Approved Code No. 486 Registry No. 1405-01 

NATIONAL RECOVERY ADlVIINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

COMMERCIAL VEHICLE 

BODY INDUSTRY 

, .. ' 

AS APPROVED ON JULY 16, 1934 

WE CO OUR PART 

0 -:-

' 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1934 

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

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Approved Code No. 486 

CODE OF FAIR COMPETITION 

FOR THE 

COI'dIVIERCIAL VEHICLE BODY INDUSTRY 

As Approve·tl on July 16, 1934 

ORDER 

~t\_prnovixG CoDE OF F .AIR Co::\-IPETITION FOR THE Co~DIERCIAL 

VEHICLE BODY INDUSTRY 

An application having b€en 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 Commercial Vehicle Body Industry, and 

hearing having been duly held thereon and the annexed report on 

said ·Code, containing findings with respcet thereto, having been 

made and directed to the President: 

NOW THEREFORE, on behalf of the President o:f 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 said Act; and do hereby order that said Code 

of Fair Competition be and it is hereby approved; 

PROVIDED, that this Co-de of Fair Competition shall not be 

applicable to the repairing of the products of the industry by em- ployees of the owner of such products other than a manufacturer 

for sale of such products, or where such repairing is done within ; 

the definition of another Code of Fair Competition approved prior 

to the date hereof; and 

PROVIDED, further, that within ninety (90) days after the 

effective date of this Code, the Code Authority shall make a special 

study and report to the Administrator, to determine whether the' 

minimum wages provided in Article IV are adequate; and 

PROVIDED, further, that in addition to the membership in the 

Code Authority as provided in Section 2 of Article VI of this Code, 

the Administrator may require the selection, by a method approved 

or prescribed by him, of two persons to represent non-members o:f 

the National Association. 

HUGHS. JOHNSON, 

Administrator for Industrial Recovery. 

A pprovul recommended : 

C. E. ADAMS, 

Division Administrator. 

WASHINGTON, D.C., 

July 16, 1934. 

74225°-829-88-34 (159) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm: The proposed Code of Fair Competition for the Commercial 

Vehicle Body Industry was submitted to the Administrator on July 

29, 1933, by the National Association of Commercial Vehicle Body 

Manufacturers, Incorporated, representing approximately 80% of 

the production of commercial body manufacturers. 

The Hearing was conducted in vVashington on January 12, 1934, 

and the Code was revised during the recess o:f this Hearing and is 

submitted in its present form for approval. Every person who 

requested an appearance was properly heard in accordance with 

statutory and regulatory requirements. 

The Industry is nation-wide in scope and has enjoyed a large 

increase in number of establishments, particularly among the smaller 

units. Owing to the lack of a National Trade Association in former 

years, accurate data on invested capital, employees engaged and 

annual sales are not available. However, in 1931 there were 501 

concerns, as contrasted with approximately 1,500 in 1933. About 

25,000 workers were employed in 1929 against 15,100 in February, 

1934. Present invested capital is estimated to be in the neighborhood 

of $50,000,000, while aggregate annual sales of $43,358,000 in 1929 

compare with $41,780,000 in 1932. 

vVages, particularly in the South, were in many instances as low 

as 10¢ per hour. Immediate relief was afforded by the P~sident's 

Reemployment Agreement, so that the present wage scale, with 

certain exceptions, approximates the wages established by this Code. 

ARTICLE I. Purposes.-States the purpose of the Code. 

ARTICLE II. Definitions.-Accurately defines specific terms applicable to the Commercial Vehicle Body Industry as used in this Code. 

ARTICLE III. H ours.-The maximum hours are limited to 40 hours 

per week, except that to take care of exceptional demand employees 

may work 48 hours per week during any six weeks in any period of 

26 weeks. 

