Approv d ode No. 447 Regi try No.1717-07 

N TIO AL RE OVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

PRIV.ATE HOME STUDY 

SCHOOL INDUSTRY 

AS APPROVED ON MAY 31, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERr MENT PRINTING OFFICE 

W ASHI GTON: 1934 

I<'or sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cEnt» 
r 

This publication i for sale by the Superintendent of Documents, Government 

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

and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building 

Birmingham, Ala.: 257 Federal Building. 

Bost0'1, .l\1ass. : 1801 Customhouse. 

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

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

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

CleYeland, Ohio : Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 01 First National Bank Building. 

Houston, Tex.: Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo.: 1028 Baltimore Avenue. 

Los Angeles, Calif. : 1163 South Broadway. 

Louisville, Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneapolis, l\linu. : 213 Federal Building. 

New Orleans, 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.: Cl1amber of Commerce Building. 

Portland, Oreg.: 215 New Post Office Building. 

St. Louis, l\Io.: 506 OliYe Street. 

San Francisco, Calif. : 310 u. tomhouse. 

Seattle, Wa h.: 809 Federal Office Building. 
Approved Code No. 447 

CODE OF FAIR COMPETITION 

FOR THE 

PRIVATE HOME STUDY SCHOOL INDUSTRY 

As Approved on May 31, 1934 

ORDER 

PPRon.~.~G ODE oF FAIR CoMPETITION FOR THE PRIVATE HoME 

STUDY ScHooL INDusTRY 

An application ha\ing been duly made, pursuant to and in full 

comr liance -with the provisions of Title I of the :National Industrial 

CO\ery Act approved June 16, 1933, for approval of a Code of 

Fair omp titian for the Private Home Study School Indu try, and 

I-Iearino- having been duly held thereon, and the annexed report 

of aid Code containing findings with re pect thereto, having been 

mad and directed to the President: T W, THEREF RE, on behalf of the President of the United 

tate I I-Itwh S. Johnson Administrator for Industrial Recov"ry, 

pursuant to authority vested in me by Executive Orders of the Presid nt including Executive Order No. 6543-A, dated December 30, 

1933 and otherwise· do hereby incorporate by reference said annexed 

report and do find that aid Code complies in all respects with the 

p rtinent provisions and will promo~ the policy and purpose of 

aid Title of aid Act; and do hereby order that said Code of Fair 

mpetition be and it is hereby approved. 

HuGH S. JoHN oN, 

Administrator for Industrial Recovery. 

PI ro"Val recommended: 

H. 0. ICING, 

Division Administrator. 

w A HL."'"GTON D.O., 

May 31, 1934. 

64004"----657-2----34 (4~) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Sm: This is a report on the hearing on the Code of Fair Competition for the Private Home Study School Industry, held in the 

Department of Commerce Building on March 2 1934. The Code 

which is attache l was presented by duly qualified and authorized 

representatives of the Industry, complying with statutory requirements and claiming to represent seventy (70) per cent by volume 

of the Indu try. 

In accordance with the cu tomary procedure every person who had 

filed a request for an appearance was freely heard in public; and 

regulatory requirements were complied with. 

THE IND TRY 

The Industry comprises about 196 schools having a capital investment of approximately $5,000,0QO and instructing 500,000 students annually. In 1929 there were 437 schools. Sales volume has 

f allen from $32,000,000 in 1929 to $15,750,000 in 1933, and the number of employees in the Industry has dropped from 4, 00 in 1929 to 

about 2,400 at present. A large per cent of the drop in sales volume 

and employment can be laid to the fact that 241 firms have gone out 

of business since 1929. 

There are two main clivi ions of the Industry-(1) those schools 

which furnish merely a reading course in the ubjects covered and 

(2) those schools which correct examination papers submitted by 

students in conjunction with the courses of study. 

PROVI ro .... Ts OF THE conE 

The Code provides a basic work week of 40 hour . The only available tatistic are meager and show that only seven p r cent of the 

employee in the Indu try are working more than 40 hour per week, 

and it would appear that very little reemployment will be a compli heel b} thi Code. However, these statistics were compiled ·for 

the month of Au ·ust, 1933, when many employers had already rec1uc c1 the work week of th ir emplo ees to 40 hours under the Pre icl nt Reemployment Agreen1ent. 

Th Industry strenuou ly oppo~ed the adoption of a 36 hour week, 

an 1 conte.n led that more complete statistics would show that the 40 

hour week will cau c con i lerable reemployment. Therefor , the ~ocl pr vide that h Cole Authority hall collect uch tati tical 

information a ma be required b:v the Administrator and that on 

the ba 1" of uch informati n the Administrator may revi e the provisions of the Coder lating to hours of labor. 

