Approved Code No.163 Registry No. 1414-3-14 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE AUTOMOTIVE 

TRADE 

AS APPROVED ON DECEMBER 18, 1933 

BY 

PRESIDENT ROOSEVELT 

1. Executi've Order 

2. Letter of Transmittal 

3. Code 

UNITED STA TES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - • - Price 5 cents 
This publica tion ls for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., 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. 

Birmingh am, Ala. : 257 Federal Building. 

Bost on, Mass. : 1801 Customhouse. 

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

Cha rleston, S.C.: Chamber of Commerce Building. 

Chica;o, Ill.: Suite 1706, 201 North Wells Street. 

Clevt>land, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 2213 First National Bank Building. 

Hou ·ton, Tt2x. : 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. : 11G3 South Broadway. Louisville. Ky.: 408 Federal Building. 

Memphis, Tenn. : 229 Federal Building. 

Minneap Us, Minn. : 213 Federal Building. 

New Orleans, La.: Room ·225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 933 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commer ce Building. 

Portland, Oreg. : 215 New P ost Office Building. 

St. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customh ouse. 

Seattle, Wash.: 809 Federal Building. 
Approved Code No. 163 

CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE AUTOMOTIVE TRADE 

As Approved on December 18, 1933 

BY 

PRESIDENT ROOSEVELT 

E x ecuti v e Or der 

An application having been duly made, pursuant to and in full 

compliance with the provisions of Title I of the National I ndustrial 

Recovery Act, approved J une 16, 1933, for my approval of a Code 

of F air Competition for the Wholesale Automotive Trade, and hearings having been held thereon and the Administrator having rendered 

his report containing an analysis of the said Code of Fair Competition together with his recommendations and findings with respect thereto, and the Administrator having found that the said 

Code of Fair Competition complies in all respects with the pertinent 

provisions of Title I of said Act, and that the requirements of 

clauses (1) and (2) of subsection (a) of Section 3 of the said Act 

have been met : 

NO,v, THEREFORE, I, Franklin D. Roosevelt, President of 

the United States, pursuant to the authority vested in me by Title I 

of the National Industrial Recovery Act, approved June 16, 1933, 

and otherwise, do adopt and a pp rove the report, recommendations, 

and findings of the Administrator and do order that the said Code 

of Fair Competition be, and it is hereby, approved. 

FRA KLIN D. ROOSEVELT. 

Approval recommended : 

HUGH s. JOHN ON, 

Adniinistrator. 

THE WHITE HousE, 

Deceniber 18, 1933. 

(185) 

27504°- 206-4--33 
The PRESIDENT, 

DECEMBER 9, 1933. 

The White House. 

Srn: The proposed Code of Fair Competition for the Wholesale 

Automotive Trade was submitted to the Administrator on August 9, 

1933, by the Motor and Equipment Wholesalers Association, Incorporated, in cooperation with the National Standard Parts Association, the National Automotive Parts Association, the Automotive 

Electric Association, the Automotive Engine Rebuilders As ociation, 

and the National Wheel and Rim Association, representing approximately 70% of the total volume of sales and members of the Trade. 

The Hearing was conducted in Washington on October 21, 1933, 

and the Code was revised during the recess of this Hearing and is 

submitted in its present form for approval. Every person who requested an appearance was properly heard in accordance with statutory and regulatory requirements. 

The Trade is nation-wide in character and has had a large increase 

in number of establishments in the past few years as indicated by 

the figures submitted sho-wing 2,503 wholesale outlets in 1929 compared with more than 5,000 at the present time with a corresponding increase in the number of persons employed from 32,062 in 1929 

to 63,500 in 1932. It supplies replacement parts, accessories, service 

tools, equipment, and products to more than 200,000 outlets for maintaining a!1d servicing the more than 20,000,000 motor vehicles which 

are now 1n use. 

During the past four years the Trade experienced an indicated 

decline in sales of bet1Veen 40% and 50%. Over this same period, 

according to figures submitted by the Trade, the unit sale dropped 

from $16.45 to $3.69. This has resulted in maintaining the number 

of employees per establishment in spite of the decline in volume of 

business. 

It is estimated that, giving due consideration to reemployment 

already effected, the Labor provisions in this Code will result in 

reemployment of more than 6,000 workers and a proportionate increase in payroll. 

ARTICLE I-DEFINITIONS 

Accurately defines specific terms used in the Code. 

ARTICLE II-WAGES 

The minimum wage for all employees, except office, salaried, and 

handicapped employees and learners and apprentices, is at t_he rate 

of 40 cents per hour. The minimum wage for office or ala~'1ed employees is $15.00 per week in cities of over 500,000 popul~t10n, ~nd 

$14.00 in cities of less than 500,000 population or in the immediate 

(186) 
187 

vicinity thereof. Handicapped persons shall be paid not less than 

80% of the minimum wage subject to certificate authorized by the 

United States Department of Labor. Learners and apprentices 

shall be paid not less than 80% of the minimum wage and they 

shall not exceed 5% of the total number of employees. The minimum wage is established irrespective of the method of compensation 

for all classes of employees. Provision is made for equitable adjustments in all pay schedules of employees above the minimum and 

female employees shall receive the same pay as male employees for 

similar work. 

