Approved Code No. 84-Supplement No. 12 Registry No. 1399-05 

NATIONAL RECOVERY ADMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

POWER AND 

GANG LAWN MOWER 

MANUFACTURING INDUSTRY 

AS APPROVED ON MARCH 26, 1934 

WE DO OUR PART 

' ... 0 ~ 

UNITED ST ATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 
This publication is for sale by the Superinteudent of Documents, Governme:it 

Printing Office, Washington, D.O., and by district offices of the Bureau of 

}.,oreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga. : 504 Post Office Building. 

Birmingham, Ala.: 257 Federal Building. 

Boston, l\lass. : 1801 Customhouse. 

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

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

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

Cleveland, Ohio : Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, l\Iich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

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

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, T n:n. : 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. : 412 Commercial Trust Building. 

Pittsburgh, Pa. : Cbamber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, Mo. : 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

Seattle. Wash.: 809 Federal Office Building. 
Approved Code No. 84-Supplement No. 12 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

POWER AND GANG LAWN MOWER 

MANUFACTURING INDUSTRY 

As Approved on March 26, 1934 

ORDER 

APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE 

POWER AND GANG LAWN MOWER MANUFACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFACTURING AND 

METAL FINISHING AND 1\'lETAL COATING INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the pr0visions of Title I of the National Industrial 

Recovery Act, approved June 16·, 1933, and in accordance with the 

provisions of Section 1 of Article VI of the Basic Code for the 

Fabricated i1etal Products Manufacturing and Metal Finishing and 

Metal Coating Industry, approved November 2, 1933, for approval 

of a Supplementary Code of Fair Competition for the Power and 

Gang Lawn Mower Manufactul'ing Indu try; and hearing having 

been duly held thereon; and the annexed report on said Supplementary Code, containing findings with respect thereto, having been 

1nade and directed to the President: 

NOW, THEREFORE, on behalf of the President of the United 

States, I, Hugh S. J 0hnson, Administrator for Indu.strial Recovery, 

pursuant to authority ·vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated Decemher 30, 

1933, and otherwise; do hereby incorporate by reference said annexed report and do find that said Supplementary Code complies in 

all respects with the pertinent provisions and will promote the policy 

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

Supplementary Code of Fair Competition be and it is hereby approved; provided, however, that the provisions of Article V, Section 

5, insofar as they prescribe a waiting period between the filing with 

the Code Authority and the effective elate of revised price lists or 

revised terms and conditions of sale b 0 and they are hereby stayed 

40065°--423-158--34 (1) 
2 

pending my further Order either within a period of sixty days from 

t.he effective date of this Code or after the corn.pletion of a study of 

open price a ·ociations now b"ing conrluctt'd by the N atjonal RecoYery Administration. 

HUGH 8. J OHXSON 

AclmJnii;frato7' for I ndustrial R ecovery. 

Approval recommende l: 

A. R. GLa ~cY, 

Di. ision Adm,inisfrator. 

1\fAnCH 26, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lVhite Ho11J8e. 

Sm: This is a report on the Supplementary Code of Fair Competition for the Power and Gang Lawn :Mower Manufacturing Industry, a division of the Fabricated Metal Products Manufacturing 

and Metal Finishing and Metal Coating Industry, the hearing having been conducted thereon in Washington, D.C., December 20,. 1933, 

in accordance with the provisions of Title I of the National Industrial Recovery Act. 

GENERAL STATEMENT 

The Power and Gang Lawn l\1ower l\tfanufacturing Industry, 

being truly representative of this division of the Fabricated Metal 

Products Manufacturing and Metal Finishing and Metal Coating 

Industry, has elected to avail itself of the option of submitting a 

Supplementary Code of fair practice, as provided for in Section I 

of Article VI of the Basic Code, for the Fabricated Metal Products 

Manufacturing and Metal Finishing and Metal Coating Industry 

approved by you on the second day of November, 1933. 

