Approved Code No. 272 Registry No. 1304-04 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

UNIT HEATER 

AND/OR UNIT VENTILATOR 

MANUFACTURING INDUSTRY 

AS APPROVED ON FEBRUARY 10, 1934 

.. -· . -

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

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

v 
This publicati n is for sale by the Superintendent of Documents, Government 

Printing Office, Wa. llington, D.C., and by district offices of the Bureau of 

Foreign and Dom stic: Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF CO.l\U~IhRCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, :Mass. : 1801 Customhouse. 

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

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

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

Cleveland, Ohio: Chamber of Commerce. 

Dallas, Tex. : Chamber of Commerce Building. 

Detroit, Mich. : 801 First National Bank Bui:ding. 

Houston, Tex.: Chamber of Commerce Building. 

India napolis, Ind.: Chamber of Commerce Building. 

JacksonviEe, Fla.: Chamber of Commerce Building. 

Kansas City, l\Io.: 102S Baltimore Avenue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky.: 408 F ederal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, l\Iinn.: 213 Federal Building. 

Nevi' Orlean , La. : Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber 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. 272 

CODE OF FAIR COMPETITION 

FOR THE 

UNIT HEATER AND/ OR UNIT VENTILATOR 

MANUFACTURING INDUSTRY 

As .Approved on February 10, 1934 

ORDER 

APPROVING CoDE oF FAIR Col\fPETITION FOR THE UNIT HEATER AND/ OR 

UNIT VENTILATOR MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provision,s of Title I of the National Industrial 

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

Fair Competition for the Unit Heater andjor Unit Ventilator Manufacturing Industry, and hearings having been duly held thereon 

and the annexed report on said Code, containing findings with 

respect thereto, having been made and directed to the President: 

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

States, I, Hugh 8. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in n1.e 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 complie,s in all respects 

with the pertinent provisions and will promote the policy and purpo es of said Title of said Act; and do hereby order that said Code 

of Fair Competition be and it is hereby approved; provided, however, that the provisions of Article VII, Rule 4, in ofar as they 

prescribe a waiting l?eriod between the filing with the Code Authority and the effect! ve date of revised price lists or revised terms 

and conditions of sale be, and they are hereby, stayed pending my 

further Order either within a period of sixty days from the effective 

date of this Code or after the completion of a study of open price 

as ·ociations now being conducted by the National Recovery Administration. 

I-IuaH S. JoHNSON 

Acl1ninistrator fm· l ndust1'ial Recovery. 

Approval recommended: 

vv. A. HARRIMAN, 

Divi ion Acl1ninish·ato1·. 

w A IIINGTON D.C., 

Februa1·y 10, 1934. 

39353°----376-44----34 (355) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The lV hite House. 

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

Heater and/ or Unit Ventilator :Manufacturing Industry as revised 

after a public hearing, conducted in Washington, D.C., on December 

28, 1933, in accordance with the provisions of the National Industrial 

Recovery Act. 

PROVISIONS AS TO WAGES AND HOURS 

All, except office employees, shall be paid a minimum rate of forty 

cents per hour. Apprentices shall not exceed in number five per cent 

of· the total number of an employer's wage earners. Office employees 

shall be paid a minimum wage of fifteen dollars per week. Office 

boys and girls shall be paid not less than eighty percent of this rate 

and shall not exceed in number five percent of an employer's total 

number of office employees. 

Handicapped workers may be employed at wages below the 

minimum. Female employees performing substantially the same 

work as male employees shall receive equal pay. AdJustment of 

wage rates above the minimum will be made within thirty days after 

the approval of this Code. 

Forty hours shall be the maximum number of working hours for 

any week and eight hours for any day except during any six weeks 

in a six months' period forty-eight hours in one week shall be permi sible. Executives, their staffs and supervisors, who regularly 

receive thirty-five dollars or more per week, and outside salesm n are 

excepted from this provision. Employees engaged solely at maintenance and repair work, truckmen, firemen and engineers may work 

nine hours a day or forty-four hours a week except during any six 

weeks in a six months' period forty-eight hours in one week is permissible. Watchmen shall not be employed in excess of fifty-six 

hours in any one week. Office employees, except those receiving 

thirty-five dollars per week or more, shall not be employed in excess 

of an average of forty hours per week over each period of five weeks, 

nor more than forty-eight hours in any one week. 

