Approved Code No. 501 Registry No. 1628-09 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

MANUFACTURING AND 

WHOLESALE SURGICAL INDUSTRY 

AS APPROVED ON AUGUST 9, 1934 

·we DO OUR PART 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Supe.intendent of Documents, Wasrungton, D.C. - - - - - - -- - Price 15 centa 
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Printing Office, Washington, D.C., and by dist1'ict offices of the Bureau of 

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DISTRICT OFFICES 01<' 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 r orth Wells Street. 

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Thlich.: 801 First National Bank Building. 

Hou ton, Tex. : Cbaml.Jer of Comrnerc.:e Building. 

Indianapoli , Ind.: Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, l\Io.: 1028 Baltimore AYenue. 

Los Augeles;, Calif.: 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

l\Iempbis, Tenn. : 220 Fed eral Building. 

Minneapoli , Minn. : 213 Federal Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New Yo1k, N.Y.: 734 Customhouse. 

Norfolk. Va.: 400 East Plume Street. 

Philac1elphia, Pa.: 422 Commercial Trust Building. 

Pitt..burgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg.: 215 ~ rew Post Office Building. 

St. Louis. Mo.: 506 Olive Street. 

San E'rancisco, Calif. : 310 Customhouse. 

SPn ttl e. Wnsh.: 809 Federal Office Building. 
Approved Code No. 501 

CODE OF FAIR COMPETITION 

FOR THE 

MANUFACTURING AND WHOLESALE SURGICA~ 

• INDUSTRY 

As Approved on August 9, 1934 

ORDER 

CODE OF FAIR COMPETITION FOR THE MANUFACTURING AND WHOLESALE 

SURGICAL 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 Code of 

Fair Competition for the Manufacturing and ·vvholesale Surgical 

Industry, and hearing having been duly held thereon and the annexed 

report on sn,id Code, containing findings with respect thereto, having 

been m.ade and directed to the President : 

No,v, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the 

President, including Executive Order No. 6543-A, dated December 

30, 1933, and otherwise; do hereby incorporate by reference said 

annexed report and do find that said Code complies in all respects 

with the pertinent provisions and will promote the policy and 

purposes of said Title of aid Act; and do hereby order that said 

Code of Fair Competition be and it is hereby appro-ved; provided, 

however, that within ninety days I may direct that there be a further 

hearing on such of the provisions of said Code as I may designate, 

and that uny order which I may make after such hearing shall have 

the effect of a condition on the approval of said Code, and provided 

further that Section 3 of Article VIII be, and the same is, hereby 

deleted. 

H UGH s. J OHNSON, 

Administ1·ator /01· Industrial R ecovery. 

Approval recommended : 

GEO. L. BER ,Y' 

Division Adniinistrator. 

WAnHI~GTQ ) D.C., 

August 9, 1934. 

70303 °-1044-51-34- ( 57) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lV hite House. 

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

Manufacturing and Wholesale Surgical Industry, the hearing havjng been conducted in vVashington on the 27th day of November, 

1933, in accordance with the provisions of Title of the National 

Industrial Recovery Act. 

INDUSTRY BACKGROUND 

The Manufacturing and Wholesale Surgical Industry had a reduction in employment between June, 1929 and October, 1933 of 

about twenty-one (21 % ) percent. Employment increased about 

sixteen (16%) percent between June, 1933 and October, 1933, while 

the average hours worked per week decreased about ten (10% ) 

percent in that same period. AYerage hours worked per week in 

October, 1933 were 36.3. The minimum wage rates in this Industry 

were sorn.ewhat higher in October, 1933 than in June, 1929. The 

minimum rates as provided in this Code will provide weekly earnings 

higher than the lowest wage rate in 1929. 

The Office of the Snrgeon Gene1·al of the War Department has 

advised me that this Industry should receiYe sympathetic consideration, for the reason that this Industry is an important factor in 

their National Defense plans. 