RESDME OF THE CODE 

Article I states the purpose of the Supplementary Code. 

Article II accurately defines specific terms employed in the Supplementary Code. 

Article III establishes a Supplementary Code Authority consisting of three (3) members elected at a meeting called by the Supple111.entary Code Authority and gives the Administrator the authority 

to appoint one to three additional members without vote and provides machinery for obtaining statistics and the administration of 

the Supplementary Code. 

Article IV. This Industry is a division of the Fabricated Metal 

Products :Manufacturing and Metal Finishing and Metal Coating 

Industry and the labor pr0visions of its Basic Code, as approved 

November 2, 1933, are the labor provisions of this Supplementary 

Code. 

Article V provides for the filing of price sheets with the Supplementary Code Authority. 

Article VI sets forth the unfair practices of this Supplementary 

Code which ha been especially designed to off et unfair competition 

in this division of the Industry. 

Article VII contains the 1nandatory provisions contained in Section 10 (b) of the Art and also provides for the submission of proposed amendments to the Supplementary Code. 

(3) 
4 

Article VIII provides against monopolies and monopolistic practices, and recognizes that price increases be limited to actual additional increases in the seller's costs. 

Article IX states the effective date and duration of this Supplementary Code. 

Schedule "A" gives the average appraisal value of Power and 

Gang Lawn Mowers in use for 2, 3, 4, and 5 years of various manu- facturing companies. 

FINDINGS 

The Assistant Deputy Admini.trator in his final report to me on 

said Supplementary Code having found as herein set forth and on 

the basis of all the proceedings in this matter: 

I £incl that: 

(a) Said Supplementary Code is well designed to promote the 

:!)Olicies and pnrposes of Title I of the National Industrial Recovery 

Act, including remoYal of obstructions to the :free flmy of interstate 

and foreign commerce ·which tend to diminish the amount thereof 

and will 1wovide for the general -n-elfare by promoting the organization of industry for the purpo:ses of cooperative action among the 

trade groups, by inducing and maintaining united action of labor and 

management under adequate goi;-ernmental sanctions and supervision, by eliminating unfair competitfre practices, by promoting the 

fullest possible utilization of the present productive capacity of industrie , by avoiding undue restriction of production ( except as 

inay be temporarily required), by increasing the consumption of 

industrial and agricultural products through increasjng purchasing 

power, by reducing and relieving unemployment, by improving 

standards of labor, and by otherwise rehabilitating industry. 

(b) S~icl Industry normally employs not more than 50,000 employees; and it not classified by me as a major indu try. 

( c) The Supplementary Code as approYecl complies in all respects 

with the pertinent provisions of said Title of said Act, including 

without limitation Subsection (a) of Section 3, Subsection (a) of 

Section 7, and Subsection (b) of Section 10 thereof; and that the 

applicant association is an industrial association trul1y representative 

of the aforesaid Industry; and that said association imposes no 

inequitable re trictions on admission to membership therein. 

(cl) The Supplementary Code is not designed to and will not 

permit monopolies or monopolistic practices. 

( e) The Supplementary Code is not designed to and will not 

eliminate or oppress small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have not 

been deprived of the right to be heard prior to approval of said 

Supplementary Code. 

For these reasons, therefore, I have approved this Supplementary 

Code, with a 60 day stay of the provisions prescribing a 11aiting 

period between the filing and effective date of revised price lists. 

Respectfully, 

MARCH 26, 1934. 

Huan S. JoHNSON, 

Adniin'istrator. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE POWER AND GANG LA vVN MOWER NIANUF ACTURING INDUSTRY 

A DIVISION OF THE FABRICATED METAL PRODUCTS MANUFAOTITRING AKD 

METAL FINISHING AND l\1ETAL COATING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, this Supplementary Code is established as a code of 

fair competition for the Power and Gang Lawn Mower Manufacturing Industry, pursuant to Article VI of the Basic Code of Fair Competition for the Fabricated Metal Products Manufacturing and 

Metal Finishing and Metal Coating Industry approved by the President of the United States on the 2nd day of November, 1933, and the 

provisions of this Supplementary Code shall be the standards of 

fair competition for and shall be binding upon every member 

thereof. 

