Approved Code No. 46-Amendment No.4 llegistry No. 1403-32 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

MOTOR VEHICLE RETAILING 

TRADE 

AS APPROVED ON DECEMBER 8, 1934 

WE DO OUR PARr 

,. 

• 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

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

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

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Seattle, Wash.: 809 Federal Office Building. 
Appr oved Code No. 46- Amendment No. 4 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MOTOR VEHICLE RETAILING TRADE 

As Approved en December 8, 1934 

OR.DER 

APPROVING AMENDMENT OF CoDE OF FAIR CoMPETITION FOR THE 

MOTOR VEHICLE R ETAILING TRADE 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved J une 16, 1933, for approval of an amendment to the Code of Fair Competition for the Motor Vehicle Retailing Trade, and hearings having been duly held thereon and the 

annexed report on said amendment, containing findings with respect 

thereto, having been made and directed to the President: 

NOW, THER.EFOR.E, on behalf of the President of the United 

States, the National I ndustrial Recovery Board, pursuant to authority ve ted in it by Executive Orders of the President, including 

Executive Order No. 6859, dated September 27, 1934, and otherwi e, 

does hereby incorporate, by referonce, said annexed report and does 

find that said amendment and the Code as constituted after being 

amended comply in all respects -with the pertinent provi ions and will 

promote the policy and purposes of said Title of said Act, and does 

hereby order that said amendment of said Code be and it is hereby 

approved, and that the previous approval of said Code is hereby 

amended to include an approval of said Code in its entirety as 

amended; and further, that the State Advisory Committee in any of 

the several Code States established as provided in Article V, Title 

A of the Code is hereby designated as the Agency to determine the 

acceptability of the credit rating of any person ordering a motor 

vehicle wherein the provisions of Title A, Paragraph 4, Subparagraph d (ii) of Article I V, of said Amendment becomes operative, 

any such determination to be subject to the di approval of the 

National Industrial Recovery Board. 

NATIONAL I NDUSTRIAL REcOVERY BoARD, 

By \V. A. HARRI~ AX, Administrative Officer. 

Approval recommended: 

BARTON \V. MURRAY, 

Division Administrator. 

WASHINGTON, D. c., 

December 8, 1934. 

102109°----1385-71----34 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White H oWJe. 

Srn: An application has been duly made pursuant to and in full 

compliance with the provisions of the National Industrial Recovery 

Act, for an amendment to the Code of Fair Competition for the 

Motor Vehicle Retailing Trade, submitted by the National Control 

Committee on behalf of the Emergency National Committee. . The purpose and effect of the amendment are to permit the making 

of contracts, or the submission of bids, upon the basis of a used car 

allowance current at the date of the contract or bid and the completion of such contract or bid in a subsequent Guide Book period, even 

though the subsequent Guide Book may change the maximum permissible allowance; such contracts to be entered into for future delivery only when the dealer, for reasons beyond his control, is unable 

to make earlier delivery to the customer. One of the conditions of 

the contract shall be that delivery shall be accepted by the purchaser 

as soon as the dealer is in a position to make delivery. 

FINDINGS 

The Deputy Administrator in his final report to us on said amendment to said Code having found as herein set forth and on the basis 

of all the proceedings in this matter: 

We find that: 

(a) The amendment to said Code and the Code as amended are 

well designed to promote the policies and purposes of Title I of the 

National Industrial Recovery Act including the removal of obstructions to the free flow of inter-state 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 trade groups, by inducing and 

maintaining united action of labor and management under adequate 

governmental sanction and supervision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of 

the present productive capacity of industries, by avoiding undue 

restrictions of production (except as may be temporarily required), 

by increasing the consumption of industrial and agricultural products through increasing purcha;ging power, by reducing and relieving 

unemployment, by improving standards of labor, and by otherwise rehabilitati~g industry. 

(b) The Code as amended complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7 and 

Subsection (b) of Sect'1on 10 thereof. . (c) The Code empowers the Code Authority to present the aforesaid amendment on behalf of the industry as a whole. 

(2) 
3 

(d) The amendment and the Code as amended are not do ignecl to 

and will not permit monopolies or monopoli. tic practice . 

(e) The amendment and the Code as amen led are 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 

amendment. 

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

For the National Industrial Recovery Board: 

DECEMBER 8, 1934. 

w. A.. IlAruu:MAN' 

.Admimistrative OffioM 
AMENDMENT TO CODE OFF AIR COMPETITION FOR THE 

MOTOR VEHICLE RETAILING TRADE 

Include in and add to Article IV, Title A, Paragraph 4, the following to be known as subparagraph (d): 

(d) The allowance on a used motor vehicle, taken in trade as 

part payment on the purchase of another motor vehicle, shall not be. 

in excess of the maximum permissible a,llowance as determined by 

the Association Official Guide current as of the date title and possession of the used motor vehicle passes to the dealer, except as 

follows: 

( i) When a definite bonafide order is placed by a person for his or 

its own requirements with a cash deposit of at least five per cent of the 

factory list price of the new car or with proof of good credit rating, 

for a car which the dealer is unable for reasons over which he has no 

control to make immediate delivery, the dealer may enter into a 

firm contract to make an allowance not in excess of the maximum 

permissible allowance as determined by the Association Official Guide 

current at the date of the order and such contract may be kept in 

force during the period of the Association Guide Book immediately 

subsequent to that current at the date of said order, notwithstanding 

any change in the maximum permissible allowance which may be 

1nade by such subsequent Association Official Guide; provided, however, that such contract shall provide that the buyer n1ust accept 

delivery immediately upon delivery being offered and the dealer 

must offer to make delivery immediately upon the new motor vehicle 

being available for delivery; provided further, that said contract 

shall further provide that same shall not be transferable and 

all orders or contracts accepted in accordance ~Vith this provision 

shall immediately be filed by the dealer with the State Advisory 

Committee. 

(ii) When written bids are called for by any Governmental 

agency or by any person having a good credit rating and are not 

awarded until the next succeeding issue of the Association Official 

Guide has become current, any dealer who has offered as part of 

such bid to accept a used car at an allowance not exceeding the maximum permissible allowance as determined by the Association Official 

Gujde Book current as of the date · of the bid, may carry out the. 

terms of the bid notwithstanding any change in the maximum permissible allowance as determhted by the Association Official Guide 

Book immediately succeeding the' Guide current at the date of the bid. 

Any dealer attempting to use allowances pursuant to previous 

Association Official Guide at a time when sub equent Association 

Official Guide is current, except under the terms and conditions of 

this sub-paragraph (d) shall be deemed guilty of a Code violation. 

Approved" Code No. 46-Amendment No. 4. 

Registry No. 1403-32. 

(4) 

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