Approved Code No. 105-Supplement No. 9 Registry No. 1404-54 

NATIONAL RECOVERY ADJMINISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

GASKET MANUFA.t\CTURING 

lDUSTRY 

~--' 

(A Product Group of th~ Automotive Parts and 

Equipmen Manufacturing Industry) 

AS APPROVED ON DECEMBER 20, 1934 

WE DO OUR PART 

7 

UNITED ST ATES 

GOVERNI\-IBNT PRINTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 105--Supplement No. 9 

SUPPLEMENTARY CODE OF FAIR COMPETITION 

FOR THE 

GASKET MANUFACTURING INDUSTRY 

As Approved on December 20, 1934 

ORDER 

APPROVING S-tJPPLE IE IT RY CODE OF FAIR COMPETITION FOR THE 

GASKET MANUFACTURING INDUSTRY 

A PRODUCT GROUP OF THE AUTOl\I0TIVE PARTS A D EQUIPMENT MANUFACTURING IND STRY 

An application having been duly made pur uant to and in full 

compliance with the provi ions of Title I of the ational Industrial 

Recovery Act, approved June 16, 1933, for approval of a Supplementary Code of Fair Competition for the Gasket Manufa.cturing 

Industry, a Product Group of the Automotive Parts and Equipment 

Manufacturing Industry, and hearings having been duly held 

thereon and the annexed report on said Supplementary Code, containing findings with respect thereto, having been made a.nd directed 

to the President: 

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

States, the National Indu trial Recovery Board, pursuant to authority vested in it by Executive Orders of the President, including 

Executive Order No. 6859, and otherwise, does hereby incorporate 

by refer ence said annexed r eport and does 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 does hereby order that said Supplementary Code of Fair Competition be and it is hereby approved. 

NATIO :rAL INDUSTRIAL RECOVERY BOARD, 

By W. A. HARRIMAN, Ad11iinist1·ative Officer. 

Approval recommended: 

BARTON w. MURRAY, 

Division Administrator. 

,v ASHINGT0N' D. c., 

December 20, 1934. 

104238°-1385-54-34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White Howse. 

Sm: This is a report on a Supplementary Code of Fair Competition for the Gasket Manufacturing Industry, a Product Group of the 

Automotive Parts and Equipment Manufacturing Industry. A proposed Code was submitted to the Administrator on April 3, 1934 

by the Code Authority Committee of the Automotive Parts and 

Equipment Manufacturing Industry £or the Automotive Gasket 

Institute, r~presenting approximately 90% of the total volume of 

sales and 57% of the number of members of the Industry. 

A Public Hearing on the proposed Code was conducted in Washington on June 26, 1934 in accordance with the provisions of the 

National Industrial Recovery Act. It was thereafter revised and 

approved in its present form. This Code is designed primarily to 

put into legal effect certain Fair Trade Practice Rules which long 

have been recognized in the Industry, but which have been without 

binding legal effect. The labor provisions of this Code are those 

of the Basic Automotive Parts and Equipment Code. The purpose 

of the Code is stated in Article I and Article II is devoted to 

definitions. 

An Administrative Committee is established in Article III consisting of the Executive Committee of the Automotive Gasket Institufo, but one additional member may be added in the discretion of 

the National Industrial Recovery Board to represent the nonmembers of the Institute who comply with the Code. The Administrative Committee will administer the Code under supervision of 

the National Recovery Administration. 

Fair Trade Practices, designed to effect fair competition among 

the members of the Industry, are set forth in Article IV. 

FINDINGS 

The Deputy Administrator in his final report to the National 

Industrial Recovery Board on said Supplementary Code having 

found as herein set forth and on the basis of all the proceedings in 

this matter : 

The National Industrial Recovery Board finds that: 

(a) Said Supplementary 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 tend 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 management under adequate governmental sanction and super-

(2) 
3 

vision, by eliminating unfair competitive practice , by promoting 

the fulle t possible utilization of the pre ent productiYe capacity of 

industries, by avoiding undue re triction of production, ( except 

as may be temporarily required), by increasing the consumption of 

industrial and agricultural product~ thro 1gh increa ing pnrcha ing 

power, by reducing and relieYing un mployment, by improving 

standard of labor, ancl by otherwise rehabilitating industry. 