ARTICLE II-DEFINITIONS 

The term" Industry", as used herein, means the manufacture and 

the sale by the manufacturers thereof of power lawn mowers, gang 

lawn mower.;:, and/ or tractors manufactured for the drawing of 

gang lawn mowers when sold by the manufacturer with and as 

a part of gang lawn mowers. 

"Member of the Industry ' -includes, but without limitation, any 

individual, partnership, association, corporation, or other form of 

enterprise engaged in the industry either as an employer or on his 

or its own behalf. 

"Basic Code "-means the Basic Code of FP~ir Competition for the 

Fabricated i1etal Products Manufacturing and Metal Finishing and 

Metal Coating Industry, as approved by the President on the 2nd 

day of November, 193·3. 

"Distributor "-means a purchaser who, in regular course of busine , purchases pr0Jucts of the industry and other products in like 

field of distribution for resale. 

"Consumer "-means a purchaser of the product of the Industry 

who is not a distributor. 

"Association "-means the Power and Gang Lawn ~1ower Manufacturers Association. 

"President", "Act" and "Administrator '-mean respectively the 

President of the United States, Title I of the National Industrial 

Recovery Act, and the Administrator for Industrial Recovery. 

ARTICLE III-ORGANIZATION, POWERS A D DUTIES OF THE SUPPLEMENT.ARY CODE AUTHORITY 

1. There shall be constituted a Supplementary Code Authority, 

consisting of three member , "ho hall be selected within sixty days 

(5) 
6 

from the effective date of thi Code by a majority vote of the member of the industry present and entitled to Yote, in person or by 

proxy, ~t a meeting ~allecl for such purpo c. . . Penchng the select10n of the Supplementary Code Authority, the 

Corle Committee shall be a Temporary Supplementary Code Authority with all powers, duties and respon ibilities herein granted to the 

Su1)plementary Code Authority. 

Each member of the industry who, by writing filed with the Supplementary Code Authority, shall as ·ent to this Supplementary Code 

and agree to comply with the term and provisions thereof, shall be 

entitled to vote at all meeting for the election of the Supplementary 

Cod Authority and for the selection of substitute members thereof. 

2. The term of office of each member of the Supplementary Code 

Authority shall be nt th will of the members of the indu try, and 

~mccessor or sub titute members of the Supplementary Code Authority hall be selected in the same manner as provided in paragraph 1 

of this Article for the appointment of the origi1wl members of the 

Supplementary Code Authority. 

3. In addition to membership as above provided, there may be 

appointed by the Administrator one to three members of the Supplementary Code Authority ·without Yote, who shall be giYen notice of 

all meetings of the Supplementary Code Authority. 

4. The A ·~ociation shall impose no inequitable restrictions on 

admission to membership, nnd shall submit to the Administrator true 

copies of its articles of association, by-laws, regulations, and any 

amendments when made thereto, together with such information as 

to membership, organization nnd activities as the Administrator may 

cfoem necessary to effectuate the purposes of the Act. 

5. In order that the Supplementary Code Authority shall be at all 

time truly repre ·entatiYe of the industry, and in other respects comply with the provisions of the Act, the Administrator may prescribe 

such hearings as he may de ''m proper; and thereafter, if he shall find 

that the Supplementary Co<le 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 

Supplementary Coe.le Anthority. 

G. Nothing contained in this Supplementary Code shall con titute 

the members of the Supplementary Code Authol'ity partners for any 

purpose. 

POWEn;;; AXD D TI'ES 

7. The Supplementary Code Authority . hall have the following 

po,Yers and duties the exercise cf which shall be reported to the 

Administrator: 

(a) To insure the executi<.D of the provisions of this Supplementary Code and provide for the compliance by the members of the 

industry l'i·ith the provisions of the Act, subject to rules and regulations of the Administrator in regard to compliance proc~dure. 

