

cause copies thereof to be immediately sent to all members of the 

Industry. Revised prices, discounts, and other conditions of sale 

shall be published and filed from time to time thereafter with the 

Code Authority b:y any member of the Industry to become effective 

upon the date specified therein, which shall not be later than ten (10) 

days after filing, and any reduced prices, or more favorable discounts or other conditions of sale shall be filed with the Code Authority ten days in advance of the effective date of the lower prices and/or 

more favorable discounts or other conditions of sale unless the Code 

Authority shall authorize a shorter period. Copies of revised price 

lists and more favorable discounts and other conditions of sale with 

notice of the effective date specified shall immediately be sent by the 

Code Authority to all members of the Industry, who thereupon may 

file, if they so desire, revisions 0£ their price lists and/ or discounts 

and other conditions of sale, which shall become effective upon the 

date when the revised price lists and/ or discounts and other condi- tions of sale first filed shall go into effect, provided the price lists 

and/ or discounts and other conditions of sale are not lower or more 

favorable than the revised price lists and/ or discounts and other 

conditions o:f sale first filed. Any prices that are lower or discounts . and other conditions of sale more favorable than the price lists 

and/ or discounts and other conditions of sale already filed with the 

Code Authority shall not become effective until they shall have been 

filed with the Code Authority ten days in advance of the effective date of such new revised price lists and/ or discounts and other 

conditions of sale. 

SEc. 2. All/rice lists or changes in price lists filed with the Code 

Authority an all price lists or changes in price lists forwarded by 

the Code Authority to members of the Industry shall be forwarded 

by registered mail with a return receipt requested. 

SEC. 3. The price list of every Member of the Industry shall show 

prices for each classification or definition of customer described in 

Section 1 (a), (b), and ( c) of Article XII o:f this Code of Fair 

Competition and shall also include prices covering the installation of 

the Products of this Industry and accessories necessary to complete 

installation. 
627 

AnTICLE VIII-PROTECTION OF CusTOMERS 

SECTION 1. In the event of an advance in price by any Member 

of the Industry his flooring contractor and/or dealers shall have 

protection in price on all bid actually outstandincr and closed contracts, provided the flooring contra tor and/or dealer shall- ( a) Within 14 da s of uch price incr a e notify in writing the 

Member of the Industry with whom he may have executed a flooring contractors' aITT'eement of uch bids as the flooring contractor 

and/or dealer has outstanding; 

(b) Within 10 day of the contract award, which in no event 

shall exceed 45 days after the date of uch price increa e, place a firm 

order with the Member of the Indu try, with whom he may have 

executed a flooring contractors' agreement, for the quantity of the 

Products required to complete said contract. 

SEc. 2. Every Member of the Indu try shall file with the Code 

Authority the details of all bids that have been filed with said 

Member of the Industry by his flooring contractor and/or dealers 

in order to secure price protection as defined above within 20 days 

of such price increase. 

ARTICLE IX-APPLICATION OF TILE BY MEMBERS OF THE INDUSTRY 

SECTION 1. Every member of the Industry who applies any material shall de ignate and operate that part of his business as a 

separate department, which department shall operate in all respects 

as a flooring contractor and shall be subject to all of the_ terms and 

conditions of any form of floorincr contractors' agreement which may 

be approved by the Code Authority and the Administrator, and no 

member of thi Indus~ry shall sell any Product through any uch 

department at lower prices than published under Article VII of 

this Code. 

ARTICLE X-PUBLICITY OF TRADE CLASSIFICATIONS 

SECTION 1. Within ten (10) days after the effective date of this 

Code each :Member of the Industry shall publish to his trade and 

file with the Code Authority all classifications which have been established by him to determine the prices, terms, or conditions of sale 

made applicable by him to the different clas es of his trade for 

products covered by this Code. He shall publish to the trade and 

file promptly with the Code Authority any changes made by him in 

such classifications and any additional clas ifications. 