(46) 
47 

FI~-urxo 

) per 

mem-

'14.00 

The Deputy Administrator in his final report to me on said Code 

ha nng found as herein set forth and on the basis of all the proceeding-s in this matter; 

I find that: 

(a) Said Code is well designed to promote the policies and pur- poses of Title I of the X ational Industrial Recovery Act, including 

removal of obstructions to the free flow of inter-state and foreign 

commerce which tend to diminish the amount thereof and "ill provide for the general \\el£are by promoting the organization of indus- try for the purpose of cooperative action among the trade group 

by inducing and maintaining united action of labor and management 

under adequate governmental sanctions and supervision, by eliminat- ing unfair competitive practice, by promoting the fullest possible 

utilization of the present production capacity of Industries,-by avoid- ing undue restriction of production (except as may be temporarily 

required), by increasing the consumption of industrial and agricultural products through increasing purchasing po"er, by reducing 

and relieving unemployment, by improving standards of labor, and 

by otherwise rehabilitating industry . 

• 
48 

(b) Sai l indu try normally emr l y not more than 50,000 emIl y · and i not la ifi d b. me a a major industry. ( ) The o<.le a appr Yed complie in all re pect with the pertinent proYi ion f ~ai l Title of said A t, including without limitati n 'ub chon (a) of ection 3, Snb e tion (a) of Section 7, and 

ul> <: ion (b) of S ti n 10 thereof; and that the applicant group 

i nn in lu. ·trial ~ronr truly repre entative of the aforesaid Industry ; 

an l that aid rrroup impo es no inequitable re trictions on admi sion 

to memb r hip therein. 

( 1) 1 he o l i not le igned to and will not permit monopolies 

or monopoli tic practice . 

( ) The od i not de igned to and will not eliminate or oppress 

mall enterpri e and will not operate to discriminate against them. 

(f) Tho e en~aged in other steps of the economic proce have not 

b en depriYed of the right to be heard prior to approval of said Code. 

For th e rea on , thi Code of Fair Compebtion for the Private 

Hom Study School Indu try has been approved. 

Re pectfully, 

~fAY 31, 1934. 

• 

H au S. J oHN ·oN, _ 

Adnvin~trator. 
E FF TEH ME 

.... RTI 

To ffect the polici 

Ac the follow·ing ron.I n~ ar a 

ompetition f r th PriYat Hom tucly chool Industry and hall 

e th tan ard f fair competition for uch Indu try and hall 

e bindin<Y upon v ry member thcr f . 

.... TIT! 'LE II-DEFIXITIOXS 

E TIO~- 1. The t rm .. Private Horne 1 tudy 1 1Chool I ndustry" 

a u eel herein hall mean the Industry each member of which is 

n a<Y in (1) th lJublication and/ or ale of pamphlet books or 

other ducational t xtual material adverti ed or offered to the gen- eral public ~ cour e of tudy and primaril intende l to be ·old 

directly to the general public and not to whole alers, retailers or 

other li tributor · and/or (2) the pulJl" hing and/or ale of 

pamphlet books or other edu ational textual material advertised 

or offered to the general public a cour~es of tudy and including 

instruc: ti nal servic s renclered to the pLucha er ·uch a correcting 

and gradin{)' 1\ritten reactions in the form of di cus ionn olutions of 

problem . or drawinrY. ubmitted by aid purcha er for the purpo e 

of te tin{)' hi ma terv of said cour es of tudv "here the contact 

between the memLer of the Indu try and the purcha er i primarily 

maintained b · mail or other method of eli tant communication · and 

.hall mean uch related branche and subdi,i. ions of su h Industry 

a may from time to time be included under the pro\i ion of this 

ode by the Pre iclent after uch notice and hearing a he may 

pre cribe. 

ECTIO~ 2. The t rm ··member of the Indu try as u eel herein 

include but without limitation, any indindual, partner hip association corporation or other form of nterpri e en~Yaged in the 

Indu try either a an employer or on hi or its own behalf. 

ECTIO_- 3. The term .. emplo~~ee a used herein hall mean any 

and all per on enga~Yed in the Indu try however compen. ated, 

except a memb r of the Indu try. 

E no .... - 4. The term employer a u eel herein includ anyone 

by whom such mployee i compen ate or employed. 

ECTIOX 5. The term Pre ·ident ' Act . and ·Administrator" 

as used h rein hall mean re. pecti\ely the President of the United 

tate : Title I of the ....... ational Indu. trial Recovery Ac~ and the 

Admini trator for Indu. trial Recovery. 

SECTIO~ 6. The term Executive ' as u ed herein hall mean an 

employee re ponsible for the management of a busine s or a recognized subdivi ion thereof. 

ECTIO:N 7. The term 'outside sale man ' as used herein shall 

mean a salesman who is engaged not less than sixty (60) per cent of 

(49) 

• 
50 

his working hours outside of the e tablishment, or any branch 

thereof, by which he is employed. 