(b) Said Product Group normally employs not more than 50,000 

employees; and is not classified by the :t- ational Industrial Recovery 

Board as a major indu try. (c) The Supplementary Cod , as approved, complies in all respects with the pertinent proYisions of aid Title of said Act, 

including without limitation Sub ection (a) of Section 3, Subsection 

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

the applicant Product Group i an inclu trial Group truly representatfre of the afore aid Industry; and that aid Product Group 

impo es no inequitable re '"rictions on admis ion to membership 

therein. 

( d) The Supplementary Coe e i not de igned to and will not permit monopolie or monopoli. tic practi e . 

( e) The Supplementary Code i not de igned to and will not 

eliminate or oppre s small enterpri e an 1 will not operate to discriminate again t them. (f) Tho e engaged in other tep of the economic process have 

not been depriYed of the right to b_e heard prior to approval of said 

Supplemental Code. 

For the e rea on , therefore, the National Industrial Recovery 

Board has approved this Supplem ntary Code. 

For the National Industrial RecoYery Board: 

D ECEMBER 20, 193--1. 

w. A. HARRIMAN, 

Adminisfrative Officer. 
SUPPLEMENTARY CODE OF FAIR COMPETITION FOR 

THE GASKET MANUFACTURING INDUSTRY 

A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT 

MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSE 

Pursuant to the provisions of Article II of the Code of Fair Com- petition for the Automotive Parts and Equipment Manufacturing 

Industry, duly approved by the President on November 8, 1933, the 

following provisions covering fair trade practices and the administr:ition thereof are hereby established as the standards of Fair Com- petition for the Gasket Manufacturing Industry, which has been 

organized into an administrative unit as a Product Group of the 

Automotive Parts and Equipment Manufacturing Inclustry, and 

shall be binding upon every member of said Product Group. 

- ARTICLE II-DEFINITIONS 

The term " Product Group " as used herein is defined to mean 

production and/ or manufacture of gaskets used in the manufacture 

of and in replacement in automobiles, trucks, busses, tractors, internal combustion engines, and such other allied products as are 

natural affiliates, including industrial and marine engines; excepting, however, the production and/ or manufacture of such articles 

when produced or manufactured by a m.anufacturer for use exclusively in his own finished product, and provided always that this 

definition shall not include any products hereinabove described or 

parts thereof or therefor not designed for and used mainly as automotive original equipment, replacement parts and/or accessories and 

which are included within the scope of the definition of any other 

industry as defined in any approved Code of Fair Competition. 

The term "Member" or "Member of the Product Group" as 

used herein includes, but without limitation, any individual, partner- ship, association, corporation, or other form of enterprise engaged 

in the production and/or manufacture and/ or the sale as a manufacturer of the products of the Product Group, (hereinafter termed 

"Products") either as an employer or on his or its own behalf. 

The term "Institute " as used herein is defined to mean the AutomotiYe Gasket Institute, a trade as ociation at present having its 

headquarter ' office in Detroit, Michigan. 

The term "Original Equipment Business" as u ed herein is defined to mean the manufacture and/or sale of gasket by members 

to the manufacturer of automobiles, trucks, busse , tractors, internal 

combustion engines and such other allied pr du ts a are natural 

affiliat including indu trial and marine engine regnrdle s of 

whether u eel by the purcha~er for original in tallation or old by the 

purcha er for replacement in products of his own manufacture. 

(-1) 
5 

The term "Replacement Busine ' u used herein i defined to 

m·ean the manufacture and/or ale by m mbers of r eplacement gaskets 

except as provided in the above definition of "Original Equipment 

Business." 

The term" Basic Code" as used herein is defined to mean the Code 

of Fair Competition for the Automotive Parts and Equipment 

:Manufacturing Industry, a approYed by the President on N ovember 8, 1933, and as amended. 

The term " Code Authority " as u ed herein is defined to mean the 

Code Authority de~ignated in the Code of Fair Competition for Automotive Parts and Equipment l\fanufacturing Industry. 