HOURS AKD WAGES 

The Code provides a standard work week of forty ( 40) hours, 

exceptions being made as follows : 

Skilled mechanical artisans are pennitted to work more than 

forty ( 40) hours in any one week, provided that in cases where 

no such additional labor is available they shall be allowed to work 

forty-four (44) hours in any one week or nine (9) hours in any 

one day; provided, however, that one and one-half times the normal 

r ate of pay shall be paid each employee for all time worked in 

excess of the standard 11,reek. Emergency maintenance and emergency repair vrnrk employees may work in excess of the standard 

week providing they are pai 1 time and one-half for their work in 

excess of forty ( 40) honrs per ,yeek. Surgical appliance fitters 

may be permitted to work in excess of forty ( 40) hours in any one 

we•ek provided that each employee is paid one and one-half times 

his nonnal rate of pay for work in excess of the standard week. 

l\fanugerial, executive and supervisory employees who are paid more 

than Thirty-five ($35.00) Dollars per week are exempted from. the 

maximum hour provisions. In the event of emergencies due to 

epidemics or catastrophes wherein the public health is threatened 

(58) 
59 

the provisions regarding maximum hours of employment shall be 

temporarily suspended during such emergency. 

The Code provides for a minimum wage rate of 371⁄2¢ per hour 

for males and 321⁄2¢ per hour for females with the following exceptions being made : 

Office boys or m.essengers between the ages of 16 and 18 may be 

paid not less than $12.80 per week. This type of employee, how- ever, being restricted to 5% of the total number of employees in 

any one establishment. A person whose earni11g capacity is limited 

because of physical or mental handicap may be employed on light 

work at a wage below the minimum established by the Code. 

ECONOMIC EFFECT OF TIIE CODE 

In the }ifanufacturing and "\Vholesale Surgical Industry there 

is practically no unemployment and consequently the shorter hour 

provisions as established by this Code will not, in the final analysis, 

increase employiuent to any great extent. It is estimate l, however, that with the standard forty ( 40) hour week there will be a slight 

increase in wage-earner employment. The Code establishes a 1nini- mum rate which is in excess of the average rate paid in June, 1929 

and, from this point of view, will tend to effectuate the purposes 

of Title I of the National Industrial Recovery Act. 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 

having found as herein set forth and on the basis of all the pro- ceedings in this matter : 

I find that: 

(a) Said Code is well design€d to promote the policies and pur- poses of Title I of the National Industrial Recovery Act includ- ing removal of obstructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof and will pro- vide for the general welfare by promoting the organization of in- dustry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and ;manage- ment under adequate governmental sanctions and supervision, 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 tem- porarily required), by increasing the consumption of industrial 

n-nd agricultural products through increasing purchasing power, by 

reducing and relieving unemployment, by improving standards of 

labor, and by otherwise rehabilitating industry. 

(b) Said Industry and Trade normally employs not more than 

50,000 empl~yees; and is not classified by me as a major industry. 

( c) The Code as approved complies 1n all res1;>ects with the per- tinent provisions of said Title of said Act, including without limitation Subsection (a) of ~ection 3, Subsection (a) of Section 7, and 

Subsection ( c) of Section 10 thereof; and that the applicant associa- tion is an industrial association truly representative of the aforesaid Industry; and that said association imposes no inequitable 

restrictions on admission to membership therein. 
60 

( d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

( e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. (f) Those engaged in other steps of th economic process have 

not been deprived of the right to be heard prior to approval of said 

Code. 

:Members of this Industry have cooperated in a most satisfactory 

manner with the Ad11_1inistrator in the preparation of this Code. 

From evidenc adduced during this hearing and from recommendations and reports of the various Advisory Boards it is be- lieved that this Code as now proposed and revised represents an 

effective, practical). equitable solution for this Industry and for 

these reasons this Gode has been approve l. 

Respectfully, 

AUGUS'.r 9, 1934. 

HUGHS. JOHNSON, 

Adniini trator. 
CODE OF FAIR COMPETITION FOR THE MANUF ACTURING AND "\VHOLESALE SURGICAL INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, this Code is established as a Code of Fair Competition for the Manufacturing and Wholesale Surgical Industry, and 

its provisions shall be the standards of fair competition for such 

Industry, and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term" the 1vlanufacturing and Wholesale Surgical 

Industry" or "the Industry" as used herein shall mean the manufacture and/or wholesale distribution and/or the importation of 

articles or commodities used in, or in connection with, or in aid of, 

the practice of medicine and as particularly applied to surgery, 

such as surgical and diagnostic instruments, appliances and appara- tus for medical and surgical treatment, including sutures and ligatures, and including electro-surgical instruments and trusses and_like 

appliances, used, prescribed or recommended by physicians, hospitals and nurses; except such instruments, appliances and appara- tus, the manufacture and wholesale distribution of which are governed by another Code or Codes. 