SECTION 8. The term " instructor " as used herein shall mean an 

employee who is engaged not le s than sixty (60) per cent of his 

working hour in giving to students in trucbonal services requiring 

the exercise of eli cretion, judgment, teaching ability, and knowledge 

of the cour e of study under con ideration, and shall include, but 

without limitation, per ons who compo e cour es of study or revisions 

thereof; but ·hall not include p r ons engaged in mechanical checking of examinations, quizzes, or other reactions submitted by students, 

or comparing the same with 'model " answers, or other work not 

requiring the exercise of eli cr tion, judgment, teaching ability and 

knowl dge of the cour e of study under consideration. 

SECTION 9. The term " service school " as used herein shall mean a 

school the principal part of the curriculum of which consists of a 

course or cour es of tudy which include the correction and grading 

by the chool of written reaction submitted by students to test said 

stu lents' mastery of the subject. 

SECTION 10. The term ' non -service school " as used herein shall 

mean a school the principal part of the curriculum of which consists of a course or courses of study which include merely the privilege of the student to ask questions thereon, or which do not include 

any instructional or advisory service to the student at all. 

ARTICLE III-HoURs 

SECTION 1. No employee, except as provided in Section 2 of this 

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

any one week, nor more than six ( 6) clays in any consecutive seven 

(7) days' period; nor more than eight (8) hours in any twentyfour (24) hour period (beginning at midnight) · except that any 

employee may be permitted to work in accordance with either one 

but not both, of the following schedules: 

(a) On any one of his ''"or king days in any week, he may be 

permitted to work nine ( 9) hour , or 

(b) On any two of his working days in any week he may be 

permitted to work eight and one-half ( 1;2) hours. 

Provided, however, that each mployee shall be paid at the rate 

of at least time and one-half (11;2) for all hours worked in excess 

of eight (8) in any one day, and provided further that the weekly 

limitation of forty hours shall not thereby be exceeded. 

SECTION 2. The provisions of Section 1 of this Article hall not 

apply to executives or in tru tors who regularly receive thirt -five 

dollars ($35) or more per week; nor to outside alesmen; nor to 

mployees engag d in m raency maintenance or emergency repair 

work inYolving br akdowns and the protection of life or prop rt , 

provided that such mergency maintena~ce and repair employ s 

shall be pail at the rate of at least tim and one-half (11/2 ) for all 

hours work cl b them in xce of forty ( 40) in any one w ek. 

A report of ea h nch emerg n y ·hall b mailc l within three days 

thereafter to the o 1 Authority, giving uch details as the ode 

Authority may pr rib . 

SE TI.ON 3. N 0 emr layer hall kn wingly permit any mplo e 

to work for any tim "hich when totall l with that already per-

• 
51 

\.Rn LE I\-\\ AGE 

th r 

t t b lll' 

baf'is 

rity in 

E TI ~ 1. No mpl ) al esnwn . hall be paid in 

any pa) period 1 . than at th rate £ fourteen uollar · ($14) p r 

1Ye k of fort. 40) h Ur r thirt. -fiv (35) ' nt ' p l' hour, ex ·ej t 

a provid d in tion 6 of thi Article. 

E TIO .~.T 2. Thi · Arti l tabli h · a minimum rut of I ny whi ·h 

hall ar pl. irr p cti,·e of wheth r an mpl y e i actually compenat d on a time-rate pi e-work or ther ba.·i. . , 

ECTIO.~. 3. :ro mpl yee who e wage are in exces. of the minimum her in provided hall have hi or her full-time weekly wage as 

of June 16, 1933 or the effective elate of thi Code, whichev r is 

hio-her, reduced on account of any reduction in his or her full-time 

weekly working hour cau ed by this Code. Adjustment made in 

hourly rate of pay from June 16, 1933, to the effective date of this 

C de shall be report d to the Code Authority by each employer 

within thirty (30) days after the effective date of thi.~ C'ode. 

ECTION 4. No employee now employed at a rate in exce s of the 

minimum herein provided shall be di charged and reemployed at a 

lower rate for the purpo e of evading the provision of this Code. 

SECTION 5. Female employees performing substantially the same 

work as male employee shall receive the same rate of pay a male 

employees; and no employer shall eli criminate against employe s 

becau e of ex. 

SECTION 6. A erson whoc::e earning capacity is limited because 

of age physical or mental handicap, or other infirmity, may be 

employed on light work at a wage below the minimum established 

by this Code if the employer obtain from the State Authority, 

de ignated by the United Stat Department of Labor, a certificate 

authorizing uch per on's employment at such wage and for such 

hour a hall be stated in the certificate. Such Authority shall 

be guided by the in truction of the United State Department of 

Labor in i uing certificates to such p r on . Each employer shall 

file each quarter with the Code Authority a list of all such persons 

employed by him, showing the wages paid to, and the maximum 

hours of work for, such employees. 