All employees, except office employees, shall be paid at the rate 

of time and one half for time worked in excess of forty hours per 

week. 

ECONOMIC EFFECTS OF THE CODE 

The economic welfare of this industry depends upon building 

activity. Unit heaters are used mainly for f actory or industrial use, 

wherea unit ventilators a.re intended largely for school and office 

ventilation andj or heating. Annual sales have decreased seventytwo percent from 1929 to 1932. 

InYested capital and production capacity have increased about 

thirty-fiye per cent since 1929. The number of wage earners em-

(356) 
357 

ployed by this industry decrea. eel fifty-four percent over the same 

period. The Re earch and Planning Division states that the industry employed 1,770 wage earners in 1929. 

The maximum hours as provided by this Code will not reabsorb 

all the former employee , but a substantia l increa e in the demand 

for the products of thi industry followed by an increase in manhour requirements will stimulate employment. The Code provides 

for the upward adjustment of wages above the minimum, therefore, 

the purchasing power of the Industry's employee . hould be increased. Trade practice provisions of the Code are expected to remedy the unfair competition that has existed in the past within the 

Industry. 

FINDINGS 

The Deputy Administrator in his final report to me on said 

Code having found as herein set forth and on the ba i of all the 

proceedin~s in this matter : 

I find tnat: 

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Indu trial 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 sanctions and supervision, by eliminating unfair competitive practices, by promoting the fulle t possible utilization of the present productive capacity of industrie , by 

avoiding undue restriction of production (except a may be temporarily required), by increasing the consumption of industrial and 

agricultural products through increasing purcha ing power, by reducing and relieving unemployment, by improving tandrtrds of 

labor, and by otherwise rehabilitating industry. 

(b) Said Industry normally employs not more than 50,000 employee ; and i not cla sified by me as a major industry. (c) The Code as approved complies in all re pects with the pertinent provisions of said Title of aid Act, including without limitation 

Subsection (a) of Section 3, Subsection (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 OPI ress 

small enterprise and will not operate to eli criminate against them. (f) Tho e engao- din other tep.· of the economic }WOCE'. f" hnn' pnt 

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

Code. 

For the e rea ons, therefore, I have approved thi Cod . Respectfully, 

FEBRUARY 10, 1934. 

HuGHS. JoHNS N, 

Ad1nini.st1·ato r. 
CODE OF FAIR COMPETITION FOR THE UNIT HEATER 

ANDjOR UNIT VENTILATOR MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSES 

1. 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 Unit Heater and/or Unit Ventilator 

1\'Ianufacturing Industry, and shall be the standard of fair competition for such industry and shall be binding upon every member 

thereof. 

ARTICLE II-DEFINITIONS 

1. The term" Unit Heater and/or Unit Ventilator Manufacturing 

Industry", as used herein, includes the manufacture, and the assembling and sale by the manufacturer of unit heaters and/or unit 

ventilators, as herein defined, and such related branches or subdivi ions as may from time to time be included under the provisions 

of this Code with the approval of the President, after such notice 

and hearing as may be prescribed. 

2. The term "Unit Heater", as used herein means a combination 

of a steam or hot-water air-heating unit and a fan or blower, having 

a common enclo ure and intended to. be placed within or adjacent 

to a space to be heated, a.nd in which generally no ducts are attached 

to the outlets or inlets. A "Unit Ventilator' is similar in principle 

of operation to a unit heater but is designed to use all or part of 

outdoor air. Unit Heaters are mainly intended for factory or 

industrial use, whereas Unit Ventilators aTe intended largely for 

school and office ventilation and/or heating. Where a question arises 

as to whether a particular device is a Unit Heater or a Unit Venti- lator, the decision shall rest with the Code Authority, hereinafter 

defined, subject to the approval of the AdministratoT. 

3. The term "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. 

4. The term " Member of the Code ", as herein used, means and 

includes any member of the industry who shall expressly signify 

assent to this Code. 

5. The term "Code Authority "1 as herein used, means the body 

established in Article VI of th1s Code, to cooperate with the 

Administrator in the administration of this Code. 