SECTION 2. The term " Member of the Industry " or " Member " 

as used herein shall mean any individual, partnership, association, 

corporation or other form of enterprise engaged in the Industry as 

defined above, either as an employer or on his or its own behalf. 

SECTION 3. The term "Employee" as used herein includes any 

and all persons engaged in the Industry, however compensated, 

except a member of the Industry. 

SECTION 4. The term " Employer " as used herein includes anyone 

by whom any such employee is compensated or employed. 

SECTION 5. The terms " President ", "Act ", and "Administrator " 

as used herein mean respectively the President of the United States, Title I of the National Industrial Recovery Act, and the Administrator for Industrial Recovery. 

ARTICLE III-HOURS 

l\IAXIMUM HOURS 

SECTION 1. No employee, except as herein otherwise specified, shall 

be permitted to work more than forty (40) hours in any one week 

or six (6) days in any one week or eight (8) hours in any one day. 

EXCEPTIONS .AS TO HOURS 

SECTION 2. No skilled mechanical artisan shall be permitted to 

work more than forty (40) hours in any one week or six (6) days in 

any one week or eight ( 8) hours in any one day, provided however 

(Gl) 
62 

that in cases where no such additional labor i available as evidenced 

by reports from the U .S. Employment Service and a forty ( 40) hour 

week will unavoidably restrict production such employees may be 

permitted to work not more than forty-four ( 44) hours in any one 

:week nor more than nine (9) hours in any one day nor more than six 

(6) days in any one week, provided however that one anLl one-half 

times his normal rate of pay shall be paid each employee for all time 

worked in exces of forty (40) hours in any one week or si:x (6) days 

in any one week or eight (8) hours in any one day. SEcTio 3. The provi ions of this Article shall not apply to employees engaged in emergency maintenance or emergency repair work, 

provided that e ch such employeB i. 1 )aid at the r ate of one and 

one-half times his normal rate of pay for all time worked in e:s:ce s 

of forty (40) hours in any one week or six (6) days in any one week 

or eight (8) hours in any one ch,y. 

SECTIO~ 4. Surgical appliance fitters may be permitted to work in 

exce of forty ( 40) hours in an one week r six ( 6) days in any 

week or eight (8) hours in any one day provided each such employee 

is I aid one and one-half time his normal rate of pay :for all time 

worked in exce~s of hours specified in this Section. 

ECTIO~T 5. The proYisions of thi Ar icle shall not apply to per- son employed in a managerial, executive or supervi ory capacity who 

are paid more than thirty-five (\~35.00) dollars per week, nor to 

tra--veling sale men. 

ECTION 6. In the eYent of emergencies due to epidemic or catastrophies wherein the public health is threatened, the provi ions r~-

garding maximum hour of employment hall be temporarily suspended luring such emergency a to tho e emplo .,.ees whose work is 

affected thereby, but on condition that no employee shall be permitted 

to work more than fifty-four (54) hours in any one week during 

such emergency period; in all such cases the members of the Industry 

affected thereby shall notify the Code Authority of the r ason :for 

the exi tency of the emergency, the hours w rked by the Employees 

during the period of such emergency{ and the termination thereof; 

and the Code Authority shall immediately report the same to the 

Administrator. In these emergencies each employee shall be paid 

one and one-half times his normal rate of pay for all time worked in 

excess of forty ( 40) h ours in any one week or six ( 6) clays in any 

one week or eight ( ) hours in uny one da . . 

RECTION 7. "\"'\ atchmen may be permitte 1 to work a maximum of 

fifty -six (5"') hours per week, but no watchmen hall be employed 

n1ore than ix (6) da 'S in any e-ven (7) day period. 

E3IPLODIEXT BY SEYER.AL E::VIFLOYER 

SECTION 8. No employer shall knowingly permit any employe to 

work for any time which when totaled with that already worked f r 

nnother employer or employers exceeds the nrnximum permitted 

herein. 