ARTICLE V-GENERAL LABOR PROVI IONS 

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

employed in the Indu try. 

No person under eighteen (1 ) years of age shall be employed at 

operations or occupations which are hazardous in nature or dan64004·----657-2----2----34----2 
52 

gerous to h alth. The Code Authori y shall submit to the Administrator within ix ( 6) month after he eff ctive date of this Code a 

li t of uch operation or oc upation . In any tate an employer 

hall be de m to have complied with thi rovi ion as to age if 

he hall ha·ve on fil a c rtifi ate or permit duly i ued by the 

Authority in uch tate empow red to is ue employment or age 

certificate or permi h wing that the mr lo e i of the age 

required by thi ection. 

ECTION 2 (a) . Employe hall have the rio·ht to organize and 

bargain collectively through repr ntatives of their own choosing, and shall be free from the interference, r traint, or Goercion of em- ployer of labor, or their a,<Yent , in the de ignation of uch ·representative or in elf-organization or in other concerted activities f or 

the purpo e of c llective bargaining or other mutual aid or pro- tection. 

(b ) No employee nd no one eeking employment shall be r equired 

as a condition of employment to join any comr any union or to re- frain from joining, organizing, or a sisting a labor organization of 

his own choosing. 

( ) Employ rs hall comply with the maximum hours of labor. minimum rate of pay and other conditions of employment approved 

or prescribed by the Pre ident. 

ECTION 3. No employer shall reclas ify employees or duties of 

occupatio p rformed or n<Yage in any other ubterfuge so as to 

def at the purpo e or provi ion of the Ac~ or of thi ode. 

'EcTio T 4. Every employer shall provide for the afety and health 

of employ e during th hours and at the pla~es of their mployment. tandard for afe y an health shall be submitted by the Code Authorit. r to the Admini tra or within ix ( 6) month after the efiective 

clute of thi Cod , and upon approYal shall become cff tive as a part 

of hi C de . 

'E TION o I rovi ion in thi Code hall super ede any State 

or F doral law which impo es on emplo ers more string nt requirement a::s to a<Ye of emplo r , w g hour of ork, or to afety 

health ~nitary or aeneral workino· onclition or in urance or fire 

pr te tion , than are imp e by thi Code. 

EGTION 6. All empl yer hall po t and keep po:ted complete 

OJ ie of h lab r provi i n of thi ode in on I i uou pla es 

ea. ily ac ~ ibl to all empl 'e . E ry member of th Indu try 

shall comply with all rul and r O'Ulation r lative to th posting 

of provi ions of od of Fair omp titian hich may from time 

t time b pr crib d b h \.d1 ini trator. 

E TION 7. All mploy who are ngag din any a ti itie falling 

within the definiti n of th rar hi rt Indu tri a t forth in 

the ode ofF, ir 11p titi n for the raphic Art In u n hall 

be worke under h lab r 1 roYi i s f tl e aid de f Fair om- petition f r the raphic Arts In u tri and not un er the labor 

pro i. ion of this ode. 
5 

~ .TICLE YI- HGA.. -rz TI 0\'TTI A - D ('TIJ: Jl"' TilE DE 

TH IUTY 

r: TIO-- 1. Th r hall f 1 hwith be c n ti u l a 'rxl uthority 

n ·i ting f: 

Tin ( ) repr f he Inclus ry, r :u h oth r numb r '- may be approY from tin to tinw I . th A lmini. tratt>'' '-

be el t in ace rd nee wi'-h h proYi. ion. of 'e ·tion 2 of tks ... rti l . an to . r'\" for a term of on year. 

(b) Not mor th n three ( ) arlditional r pr s() tative of the 

I nd try to b appoint by the ~ dmini rator if in hi. di"'cr tion, 

an} {)'roup or interest in the Indu. tr i~ n t ad quat l r pr :--ent J 

by the r pr entati \e n entionc in para Ta 1 h (a) of thi ection, 

and to erv for a term of on year from the date of their app intment. 

(c) uch additional member to be kn wn a dmini tr ti n 

}.f mb r "ithout -vote and without expense to the Indu-try, n t to 

xceed three (3 , a · the Admini trator may appoint to re1 r. :ent 

uch group or int re ts or uch overnmental ag nci and to erve 

for uch poriod a he may de i <Ynate. 

ECTIOX 2. The nine (.) Indu:;.try repre entative. proYiJn·l for 

in ction 1 (a of thi Article hall be el cted a· follow : 

(a) Eight ( ) hall r pre ent ~er\ice . chool ; and one ( 1) . .all 

repre ent non- ervice cbools. 

(b) P nding the election of he permanent Code Authori(. the 

ode Con1mittee (the bocly el cted by the In lustry to :ubmit this 

ode t the _._-ational Recovery dmini. tration) :hall act u tempo ary o e ... uthority. 