(b) To adopt by-la"TI'"s and rnles and regulations for its procedure 

and for the admini..,tration of this Supplementary Code. 

( c) To obtain from members of the industry through .an impartial 

agency such information nnd reports us are required for the administration of this Supplementary Code. No individual reports shall 
7 

be disclosed to any other. member of the industry or to any other person except as herein provided, but shall be made available to the 

Administrator. 

(d) To use the Association and such other 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 Supplementary Code Authority of its duties or responsibilities under this Supplementary Code, and such trade associations 

and agencies so used shall at all times be subject to and comply with 

the provisions thereof. 

( e) To make l'ecommendations to the Administrator for the coordination 6£ the administration of this Supplem.entary Code with such 

other codes, if any, as may be related to the industry. 

(f) Subject to review by the Administrator, to determine the 

expenses of the administration of this Supplementary Code and to 

secure payment by the members of the industry of such expenses 

apportioned between them on the basis of volume of sales in dollars, 

or on such other basis as shall be equitable. 

(g) To recommend to the Administrator further marketing and 

fair trade practice provisions to govern members of the industry in 

their relations with each other or with other trades or industries, and 

to recommend to the Administrator measures for industrial planning, 

. including stabilization of employment. 

(h) The Supplementary Code Authority, subject to the approval 

of the Administrator, shall cause to be formulated an accounting 

system and method of cost finding and/or estimating capable of use 

by all members of the industry. After such system and method have 

been formulated, full details concerning them shall be made available 

to all members. Thereafter all members shall determine and/ or 

estimate cost in accordance with the principles of such methods. 

(i) To co-operate with and assist the Basic Code Authority in 

administering the Basic Code and in obtaining from members subject 

to this Supplementary Code such reports, statistics and other data as 

the Basic Code Authority may properly require. 

8. If the Adm.inistrator shall determine that any action of a code 

authority or any agency ther eof 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 investigation of the nierits 

of such action and further consideration by such code authority or 

~gency pending final action which shall not be effective unless the 

Administrator approves or unless he shall fail to disapprove after 

30 days' notice to him of intention to -proceed with such action in its .original or modified form. 

ARTICLE IV-E;.\IPLOYl\IENT Pnonsro:Ns 

This Industry ·is ·a division of · the Fabricated ~1etal Products 

Manufacturing and ~fetal Finishing and Metal Coating Industry and 

without limitation the wage, hour and labor provisions in Article III 

of its basic code as approved by · the President on November 2, 1933, 

including Section 1 of said Article III by which the provisions of 

sub-section (1), (2) and (3) of Section 7 (a) of Title I of the Act 
8 

are made conditions of this Supplementary ode, are specifically incorporated herein and made a part hereof as the wage, hour and labor 

provisions of this Suppl ementary Code. 

ARTICLE V-1\fARKETING 

1. By means of price beets each member of the industry, within 

ten (10) days aft0 r this Supplementary Code hall be approved by 

the President, shall publi h individual prices, terms and conditions 

of sale of all products of the industry offered for sale '" hich price , terms and conditions shall be effective forthwith. Each member of 

the industry shall expre s his prices in the form of net prices or dis- count from list. Discounts based upon quantity and/ or trade clas- sification and terms and conditions under which such discounts will 

be granted shall be clearly set forth in price sheets. Such price 

sheets shall separately state (a) Net prices or discounts from list 

and terms to di tributors; (b) Net prices or discounts from list ano 

terms t-~ consumers. 

2. No member of the industry shall sell to any purchaser by any 

means whatsoever any product of the industry at a price or discount 

other th&n or on more favorable terms than set forth in published 

price sheets of such member at the time outstanding and in force 

under the conditions applicable to such sale therein set forth. 3. No member of the industry shall publish a price or terms or · 

continue in effect a price or terms which will result in a purchaser 

paying for the goods received less than the cost thereof to the member of the industry publishing such price sheet. 