A further exception is made in the case of watchmen who are 

limited to a maximum of 56 hours per week, and emergency crews, 

employed because of highway accidents, who are limited to a maximum of 56 hours in any one week, but not more than 40 hours per 

week averaged over a four weeks' period. Employees engaged in a 

managerial or executive capacity who receive not less than $35.00 

per week, and traveling salesmen, are not subject to any hourly 

limitations. ARTICLE IV. W ages.-The minimum wage for employees, except 

for certain classifications enumerated hereafter, is 371⁄2¢ per hour 

in cities of more than 250,000 population, 35¢ per hour in cities or 

towns of less than 250,000 populat10n, except that in certain Southern 

(160) 
161 

states the minimum wage is 321⁄2¢ per hour, irrespective of popula• 

tion. Female employees replacing men, or performing similar work, 

are to receive the same wages as male employees. Apprentices may 

be employed for a period not exceeding one year, at not less than 

80% of the prevailing minimum wage. Employees in accounting, 

clerical, office, service and sales work are to be paid not less than 

$15.00 per week in cities of 250,000 population or over, and not less 

than $14.00 per week in cities of less than 250,000 population, except 

that in certain Southern states t he minimum is $14.00 per week 

irrespective of population. Provision is made for the employment 

of handicapped persons. The minimum rate of pay applies irrespective of whether an em.ployee is paid on a time rate, piece-work, 

or other basis. Equitable adjustments of all pay schedules above 

the 1nininnun are to be made. 

ARTICLE V. General L abor Provisions.-Provides that no person 

under 16 years of age may be employed and that no person under 

18 years of age may be employed at hazardous or dangerous occupations or operations. Also includes the mandatory provision respecting the rights of employees to organize and bargain collectively. 

Provides further for the regulation of reclassification of employees1 the posting of copies of this Code in accessible places, standards or 

safety and health and the observance of State Laws. 

ARTICLE VI . .Administration.-Establishes a Code Authority of 

not more than nine members appointed by the Board of Directors 

of the National Association, and one from each present or future 

National Trade Division approYed by the Administrator. Outlines 

the duties and powers of the Code Authority. 

AnTICLE VII. Trade Practices.-Sets forth fair trade practices for 

this Industry, including a prohibition against selling below cost. 

ARTICLE VIII. General.-Provides for the safeguarding of dangerous equipment used in painting. Limits purchasing from individuals or firms to those operating under a Code if such individuals 

are subj ect to an a pp roved Code. Sets forth provisions respecting 

modification and amendments, including the mandatory provision of 

Section 10 (b) of Title I of the Act. 

ARTICLE IX. Export Trade.-Provides for the exemption of export trade or sales or shipments for export trade from the provisions 

of this Code relating to terms of sales, etc. 

ARTICLE X. M onopolies.-N o provision of this Code is to be so 

applied as to pennit monopolies or monopolistic practices, or to 

eliminate, oppress, or discriminate :igain.st small enterprises. 

ARTICLE XI. Effective Date.-Defines the effective date. 

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 proceedings in this m.atter; 

I find that: 

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including 

removal of obstructions to the free flow of interstate and foreign 

commerce which t end to diminish the amount thereof and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, 

by inducing and maintaining_ united action of labor and manage-
162 

ment under ad~uate governmental sanctio:o.s 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 temporarily r equired), by increasing the consumption of industrial and 

agricultural products through increasing purchasing power, by reducing and relieving unemployment, b_y improving standards of 

labor, and by otherwise rehabilitat~g industry. 

(b) Said Industry normally employs not more than 50,000 emplo,Yees, and is not classified by me as a major industry. 

( c) The Code as af proved complies in all respects with the 

pertinent provisions o · said Title of said Act, including without 

limitation Sub-section (a) of Section 3, Sub-section (a) of Section 7, 

and Sub-section (b) of Section 10 thereof, and that the applicant 

association is an industrial association truly representative of the 

aforesaid industry, and that said association imposes no inequitable 

restrictions on admission to membership therein. 

( 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 the economic process have 

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

Code. 

For these reasons, therefore, this Code has been approved. 

Respectfully, 

JULY 16, 1934. 