ARTICLE III-HOURS 

Employees, excepting executive, administrative, and supervisory 

employees receiving not less than $35.00 per week, and traveling and 

commissioned sales people, are limited to a maximum of 44 hours 

per week and 8 hours per day, except that for two weeks in each 

six months' period for inventory purposes, the maximum shall be 48 

hours per week. 

ARTICLE IV-CHILD LABOR 

Provides that no person under sixteen years of age may be employed and no person under eighteen years of age may be employed 

in a hazardous occupation. 

ARTICLE V-PRICES 

Provides for a uniform system of cost accounting subject to 

variations necessary to meet conditions affecting any individual 

member of the Trade. Provides further, that no member of the 

Trade shall sell below his individual cost. 

ARTICLE VI 

Provides that a committee consisting of representatives of the 

Code Authority of the Trade, the National Automobile Chamber of 

Commerce, the Automotive Parts and Equipment Manufacturing 

Industry, and the Motor Vehicle Retailing Trade shall make a complete study of alleged unfair and discriminatory practices in the 

Trade. The committee shall report its findings to the Administrator within ninety days from the date of approval of this Code. 

If, upon the basis of such report, the Administrator shall find that 

such unfair and discriminatory practices do exist, the provisions 

for maintenance of resale schedules of branded or trade marked merchandise set forth in this Article shall become effective; provided, 

however, that the Administrator may make such modification as may 

be indicated by the facts found and recommendations made. 

ARTICLE VII-TRADE PRACTICE RULES 

Sets forth Fair Trade Practices for the Trade. 
188 

ARTICLE VIII-ORGANIZATION AND PROCEDURE 

Establishes a Code Authority consisting of a specified number o:f 

representatives of the Associations which submitted this Code and 

such additional representatives as may be selected to represent interests not members of such Associations. The Administrator may 

designate not more than three representatives to participate in the 

conferences of the Code Authority. Provides for obtaining statistics. 

ARTICLE IX-AME DlVIENTS 

Sets :forth provi ions respecting modification and amendments, 

provision required in Section 10 (b) of Title I of the National 

Industrial Recovery Act. 

ARTICLE X-GENERAL 

Sets forth the mandatory provisions respecting right of employees 

to organize and bargain collectively and a provision that no member 

of the Code shall be held to have consented to any modification 

thereof or to any provision or interpretation of the National Industrial Recovery Act if declared unconstitutional by the Supreme 

Court of the United States. Defines the effective date. 

FINDINGS 

The Administrator finds that: 

(a) This Code complies in all respects with the pertinent phrases 

of Title I of the Act including without limitation subsection (a) 

of Section 7 and subsection (b) of Section 10 thereof, and that; 

(b) The Associations which submitted this Code together with 

those persons who participated in its subsequent revisions are truly 

representative of the Wholesale Automotive Trade and their Bylaws 

contain no inequitable restrictions on membership, and that; 

( c) The Code is not designed to promote monopolies or to eliminate or oppress small enterprises and will not operate to discriminate against them and will tend to effectuate the policy of Title 

I of the National Industrial Recovery Act. 

It is recommended, therefore, that this Code be approved. 

Respectfully, 

HUGH s. JOHNSON, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

WHOLESALE AUTOMOTIVE TRADE 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, the following provisions are established as a Code 

of Fair Competition for the Wholesale Automotive Trade, and shall 

be binding upon every member thereof. 

ARTICLE I-DEFINITIONS 

The terms " wholesale automotive trade " and " trade " as herein 

used shall mean the selling of automotive merchandise to retailers 

by any person, whether such person purchases or manufactures such 

merchandise. The terms shall likewise include the machining or 

secondary processing of automotive merchandise, such as cylinder 

reboring, piston grinding, piston pin fitting, or the reconditioning, 

repairing, or installing of any component part or unit of equipment by one who sells as aforesaid. 

The term "member of the trade " shall mean anyone engaged in 

the wholesale automotive trade as hereinabove defined, either as an 

employer or on his own behalf. 

The term" member of the Code" as used herein means any" member of the Trade " who assents to this Code. 

The term "wholesaler" shall mean anyone engaged in the wholesale automotive trade as hereinabove defined who purchases the automotive merchandise which he sells. 

The term "automotive merchandise" as used herein is defined 

to include any and all parts, equipment, tools, accessories, and supplies used in the repair and maintenance of motor vehicles ( meaning 

automobiles, including passenger cars, trucks, truck tractors busses, 

taxicabs, hearses, ambulances, and other commercial vehicles for 

use on the highway, excluding motorcycles, fire apparatus, and tractors other than truck tractors) stationary, internal-combustion engines and aeronautical and marine engines, excepting tire and 

petroleum products and such other products related to the motor 

vehicle industry as may be specifically covered by any code applying 

to the wholesale distribution thereof duly approved by the President. 