AnTICLE IV-W GES 

JI.IIXDIU:.\I WAGE 

SE-CTio~:r 1. No male employee, except as her einafter specified shaU 

pe paid less than at the rate of thirty-se-ven and one-hal:f (371⁄2¢) 
63 

cents per hour. No female employee, except as hereinafter specified shall be paid less than at the rate of thirty-two and one-half 

(321⁄2¢) cents per hour. 

SECTION 2. Office boys or messengers between the ages of sixteen 

(16) and eighteen (18) years may be paid at not less than the rate of 

T welve Dollars and Eighty Cents ($12.80) per week, and the total 

number of such workers shall not in any case exceed one in number 

or 5% of the total number of the employees of an establishment, 

whichever is the higher. The names of such employees shall be 

made available to any employee and shall be filed ,vith the Code 

Authority and the Admini trator. 

SECTION 3. This Article establishes a minimum rate of pay which 

shall apply irrespectiYe of whether an employee is actually compensated on a time rate, piece work or other basi . . 

SECTION 4. F emale employees performing substantially the same 

work as male employees shall receive the same rate of pay as male 

employees and when they displace male employees they shall receive 

the same rate of pay a the men they displace. 

SECTION 5. Equitable adjustn1ents above the minimum in all pay 

schedules of employe s shall be made within thirty (30) days after 

the effective date of thi Code by any employer who has not since 

June 16, 1933, made such adjustments under the Act. In no event, 

ho-wever, shall h ourly r ates be reduced. vVithin sixty (60) days after 

the effective date of this Code, each member of this Industry sh all 

make a report of such adjustments (whether made prior to or subsequent to date of approYal of this Code) to the Code \.utl ority. 

SECTION 6. A person whose earning capacity jt limited because of 

age or physical or mental handicap or other infirmity rna.y be e1nployed 011 light work at a wage below the minimum established by 

this Code if the employer obtains from the State Authority designated by the United States Department of L abor a certificate authorizing his employment at such wages and for cuch hours as sha ll 

be stated in the certificate. Each emplbyer shall file monthly with 

the Code Authority a list of all such persons employe l by him, showing the wages paid to, and the maximum hours of 11·ork for such 

employee. 

SECTION 7. Wages shall be p aid weekly or ·emi-rnonthly in lawful 

money or by negotin ble check payable on d mand. "\Vages shall be 

exempt from fines, charges, rebate. , d€ductions or any other form 

of 11·ithholding wage except for contributions voluntarily m~cle by 

th employee or required by law. The emp oyer or his agents shall 

accept no rebates directly or in Erectly on snch wages nor giv anything of Yalue or extend favors to any person for the purpose of 

influencing rate· of wag s, h ours, or the working conditions of his 

employees. 

ARTICLE V-GENERAL LABOR AND OTHER PROVISION s 

CHILD LABOR 

SECTION 1. No person un ler sixteen (16) years of age shall be 

employed in the Industry. No person under eighte n (1 ) years of 

age shall be employed at operations or occupations which an~ hazardous in nature or dangerous to health. The Code Authonty shall 
64 

submit to the Administrator within sixty (60) days after the approval of this Code a list of such operations or occupations. In any 

State an employer shall be deemed to have complied with this proYision as to age if he shall have on file a certific.ate or permit duly 

signed by the Authority in such State empowered to issue employment or age certificates or permits showing that the employee is of 

the required age. 

PROVISIONS FROM TEE ACT 

SECTION 2. (a) Employees 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 protBction: · 

(b) No employee and no one seeking employment shall be required 

as a condition of employment to join any company union or to 

refrain from joining, organizing, or assisting a labor organization 

of his own choosing, and 

(c) Employers shall comply with the maximum hours of labor, 

minimum rates of pay and other conditions of employment approved 

or prescribed by the President. 

RECLASSIFICATION OF E3IPLOYEES 

SECTION 3. No employ0 r shall reclassify employees or duties of 

occupations performed or engage in any other subterfuge so as to 

defeat the purposes or provisions of the Act or of this Code. 

STANDARDS FOR SAFETY AND HEALTH 

SECTION 4. Every employer shall make reasonable provision :for 

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

hours of their employment. Standards of safety and health for 

each division of the industry shall be submitted to the Administrator 

by the Code Authority within -three (3) months after approval of 

the Code. 

