Approved Code No. 46-Amendment No.5 Registry No. 1403-32 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETI~ION 

FOR THE 

MOTOR VEHICLE RETAILING 

TRADE 

AS APPROVED ON MARCH 23, 1935 

WE DO OUR PA.'U' 

UNITED STATES 

GOVERNMENT PRirrTING OFFlCE 

WASHINGTON: 1935 

For sale by the Superintendent of Documents, Washington, D. C. - - - - - - - - Ptice 5 cents 
This publication i for sale by the Superintendent of Do<.:ument , Government 

Printing Office, \Vashing ton, D. C., and by the following N. R. A. office· : 

Atl a nta , Ga . : 625 Citizens & South rn National Bank Buildino·. 

Baltimor , M.Ll. : 130 Customhou. e. 

Birmingha m, Ala.: 201 Liberty National Life Building-. 

Bo.'ton, Ma:;:,.;. : Room 1200, 0 Federal Street. 

Buffalo, N. Y. : 219 White Build;ng. 

Chicago, Ill.: R om 204, 400 North Michigan AYenue. 

Cleveland, Ohio.: 520 Bulkley Building. 

Dall a , Tex.: 1212 Republic Bank Building. 

D etroit, l\licb.: 41- New Federal Building. 

Houston, Tex. : 403 l\1ilam Building. 

J acksonvill e, Fla.: 425 United States Courtbou e and Post Office 

Buildino-. 

Los Angeles, Calif.: 151 Figueroa Street, South. 

Loui ville, K y. : 408 Federal Building. 

l\Iinneapolis, l\linn.: 900 Roanoke Building. 

Nash ville, Tenn.: 415 Cotton States Building. 

Newark, N. J . : 434 Industrial Offi c-e Building, 1060 Broad Street. 

New Orleans, La. : 214 Customhouse. 

New York, N. Y.: 45 Broad"·ay. 

Oklahoma City, Okla. : 427 Commerce Exchange Building. 

Philaclelpbia, Pa.: 933 Commercial Trust Building-. 

Pittsburgh, Pa. : 401 La w and Fina nce Building. 

Portland, Oreg.: 407 Park Building. 

Pro,·icl nee, R. I.: National Exchange Bank Building 17 Exchange 

Street. 

St. Louis, 1\lo.: Suite 12:20, 506 OliYe Street. 

Sa n Franci. co, Calif. : Humbolt Bank Building, 7 5 Ma rket Str eet. 

Seattle "\"Vash.: 1730 Exchange Building. 

(II) 
Approved Code No. 46-Amendment No. 5 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MOTOR VEHICLE RETAILING TRADE 

As Approved on l\'larch 23, 1935 

ORDER 

ArrROYIXG Al\IEXDl\IE-~T OF ODE F F _ IR Co~rPETITIOX F n THE ::\IoT R 

v EHI 'LE RETAILING TR_ DE 

An arllicahon haYing been dul} male I ur uant to an l in full 

compliance with the provi ion of Title I of the National Indu. trial 

Re overy Act, approYecl Jun 16. 1933, f r approYal of an amnndment to the Cole of Fair ompebtion for th :Motor Yehicle ~>tai ling Trade, and hearino· · haYing been lulj held thereon an l the 

annexe l report on . ail amen lment, containing fin ling: l'i·ith r e p ct 

ther to, having been made and directed to th Pre. ident : 

KO\Y, THEREFORE. on behalf of the Prr.> ·ident of th LTnitecl 

State the National In lu trial Reco-very Board. pur nant to authority ye tecl in it b} Exen1tiYe Or l r. f the Pre ident, incltH1in~ 

Executive rder No. 6 59. elate l I tember ...,7, 1934, und otherl'i·i.-e ; 

doe herebv incorporate. by reference, . aid annexed report and 1 es 

find that . ail amendment and the ole ~ on tituted after beino· 

amen led com1ly in all re_ p t · ''ith the pertinent pr Yi~ion.~ anc1 

will promote the policy and I urpo.;; .- of . aid Title of ~aiel Act. anc1 

doe, hereby or 1er that . aiel amendment of . aiel ocl ba and it i 

hereby approYe 1, and the t the pre,·iou approYal of . ail Code i. 

h reb} amend l t inclnr1e an approYal of sai 1 Cod in it. entiret? 

a. · am ncled; provi 1 cl that thi. amendment , hall be ffPctiYe nly on 

Official Guide com1 il c1 and 1 ubli heel in accor lance 'lith the p rtinent proYi:-ion. of thi. amendment, and proYicle 1, ftnthcr that all 

Offi ial Guide. effecti'e on and after April 10, 1935 hall be compil c1 

ancl publi. heel in conformity with the pertinent proYi~iow· of thi 

amendment. 