6. The term " Employee", as used herein, includes any and all 

per ons engaged in the industry however compensated, except a 

":M mber of the Industry." 

7. The terms "President", "Act", and "Administrator", as used 

herein, mean, respectively, the President o.f the United States, Title 

(358) 
359 

I of the :National Industrial Recovery A t, an 1 the A lministrator 

for Indu trial Recovery. 8. The term "As ociation" a u eel her ein, shall mean the Industrial Unit Heater As ociation. 

ARTICLE III-HouRs 

SECTION 1. No employee, excluding accounting, clerical, and office 

employee , hall be employed in exce of forty ( 40) hour,s in one 

week, or eight (8) hour in any twenty-four ( 4) hour period, except that during any six (6) week in any ix (6 ) months' period 

employees may be employed not more than forty-eight (48) hours 

per week, providing one and one half times the normal rate of 

pay shall be paid .for hours worked in excess of eight (8) hours 

per day and forty ( 40) hours per week. The foregoing limit.ation.s 

shall not apply to: 

(a) Tho e employed in executive and managerial capacity, and 

service engineers when -and as long as their expen es are paid by 

their employer, who regularly receive thirty-five ($35.00) dollars 

or more per week. 

(b) Out ide sale men. . (c) Employees engaged solely at maintenance and repair work, 

truckmen firemen and engineers who may be permitted to work 

not more than nine (9) hours in any one day, or forty-four (44) 

hours in any one week. The, e employees may al o be permitted to 

work forty-eight (48) hours per week during any six (6) weeks 

during any six (6) months' period. One and one half times the 

normal rate of pay shall be paid for hours worked in excess of 

eight (8) hours per day and forty (40) hours per week. 

(d) ~iVatchmen who may be employed not more than fifty- ix 

(56) hours in any one ( 1) week, except watchmen in clo eel plants 

to whom this limitation hall not apply. 

SEc. 2. No accmmting, clerical, or office employee hall be employed 

in exce s of an average of forty ( 40) hours a week over a calendar 

fi-re ( 5) weeks period, nor more than forty-eight ( 48) hours in any 

one week. 

SEc. 3. No employer hall knowingly permit any employee to work 

for any time which, when totaled with that already performed with 

another emploj er or employers exceeds the maximun1 permitted 

herein. 

SEc. 4. No employee shall be permitted to work more than six (6) 

days in any seven (7) day penod. 

ARTICLE IV-WAGES 

SECTION 1. No employee shall be paid at le s than the rate of 

forty (40) cents per hour except that: 

(a) Accounting, clerical, and office employee may be paid at not 

le than fifteen ($15.00) dollar per week. · 

(b) Office boys and office girl may be paid at not 1 s than eighty 

( 80) percent of the aboYe-provided minimum wage for accountina, 

clerical and office employee provided that the total number of such 

office boy and girls receiving less than such minimun1 wage shall not 

exceed, in any calendar month, more than five (5) percent of the 
360 

total number of office employees of the employer, except that any employer may employ at least two (2) such persons as above provided. 

(c) N,)thing in this Article IV shall apply to or affect a bona 

fide apprentice employed under a system or cour,se of training which, 

when completed, will make the apprentice a skilled mechanic. At no 

time shall new apprentices be admitted to apprenticeship by any 

employer when such action will bring their total number to more 

than five ( 5) percent of the total number of factory employees of 

such employer. 

SEc. 2. 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. 

SEc. 3. The Code Authority may present for approval of the 

Ad1ninistrator, after notice and hearing, recom1nendations as to 

upward adjustments in minimum wages for specific localities. 

SEc. 4. Equitable adjustment of ompensation of employees receiving more than the minimum rates of pay herein prescribed shall 

be made by all employers who have not heretofore made such 

adjustments, and all employers shall within sixty (60) days after 

approval of this Code, report in full to the Code Authority concerning such. adjustments whether made prior to or subsequent to 

such approval, provided, however, that in no event shall hourly 

rates of pay be reduced. 

SEc. 5. Female employees performing substantially the arne work 

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

employees. 