HUGH s. JOHNSON, 

Adminisflrator. 
CODE OF FAIR CO1\1PETITION FOR THE CO1n1:ERCIAL' 

VEHICLE BODY INDUSTRY 

ARTICLE I-PlIBPOSES 

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 Connnercial Vehicle Body Indu,.stry, and 

shall be the standards of fair competition for said Industry and 

shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS l 

1. The term " Commercial Vehicle Body Industry " or "Industry" as used herein is defined to mean the manufacture and sale, 

and/ or repairing of horse-drawn vehicles ( except horse-drawn farm 

vehicles), all types of motor vehicle bodies used commercially, ( except those manufactured by or sold to the manufacturer or assembler 

of motor vehicle chassis), and trailer and semi-trailer bodies, ( except 

such bodies as are manufactured by the manufacturers of trailers 

and semi-trailers, provided such bodies are attached to and sold as 

an integral part of trailers and semi-trailers by the manufacturers 

thereof). 

2. The tenn " repairing " as used herein shall include, in addition 

to general repairing, emergency road service, painting, lettering, artwork and such chassis repairing as is incidental thereto. . 3. The term "productive work" as used herein is defined to mean 

all employment used in the operation of metal, wood, and fabric 

working machinery, cutting and welding equipment, paint spraying - equipment and all other equipment and tools ordinarily used in a 

vehicle body plant and used in the preparation of material, manufacturing, assembling and finishing of the products to be sold, serviced and repaired. 

4. The term "employee" as used herein includes any and all persons engaged in the Industry, however compensated, except a member of the industry. 

5. The term "employer" includes anyone for whose benefit such 

an employee is so engaged. 

6. The term" member of the Industry" means, but without limitation, any person, partnership, association, corporation or other legal 

entity engaged in the Industry, either as an employer or on his or its 

own behalf. 

7. The term "National Association" as hereinafter referred to 

shall be defined to mean the " National Commercial Vehicle Body 

Association." · 

1 See paragraph 3 of order approving tllis Code. 

(163) 
r 

164 

8. 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. 

9. " Population ' for the purposes of this Code, shall be deter- mined by reference to the latest Federal Censu,s. 

ARTICLE III- HOURS 

1. On and after the effective date no employee in the Industry 

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

seven (7) day period, whether employed by one or more employers, 

except as herein below otherwise provided. 

2. Employees n1ay be permitted to work in excess of the maximum 

hours provided in Section 1 of this Article during any six ( 6) 

weeks in any twenty-six (26) weeks period, provided that during 

such six ( 6) weeks such overtime shall not exceed eight ( 8) hours 

in any seven (7) day period. 

3. Watchmen shall not be permitted to work in excess of fifty-six 

( 56) hours in any one week. 

4. Outside emergency crews engaged in emergency repair work 

made necessary because of accidents or breakdowns on the highways 

shall not be permitted to work in excess of fifty-six (56) hours in 

any one week nor more than one hundred sixty (160) hours in any 

four weeks period. 

5. The provisions of this Article limiting hours of work shall not 

apply to traveling salesmen, nor to persons who are paid not less 

than thirty-five dolla.rs ($35.00) per week employed in a managerial 

or executive capacity. 

6. No employee shall be permitted to work more than six ( 6) 

days in -any seven-day period. . 

7. Every employer and every partner in any partnership engaged 

in the Industry shall he subject to the provisions as to hours of labor 

prescribed :for employees in this Code insofar as they perform the 

functions of such employees. 

ARTICLE IV- WAGES ll 

1. On and after the effective date the minimum wage that shall 

be paid employees in the Industry, except as otherwise provided in 

Paragraphs 2, 3, 4, and 5. of tlus Article, shall be at the r ate of 

thirty-seven and one-half cents (371⁄2¢) per hour in all cities with 

a population of 250,000 or over, thirty-five cents (35¢) per hour in 

all cities and towns with a population less than 250,000 except in the 

fallowing states : 

North Carolina Florida 

South Carolina Tennessee 

Georgia Louisiana 

Alabama Arkansas 

in which states the minimum hourly rates 

one-half (321⁄2) cents per hour. 

, • See paragraph 4 of order appro,ing this Code. 