(c) After the appr val date of thi Code and before L1e effe iive 

date th -reof and annually thereafter. the ode Authority 1 temp - rary r permanent, wl icheyer i. in ffice at the time) shall ele('t a 

li ·t of ei<Yht en (18) nomineo repre:entatiYe of the variou int re..,t in thi · Industry. Two (2) of these :hall repre ent non- en-ice 

school and sixteen (16) h<lll r pre .. ent erYic .~choob · l;rm-iuecl, 

how \er that no member of the Industry hall be 1·epre ented by 

m re than one nomine . Thi. list. with the . en-ice hool nominees 

eparate from the non ~erYice ~chool nominee . and with the ch ol 

an trade a · ociation affiliations of ea h nominee indicated hall be 

ubmitted to the Admini trati n ... Iember or ... Iem er of the orle 

Authorit for hi or their approYal or amendment. Thereaf r the 

li t with the c "'ool affiliation of eat:h nf;minee indi ate she. 11 b 

printed on a ballot containing thereon eiO'ht ( ) blank line. under 

the list of service school nominee and one blank line un er the no -

. ervice . chool nominees and a certificate of a· ent t and ompliance 

with thi Code. The ballot an a copy of tl i C d hall. be maile 

to e ery member of the Indu ~t ry "\\ho e xi ·tence can be de ermined 

by diligent search by t e Code Authority. 

(d) Each member of the Indu try sianina the certificate of a: ·ent 

and co npliance and otherwi e co pl ·ing w]th ertion 7 (f) £ this 

Article will be entitle tD the number f o in 1ica d on the following table ( chedulc A) . Only ..;en· ice dw~ls may Yote for the 

• 
54 

r s rvice chool nominee ; and only non-service schools may vote for 

the non- ervice school nomin es. Ea h n n- ervice chool must 

cast all its votes for ne n min e. Any service chool may divide 

it · vote: am ng any ight or I s number of nomin or may a t 

all of thom f ron nomin e. lection may be rna lc from th nam s 

printed on the ballot or by writing in ne" name on the blank lin s. 

( ) The A lmini tration :Member or l\lember of the Code Authority hall p r onally uper 'i ·e the countincv of votes. The eio·ht ( ) 

rvice ch ol repre entatives receiving the ()'reate t number of votes 

among th ervice ·chool nominee and ac ·epting the office, hall 

be elected. The on ( 1) non-. rvice . ·hool repre entative receiving the greatest numb r of Yotes arnong th non-service school nominees, and 

accepting the offi e, shall ho ele ted. 

(f) The t mporary Code Authority shall make su h additional 

r asonabl rul s for the first election a will enable it to be con'lpleted 

within thirty (30) lays after the effective date of thi Cod , and 

sub equent ele tion. hall be completed on or before the anniver ary 

of the completion of the first. 

(g) Vacancies between elections shall be filled for the un xpired 

term by the Code Authority subj ect to disapproval by the Administrator of the per on so chosen. 

SCHEDULE A 

Member of the Indu try must note upon their ballots th amount 

of their ca h receipt from enrollment contracts which they have 

u ed in determining the number of vote to which they are entitled 

by this table. Thi figure may be used by the ode Authority in 

the determination of the member of the Industry's share of the 

expenses of administration of the Code in accordance with Section 

7 (f) of thi Article. 

Ca h rec ipts from Enrollment Contra ts (in Dollar ) for the 

calendar year preceding the year in which the election is held : 

Numb er of votes 

allottccl 

$f 0,000.00 or les. --------------------------------------------------- 9 

$50 000.01 to $100,000.00-------------------------------------------- 1 $100,000.01 to $250,000.00__________________________________________ 27 

$-50,()00.01 to $500,000.00__________________________________________ 3G 

$500,000.01 to $750,000.00___ _______________________________________ 45 

$750,000.01 to $1,ooo,oo .oo_______________________________ __________ 54 

$1,000,000.01 to $1,500,000.00_______________________________________ 63 

$J ,500 0 0. 1 to • '2,000,000.00______________________________________ 72 

$2.000,000.01 to $2,500,000.00________________________________________ 1 

J\1ore than $2,500,000.00____________________________________________ 90 

ECTION 3. Each trade or in lu trial a. o iation directly or indir ctly parti ipatinO' in the sel tion or a ti 'ities of the ode Authority hall (1) impo no inequitable re tri tion · on m mber hip, and 

(2) ubmit to th Almini trator true c pies of its article of as ociation, by-law regulation , and any am n lments wh n made thereto, tog th r with u h other information a to member hip, organization and activiti a the Admini trat r may l em nece sary to 

effectuate the purpo of the Act . 