SEc. 6. A person whose earning capacity is limited becau e of age 

or physical or other handicaps may be employed on light work 

at a wage below the minimum established by this Code if the employer obtains frmn the State authority designated by the United 

States Department of Labor a certificate authorizing his employment at such wages and for such hours as shall be stated in the 

certificate. Each employer shall maintain on file with the Code 

Authority a list of all such persons employed by him. 

SEc. 7. Wages shall be exempt from any payments for pen ions, 

insurance, or sick benefits other than those voluntarily paid by the 

wage earners, or required by State laws. Wages shall be paid at 

, least at the end of every two weeks' period, and salaries at least 

at the end of every month. 

SEc. 8. The employer or his agent shall accept no rebates directly 

or indirectly on such wages nor give anything o:f value or extend 

favors to any person for the purpose of influencing rates of wages 

or the working conditions of his employees. 

ARTICLE V-GENERAL LABOR PRo-VISIONS 

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

employed in the industry. No person under eighteen (18) years of 

age hall b employed at operations or occupations which are hazardous in nature or dangerous to health. The Code Authority hall 

submit to the Administrator before March 1, 1934, a li t 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 certificate or permit duly signed by the authority in any State 
361 

empowered to issue employment or age certificates or permits showing that the employee is of the required age. 

SEc. 2. In compliance with Section 7 (a) of the Act it is provided 

that: 

(a) Employees shall have the right to organize and bargain collectively through representatives of their own choosing, and shall 

be free from the interference, restraint, or coercion of employers of 

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

in self-organization or in other concerted activities for the purpose of 

collective bargaining or other mutual aid or protection. 

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

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

from joining, organizing, or assisting a labor organization of his 

own choo ing. 

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

minimum rates of pay, and other conditions of employment approved 

or prescribed by the President. 

SEc. 3. No employer shall reclassify employees or duties of occu- pation performed or engage in any other subterfuge for the purpose of defeating the purposes or provisions of the Act or of this 

Code. SEc. 4. Every employer shall make reasonable provisions for the 

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

of their employment. 

SEc. 5. No provisions in this Code shall supersede any State or 

Federal law which imposes more stringent requirements on employers as to age of employees, wages, hours of work, or as to safety, 

sanitary or general working conditions, or insurance, or fire protection, than are imposed by this Code. 

SEc. 6. All employers shall post complete copies of the labor pr<>· 

visions of this Code in conspicuous places accessible to employee . 

ARTICLE VI-ORGANIZATION 

SECTION 1. To further effectuate the policies of the Act, a Code 

Authority is hereby constituted to coopera e with the Administrator 

in the administration of this Code. 

SEc. 2. The Code Authority shall consist of the members from 

time to time of the Executive Committee of the Association, provided 

for in the bylaws of the Association, together with a member 

selected at large from the Industry. In addition to member hip as 

above provided, there may be not more than three (3) members, 

without vote, and without expense to the Industry, to be appointed 

by the Administrator, to s rve for such term or terms as he may 

specify. No two (2) members of the Code Authority shall be 

affiliated with any single member of the Industry. 

SEc. 3. The A sociation is hereby designated as the agency to 

conduct an el ction of the ~1ember at large of the Code Authority 

by members of. the Indu try who are not members of the As ociation, 

within fifteen ( 15) days after the effective date of thi Co le 1 and 

any ub equent lections for the successors of such ~Iember at lar<Ye. 

Such member hall be elected to serve for a term of one (1) . ear. In the event that the position of Member at large on the Code 
362 

Authority becomes vacant, a special meeting shall be called for an 

election to fill the vacancy. Notice. of the time and place of all 

elections shall be ent by regi tered mail, at least ten ( 10) days in 

advance of any election, to all members of the Industry who are not 

m€mbers of the A ociation and who are registered with the Secretary of the A ociation and voting at such election may be by person, 

by proxy, or by letter ballot. Each member of the Industry who is 

not a member of the Association shall have. one (1) vote. A plurality 

of the number of votes cast shall be necessary for election. 

SEc. 4. The Code Authority shall have the following further 

powers and dutie to the extent permitted by the Act, the exercise of 

which shall be reported to the Administrator. 

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

provide for the compliance of the Industry with the provisions of 

the Act, subject to such rules and regulations as may be promulgated 

from time to time by the Administrator. 

(b) To adopt bylaws and rules and regulations for its procedure 

and for the administration and enforcement of the Code. 