Texas 

Mississippi 

Oklahoma 

shall be thirty-two and 
165 

2. Female employees performing substantially the same work 

as male employees shall receive the same rate of pay as male employees; and where they displace men, they shall receive the same 

rate of earnings as the men they displace. 

3. The hours and wages of regularly indentured apprentices in 

skilled trades or occupations of t:q.e industry may depart from the 

standards hereinabove prescribed; provided that the terms of employment and the course of instruction of such apprentices shall 

conform to standards uniform throughout the trade or industry and 

approved by the Administrator. 

4. Employees in accounting, clerical, office, service and sales work 

shall receive not less than fifteen dollars ($15.00) per week in any 

city o:f 250,000 population or over, or in the immediate trade area of 

such city, nor less than :fourteen dollars ($14.00) per week in any 

city of le,ss than 250,000 population, except that in the states of 

North Carolina Florida 

South Carolina Tennessee 

Georgia Louisiana 

Alabama Arkansas 

Tex.as 

Mississippi 

Oklahoma 

the minimum shall be fourteen dollars ($14.00) per week irrespective of population. 

5. A person whose earning capacity is limited because of age or 

physical or mental handicap may be employed on light work at a 

wage below the minimum established by this Code if the employer 

obtains from the State Authority desi~ated by the United States 

Department of Labor a cerificate authorizing his employment at such 

wages and for such hours as shall be stated in .the certificate. Each 

employer shall file with the Code Authority a list of all such persons 

employed by him. 

6. This article establishes a minimum rate of pay which shall 

apply irrespective of whether an employee is actually compensated 

on a time rate, piece work, or other basis. 

7. Each employer shall make an equitable adjustment of all pay 

schedules above the minimum and not later than thirty (30) days 

after the effective date of this Code, each employer in the Industry 

shall report to the Administrator, through the Code Authority hereinafter provided for, the action taken by such employer since June 

16, 1933 in adjusting the hourly wage rates for all employees receiving more than the minimum rates. Such adjustment shall not reduce the hourly wage rate of any such employee. 

ARTICLE V-GENERAL LABOR PROVI SIONS 

1. No person under sixteen (16) years of age shall be employed 

in the Industry. No person under eighteen (18) years of age shall 

be employed at operations or occupations which are hazardous in 

nature or dangerous to health. 

The Code Authority shall submit to the Administrator for approval 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 provision as to age if he shall have 

on file a valid certificate or permit duly signed by the Authority in 

each State empowered to issue employment or age certificates or 

permits showing that the employee is of the required age. 
166 

2. The following provisions of Section 7 (a) of the Act are hereby 

111ade a part of this Code : 

(a) Employees shall have the right to organize and bargain collectively throu~h representatives of their own choosin~ and shall 

be free from tne interference, restraint, or coercion or employers 

of labor, or their agents, in the designation of such representatives 

or in self-organizat10n or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection; 

(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; 

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

1ninimum rates of pay, and other conditions of employment, approved 

or prescribed by the President. 

3. No employer shall reclassify employees or duties of occupations 

perfonned or engage in any subterfuge for the ~urpose of defeating 

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

4. All employers shall post and keep posted copies of this Code 

in conspicuous places accessible to all employees. Every member 

of the Industry shall comply with all rules and regulations relative 

to the posting of provisions of Codes of Fair Competition which 

may fron1 time to time be prescribed by the Administrator. 

5. 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 shall be submitted by the Code Authority to the Administrator for approval 

within three (3) months after the effective date of this Code. 

6. Within each state, members of the Industry shall comply with 

any Federal laws or any laws of such state imposing more stringent 

requirements, regulating the age of employees, wages, hours of work, 

or health, fire or general working conditions, than under this Code. 

ARTICLE VI-ADMINISTRATION 

1. To further effectuate the purposes of Title I o:f the National 

Industrial Recovery Act a Code Authority is hereby set up to cooperate with and assist the Administrator in the administration of this 

Code. 