• 
55 

E TI "N 4. In onl r that Auth rit r • ·hall a all tim<' 

b truly r pr en ativ of th n lu.tr and in otiH•r r •. pc ·L· omply 

with th provi ion f th A t, th A lministrntor may 1 r .s Tib 

n h h ann a h ma. l m prop t" and thcrea ft r if he . hall 

fin 1 that th o l uth rit. i not truly r 1 r .- ntatiY • or cloP.· not 

in th r r . pe t omrly with th revision · f th .:\et., may req11irc 

an apr r 1 riat modifi ·ation in th . m thod of . leetion of he Cod 

..Auth rit ' · E TI 5. Nothino- ntain l in t.hi ocl hall con. titut the 

mcmb r of th od uth rity partn r. for any 1 urpose. or 

hall an r m mb r of th Code Authority b liable in any manner to 

f r any act of any other member, offi r, ag nt, r emplo~ e 

ole Authority. Nor hall any member of the ode Authorit x rei ing r a onable diligence in the oncln t f his cluti s 

h reund r be liable to anyone for any action or omis ion to act under 

thi Code, xcept f or hi own wilful malfea an e or non f asance. 

EOTION 6. If the A lministrator hall letermine that any a tion 

of the Code Authority or any agency thereof may be unfair or unju tor contrary to the public intere t, the Administrator may require 

that su h action be su pended to ail'ord an opportunity for inve tigation of the merits of such action and further consideration by the 

Code Authority or agency pending final action which hall not be 

effective unless the Administrator approves or unless he shall fail 

to di approve after thirty days' notice to him of intention to 1 roceed with such action in its original or modified form. 

SECTION 7. Powers and Duties.-The Code Authority shall have 

the following powers and duties subject to such rule and regulations as may be issued by the Administrator: 

(a) To in ure the execution of the provisions of this Code and 

to provide for the compliance of the Industry with the provi ions 

of the Act; Provided, however, that this shall not be construed to 

deprive duly authorized governmental agencies of their power to 

enforce the provi ion of this Code or of the Act. 

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

and for the administration of the Code. 

(c) To obtain through a confidential agency from men1.ber. or 

the Industry such information and reports as are required for the 

administration of the Code, and in addition to information required 

to be submitted to the Code Authorit:> all or any of the per on 

subject to this Code hall furnish uch statistical information as the 

Administrator may deem neces ·ary for the purpo ·es recit~d in Section 3 (a) of the Act, to such Feder.al ancl State acrenc1es a. the 

Administrator may de. ignate; nor hall anything in this Code relieve any person of exi ting obligations to furni h reports to government agencies. No individual report. hall be eli clo ed to any 

o her member of the Industry or any other party ex ept to uch 

governmental agencies as may be directed by the Pre~id nt. 

(d) To u e such trade a · ociations and other a enci : a it deem 

proper for the carrying out of any o.f its a tivitie. proYid cl for 

herein, proYided that nothing h rein hall reli v th , de Authority of its duties or respon ibilitie under thi cl and that such 

trade a . o iations and agenci s hall at all tim be u Lj ct to and 

comply with the pro isions her of. 
56 

(e) To make recommendations to the Administrator £or the coordination of the administration of this Code with such other codes, 

if any, a may be related to the Industry. 

(f) (1) It being found necessary in order to support the administration of this Code, and to effectuate the policy of the Act and to 

maintain the standards of fair competition established by this Code, 

the Code Authority is authorized, subject to the approval of the 

Admini. tt·ator : 

(A) To incur such reasonable obligations as are nee ary 

and proper for the foregoing purpo es and to meet such obliBations out of funds which shall be held in trust for the purposes 

of the Code and which may be raised as hereinafter provicl d; 

(B) To submit to the Administrator for his approval, subject 

to uch notice and opportunity to be heard as he may l em 

necessary: 

Fir t: An itemized budget of its estimated expenses for the 

for going purposes; and 

S cond: An equitable basis upon which the funds nece ary 

to support such budget shall be contributed by members of the 

Indu try; 

(C) After such budget and basis of contribution have been 

apr roved by the administrator, to determine and secure equitable contribution as above set forth by all members of the 

Industry, and to that end, if necessary, to institute legal 

proceedings therefor in its own name. 

(2) Only members of the Industry complying with the Code and 

contributing to the expenses of its administration as provided in 

paragraph (1) hereof shall be entitled to participate in the selection of the members of the Code Authority or to receive the benefit 

of its voluntary activities or to make u e of any emblem or in ignia 

of the National Recovery Administration. 

(a) To recommend to the Administrator any action or mea ures 

deen eel ad1 ±sable, including further fair trade practice pro isions 

to goyern members of the Industry in their relation with each other 

or with other industries, measures for industrial plannino· and stabilization of en1ployment; and including modifications of this ode 

which shall become effective a part hereof upon approval by the 

A lmini trator after uch notice and hearing as he may pecify. 