STATE LAWS 

SECT10N 5. No provi ion in this Code shall supersede any State or 

Federal Law which imposes on employers more stringent requirements as t~ age of employees, wa_ges, hou1~s. of work_, or as to safety, 

health, sanitary or general working conditions, or insurance or fire 

protection, than are imposed by this Code. 

POSTING 

SEcTIO)r 6. All employers shall post and keep posted copies of 

this Code or its labor provisions in conspicuous places accessible to 

all employees. Every m mber of the Industry shall comply with 

all rules and regulations relative t o the posting of p:i;ovisions o:f 

Code of Fair ompetition which n1ay from time to time be prescribed by the Administrator. 
65 

DISMISSAL FOR CO~f PLAINT 

SECTION 7. No employee shall be dismissed, demoted or discriminated against by reason of making a complaint or giving evidence 

with respect to an alleged violation of this Code. 

ARTICLE VI-ORGAKIZATION, PowERs AND DUTIES OF THE Co:cE 

AUTHORITY 

SECTION 1. A Code Authority is hereby established to cooperate 

with the Administrator in the administration of this Code, and 

shall consist of seven (7) members of the Industry, five (5) of 

whom shall be selected from the °\Vholesale Surgical Trade As ocia- tion, and two (2) members from the Industry who are not .members 

of the "\Vholesale Surgical Trade Association. The method of ele"- tion of the Code Authority shall be subject to the approval of the 

Administrator. 

SECTION 2. In addition to the members of the Code Authority above 

mentioned, the Administrator may appoint not more than three ( 3) 

members without vote and without compensation from the Industry. SECTION 3. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose; nor shall 

any members of the Code Authority he liable in any manner for any 

act of any other member, officer, agent, or employee of the Code 

Authority; nor shall any member of the Code Authority exercising 

reasonable diligence in the conduct .of his duties hereunder, be liable 

to anyone for any action or omission to act under this Code, except for his own wilful n1alfeasance or nonfea..sance. 

SECTION 4. 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 Administrator may prescribe 

such hearings as he may deem proper; and t1iereafter if he shall find 

that the Code Authority is not truly rep:rnsentative or does not in 

other respects comply with the provisions of the Act, may require 

nn appropriate modification in the m-ethod of selection and composition of the Code Authority. 

SECTION 5. If the Administrator shall determine that any action 

of the Code Authority or any agency thereof may be unfair or unjust 

or contrary to the public interest, the Administrator may require 

that such action be suspended to afford an opportunity for an investigation of the merits of such action and further consideration by such 

Code Authority or agency pending final action which shall :i:10t be 

effective unless the Administrator approves or unless he shall :fail 

to disapprove after thirty (30)· days' notice to him of intention to 

proceed with such action in its original or modified form. 

POWERS AND DUTIES 

SECTION 6. Subject to such rules and regulations as may be issued 

by the Administrator, the Code Authority shall have the following 

powers and duties, in addition to those authorized by other provisions of this Code. 
66 

(a) To insure the execution of the provisions of this Code and to 

provide for the compliance of the Industry with the provisions of 

the Act. 

(b) To adopt by-laws and rules and refcrulations for its procedure. 

( c) To obtain from members of the ndustry such 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 of the Industry subject to this Code shall furnish 

such statistical information as the Administrator 1nay deem necessary for the purposes recited in Section 3 (a) of the Act to such 

Federal and State agencies as he may designate; provided that nothing in this Code shall relieve any member of the Industry of any 

existing obligations to furnish reports to any Govermnent agency. 

No individual report shall be disclosed to any other member of the 

Industry or to any other party except to such other Governmental 

agencies as may be directed by the Administrat-Or. 

( d) To use such trade associations and other agencies as it deems 

proper for the carrying out of any of its activities provided for 

herein, provided that nothing herein shall relieve the Code Authority of its duties or responsibilities under this Code and that 

such trade associations and agencies shall at all times be subject to 

and comply with the provisions hereof. 

( e) To make recommendations to the Administrator for the coordination of the administration of this Code and such other Codes, 

if any, as may be related to or affect members of the Industry. 

(f) 1. It being found necessary in order to support the administration of this Code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the 

Act, the Code Authority is authorized. 