2. The Code Authority shall consist of the following members: 

Not more than nine (9) appointed by the Board of Directors of the 

National Association; 

One (1) appointed by each national trade division o:f the Industry 

that may be set up within the National Association and approved by 

the Administrator. -

One (1) appointed by each national trade division of the Industry 

organized outside the National Association and approved by the 

Administrator; 

Not more than three (3) appointed by the Administrator, but without voting power; 

One (1) appointed by the Board of Directors of the. National Association who shall be the Secretary and Executive Officer of the 

Code Authority but without voting power. 3 

, 1 See paragraph 5 of order approving this Code. 
167 

3. The Code Authority shall have the following duties and powers 

subject to iSUCh rules and regulations as the Administrator may 

prescribe: 

(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 .A.ct· 

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

and for the adnunistration and enforcement of the Code; 

( c) To obtain from members of the Industry such information 

and reports as are required for the administration of the Code and 

to provide for submission by members of such information and 

reports as the Administrator may 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 obli~ations to furnish 

reports to any governmental agency. No individual reports shall 

be disclosed to any other member of the Industry or any other party 

except to such agencies as may be designated by the Administrator; 

( d) To cause to be formulated an accounting system and methods 

of cost finding and/or estimating capable of use by all members of 

the Industry and upon approval by the Administrator to require 

all members to maintain an accurate record of cost in such manner 

as will make available to an impartial agency the information required by such system and methods; 

( e) To recommend to the Administrator fair trade practice provisions to govern members of the Industry in their relations with 

each other or with other industries and to recommend to the Administrator measures for industrial planning, including stabilization of 

employment; 

(f) To designate, upon complaint of violation of this Code, a disinterested and impartial agency to investigate such books and records 

as may be necessary to gather data in respect to such alleged violation. For the purpose of obtaining necessary facts relating to a 

complaint, the Code Authority may request the appearance of the 

employer, employees and complainant involved in any complaint; 

(g) To appoint a Trade Practice Committee which shall meet with 

the Trade Practice Committees appointed under such other codes 

as may be related to the Industry for the purpose of formulating 

fair 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 otl1er codes. 4. 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 
168 

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 by 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. 

5. Each member of the Industry shall pay his or its equitable 

contribution to the expenses of the maintenance of the Code Au-

- thority, 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 ( unless duly exempted from making such contribution), shall 

be entitled to participate in the selection of members 0£ 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 

Administration. 

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

substantially in excess 0£ the amount thereof as estiinated in its 

approved budget, and shall in no event exceed the total a1nount 

contained in the 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 approved. 

7. Nothing in this Code shall constitute the members of the Code 

Authority partners for any purpose. Nor shall any member of the 

Code Authority be liable in any 1nanner to anyone 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 t.;ode, except for his 

own willful malfeasance or nonfeasance. 

8. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall 

(1) impose no inequitable restriction on membership, and (2) submit 

to the Administrator true copies of its articles of association, bylaws, regulations, and any amendments when made thereto, together 

with such other information as to membership, organization, and 

activities as the Administrator may deem necessary to effectuate the 

purposes of the Act. 

9. In order that the Code Authority shall at all times be truly 

representative of the Industry and in other r espects comply with the 

provisions of the Act, the Administrator may prescribe such hearmgs as he may deem proper; and thereafter if he shall find that 

the Code Authority is not truly r epresentative or does not in other 

respects comply with the provisions of the Act, may r equire an 

appropriate modification 0£ the Code Authority. 

10. If the Administrator shall at any time determine that any 

action of a 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 a:ff ord an opportunity for 
169 

investigation 0£ the merits o:f such action and further consideration 

by such Code Authority or agency pending final action which shall_ not 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 1n its original or modified :form. 

ARTICLE VII-TRADE PRACTICES 

The following practices constitute unfair methods of competition 

and are prohibited. 

1. False Ma:rldng or Brandinq.-Falisely marking or branding any 

product of this Industry which has the tendency to mislead or deceive customers or prospective customers in some material particular, whether as to the grade, quality, quantity, substance, character, 

nature, origin, size, finish or preparation o:f any product of tha 

Industry, or otherwise. 