ARTICLE III-Am,nNISTRA TION 

(1) (a) The Executive Committee of the Institute is hereby designated the Administrative Committee to assist the Code Authority 

and the National I ndustrial Recovery Board in the administration 

of the fair trade practice pro vi ions hereinafter set forth and the 

provision of the Ba ic Code, to which these fair trade practices are 

a supplement. One additional member may, in the discretion of the 

National Industrial Recovery Board, be added to repr esent the nonmembers of the In titute who comply with this supplementary Code, 

such additional member to be selecte l by such non-members of the 

Institute by a fair method approve l by the National Industrial 

Recovery Board. 

(b) In addition to the membership as above provided, there may 

be one additional member, without vote, to be appointed by the National Industrial Rec°' ery Board, to erve without expense to the 

Product Group for such term a th l' ational Industrial Recovery 

Board may specify. 

(2) (a) It being found nece sary, in order to support the administration of this Supplementary Code and to maintain the stan~ards 

of fair competition e tabli heel hereun lf r and to effectuate the policy 

of the Act, the Admini trative Committee i authorized: 

(1) To incur such reasonable obhgation a are necessary and 

proper for the foregoing purposes and to meet uch obligations out 

of funds which may be raised a herejnafter provided and which 

shall be held in tru t for the purpo es of this Supplementary Code; 

(2) To submit to th 0 National Industrial Reco, ery Board for its 

approval, subject to such notice and opportunity to be heard as it 

may deem necessary, (a) an itemized budget of its estimated expen es for the foregoing purposes, and (b) an equitable ba~is upon 

which the fun ds nece sary to support such budget shall be contributed by members of the Product Group; 

(3) After such budget and ba is of contribution have been approved by the National Industrial Recovery Board, to determine and 

obtain equitable contribution as above set forth by all members of 

the Product Group, and to that end, if necessary, to institute legal 

proceedings therefor in its own n·ame. 

(b) Each member of the Product Group shall pay his or its 

equitable contribution to the expenses of the maintenance of the 

Admini trative Committee, determined as hereinabove provided, and 

subject to rules and regulations pertaining thereto issued by the National Industrial Recovery Board. Only members of the Product 
6 

Group complying with this Supplementary Code and contributing 

to the expenses of its ad1ninistration as hereinabove provided, (unless 

duly exempted from malting such contribution), shall be entitled to 

participate in the selection of members of the Administrative Committee 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. 

( c) The Administrative Committee shall neither incur nor pay any 

obligation substantially in excess of the amount thereof as estimated 

in its approved budget, and shall in no event exceed the total a.mount 

contained in the approved budget, except upon approval of the National Industrial Recovery Board; and no subsequent budget shall 

contain any deficiency item for expenditures in excess of prior budget 

estimates except those which the National Industrial Recovery Board 

shall have so approved. 

(3) (a) The Administrative Committee shall, subject to the approval of the Code Authority and the National Industrial Recovery 

Board, have the power to adopt by-laws and rules and regulations for 

its procedure and to obtain from members, directly or through an 

impartial agency, such information and reports as are required for 

the administration and enforcement of this Supplementary Code; to 

cooperate with the National Industrial Reco"'\"ery Board under such 

rules and regulations as may be prescribed by it in regulating the 

use of any N. R. A. insignia, and in hearing and adjusting complamts; to initiate, consider and recommend to the Code Authority 

for transmittal to the National Industrial Recovery Board further 

fair trade practice provisions to govern the members of this Product 

Group. 

(b) If the National Industrial Recovery Board shall determine 

that any action of the Code Authority and/ or the Administrative 

Committee or any agency thereof may be unfair or unju t or contrary to the public interest, the National Industrial Recovery Board 

may require that such action be su pended to afford an opportunity 

for investigation of the merits of such action and further consideration by such Code Authority and/ or the Administrative Committee 

or agency pending final action which shall not be effective unless the 

National Industrial Recovery Board approvoo or unless it shall fail 

to disapprove after 30 days' notice to it of intention to proceed with 

such action in its original or modified form. 