Each member shall file at such times, in such manner, and at such 

places as may be designated by the Code Authority the name and 

locations of his trade, grouped according to his own stated classifications then in effect. The names and locations so filed shall be 

available to the trade and to the members of the Industry, provided, 

that the name of the manufacturer submitting any such names and 

locations hall not be disclo eel without con ent except to the extent 

necessary to prevent violations of this Article. 
628 

ARTICLE XI-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

for members of the Industry and are prohibited. 

SECTION 1. False JJf arking or Branding.-The false marking or 

branding of any product of the Industry which has the tendency to 

mislead or deceive customers or prospective customers, whether as 

to the grade, quality, quantity, substance, character, nature, origin, 

size, finish, or preparation of any product of the Industry, or 

otherwise. 

SEC. 2. Misrepresentation or False or Mis leading Advertising.-

The making or causing or lmowingly permitting to be made or 

published any false, materially inaccurate, or deceptive statement by 

way of advertisement, or otherwise, whether concerning the grade, 

quality, quantity, substance, character, nature, origin, size, finish, 

or preparation of any product of the Industry, or the credit terms, 

values, policies, or services of any member of the Industry, or otherwise having the tendency or capacity to mislead or deceive customers 

or prospective customers. 

SEC. 3. Oommerci(JJl Bribery.-Directly or indirectly, to give or 

permit to be given, or offer to give, money or anything of value 

to agents, employees, or representatives of customers or prospective 

customers, or to agents, employees, or representatives of competitors' customers or prospective customers, without the knowledge 

of their employers or principals, as an inducement to influence their 

employers or principals to purchase or contract to purchase from 

the makers of such gift or offer, or to influence such employers or 

principals · to refrain from dealing or contracting to deal with 

competitors. 

SEc. 4. Interference with Oontractwal Relations.-Maliciously 

inducing or attempting to induce the breach of an existing oral or 

written contract between a competitor and his customer or source of 

supply, or interfering with or obstructing the performance of any 

such contractual duties or services. 

SEc. 5. Giving of Prizes, Prem,iwms, or Gifts.-The offering or giving of prizes, J?remiums, or gifts in connection with the sale of products, or as an mducement thereto, by any scheme which involves lottery, misrepresentation, or fraud. 

SEc. 6. The defamation of competitors by falsely imputing to them 

dishonorable conduct, inability to perform contracts, questionable 

credit standing, or by other false representations, or by the false 

disparagement of the grade or quality of their goods. 

SEc. 7. Threats of Litigation.-The publishing or circularizing of 

threats or suits for infringement of patents or trade marks, or of any 

other legal proceedings not in good faith, with the tendency or effect 

of harassing competitors or int1midatin$ their customers. 

SEc. 8. Espionage of Oompetitors.-~ecuring confidential information concerning the business of a competitor by a false or misleading 

statement or representation, by a false impersonation of one in 

authority, by bribery, or by any other unfair method. 

SEc. 9. Selling at L ess than Published Prices.-The selling of any 

Product to any purchaser thereof at less than the published price 

applicable to such class of purchaser; or to effect a lower price by 
629 

an_y means whatsoever, either directly or indirectly, or by any 

subterfuge, or to use or effect a lower price than that published for 

all customers of the same cla s. 

SEc. 10. SeO'l'et Rebates.-The secret payment or allowance of 

rebates, refunds, commissions, credits, or unearned discounts, 

whether in the form of money or otherwise, or the secret extension 

to certain purchasers of special services or privileges not extended 

to all purchasers on like terms and conditions. 

SEc. 11. Selling Below Cost.-The selling of the Product below 

the manufacturer's individual cost except to meet any price published by another manufacturer in accordance with Article VII; 

in meeting these prices the manufacturer shall comply with all the 

provisions of Article VII. Cost shall be determined by such method 

as is prescribed by the Code Authority and approved by the 

Administrator. 

SEc. 12. Consignment, Free Goods, or False Billing.-Shipping 

goods on consignment or storing goods in any place where a flooring 

contractor or dealer has any interest, or hiring a warehouse from 

customer except where the customer may have or own an interest in 

a public warehouse in which the customer's place of business is 

not located; or in any way delivering free goods to any customer or 

prospective customer; or invoicing goods to any other person than 

the person by whom payment is to be made; or making any fictitious invoice for any shipment; paying a price in excess of the 

prevailing open-market price for any product of this Industry~ paying for materials of his own manufacture more than the original 

net delivered cost thereof. 