(c) To obtain from me1nbers of the Industry such information 

and reports (sworn or unsworn as the Code Authority may specify) 

as are required for the administration of the Code. No Individual 

information, statistics, or reports shall be disclosed to any other member of the Industry, or any other party except to such governmental 

agencies a may be directed by the Administrator. 

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

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

herein, provided that nothing herein shall relieve the Code Authority 

of its duties or responsibilities under this Code and that such trade 

associations and agencies shall at all times be subject to and comply 

with the provision hereof. 

(e)" To make recommendations to the Administrator for the coordination of the administration of this Code with such other code , 

if any, as may be related to the Industry. 

(f) To secure from members of the Industry an equitable and proportionate payment of the reasonable expenses of maintaining the 

Code Authority and its activities. 

(g) To cooperate with the Administrator in regulating the use 

of any N.R.A. insignia solely by those members of the Industry who 

h ave assented to, and are complying with, this Code. 

(h) To recommend to the Administrator further unfair 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 o£ employment. 

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

truly representative of the Industry and in other respects comply 

with the provi ions of the Act, the Administrator may provide such 

h<:>aring as he may deem proper; and thereafter, if he shall find the 

Code Authority is not truly representative or does not in other respects comply with the provisions of the Act, may require an appropriate n1odification in the method of selection of the Code Authority, 

or any sub-Code Authority. 
363 

SEc. 6. Each association di:rectly or indirectly participating in 

the selection or acti\ ities of the Code Authorit_: hall (1) impo. e no 

inequitable restriction on member hip, and (2) submit to the Administrator true copies of it articles of association, bylaws, regulations, and any amendments when made therDto together with uch 

oth r information a to membership, organization, and activities as 

the Admini trator may deem necessary to effectuate the purposes of 

the Act. 

SEc. 7. In addition to the information required to be submitted 

to the Code Authority and the Admini trator, there .::hall be furni bed to government agencies such statistical information as the 

Admini trator may deem necessary for the purpo e recited in ection 

3 (a) of the Act. 

SEc. 8. Members o£ th Industry shall be entitled to participate 

in and share the benefit of the activities of the Code Authority and 

to participate in the selection of the members thereof, by assenting 

to and complyino- with the requirements of this Code and sustaining their r asonable share of the expenses of its administration. The 

reasonable share of the expenses of administration shall be deter- mined by the Code Authority, subject to review by the Administrator, on the basis of volume of business and/ or such other factors 

as may be deemed equitable to be taken into consideration. 

SEc. 9. Nothing contained in this Code shall constitute the members of the Code Authority partners for any purpose. Nor hall 

thi Code be construed to render any member of the Code Authority 

liable in any manner to anyone for any act of any other member, 

officer, agent, or employee of the Code Authority. Nor shall this 

Code be construed to render any member of the Code Authority, 

exercising reasonable diligence in the conduct of his duties hereunder 

liable to anyone for any action or omission to act under this Code, except for his own wilful misfeasance or nonfeasance. 

ARTICLE VII-SPECIFIC TRADE PRACTICES 

RULE 1. Each member of the Industry shall publish and make 

available, at all times to each class of purchasers (except distributor ) with whom he doe business, a printed price sheet showing the 

list price of all types, varieties, and sizes of unit heaters, unit ventilators, accessories, and appurtenances regularly on sale by him; 

together with any and all discounts, including ca h and/or quantity 

discounts, transportation terms, guarantees, and any other terms or 

condition. which may affect the net cost of any listed article to 

the purchaser of the class to which the sheet is i sued. 

RuLE 2. All published price heets hall be plainly dated and shall 

be considered published when filed in printed form with the Code 

Authority in sufficient number for distribution to all members of 

the Ind u try. 

RuLE 3. Any member of the Industry, upon publi bing a price 

she t, . hall immediately eli tribute the same to his regular customer . 

RULE 4. A member of the Indu try may pubJi h r vised price 

sheet from tim to tim , a market condition mar warrant, upon 

filino· ten (10) day ' notice with the Code Authority.::~ 

* See paragraph 2 of order ar proving thi · ode. 
364 

RuLE 5. All publi heel price sheets shall be plainly marked, 

"Subject to change without notice." 