( c) Each trade or industrial association directly or indirectly participating in the selection or activities of the Administrative Committee shall (1) impose no inequitable restrictions on membership, 

and (2) submit to the National Industrial Recovery Board true 

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

amendments when made thereto, together with such other information as to membership, organization, and activities as the ational 

Industrial Recovery Board may deem necessary to effectuate the 

purposes of the Act. 

( d) In order that the Administrative Committee shall at all time 

be truly representative of the Product Group, and in other respects 

comply with the provisions of the Act, the National Indu trial 

Recovery Board may prescribe such hearings as it may deem proper; 

and, thereafter, if it shall find that the Administrative Committee is 

not truly representative, or does not in other respects comply with 
7 

the provisions of the Act, may require an appropriate modification 

in the method of selection of the Administrative Committee. 

( 4) All members of this Product Group shall be bound by the 

provisions of the Basic Code. For this purpose, all provi ions, including specifically the wage, hour and labor provisions, of the Basic 

Code are hereby declared to oo a part of this Supplementary Code. 

In case of any conflict between the provisions of this Supplementary 

Code and the provisions of the Basic Code, the provisions of the 

latter shall govern. As required by Section 7 (a) of Title I of the 

National Industrial Recovery Act, it is hereby provided : 

(1) That 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 protection; (2) that 

no employee and no one seeking employment sliall 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 (3) that employers shall comply with the maximum 

hours of labor, minimum rates of pay and other conditions of 

employment, approved or prescribed by the President. 

(5) The Administrative Committee shall cause to be formulated 

methods of cost finding and accounting capable of use by all members 

of the Product Group, and shall submit such methods to the National 

Industrial Recovery Board for review. If approved by the National 

Industrial Recovery Board, full information concerning such 

methods shall be made available to all members of the Product 

Group. Thereafter, each member of the Product Group shall utilize 

such methods to the extent found practicable. Nothing herein con- tained shall be construed to permit the Administrative Comnuttee, 

any agent thereof, or any member of the Product Group to suggest 

uniform additions, percentages or di:ff erentials or other uniform 

items of cost which are designed to bring about arbitrary uniformity 

of costs or prices. 

(6) The AdJninistrative Committee shall be empowered to obtain 

from members of the industry 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 National Industrial Recovery Board may deem necessary 

for the purposes recited in Section 3 (a) of the Act to such Federal 

and State agencies as it may designate; provided that nothing in this 

Code shall relieve any member of the industry of any existing obligations to furnish reports to any Government agency. No individual 

report shall be disclosed to any other member of the industry or any 

other party except to such other Governmental agencies as may be 

directed by the National Industrial Recovery Board. 

ARTICLE IV-TRADE PRACTICES 

In addition to the provisions of Section C of Article VI of the 

Basic Code, the following described acts shall constitute unfair practices and acts of unfair competition: 
8 

{1) Costs and p1·ice cuUing.-(a) Wilfully destructive price cutting i an unfair method of competition and is forbidden. Any 

memb€r of the Product Group or of any other industry or the customers of either may at any time complain to the Administrative 

Committee than any filed and/or offered price constitutes unfair 

competition as destructive price cutting, imperiling small enterprises 

or tending toward monopoly or the impairment of code wages and 

working conditions. The Administrative Committee shall within 5 

days afford an opportunity to the member filing and/ or offering the 

price to answer such complaint and shall within 14 days make a 

ruling or adjustment thereon. If such ruling is not concurred in by 

either party to the complaint, all papers shall be referred to the 

Research and Planning Division of NRA which shall render a report 

and recommendation thereon to the National Industrial Recovery 

Board. 

(b) When no declared emergency exists as to any given product, 

there is to be no fixed minimum basis for prices. It is intended 

that sound cost estimating methods should be used and that consideration should be given to costs in the determination of pricing policies. - ,, ,~ ,, ,,, 

( c) When an emergency exists as to any given product sale below 

the stated minimum price of such product, in .violaticn of the provisions of paragraphs (d) and (e) hereof, is forbidden. 