(h) To study the question of the offering or aiving by m mber 

of the Industry of money-back aareement and guarant s of o ition or promotions to tudents graduat and pro 1 ect , and within 

ix y (GO) day aft r the l:>Brmanent Code Auth rit.y hall _ have 

be n elected to formulate uch trade practi e rul and/ r to t up 

such uniform contract fonn a it deems n e ary to prot ct the 

Indu try and the consumer, and whi h hall b come ffective a 

part of this ode on approval of the mini trat r after u h 

noti e and hearing a he may pre cribe. 

(i) To study the q 1e tion of setting up ducational tandar 1n 

the Indu try and within one year after th effe ti e date of .~. his 

Cod , to r port to the Administrator for hi apr r al a plan for 

det rmining and admini tering such standar , which plan may be 
57 

made a J?arl of this e b3; th Admini. trator aft r u ·h noti ·e 

and h armrr a h rna pre n 

( ) Ea h m mb r of th o e 

uthority within thirty ( ) la aft r th :IT ·ti late f 

thi od a orr plete list of all our c of tu ly 11' r l by su h 

m mb r except such cour as ar p ially ·ompil <l for an l 

at th requ t of an in li idual cu tom r or gr up of cu tom r , and a d cription of each ours fil d. Ea h memb r shall 

keep such list up to date by promptly filing with th ode 

Authority all chan0 es therein as they oc ·ur. 

(j) To collect such stati tics as the Adm.ini trator may r quir to 

det rmine the eff ct of the labor proYisions of this Col upon employment in this Indu try an l to submit the a me to the Administrator within sixty ( 60) days after the permanent ode Authority 

f'hall have been elected. 

(k) To investigate the use of premiums in thi,s Indu try and to 

report to the Administrator within sixty (GO) days after the permanent Code Authority shall have been elected, recommendations 

concerning further fair trade practice provisions to control this 

practice. 

ARTICLE VII-TRADE PRACTICE RuLES 

RULE 1. No member of the Industry shall publish advertising 

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

misleading or inaccurate in any material particular, nor hall any 

member in any way misrepresent any service and/ or course of tudy 

(including, without limitation, its use, scope, quality, length, number of le son as. ignments, origin, substance, character, nature, educational content or preparation) or credit terms, values, policies, or the 

nature or form of the business conducted. 

Without limitation, the following shall be deemed unfair trade 

practices under the above rule : 

(a) Operating under a firm name which fails to indicate therein 

or therewith that the member of the Industry is an educational 

institution or offers instruction. 

(b) Overstating or mi stating actual earnings in any given field 

or vocation; representing that unusually high earnings or arnings 

of unusual persons are the average or probable earnings in a given 

field or vocation; representing that tmusual achievements or salaries of outstanding students or graduates of a school are ccmmon to 

the students or graduates of such school. 

(c) :Misrepresenting what a particular course of tucly can enab~e 

a particular prospective student to accomplish. 

(d) Overstating or misstating the actual or probable demand for 

the service of graduates, or the current demand in any field of employment; or understating the requisite qualifications f<;>r any field 

of employment. 

(e) Representing that an offer is " limited " as to time or otherwise, or " special " or " for advertising ", when in fact it is not so 

limited and/or its prices and terms are regular. 
58 

(f) Representing any service or commodity as "free" when it 

is an integral part of the course with which it is offered and 1s 

covered in the price of such course. 

( o·) Repre enting tuition as being "free" when in reality it IS 

coYered in the sale price of required textual or other materials. 

(h) Inaccurately stating or listing the relationship between a 

school and the members of the faculty, advisory boards, writers or 

other connected therewith; or falsely stating that students are given 

p r onal in tructions by designated individuals; or representing that 

a person is connected with such school when such is not the case. 

(i) U ing "Help \\Tanted" advertisements to secure student prospects or using "blind" advertisements (in which the name of the 

advertiser does not appear) for the sam-e purpose. 

(j) Representing that a school or its instructors or officers are 

actively connected with the United States Government, when in fact 

they are not thus connected. 

(k) Using pictures or other advertising or representation misleading pro pective students regarding the size of the member of 

the Industry's office, or amount of such member's equipment~ size 

of t aching staff, number of students enrolled, or age of the 

institution. 

(l) Offering a course of study without stating in the contract and 

de criptive literature thereof whether such course consists of (1) a 

li t of readina as ignments only; (2) a list of reading assignments 

with merely tl1e privilege of asking questions thereon; or (3) a list 

of reading a ignments to which each student is expected to submit 

to th school for grading a written reaction in the form of discussion solution of problems, or drawings for the purpose of testing 

hi ma tery of the subject. . (m) U ina marked-up or fictitiou prices from which discounts 

ar ffered; or off ring a price as marked down when in fact it is 

regular. 