X ATIO~ ~.\L Ixnr~TRL\L RECOYERY I3o.\.nD. 

By \Y ..... \... H .. nRI:\L x, ~1rlmini. ·tJ'otil < Olfh:r 1' • 

.... \pproYal recomm ncle 1: 

B_\TITOX \Y. ~I 'CRRA Y, 

Dici ·ion ldmi11i:·d ,·afoJ'. 

\Y \~HL ·en . D. C., ~1 arch ;.;J 19J.J. 

123249 °----1603-106----33 (1) 
REPORT TO THE PRESIDENT 

The PRESIDENT 

The -White House. 

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

compliance with the provisions of the N utional Industrial RecoYery 

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

l\1otor 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 clarify and make 

more equitable the procedure now in effect, permitting members of 

the Trade to accept used motor Yehicles in lieu of money in the sale 

of any motor Yehicle, and to proYide a record for establishment of 

maximum used motor Yehicle allowances as determined by this 

proced nre. 

FINDIXGS 

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

basis of all the proceedings in this m~tter: 

\V e 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 RecoYery Act, including the removal of 

obstructions to the free flow of interstate and foreign commerce 

\\hich tend to diminish the amount thereof, and will provide for 

the general 'yelfare by promoting the organization or industry for 

the purpo"e of cooperatiYe action among trade groups, by inducing 

and maintaining united action of labor and management under 

adequate goYernmental sanction and snperYision, by eliminating 

unfair competitiYe practices, by promoting the fullest possible utilization of the present productiYe capacity of industries, by avoiding 

undue restriction of production (except us may be temporarily 

required), by increasing the consumption of industria l and agricultural products through increasing purchasing po\\er, by reducing 

and relieYing unemployment, by improYing standards of labor, and 

by otherwise rehabilitating industry. 

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

Subsection (b) of Section 10 thereof. 

(c) The Code empo,yers the Code Authority to present the afore-

,;aid amendment on behalf of the industry as a whole. 

( cl) The amendment and the Code as amended are not designed 

to and will not permit monopolies or monopolistic practices. 

(e) The amendment and the Code as amended are not designed 

to and will not eliminate or oppress small enterprises and will not 

operate to discrjminate against them. 

(2) 
3 

(f) Tho ·e enaao·e 1 in other teps of the economic proce s ha,·e 

not b en depriYed of th right to b h ar l prior to approval of 

said amendment. For thes rea ons, therefore, we haY approYed this amendment. 

For th National Inclu -trial R ecoYery Board: 

ThL-\RCH 23, 1935. 

'\V. A. HARRIMAN, 

Adn'dnistrative Officer·. 
Al\fENDl\fENT TO CODE OF FAIR COl\1PETITION FOR 

TI-IE l\10TOR VEHICLE RETAILING TRADE 

Delete Article IV -A, with the exception of subsection (d) of 

Section ( 4) and Sections ( 5) and ( 6), and substitute therefor the 

following: 

ARTICLE IV-TRADE REGULATIO :r 

The provisions of this article will cover the follo1ving motor Yehicles: Passenger car , trucks, and conunercial vehicle with bodies 

of %, ton capacity and less, or such other capacity limitation as 

may be deemed proper by the N atiomtl Recovery Administration. 

A. USED l\IOTOR YEHICLE ALLOW A :rcE 

In or ler to further mitigate the destructive practices which have 

re ultecl from the lack of a measure of value for used motor vehi les 

which dealers find it necessary to accept in lieu of money in the 

sale of motor vehicles and to promote fair and equitable treatment 

of the consumers of both new and u eel motor vehicles, this Trade 

agrees : 

(1) The term fair market value of any eries, model and body 

type (hereinafter referred to a model) of u eel motor vehicle is 

defined a a value for the better grade of such cla<;:s of vehicles and 

which' alue is rea onably related to the average price that the public 

is })aying for such class of motor Yehicle and hall be a certained by 

the Association subject to the approval of the National Recovery 

Admini tration as hereinafter provided. 