( d) If the National Industrial Recovery Board, after investigation shall at any time find both ( 1) that an emergency has arisen 

within the Product Group adversely affecting small enterprises or 

wages or labor conditions, or tending toward monopoly or other 

acute conditions which tend to defeat the purposes of the Act; and 

(2) that the determination of the stated minimum price for a specified product of the Product Group for a limited period is necessary 

to mitigate the conditions constituting such emergency and to 

effectuate the purposes of the Act, the AdministPative C,vnmittee 

may cause an impartial agency to investigate costs and to recommend to the National ·Industrial · Recovery Bo.ard a determination 

of the stated minimum price of the product affected by the emergency and thereupon the National Industri.al Recovery Board may 

proceed to determine such stated minimum price. 

( e) ,v-hen the National Industrial Recovery Board shall have determined such stated minimum price for a specified product for a 

stated period, which price shall be reasonably calculated to mitigate 

the conditions of such emergency and to effectuate the purposes of 

the National Industrial Recovery Act, it shall publish such price. 

Thereafter during such stated period, no member of the Product 

Group shall sell uch specified products at a net realized price below said stated minimum price and any such sale shall be deemed 

de tructive price cutting. From time to time, the Administrative 

Committee may recommend review or reconsideration or the National Industrial Recovery Board may cause any determination 

hereunder to be reviewed or reconsidered and appropriate action 

taken. 

(2) Inducing Breach of Oontract.-Wilfully and maliciously inducing or attempting to induce the breach of exi tino- contracts between competitors and their customers by any means or devioo what-
9 

soever or interfering with or obstructing: tha. p rformance of any 

such contractual obligation or ser~ ice, with the pnrpo O and effect 

of hampering, injuring, or embarrassing competitors. 

(3) Oomm,ercial Br·ibery.-To give, permit to be given, or directly 

offer to give, anything o:f value for the purpose of influencing or 

rewarding the action of any employee, agent, or repre entative of 

another in relation to the business of the employer of such employee, 

the principal of such agent or the represented party, without the 

knowledge of such employer, principal or party. Commercial bribery provisions shall not be construed to prohibit free and general 

distribution of articles commonly used for advertising except so 

far as such articles are actually used for comn1ercial bribery as 

here.inabove defined. 

(4) Branding.- To brand falsely or fail to brand with member's 

name, trade-mark, and/ or number, group products sold in the 

original equipment or replacement business except that failure to 

brand shall not apply to non-metallic packing and/or gaskets, or 

gaskets the nature or small size of which makes branding mechanically impos ible or unduly costly. 

(5) / ':'::itatic , f Trade-lJcrks. -To imitate or copy a competitor's 

trade-mark, marking or trade name, with the purpose or effect of 

misleading or d.eceiving any purchaser or prospective purchaser. 

(6) /naccwrate Advertising.-To publish advertising (whether 

printed, radio, display, or of any other nature), which is misleading 

or inaccurate in any material particular, or in any material way to 

misrepresent any product, includino· but without ,limitation its use, 

trade-mark, grade, quality, quantity origin, size, substance, character, nature, finish, material content, or preparation) or credit terms, 

values, policies, services, or the nature or form of the business 

conducted. 

(7) Substitution.-To furni h articles more or less expensive, 

of bettn or inf<rnior quality, or of larger or smaller size, than 

spec1nect, without clearly indicating the nature of the substitution. 

(8) Description oi Product.-To make any ale or contract of 

sale of any product under any de cription which does not fully 

describe such product in term cu tomarily -used in the industry. 

(9) Price Guaranty.-To ell or offer to sell to a purcha er or 

prospective purchaser Group Products under any form of guaranty 

against advance or decline in price of said product except as provided in Article IV, Paragraph (10), "Contracts for Future 

Delivery." 

(10) Contracts for Future Delivery.-In the original equipment 

business to make contracts or accept orders for a period of delivery 

longer than six months. 

( 11) Defective M aterial.- To allow credit for any defective article until the fact of such defect shall have been established by an 

authorized representative of the selling member and the article 

shall have been destroyed or returned to such member; or to allow 

credit for charges for labor or consequential damage in connection 

with defective material. 

(12) R eti{lrned Merchandise.-(a) To accept or give credit for 

returned merchandise not in salable condition. 