R uLE 6. Different classes of purchasers and their trade privileges 

are recognized, but it is deemed essential to the prevention of unfair 

trade practice to adopt a uniform method of classification as it 

affe ts tran actions in this Indu try. For this purpose the following 

classes only are recognized. 

(a) Con umer is the ultimate purcha er or user of unit heaters or 

unit ventilators. (b) Contractor is one who is regularly engaged in the business of 

in tailing heating ystems and equipment, including unit heaters or 

unit ventilator , for the purpose of resale at a profit. A consumer 

who employs an erecting crew for in tailing heating materials or 

equipment on hi own properties or for his own use shall not be 

classed as a contractor. F ederal, State, County, and Municipal purchaser , including subdivisions thereof such as School Boards, Park 

Commissions, and the like, may be classified as Contractors. 

(c) Jobber is one who is regularly engaged in the business of 

buying and reselling steam and hot water heating materials and 

equipment, including unit heaters or unit ventilators, in and out of 

stock, but who does no installing of the materials andjor equipment 

sold. Manufacturers purchasing unit heaters for resale as part of 

their equipment may be classified as jobbers. 

(d) Distributor is one who is regularly engaged in the business of 

buying and reselling unit heaters or unit ventilators as a jobber, but 

who is under contract with a particular manufacturer to sell said 

1nanufacturer's line of unit heaters andjor unit ventilators to the 

exclusion of other unit heaters and unit ventilators, and who agrees 

to conform to all lawful limitations and restriction upon methods of 

sale contained in said contract. 

RuLE 7. Nothing herein contained shall be construed to prevent 

a member of the Industry from selecting his own cu tomers and the 

classes of customers through whom he wishes to market his goods, 

but it is deemed conducive to unfair methods of competition to di -

criminate between purchasers of the same class, or to discriminate 

between the several recognized classes of purchasers on other than 

a uniform basis except in the case of distributors or agents. To 

effectuate this Policy : 

(a) The heating contractor, as the commonly recognized dealer in 

this class of materials, may be extended a trade discount, provided 

the member extending the discount issues a published price sheet to 

contractors showing said di count and extends the same discount to 

all contractors with whom he does bu iness. (b) The jobber, who in turn serves the heating contractor, may be 

extended the contractor's trade discount plus an additional trade 

discount of not to exceed ten (10) percent, provided the member ex- tending said discount issues a published price sheet to jobbers showing said discounts and extends the arne discounts to all jobbers with 

whom he does business. 

(c) The distributor or agent, (as provided in Rule 6-d) under 

contra t to abide by the pr1ces and terms of sale of the published 

price sheet and these Rules of Fair Competition (Article 7 of this 
365 

Code) may be extended any discount which a member elect to 

extend. 

RULE 8. The conventional trade pra ti of allo""ing quantity 

discounts is considered rati nal and fair provided it i based on a 

quantity bought on one (1) order, thu re ulting in a savinu in cost 

to the manufacturer and his di tributor, and proYided a uniform 

chedule is adopted and i extended alike to all purchasers of all 

cia es. 

A member of the Indu try may or may not, at his option extend 

quantity di counts, but if he does, it shall be in trict accordance 

with the schedule printed on his price sheet together with the statement that it applies to all purchasers where the units are bought on 

one (1) order and are shipped and invoiced at one (1) time, provided, however that quantity discounts may be allowed on invoices 

covering partial shipment of an order when 

(a) The manufacturer is unable, for reasons beyond his control, 

to make shipment of complete order at one time. 

(b) The order is for units to be installed in one ( 1) building or 

group of buildings for which the contract was let prior to the time 

the order was placed and when the equipment must be shipped as the 

building con truction progresses. 

(c) \Vhen the order specifie definite partial deliveries over a 

period of not to exceed six (6) months, and provided that if purcha er fails to a cept the entire order within the time specified, 

adju tment of volume discount hall be made on the ba i of the 

\olume actually shipped. 