2. Misrepresentation or False or Misleading .Adve,rtising.-Makjng or causing or knowingly permitting to be made or published any 

false, misleading, materially inaccurate or deceptive statement by 

way o:f advertisement or otherwise, whether concerning the grade, 

quality, substance, character, nature, origin, size, finish~ or preparation o:f any product o:f the Industry, the credit terms, policies or 

services of any member of the Industry, or otherwise. 

3. Fa:ulty Description.-Making any sale or contract of sale o:f 

any product under any description which does not :fully describe such 

product in terms customarily used in the Industry. 

4. Commercial Bribery.-Giving, permitting to be given, or directly offering to give, anything o:f value :for the purpose o:f influencing or rewarding the action o:f any employee, agent or representative 

of another in relation to the business of the employer o:f such employee, the principal of such agent or the represented party, without 

the knowledge of such employer, principal or party. This provision 

shall not be construed to prohibit :free and general distribution o:f 

J..rticles commonly used for advertising except so :far as such articles 

are actually used for commercial bribery as hereinabove defined. 

5. Giving of Prizes or Gifts.-Offering or giving prizes, gi:fts or 

premiums in connection with the sale o:f products, or as an inducement thereto, except as offered or given to all customers o:f the same 

class; or offering or giving any premiums in connection with any 

plan or any scheme which involves lottery, misrepresentation or 

fraud. 

6. Rendering Free Service.-Rendering to any purchaser of any 

product or in connection with the sale of such product any service, 

except pursuant to warranty, unless :fair compensation for such 

service shall be paid by such purchaser. · 

7. Interference TVith .Another's Oontracts.-Inducing or attempting to induce the breach of an existing contract between a competitor 

and his customer or source of supply; or interfering with or obstructing the performance of such contractual duties or services. 

8. Def (1//nation.-Defaming competitors by falsely imputing to 

them dishonorable conduct, inability to perform contracts, questionable credit standing; or by other false re~resentations; or by falsely 

disparaging the grade or quality of their goods, or the conditions 

o:f employment among their employees. 
170 

9. Espionage of Oompetitors.-Securing c~nfidential in:formation 

concerrung the business o:f a competitor by a :false or misleading 

statement or representation, by a :fal,se impersonation o.:f one in 

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

10. Terms of Sale.-(a) ~1aking of conditions and terms of time 

sale to consumers other than to con:form in every respect to the conditions and terms of a reputable finance corporation doing or offering 

io do business in this industry in the trade area where the sale is 

made. 

(b) Thia.king other than time sales to consumers on new bodies, 

other equip,ment and repairs, on terms other than net cash on delivery except where satisfactory credit arrangements are made. Not 

less than six per cent ( 6%) interest per annum shall be charged 

on all overdue accounts. Payments shall include all taxes applicable 

to sales under (a) and (b) herein. 

11. Secret Rebates.-Secretly offering or making any payment 

or allowance of a rebate, refund, conm1ission, credit, unearned discount or excess Rllowance, whether in the forin o:f money or otherwise; or secretly offering or extending to any customer any special 

service or privilege not extended to all customers of the same class, 

for the purpose of influencing a sale. 

12. False Billing and Quoting.-l{nowingly witholding :from or 

inserting in any quotation or invoice any statement that makes it 

inaccurate in any material particular. 

13. Guarantee of Prwes.-Making contracts, accepting orders or 

other commitments guaranteeing prices, except upon bona fide orders 

for definite quantities and definite times of de.liYery, or giving to 

any purchaser o:f any product any guarantee in any :form against 

decline in the market price o:f such product. 

14. Trade Mark Piracy.-Imitating: the trade marks, trade names, 

slogans or other marks o:f identificat10n of competitors, having the 

tendency and capacity to mislead or deceive customers or prospective 

customers in any material particular. 