(b) To accept or give credit for returned merchandise in good 

condition at a price greater than the purchase price less a fair and 
10 

reasonable rehandling charge plus a reasonable charge for obsolescence wliich charges shall be individually filed with the Administrative Committee. In every case the purchaser shall pay the return 

transportation charges. The foregoing shall not apply to merchandise shipped through error, defective material, or certain specified 

items that a member may ask all of his customers. to return. 

(13) R eplacmg 001npetitor's Stock.-To agree to liquidate, purchase, or accept another member s products from any buyer. 

(14) Oatal,og Expense.-To pay for space in a catalog issued by 

a customer or to supply at less than cost of paper and printing, 

quantities of catalog sheets and/ or price lists intended for binding 

in a customer's catalog or for distribution in quantity to customer's 

trade. The foregoing does not preclude supplying, without charge, 

a reasonable quantity of catalog sheets and/ or price lists for salesmen's binders, counter use, or office reference. ,.., (15) Advertising Allow(J)nces.-To purcP" se ...;9, .~ _..,,: contribute 

to the advertising of a customer in newspapers, 1ii,agaz'ines, programs, 

the customer's own house organ, or other public:!ltions unless such 

purchase of space or contribution is a part of a general advertising 

program adopted by the member and is av 0 ilable to all of his 

customers. 

(16) Display Eqitipment.-To supply to a cu 4';,-r/'-er store equipment such as large cabinets, display boards, racks and shelving or 

parts thereof, other than racks for sheet packing, except in accordance with the provisions of Section (20) hereof. 

(17) Oonsigrvnients.-To place group products on consignment or 

under the "Floating Credit" or "Ledger Balance" plan. 

(18) Warehousing.-To fail to comply with the following provisions covering sales from warehouses in the replacement business. 

(a) Members shall not sell from warehouses to customers who 

do not carry a representative stock of the member's products. 

(b) Merp.bers shall not carry a warehouse stock _ with any customer or {ii premises owned or controlled in whole orr in part by any 

customer provided that nothing herein shall prohibit the warehousing of stocks in any established public warehouse whether or not a 

cuc- t9mer has an interest therein. , . . , ;._ 

( c) Members shall totally own warehouse stocks which must not 

in any sense be consigned. 

( d) Members operating warehouses shall conduct their own sales 

through their own representatives, do their own billing and make 

their own collections. 

(19) Classification of Oustomers.-The Code Authority shall 

cause to be formulated and keep current a classification of all types of 

customers of the industry. Such classification shall be subject to the 

disapproval of the National Industrial Recovery Board and shall 

contain: ( a) A complete list of all of the classes of cust-0mers of 

the industry, including a class to cover every known type of cus- tomer; and (b) definitions or descriptions of the several classes in 

terms of functions performed, or in other appropriate terms such 

aslurchasers of defined quantities. 

fter submission to the National Industrial Recovery Board, if 

there is no disapproval or request for suspension of action within 

twenty (20) days, full information concerni~ the classification 

shall be made available to all members of the industry. No one 
11 

shall by intimidation, coercion, or other undue influence cause or 

attempt to cau e the inclu ion of any customers in or the exclu ion 

of any customer from any clas of customers, or the exclusion of any 

class of customers from the classification, or the u e of uniform 

or stipulated prices, discount, or differentials and each memb€r of 

the industry may at all times classify his own customers in accordance with his own judgment. 

(20) Open Price Filing-Replacement Business.-(a) Each member of the Product Group shall file with a confidential and disinterested agent of the Administrative Committee or, if none, then with 

such an agent designated by the National Industrial Recovery 

Board, identified lists of all of his prices, discounts, rebates, allowances, and all other terms or conditions of sale for Replacement 

Business as herein defined, hereina.fter in this Section (20) referred 

to as "price +"--ms ", which lists shall completely and accurately conform to and 1·1:,~ · 1 " ..__ -.v individual pricing practices of said member. Such lists shall contain the price terms for all" such standard 

products of the Pr0duct Group as are sold or offered for sale by said 

member and for such non-standard products of said members as shall 

be designated by the Administrative Committee. Said price terms 

shall in the first instance be filed within 15 days after the date of 

approval of tLJ..:. provision. Price terms and revised price terms 

shall become effective immediately upon receipt thereof by said agent. 