(a) Nothing in this paragraph shall preclude any member of the 

industry from publishing prices below cost in order to meet existing 

competition on products of equivalent design, size, character qual- ity and specifications, as such competition is shown by price sheets of 

other members of the industry at the time outstanding and in effect. 

'\Vhenever a member of the industry under the provisions of this 

paragraph shall publish a price below cost, he shall simultaneously 

file with the Supplementary Code Authority a statement in writing 

of the items on his own price sheet which are below cost, and identify the price sheets and items thereon of any other member or members of the industry which shall be claimed to form the justification. 

(b) In order that the provisions of this paragraph shall not 

require increases in sales prices which would be unfair to purchasers 

of the product of the indu try and harmful to the industry by 

producing further decrease in volume, which is now subnormal, 

any member of the industry, pending determination of the principles of cost accounting by the Supplern.entary Code Authority, may 

exclude from the computation of cost unabsorbed overhead re ulting 

from overhead standards based upon an a sumed or actual production equivalent to but not exceeding the production of the year 

1926. 

4. Publica.tion of price sheets shall be in the manner following: 

Each member of the industry shall 

(a) File 'a copy of his price sheet with the Supplementary Code 

Authority, which heet shall be open to inspection by any interested 

person; 
9 

(b) l\iail on the same day copy thereof to all known members of 

the industry; 

( c) Mail on the same day copy thereof to all jobbing and wholesale customers of such member. 

5. Any member of the industry may change prices, terms and/ or 

conditions of sale, but no change shall be made or become eff ecfrve 

until after publication of a r evi ·ed price sheet in the manner provided in Paragraph 4 of this Article. 

A change contained in the published price sheet of any member 

of the industry, which has been in effect for five (5) days, shall 

be effective five ( 5) days after the publication of the revised price 

sheet and not prior thereto. The foregoing five day limitation shall 

not apply to price changes by any other members of the industry 

to the extent necessary for corresponding effective date to all 

members. 1 

G. Notwithstanding the provisions in this Article contained, obsolete, defective and/ or discontinued items or lines which now or 

hereafter may be in stock may be sold below cost and without publication of prices, terms and conditions, provided prior to the sale 

thereof a list of the items or lines claimed to be obsolete, defective 

and/ or discontinued shall be filed with the Supple~entary Code 

Authority, together with a description thereof, dates of manufacture and prior sale volume, together with such further information 

concerning the same as may be required by the Supplementary Code 

Authority, and provided, further, no sale shall be made under the 

provisions of this paragraph if the Supplementary Code Authority 

shall determine that the items or lines proposed to be sold under 

this paragraph are not in fact obsolet- e, defective or discontinued, 

and that the purpose or effect o:f the proposed sale would b,, :in 

evasion of this code and unfair to the other members of the industry, 

and the Supplementary Code Authority shall advise the member 

proposing to make such sale of such finding within ten days. Any 

action taken by the Supplementary Code Authority under the provisions of this paragraph shall be subj ect to di approval by the 

Administrator, and if disapproved sales under the provisions of 

this paragraph may be made. 

ARTICLE VI-U NF Am PnACTICE. 

In place and in ubstitution of the fair trade practices set forth 

in Article V of the Basic Code, the following act · as de cribed shall 

constitute unfair methods of competition; and no memqer of the 

industry hall do any act or thing in this article described as an 

unfair rnetho<l of competition: 

1. Entering into or accepting contracts or orders or making commitments to sell without corresponding commitment on the part of 

the purchaser to buy a specified quantity at a fixed price. 

2. Paying or allowing any commis 'ion or benefit to a rli tribntor 

in connection with a sale to any other purchaser if the amount 

thereof, when deducted from the sale price, shall make the net to the 

1 Sec paragraph 2 of order approving this Cod e. 
10 

member of the industry making the sale less than the price submitted 

to be granted such distributor. 