( n) In th ca of any member of the Indu try teaching physical 

dev lopm nt of the bocly, the use in advertising of any picture or 

liken s of a person in uch manner as to induce readers into believing 

that uch per on i conn cted with such school or its conr e of study 

when such i not the ca ; and/ or the use in adverti ing of any ~uch pictur or lik ne with ut clearly stating therewith the name 

of th p r n pi tur~d and hi actual relation to uch school and 

c ur. of tu ly; and/ or the u e in advertising of any such picture 

or lik n whi h is r touched or otherwi e rendered inaccurate in 

d tail in u h mann r a to fal el:y or mi leadingly portray the degree 

of tr ngth f r the phy i al l v lopment of the I er on I icturcd. 

RULE 2. Ea h memb r of the Indu tr shall file by regi tcrecl 

mail ''ith he ole Authority within thirty (30) days after the 

fl'e i date of thi ode hi chedule of prices and terms of sale 

in full includina all eli coun , allowance , and p cial offers, and 

m n y back agre ments. No m mb r hall offer or sell any service 

at an pric or upon an t rm xc pt tho e stated in hi filed price 

li t. Each m mber how v r may change or revise his price list at 

will and u h change or r i ion hall be considered duly filed 

imm diately upon b ing mail d to the Code Authority. All such 
5 

li t an l r vi i n hall L k p on fil by th 

hall b aYailal l f r pnbli in ·p tion. 

LE 3. m mb r of th Indu try hall r tly o.ff r or make 

any pa '111 nt r allowanc of a r bate r fun 1, c mmissi n cr ditl 

un arn d eli unt r xc all wane , wh thcr in th form ot 

n1 n y r oth r\\·i for the puq o of iniluen ing a sal , nor shall 

a m mber se retl ffer or xtend to any u tom r any p cial ervic or privile · n t ::s:ten l cl to all cu tamer of th am ·lass, 

for th purpo e of influencing a sale. 

RULE 4. No member of the Industry shall use adverti ino· or 

oth r r presentation which refers inaccurately in any material particular to any competitors or their services and/ or course of tudy, 

price Yalue credit terms, policies, equipment, teaching methods, 

t aching personnel, business methods, personal character or reputation. 

RULE 5. No member oi the Industry shall use statements or papers 

simulating court documents in the collection of accounts. 

RULE 6. No member of the Industry shall attempt to induce the 

breach of an exi ting contract between a competitor and his student prospect, or source of supply; nor shall any member interfere 

wit~ or obstruct the performance of such contractual duties or 

serVlces. 

RULE 7. No member of the Industry shall give, permit to be given, 

or directly offer to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent or representative 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. This 

rule hall not be construed so as to prohibit the free and general 

distribution of articles commonly used for advertising except so far 

as such articles are actually used for commercial bribery as hereinabove defined. 

RULE 8. Any act of any salesman, employee, agent, or representative of a member of the Industry which if done by such member 

of the Indu try would constitute a violation of this Code shall be 

presumed to have been done within the scope of the authority of 

uch salesman, employee, agent, or representative, and done with 

the knowledge and consent of such member of the Industry 

ARTicLE VIII-:MomFICATION 

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

subject to the right of the President, in accordance with the proYisions of subsection (b) of Section 10 of the Act, from time to time 

to cancel or modify any order7 approval, licen e, rule or regulation i ued under Title I of sa1d Act and specifically, hut without 

limitation, to the ri~ht of the President to cancel or modify his 

approval of thi Code or any conditions impo eel by him upon his 

approval thereof. 

2. Thi Code, exc pt a to provi ions required by the Act, may 

be modified on the ba is of xperience or chan O'e in cir urn tances, 

such modification to be based upon appli ation to the Administrator 

64004°----637-2----34----2 
60 

and such notice and hearing as he hall specify, and to become effective on approval of the President. 

ARTICLE IX-l\1o :roroLrns, ETc. 

No prov1 1 ns of this Code shall be so applied as to permit 

monopoli or monopoli tic practice , or to eliminate, oppr ss, or 

discriminate again t small enterpri e . 

ARTICLE X-PRICE INCREASES 

Wher as, the policy of the Act to increase real J?Urchasing power 

will be made more difficult of consummation if pnces of goods and 

services incr ase a rapidly as wages, it is recognized that price 

increases except uch as may be required to meet individual cost 

should be delayed. And when made, such increases should, so far 

as po sible, be limited to actual additional increases in the seller's 

co ts. 

ARTICLE XI-EFFECTIVE DATE 

This Code shall become effective on the second Monday after its 

approval by the President. 

Approved Code No. 447. 

Registry 1717-07. 

0 

UNIVERSITY OF FLORIDA 

II I II \IIIII Ill Ill IIIII IIIII II IIIII\ II IIIII Ill IIIII Ill \Ill IIIII I I 

3 1262 08582 8936 

•