Immediately upon receipt thereof, said agent shall by telegra.ph or 

other equally prompt means notify said member of the time of such 

receipt. Such lists and revisions together with the effective time 

thereof, shall upon receipt be immecliatelY. and simultaneously distributed to all members engaged in Replacement Business and to all 

of their customers who have applied therefor a.nd have offered to 

defray the cost actually incurred by the Administrative Committee 

in the preparation and distribution thereof and be available for inspection by any of their customers at the office of such ag0 nt. Said 

lists or revisio1is or any part thereof sha.11 not be made available to 

any person until released to all members engaged in Replacement 

Business and their customers, as aforesaid; provided, that prices 

filed in the first instance shall not be released until the expiratiorr of 

the aforesaid 15 day period after the approval of this Supplementary 

Code. The Administrative Committee shall maintain a permanent 

file of all price terms as herein provided, and shall not destroy 

any part of such records except upon written consent of the National 

Industrial Recovery Board. Upon request the Administrative Committee shall furnish to the National Industrial Recovery Board or 

any duly designated agent of the National Industrial Recovery 

Board copies of any such lists or revisions of price terms. 

(b) When any member of the Product Group has filed any revision, such member shall not file a higher price within forty-eight ( 48) 

hours. 

( c) No member of the Product Group sha.11 sell or offer to sell any 

products of the Product Group for which price terms have been 

filed pursuant to the provisions of this Section (20), except in accordance with such price terms. 

( d) No member of the Product Group shall enter into any agreement, understanding, combination or conspiracy to fix or maintain 
12 

price terms nor cause or attempt to cause any member of the Product 

Group to change his price terms by the use of intimidation, coercion, 

or any other influence inconsistent with the maintenance of the free 

and open market which it is the purpose of this Section (20) to 

create. 

(21) Ter'm,S of Paym,ent.-In the replacement business to extend a 

cash discount more favorable tha,n 2% 10th proxin10. 

(22) Ewport Business.-Except as may be subsequently set forth 

in an export provision supplementary to the Basic Code of the Automotive Parts and Equipment Manufacturing Industry or to this 

Supplementary Code, the Provisions of this Supplementary Code 

with regard to prices, discounts, allowances and terms are not to 

apply to direct export sales or to articles in the course of export, 

i. e., sales destined ultimately for export. "Export Trade" shall 

be as defined in the Export Trade Act adopted April 10, 1918. 

ARTICLE V-GENERAL 

(1) No provision of this Supplementary Code shall be so applied 

as to permit monopolies or monopolistic practices, or to eliminate, 

oppress, or discriminate against small enterprises. 

(2) Such of the provisions of this Supplementary Code as are not 

required to be included herein by the Act may, with the approval of 

the National Industrial Recovery Board, be modified or eliminated 

on the proposal by the Product Group or any member thereof if it 

appear that the public needs are not being served thereby and as 

changes in circumstances or experience may indicate. 

(3) It is contemplated that from time to time supplementary 

provisions to this Supplementary Code or modifications thereof will, 

after approval by the Product Group, be submitted by the Administrative Committee through the Code Authority for their approval 

to prevent unfair competition in price and other unfair and destructive competitive practices and to effectuate the purposes of the Act. 

Upon approval by the National Industrial Recovery Board after such 

notice and hearing as it may prescribe, such supplementary provisions 

or modifications shall become binding as a part of this Suppleme! ·ary Code. 

( 4) As required by Section 10 (b) of Title I of the Act, this Supplementary Code and all of the provisions thereof are expressly 

made subject to the right of the President from time to time to 

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

issued under said Act. 

( 5) By assenting to this Supplementary Code no member of this 

Product Group shall be held to have waived any of his constitutional 

rights. 

( 6) Violation by any member of this Product Group of any provision of this Supplementary Code is an act of unfair competition, 

and the offender shall be subject to the penalties imposed by the 

Act. 

(7) The "Effective Date" of this Supplementary Code shall be 

the 10th day after it shall have been approved. 

Approved Code No. 105-Supplement No. 9. 

Registry No. 1404-54. 

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UNIVERSITY OF FLORIDA 

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