(a) To incur such reasonable obligations as are necessary and 

proper for the foregoing purposes.., 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 the Code; 

(b) To submit to the Administrator for his approval subject 

to such notice and opportunity to be heard as he may deem 

necessary: (1) an itemized budget of its estimated expenses for 

the foregoing purposes; and (2) an equitable basis upon which 

the funds necessary to support such budget shall be contributed 

by members of the Industry; 

(c) After such budget and basis of contribution have been 

approved b;y the Administrator, to determine and obtain equitable contribution as above set forth by all members of the 

Industry, and to that end, if necessary, to institute legal proceedings therefor in its own name. 

2. Each member of the Industry shall pay his or its equitable contribution to the ex:pen es of the maintenance of the Code Authority, 

determined as hereinabove provided, and subject to rules and regulations pertaining thereto issued by the Administrator. Only members of the Industry complying with the Code and contributing to 

the expenses of its administration as hereinabove provided shall be 

entitled to participate in the selection of members of the Code 

Authority or to receive the benefits of any of its voluntary activities 

or to make use of any emblem or insignia of the National Recovery 

Ad.ministration. 
67 

3. The Code Authority shall neither incur nor pay any obligation 

in e:N:cess of the amount thereof as estimated in its approved budget, 

except upon approval of the Administrator; and no subsequent 

budget shall contain any deficiency item for expenditures in excess 

of prior budget estimates except those which the Administrator 

shall have so a pp roved. 

(g) To recommend to the Administrator any action or mea ures 

deemed advisable, including further fair trade practice provisions 

to govern members of the Industry in their relations with each other 

or with other Industries; measures for industrial planning1 and 

stabilization of employment; and including modifications of tliis 

Code which shall become effective as part hereof upon approval by 

the Administrator after such notice and hearing as he may specify. 

(h) To appoint a Trade Practice Committee which shall meet 

with the Trade Practice Committees appointed under such other 

codes as ma.y be related to the Industry for the purpose of formulating f air trade practices to govern the relationships between employers under this Code and under such other Codes to the end that such 

fair trade practices may be proposed to the Administrator as amendments to this Code and such other Codes. 

(i) To consider and refer to an executive Committee of the Division concerned, for investigation and report back to the Code Authority, all charges of any breaches of the Code and/or any schedules 

or amendments thereto. 

SECTION 7. Each trade or industrial association directly or indi--

rectly participating in the selection or activities of the Code Authority shall (1) impose no inequitable r estrictions on membership, 

and (2) submit to the Administrator true copies of its articles of 

association, by-laws, regulations, and any amendments when made 

thereto, together with such other information as to memb r hip, 

organjzation, and activities as the Achninistrator may deem necessary 

to effectuate the purposes of the Act. 

SECTION 8. Each product divisional group of the industry s:!:iall 

have its own separate and distinct planning committee, known as the 

Division Executive Committee, and such executive committee shall 

place in writing all of its decisions and recommendations to th Code 

Authorjty for approval at least fifteen (15) days bdon~ su"h ckcisions and recommendations are to become e:ffecti,,e. If th° Code 

Authority disapproves or fails either to approve or disapprove such 

decisions or r ecommendations within _fjftnen (15) clays rft r thei r 

receipt by the Code Authority, the Division Executive Committ e 

shall be entitled to present its recommendations to the Administrator for his approval, if the approval of the Adminjstrator is 

required. 

..A-1tTICLE VII-TRADE PRACTICES 

SECTION 1. No member of the Industry shall give, permit to be 

given, or directly offer to give, anythjng of value for the 1-,urpose of 

rnfluencing or rewarding thB action of any employee, agent or repre -

sentative of another in relation to the business of the employer 0£ 

such employee, the principal of such agent or the represented 

party, without the knowledge of such employer, princjpal or party. 

Commercial bribery provisions shall not be construed to prohibit free 

and general distribution of articles commonly used for advertising 
68 

except so fur as such articles are actually used for commercial 

bribery as hereinabove defined. 