(2) In ascertaining the fair market Yalues pecified in section (1) 

the As ociation hall compile the report of dealers within the same 

or comparable trading areas, supported by sworn tatements as to 

authenticity, hawing actual retail ales of u ed motor vehicles to 

con um.ers luring the prece ling perio l of approximately thirty 

(30) days. To in ure that the fair market value determined is 

indicative of the valu of the better grade of used motor vehicles, 

there hall be included in the computation only th e ~a e reported 

for each mo lel which represent the sales prices actually obtaine l 

in normal transaction involving the sale of better grade u e':l 

motor Yehicles. The final determination of the fair market value 

for any individual model shall· bo in rea.:ona ble relationsLip 1vith 

the majority of the fair market values prevailing for the various 

moclel of better grade motor vehicle. of that particular mak"'. 

For all mo lel lacking ufi1 ient current sale to develop the 

fair market value by the method above describe 1, the fair market 

value shall be determined 1 y e tabli ·hing u h value upon the ba. i 

of those value ·hown by the computation of a tual· sales aul other 

pertinent information 1vhi h is available, to the end that thi value 

(4) 
5 

shall then be in reasonable relationship with the fair market Yalues 

determined for similar or comparable models of used motor vehicles. The values so established shall from time to time be further 

surveyed by being sent to ap1Hoximately 10% of the new motor 

vehicle dealers, if any, in each Official Guide area concerned handling that particular make of car, for their review. All comments received from such dealers, within a reasonable time, shall be con- sidered in the final determination of the fair market values for such 

models. 

( 3) No dealer shall, directly or indirectly, or by subterfuge, accept 

in trade in lieu of money, any used motor vehicle, giving an allowance price of more than its fair market value as published in the 

Official Guide, hereinafter described, less a minimum selling and 

handling charge of 15%, fractions of a dollar to be disregarded; 

provided, that the only limitation placed on the trade-in allowance 

for the current yearly models until the maximum allowances for such 

models are published in the Official Guide is that no dealer shall 

allow more than the local new motor vehicle delivered price for 

such motor vehicle. It is further provided that for other models 

on which a fair market value is not published in the Official Guide 

formulae for determining the maximum trade-in allowances shall 

be published in the Official Guide in accordance with the provisions 

of Section ( 4) subsection (c) below, and no dealer shall accept in 

trade any such used motor vehicle at an allowance greater than that 

determined by such formulae. · 

( 4) (a) To provide a record for the establishment of maximum 

used motor vehicle allowances specified in Section ( 3) a hove, there 

shall be provided by the Association an Official Guide which shall 

be recognized as the Official Authority for such allo·wances. Said 

Official Guide shall contain the maximum trade-in allowance as provided in Section (3) and/ or the fair market values ascertained a 

provided in Section (2). The Association shall publish such Official 

Guide as frequently as deemed advisable but in no case less fre- quently than approxjmately every sixty ( 60) days. 

(b) Each dealer shall send the A5sociation a used car sales report 

coYering each used motor vehicle sold to the consuming public. 

Such report shall be forwarded promptly after the delivery of the 

car sold and all reports shall be forwarded at least weekly. A 

sworn statement covering all reports of such sales in each month 

sha ll be sent to the Association not later than the fifth day of the 

following month and such sworn statement shall sho'v that reports 

have been made for all such used car sales during such previous 

months, and in the event no used car sales haYe been made during 

such month, the dealers shall so report in said sworn statement. 

(c) To insure that the fair market values and the maximum trade- in allowances are determined in accordance with the intent of the 

provisions of Article IV -A, Sections ( 1), (2), (3) and ( 4) (a) 

and (b), the determination thereof shall be subj·ect to the approval 

of the National Recovery Administration, which shall be afforded 

access to all records and operations relating therto. 

Upon determination by a representative designated by the Na- tional Recovery Administration that each issue of the Official Guide 

conforms with the provisions hereof and with such conditions as 
6 

lll ll lllll~l ~lfllllill' ~ fill III Ii lil~lililll11111111111 3 1262 08728 6083 

the Kational Recovery Admini 'tration maY stipulate as neces ary 

prior t approval, a c py of ·uch i ·sue shall b so certified by uch 

repr ~..:entative . 

Thereupon saicl ·opy ·hall be submitted for the approval of the 

National Inclu ·trial Recovery Board, and upon approval, shall, together with the or ler of approval, con titute the official record o£ 

l . 1 

sue 1 actwn. 

( c-1) The Official Guide hall be made available to all motor 

vehicle dealers at a price without profit, and to all other intcre ted 

parties at a reasonable price. 

Approved Code No. 46-Amendrn nt No. 5. 

Registry No. 1403- 32. 

1 See paragraph 2 of order approving this Amendment. 

0