3. :Th1aking any payment or allowing any credit or benefit to a 

di tributor or to any purchaser or prospective purcha er not connected with a sale. 

4. i1aking any adjustments, a~lowances, credits or refun 1 upon 

change in publi heel prices, terms and/or condition. to any purchaser 

for deliveries already made or with re pect to contract theretofore 

entered into. 

5. Giving notice to any purchaser or pro pective purchaser or to 

any other member of the industry of int~ntion to change prices, terms 

and/or conditions of sale. 

6. Promising or allowing protection to a purchaser or pro pecti ve 

purchaser against changes in prices, terms and/ or conditions. 

7. Making delivery of any product of the industry on memorandum 

or consignment, except under circumstances to be defined by the 

Supplementary Code Authority with the approval of the Administrator where peculiar circumstances of the industry require the 

practice. 

8. Including in or omitting from any invoice any statement so 

that the invoice shall not be a true statement of the transaction 

between the member of the industry and the purchaser. 

9. Pre-dating or post-dating any' invoice or contract of sale, except 

where shipment is after January 1st and prior to April 1st of a 

year April 1st dating of the same year may be given. 

10. Granting terms which shall be more favorable than three 

(3%) per cent C.O.D. or cash with order; two (2%) per cent for 

cash in ten days; or sixty ( 60) days trade acceptance; sixty ( 60) 

days maturity with interest a.t the rate of six ( 6%) per cent per 

annum for payn1ent after maturity. It shall not be a violation of 

this paragraph to give longer payment terms on deliveries under 

written lease or conditional sale contract, provided at least twentyfiye (25 o) per cent of the purchase price ( or such lesser percent a 

may be determined by the Supplementary Code Authority with the 

approval of the Administrator where peculiar conditions of the industry require such lesser percent) shall be paid on or before dehvery, and an extra charge is made as interest at the rate of not less 

than six (6% ) per cent per annum, com.puted from sixty (60) days 

after delivery. 

11. Publi hing shipping terms other than F.0.B. place of manufacture or equivalent. 12. Repurchasing or taking in trade any product of the industry 

or paying or granting credit or allowance therefor in amounts in exce s of the amount for such product as set forth in a trade-in allowance chedule to be compiled in the following manner: 

The Supplementary Code Authority shall dete.rmine the average 

price paid by consumers on purchases of used products of the industry ba ed upon a survey of such prices covering the trade-in season 

of 1933. From this shall be deducted the average cost for similai· 

items, of reconditioning handling· and selling. The resulting figure 

shall represent the trade-in allowance amount which shall be subject 

to the disapproval of the Administrator. Full facts with respect to 

sales and market value in connection with trade-in allowances shall 
11 

be furnished to the Administrator by the Supplementary Code Authority upon request of the Administrator. 

The Supplementary Code Authority shall, during the month o:f 

October, 1934 and during October of each year thereafter, secure all 

possible reports and data as to retail or consumer market prices on 

sale of nsecl product· of the industry during the spring and smnmer 

season immediately preceding, together with the average costs of reconditioning, handling and selling such used products. The Supplementary Code Authority, based upon such data, shall determine 

the trade-in allo·wance figure for each product item at a figure which 

will permit a trade-in allowance and resale thereof on the average at 

not les than co t. Such revised trade-in allo11ance schedule shall 

be submitted to the Administrator, together with the facts upon 

which the same is based, and if approved by the Admini, trator shall 

constitute the trade-in allowance schedule. 

13. ~faking any express guarantee ·with respect to u product of the 

Industry except the following guarantee. 

"The J\fanufacturer gm rantees all parts of eqnipment shipped 

under this agreement for ninety (90) days from the date of purcha e by Consumer thereof against defective material and/ or workmanship, but not against damage caused by accident, abuse or faulty 

operation, and will repair or replace free of charge f .o.b. factory all 

defective parts returned to the factory charges prepaid." 