SEo. 13. Informing any customer or prospective customer, directly 

or indirectly, of any change or contemplated change in any price 

and/or discount prior to the date on which such price and/or discount 

is to be published to the trade. 

SEc. 14. Other Unfair Praetices.-Nothing in this Code shall limit 

the effect of any adjudication by the Courts or holding by the Federal Trade Commission on complaint, finding, and order, that any 

practice or method is unfair, providing that such adjudication or 

holding is not inconsistent with any provision of the Act or of this 

Code. 

ARTICLE XII-MERCHANDISING PLAN 

The following shall constitute the Merchandising Plan of the 

Industry: 

SECTION 1. Classification of Customers.-The following classifications of customers shall be used by all members of the Industry when 

publishing to the trade and filing with the Code Authority schedules 

of prices, discounts, allowances, rebates, or terms of sale and notices 

of changes therein. If said classification by virtue of its application 

works hardship on any customer, such customer may appeal to the 

Code Authority which shall have power to reclassify such customer 

as justice requires. 
630 

(a) Flooring Contractor: A flooring-covering Contractor who 

actively engages in the solicitation and installation of the Product" 

who possesses a good reputation for high quality workmanship and 

business integrity; who will sign a standard form of contract with 

a single member of the Industry for the purchase of his entire 

requirements, which standard form of contract shall be designed to 

conform to the practice under and the provisions of the Code, and to 

be approved by the Code Authority and the Administrator. 

(b) Dealer: A floor-covering contractor who engages in the solicitat10n of and/ or installation of the Product; who possesses a good 

reputation for high quality workmanship and business integrity, 

but who otherwise does not comply with the qualifications of a flooring contractor. 

( c) Consumer: Any customer who purchases the Product for use 

and. installation for himself and not for resale. 

SEc. 2. Met hod of Listing Flooring O ontractors.-Each member 

of the Industry shall determine his own trade classification of customers, and when determined shall file with the Code Authority lists 

of flooring contractors and dealers classified. 

SEo. 3. Segregation of ltems.-In all bids, proposals, quotations, 

and invoices involving materials other than the Product, the price 

to be charged on each shall be segre~ated so that the product shall 

be separate and distinct from all other items. 

ARTICLE XIII-GENERAL 

SECTION 1. Nothing contained in the Code shall be deemed to constitute any of the members thereof partners for any purpose. No 

member of the Code shall be liable in any manner to anlone for 

any act of any member or agent of the Code Authority or o the Association. No member of the Code, except as otherwise provided 

herein, and no member of the Industry or of the Code Authority and 

no agent of the Industry or of the Association, shall be liable to 

anyone or in any manner other than as provided in the Act, or in 

the Code, for any act or failure to act under the Code. 

SEc. 2. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the provi,. 

sions of subsection (b) of Section 10 of the Act, from time to time 

fo cancel or modify any order, approval, license, rule, or regulation 

issued under said Act. 

SEo. 3. This Code, except as to provisions required by the Act, 

may be modified on the basis of experience or changes in circumstances, such modification to be based upon application to the Administrator, and such notice and hearing as he shall specify, and to 

become effective on approval of the President. The Members of this 

Industry assenting to this Code do not thereby consent to any 

modification thereof, and they reserve the right to object individually 

or jointly to any such modification. 

The provisions of this Code shall remain in effect until and unless 

modified or eliminated in accordance with the foregoing provisions 
631 

of Section 2 hereof and of this Section 3, or until the expiration of 

the Act, namely, June 16, 1935, or sooner, if the President shall, by 

proclamation, or Congress shall, by joint resolution, declare the 

emergency recognized by Section 1, Title 1, of the Act, has ended. 

ARTICLE XIV-EFFECTIVE DATE 

This code shall become effective on the second Monday after its 

approval by the President. 

Approved Code No. 150. 

Registry No. 1003---03. 

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UNIVERSITY OF FLORIDA 

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