15. Sales Below Oost.-On and after the effective date, making any 

sale of or offering :for sale any products of the Industry, or making 

repairs thereto, or rendering service thereon at less than his cost as 

determined under Article VI, Section 3, Paragraph ( d), except in 

cases of the usual warranty, provided, however, that any member of 

the Industry may sell or service the products of the Industry below 

his individual cost in order to meet the competition o:f any other 

member of the Industry who is not Yiolating the provisions of this 

section. The provisions of this section shall not apply in cases whera 

bodies and component parts thereof become obsolete because of 

dimension and appearance change, when they may be sold at distress 

prices, provided, however, that such sales shall not in any one year 

exceed fifteen percent (15%) by unit ,olunrn of the total sales_ o:f the 

company affected. Should there be a sur_plus of obsolete bodies and 

component parts now on hand exceeding nfteen percent (15%), such 

information shall be submitted to the Code Authority for permjs ion 

to liquidate these bodies and parts as soon as possible and at the 

best prices obtainable. ,Vithin six (6) months the Code Authority 

shall submit for the approval of the Administrator a report on the 

working of the distress sale provision with recommendations for any 

change or modification of the percentage allowable. 
171 

ARTICLE VIII-GENERAL 

1. The operation of paint spraying equipment in such places and 

under such conditions, without adequate exhaust ventilation, as are 

ordinarily considered contrary to building codes and the regulation 

of fire prevention bureaus, is prohibited. 

2. (a) On or after the effective date, no member of the industry 

shall purchase any goods, wares or merchandise (hereinafter called 

goods), or services, used in the industry, which are manufactured 

or sold, in whole or in part, by a vendor who does not represent that 

he is in .full compliance with the approved code of fair competition, 

agreement or license (if any) applicable to the industry of such 

vendor; provided that any member of the industry, exercising due 

diligence in any such purchase of goods or services to comply with 

the provisions hereof, shall not be deemed in violation hereof. DeliYery of a certificate of such vendor that he or it is complying in every 

particular with the code, agreement or license applicable to such 

vendor, the display of proper N.R.A. insignia, or the publication in a 

newspaper or periodical of general circulation of such certificate of 

compliance or insignia shall constitute a good and sufficient representation of compliance hereunder. 

(b) Upon application, or upon his own motion, the Administrator 

may grant exceptions or exemptions from provisions hereof if it 

shall appear: 

(1) That the vendor of any such goods or services is not subject to a code of Fair Competition, agreement or license approved 

under the Act; or 

(2) That compliance herewith would create undue hardship 

or injustice or would not tend to effectuate the purpo es of this 

Code or the policy of the Act. 

( c) No member of the industry shall make or cause to be presented 

or published any such representation which shall be false in any 

material particular. 

3. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the provisions of Subseetion (b) of Section 10 of the National Industrial 

Recovery Act, from time to time to cancel or modify any order, 

approval, license, rule or regulation issued under Title I of said Act 

and ,specifically but without limitation, to the right of the President 

to cancel or modify his approval of this Code or any conditions 

imposed by him upon his approval thereof. 

4. This Code, except as to provisions required by the Act, may 

be modified on the basis o:f experience or changes in circum tances, 

such modification to be ba ed upon application to the Administrator 

by the Code Authori y and to become effective on approval of the 

Administrator after such notice and hearing as he shall specify. 

ARTICLE IX- EXPORT TRADE 

No provision of this Code relating to prices or terms of selling, 

shipping or marketing, shall apply to export trade or sales or 

shipments for export trade. "Export Trade" shall be as defined 

in the Export Trade Act adopted April 10, 1918. 
UNIVERSITY OF FLORIDA 

172 II I II IIIIII Ill Ill lllll lllll II IIIIII II IIIIII II IIII IIII IIIIII Ill I I 

3 1262 08584 3380 

ARTICLE X - 1IONOPOLIES 

No prov1s10n of this Code shall be so applied as to permit 

monopolies or monopolistic practices, or to eliminate, oppress, or 

discriminate against small enterprises. 

ARTICLE XI- EFFECTn'E DATE 

This Code shall become e:ffecti ve on the second 11:onday after its 

approval by the President. 

Approved Code No. 486. 

Registry No. 1405-01. 

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