RULE 9. All sale of unit heater , unit ventilator , accessories, 

andjor appurtenances hall be made on the ba is of a written quotation or bill of sale. Said quotation or bill of sale shall be properly 

dated and shall be in accordance with the current publi hed price 

sheet and shall be so itemized as to enable the checking of the ame 

from the current publi hed price sheet. Out tanding quotation may 

be protected for a period of thirty (30) days beyond date of price 

change (or in the case of quotations made for direct purcha e by 

the Federal Government, protection may be given for ixty (60) 

days beyond bid opening) provided a list of uch outstanding 

quotations be filed with the Code Authority within ten ( 10) days 

after price change. 

RULE 10. All quotations hall be subject to change without notice 

and void after sixty ( 60) days, and all written quotations . hall so 

state, subject however to Rule 9. 

RULE 11. It shall be deemed an unfair method of competition to 

sell or di po e of a unit heater, unit ventilator, ace ory or appurtenance on any lower basis than that of the current published price 

sheet le uch discounts as apply under these Rules. 

RULE 12. It shall be deemed an unfair method of competition to 

make a particular sale of unit heaters, unit ventilator , acce ori , 

or appurtenances contingent upon the ale of any other good or 

material . RULE 13. It hall be deem d an unfair method of competition to 

mark or brand any product of the Indu try in .any mann r which ha 

the tendency to mi lead or deceive cu tomers r pro pectiv custom rs a to the ub tanc , Tad , qualit_r, siz , quantit. , origin r 

preparation of any product of the Indu try old or off reel for ale. 
366 

RuLE 1:1:. It hall be deemed an unfair method of competition to 

make or cau ·e or permit to be made or publi heel any false, untrue, 

r deceptive tatement by way of adverti ement or otherwise concernino· the materials of construction used in, the operating characteri:tics of, or the qualityJ. size, origin, or preparation of any product 

of the Indu try sold or ottered for sale. 

R LE 15. All ratings of performance of unit heaters, and unit 

Yentilator shall be in accordance with the re pective Codes for 

Te ting and Rating Unit H eaters and Unit Ventilators as established 

by the American Society of Heating & Ventilating Engineers except 

that this rule shall not apply in the case of Unit Ventilators until on 

and after July 1st, 1934. 

R -cLE 16. The right of any manufacturer of unit heater or unit 

Yentilators to build special sizes or types on special order i recognized; but a ·uch units are more co tly to build and shoull sell for 

higher price. than his regular line, it shall be deemed an unfair 

method of competition to ell any special or cu tom-built unit heater 

or unit ventilator at the same price or le s per unit of rating than the 

next neare t size and type of the manufacturers' regular line. 

RuLE 17. It hall be deemed an unfair trade practice to sell unit 

heater · or unit ventilators less certain parts on a basis other than 

that by which the deduction for parts is proportional to the net cost 

to the manufacturer of the parts, or to sell separate parts, except for 

repla cement, on a mark-up less than that employed in determining 

the price of the complete unit heater or unit ventilator. 

R uLE 18. It hall be deemed an unfair trade practice to accept 

blanket orders; therefore, all quotations and orders must specify an 

itemized bill of goods. If, after a quotation has been made, the 

specified requirements are changed, a new quotation shall be issued 

based upon published prices prevailing at that time. If, after an 

order has been accepted the requirements are changed, deductions 

shall be credited on the basis of published prices prevailing at the 

time order was placed and additions shall be charged at the prices 

prevailing at the time additions are made. 

RULE 19. With respect to that portion of his product which is 

within the Indu try, every employer shall use an accounting system 

for the purpo e of determining allowable cost which conforms to 

the principles of, and is at least as detailed ai_ld complete as, the 

uniform method of accounting, and the uniform method of costing, 

to be formulated or approved by the Code Authority and the Administrator with such variations therefrom as may be required by t.he 

individual conditions affecting any employer or group of employers, and as may be approved by the Code authority and the 

Administrator. 