C!EcTION 2. No member of the Industry shall allow secret rebates, 

refunds, commi sions, credits, or unearned discounts, whether in 

the form of money or otherwise or extend to certain purchasers 

special servi ces, prices, nor hall a member extend special privileges 

not extended to all purchasers of the same class, on like terms and 

conditions, nor withhold from, or insert in an invoice or contract 

any statements which make the in-,oice or contract a false record, 

wholly or in part, of the transaction covered thereby. 

SEcTI N 3 . .r o member of the Industry shall use advertising which 

i inaccurate in any material particular, nor shall a member dire tly, 

by ambiguity or by inference misrepresent merchandise or any substance used in connection therewith (including, but not limited to, 

its use, trademark, grade, quality, quantity, size, origin, material 

content, preparation or curative or therapeutic effect) or credit 

terms, values, policies, or services; and no member of the Industry 

shall use advertising and/or selling method which famd to deceive 

or mislead the customer. Advertising includes all representations of 

fact or opinion disseminated in any manner or by any means, including the labeling of products. 

SEcTio T 4. No member of the Industry shall disseminate, publish, 

circulate or cause to be disseminated, published or circulated any 

fal e or misleading statement relative to the following: 

(a) Any product or price thereof of any member of the Industry; 

(b) The credit standing or ability of any n1ember of the Industry 

to perform any work or manufacture, or to produce any products. 

SECTION 5. No member of the Industry shall imitate or simulate 

any design, style, brand, trademark, slogan, or other means of identification owned by any other membe-r of the Industry in such a 

manner as has the tendency or capacity to mislead or deceive 

purchasers. In order to make this provision effective the Code Authority may provide for the establishment of an agency for the 

regi tration of sur&-ical instruments of ori&inal and useful design. 

No provision of this Section shall supersede any State or Federal 

Law. 

SEOTION 6. No member of the Industry shall induce or attempt to 

induce by any means, the breach of an existing contract between n. 

competitor and his customer or source of supply; nor shall any such 

member interfere with or qbstruct the performance of such contractual duties or services. 

SEOTION 7. The :following additional trade practices shall apply 

to the Surgical Appliance Manufacturing Division: 

(a) No member of the Division shall ship goods on consignment 

except under circumstances to be defined by the Code Authority 

where peculiar circumstances of the Industry r 0 quire the practice 

and the Code Authority shall report the same to the Administrator. 

(b ) No member of thi Division shall require that th~ purchase 

or lense of any goods be a prerequisite of the purchase or lease of 

any other goods. 

(c) No member of this Division shall accept returned merchandise except for defects in manufacture, delay in d-elivery, errors in 

shipment, reconditioning at a price previously agreed upon, or the 

buyer's inability to pay for the merchandise. 
69 

ARTICLE YIII-nfoDIFICATION 

SECTION 1. This Code uncl all the provisions thereof are expressly 

made subject to the right of the Pre ident, in accordance with the 

provi ions of ubsection (b) of Section 10 of the Act, from time to 

time to c< ncel or modify any order, approYal, licen e, rule or regu- lation i necl under said Act. 

SECTION 2. Thi Code, except as to provision required by the 

Act; may be modified or amended on the basis of experience or 

chang s in circum tances, such 1nodifications or amendment to be 

based upon application to the Admini trator and such notice and 

hearing as he hall specify, and to become effective on approval of 

the Administrator. 

SECTION 3. By presenting this Code, tho e who have assented 

hereto do not thereby con ent to any modification thereof except as 

each shall thereto sub equently agree, or to the waiver of any of their 

constitutional right .

1 

ARTICLE IX-nfoNOPOLIES 

No provision of this Code shall be so applied as to permit monopolies or monopoli. tic practices, or to eliminate, oppress, or discrimin ate against small ent rprises. 

ARTICLE X-PRICE INCREASES 

Whereas the policy of the Act to increase real purchasing power 

will be made more difficult of consummation if prices of goods and 

services increase as r apidly as wages, it is recognized that price 

increa es except such as may be required to meet individual cost 

should be de.la} eel, but when made such increases should, so far as 

possible, be limited to actual additional increa e in the seller's cost. 

ARTI LE XI- EFFEOTIVE DATE 

T his Code shall become effective the second ::Monday after its 

approYal by the President. 

Approved Code 501. Registry ro. 1628-09. 

1 Deleted-See paragraph Z of order approving this Code. 

0 
UN IVER S ITY O F FLORIDA 

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