14. Giving, permitting to be given, or directly offering to give, 

anything of value for the purpose of influencing or re\'rnrcling the 

action of any employee, agent or repre. entative of another in relation 

to the bnsines of the employer of such employee, the principal of 

such agent. or the represented party, without the knowledge of such 

employer, principal or party. Nothing in this paragraph contained 

shall be construed to prohibit free and general distribution of articles 

commonly u ed for advertising except so far as such articles are actu- ally used for commercial bribery as hereinabove defined. 

15. Doing any act or thing by recourse to or through the medium 

of a sub idiary or affiliate or exclusive distributor which a mem.ber 

of the industry is prohibited from himself doing under the provisions 

of this Supplementary Code. 

ARTICLE VII-GENERAL 

1. \Vhen the Supplementary Code Authority determines that an 

emergency exists in this industry and that the cau e thereof is destructive price cutting such as to render ineff ecti v0 or seriously 

endano-er the maintenance of the provisions of this Supplementary 

Code, the Supplementary Code Authority may cause to be determined the lowest reasonable cost of the products of this industry, 

such determination to be subject to such notice and hearing as the 

Administrator may require. The Administrator may approve, disa pp rove or modify the determinatioi:i. Thereaf te~' during the period 

of the emergency it c;hall be an unfair trade practice for any member 

of the industry to sell or offer to sell any products of the industry for 

which the lowest reasonable cost ha been determined at such prices 

or upon such terms or conditions of sale that the bnyei:· will pay less 

therefor than the lowest reasonable cost of such product. 
12 

When it appears that condition have changed, the Supplementary 

Code Authority upon its own initiatiYe or upon the reque t of any 

interested party, shall can ·e the determination to be reviewed. 

2. Nothing in Articles V and VI of this Supplementary Code hall 

apply to sales between members of the industry, except no sale shall 

be made by one member of the industry to another member of the 

industry below cost. 

3. Nothing in rtides V and VI of this Supplementary Code shall 

apply to export sales. 

4. This Supplementary Code and all the proYisions thereof arc 

expres ly made subject to the right of the President. in accordance 

with the proYision of subsection B of Section 10 of the Act, from 

time to time to cancel or modify any order approval, license rule, or 

regulation issued under Title I of aid Act and specifically, but with- out limitation, to the right of the Pre ident to cancel or modify his 

approval of any provision of this Supplementary Code or any condition imposed by him upon his approYal thereof. 

5. This Supplementary Code except as to provisions required by 

the Act, may be modified and/ or amended on the basis of experience 

or changes in circumstances, such modifications and/ or amendments 

to be based upon application to the Administrator by the Supplementary Code Authority or other representati, e group within the 

indu try and ·uch notice and ·hearing as the Administrator shall 

specify, and to become effective as part of thi Supplementary Code 

on approval of the President and/ or of the Administrator. 

6. In case any provision of thi Supplementary Code shall impose 

unusual or undue hardship on any member of the industry, such 

provision may be suspended as to such member by the Supplementary 

Code Authority with the approval of the Administrator. 

ARTICLE VIII- l\1oNOPOLIES 

1. No provision of this Supplementary Code shall be o applied a 

to permit monopolies or monopolistic practices, or to eliminate, 

oppress or discriminate against small enterprises. 

2. Whereas the policy of the Act to increase real purchasing power 

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

service increa e as rapidly as wages, it is recognized that price 

increases except as may be required to meet individual cost should 

be delayed but when made such increases should, o far as possible, 

be limited to actual additional increase in the seller' co ts. 

ARTICLE IX- EFFECTIVE DATE 

1. This Supplementary Code shall become effective at 12: 01 A. ~!. 

on the tenth (10th) day after approval of same by the Pre ident. 

ApproYed Code No. 84. Supplement No. 12. 

Registry No. 1399-05. 

0 

UNIVERSITY OF FLORIDA 

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