RuLE 20. No employer shall sell or exchange any product of the 

Industry, manufactured by him, at a price, or upon terms and conditions, which will result in the purchaser laying for the goods received, le s than the allowable cost thereo to the seller, determined 

in accordance with a uniforn1 1nethod of costing above described; 

provided, however, that dropped lines, or seconds, or inventories 

which must be converted into cash to meet emergency needs may be 

disposed of by any employer, at any price and on any terms and 
367 

conditions, but only if such employer, not less than ten (10) days 

before such disposal, has filed with the Code Authority, a statement 

in writing, etting forth the fact of, and reasons for, uch propo ·eel 

dispo al, and the Code Authority has not, before the termination of 

such ten (10) days' period, in writing disapproved the proposed dis- posal; and provided further, that a member of the Industry selling, or wishing to sell, below his own allowable cost to meet the competition of a competitor whose allowable costs on products of equivalent 

design, size, capacity, character, or quality are lower, may do so provided that he has first so reported to the Code Authority and in such 

report has cited the competition which caused him to take such action, and provided he publishes a revised price sheet. Nothing herein 

shall be construed to relieve a member of the Industry from strict 

adherence to Rule 9. 

RuLE 21. Consignment of goods or delayed billing shall be deemed 

an unfair trade practice, except under conditions prescribed by the 

Code Authority. 

RULE 22. It shall be deemed a violation of these Rules to enter into 

or be a party to a written or verbal agreement or understanding 

which serves directly or indirectly to affect the price or terms of sale 

established by a current published price sheet, or which serves in any 

way to defeat the spirit and purposes of these Rules. However, nothing herein contained shall be construed to prevent a member of the 

Industry from cooperating with or instructing prospective purchasers as to the proper application or installation of said member's 

products. 

RuLE 23. All unit heaters andjor unit ventilators, accessories, and 

appurtenances shall be sold f.o.b. factory. Freight may be allowed 

to freight station nearest to destination, or may be prepaid. 

RuLE 24. Varying discounts may be allowed for cash and for varying periods not to exceed (30) days from date of invoice if published 

and with the understanding that such discounts are viewed as added 

collection co ts. 

RULE 25. Published guarantees of unit heaters and unit ventilators shall be subject to the following limitations : 

(a) No guarantee on defective material or workmanship shall ex- tend beyond one year from date of shipment. 

(b) Replacements: F.O.B. manufacturer's factory subject to manufacturer's inspection. 

(c) No liability shall be assumed for consequential damage or 

reinstallation labor. 

(d) Foreign equipment guarantee shall be limited to the warranty 

of it manufacturer. 

RuLE 26. A. violation of any of the rules in this Article shall be 

deemed an unfair method of competition. 

RuLE 27. No member of the indu try shall give, permit to be 

given, or directly offer to give, anything of value for the purpo e of 

influencing or rewarding th action of any employ e, agent, or r presentative of another in relation to the bu ine s of the mplo r of 

such employee, the principal of such agent or the r 1 rf ented party, 

without the knowledge of , uch emrl yer, principal, or party. Commercial bribery provision ·hall not be construed to prohibit fr e 

and general distribution of article commonly u d for a 1 'erti in0 
lll lllllll~lliil!lll~lil'fl ~~~~It lllill ~lilllilli lllllllll 

368 3 1262 08584 1954 

except so far as such articles are actually used for commercial 

bribery as hereinabove defined. 

ARTICLE VIII-GENERAL PROVISIONS 

SE TION 1. No provision of this Code shall be construed or applied 

in such a manner as to--

(a) Promote or permit monopolies or monopolistic practices. 

(b) Permit or encourage unfair competition. 

(c) Eliminat~ oppress, or discriminate against small enterprises. 

SEc. 2. This vode is hereby expressly made subject to the right 

of the President, pursuant to Section 10 (b) of Title I 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 his right to 

cancel or modify his order approving this Code, or any conditions 

imposed by him upon such approval. 

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

may be modified on the basis of experience or change in circum- stances, such modifications to be based upon application to the 

Administrator and such notice and hearing as he may specify, and 

to become effective on approval of the Pr~sident. Any such application may be made by the Code Authority. 

SEc. 4. If the Administrator shall determine that any action of 

the Code Authority or any agency thereof is unfair or unjust or 

contrary to the public interest, the Administrator may require that 

such action be suspended for a period of not to exceed thirty ( 30) 

days to afford an opportunity for investigation of the merits of 

such action and further consideration by the Code Authority or 

agency pending final action, which shall be taken only upon approval 

by the Administrator. 

ARTICLE IX 

This Code shall become effective on the second Monday after its 

approval by the President of the United States. 

Approved Code No. 272. 

Registry No. 1304-04. 

0 ..