The term "employee" as used herein includes any person engaged 

in any phase of the trade in any capacity in the nature of employee 

irrespective of the method of payment of his compensation. 

The term "employer" as used herein includes anyone for whose 

benefit such an employee is so engaged. 

The term "National Administrative Committee" as herein used 

is a committee of the ,, holesale Automotive Trade composed of 

representatives of the following National Trade Associations: The 

Motor and Equipment "\Vholesalers Association, 400 "\Vest Madison 

Street, Chicago Illinois· The National Standard Parts A sociation, 

Eaton Tower, Detroit, Michigan; The National Automotive Parts 

Association, 2211 Woodward Avenue, Detroit, Michigan; The Automotive Electric Association, Cleveland, Ohio; the Automotive Engine 

(189) 
190 

Rebuilders Association, Indianapolis, Indiana; National Wheel & 

Rim As ociation, Chicago, Illinois. 

The term ' President " as used herein means the President of the 

United States. 

The terms "Act" and "Administrator" as used herein mean respectively Title I of the ational Industrial Recovery Act, and the 

Administrator for Industrial Recovery. 

ARTICLE II-WAGES 

The following provisions as to wages are established for wholesalers: 

A. (1) Except as provided in Section B of this Article, the minimum rate of pay that shall be paid to any employee shall be forty 

cents per hour; except that learners and apprentices, with less than 

three months' experience in the trade may be paid not less than 80% 

of said minimum rate, but the number of learners and apprentices 

employed by any wholesaler receiving less than the minimum rate 

shall not exceed 5% of the total number of employees of such wholesaler; provided, however, the wholesaler may o classify at least one 

employee. 

(2) This section establishes the minimum rate of pay which shall 

be paid for an hour's work, irrespective of whether an employee is 

actually compensated on time rate, piece work, or any other basis, 

except as specified in Section B. 

" 7hen a piece work employee is required to be on duty a specified 

time he shall receive, even though not productively engaged for such 

time, the minimum rate of pay herein specified. 

B. The minimum compensation that shall be paid to any office or 

salaried employee in the wholesale automotive trade shall be at the 

following rates : 

1. In cities over 500,000 population, or in the immediate vicinity 

thereof, at the rate of fifteen dollars ($15.00) per week. 

2. In cities of less than 500,000 population, or in the immediate 

vicinity thereof, at the rate of fourteen dollars ($14.00) per we€k. 

C. Equitable adjustments in all pay schedules of employees above 

the minimum shall be made within 30 days after effective date of 

this Code by any employers who have not heretofore made such 

adjustments, and the first reports of wages required to be filed under 

this Code shall contain all wage increases made since May 1, 1933. 

D. Wages shall be paid weekly or semimonthly in lawful money 

or by negotiable check. 

E. A person whose earning capacity is limited because of age or 

physical or mental handicap may be employed at light work at a 

wage not less than 80% of the minimum established by this Code, if 

the employer obtains from 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 file with the Code Authority a list 

of all such persons employed by him. 

F. Female employees performing substantially the same work as 

male employees shall receive the same rate of pay as male employees. 
191 

ARTICLE III-I-IoURs 

The following provisions as to hours are established for wholesalers: 

(A) Employees, excepting executive, administrative, and supervisory employ~es _receiving not less than $35.00 per week and_ trav: 1-

ing and comm1ss10n sales people shall not work or be permitted LO 

work in excess of forty-four hours in any one week, or for more than 

eight hours in any twenty-four hour period, except that they may 

work, or be permitted to work a maximum of forty-eight hours per 

week for a period of two weeks in each six months for inventory 

purposes. No executive, employer, or partner in a partnership, when 

workin<Y beyond forty-four hours per week, may perform the work 

or take° the place of any employees subject to the maximum hour 

limitations of this Code. 

(B) The maximum hours herein above provided mark the total 

number of hours during which any employee may be employed in 

the trade, whether by one or more employers. 

(C) No employee or other person shall be classified in any one of 

the exempted cla ses herein above defined, unless he performs functions performed by employees thus classified on June 16, 1933. 

(D) Hours shall be worked con ecutively with reasonable time 

out for lunch. 

(E) No employee whose normal full-time weekly hours for the 

four weeks ending July 1, 1933 are reduced by less than 20% shall 

have his or her full-time earnings reduced. No employee whose 

normal full-tin1e weekly hours are reduced 20% or more shall have 

his or her full-time weekly earnings reduced by more than 10% . 

ARTICLE IV-CHILD LABOR 

No person under sixteen years of age may be employed by any 

wholesaler. o person under eighteen years of age shall be employed in the trade in occupations which are hazardous in nature or 

dangerous to health. 

ARTICLE V-PRICES 

(A) The Code Authority shall establish a uniform system of cost 

accounting, suitable for and applicable to the wholesale automotive 

trade. pon approval thereof by the Administrator, such system of 

cost accounting shall be used by every member of the trade, with such 

variations therefrom or exceptions thereto as may be required by 

the conditions affecting any individual member of the trade and as 

may be approved by the Code Authority. 

(B) o member of the trade shall sell or exchange any automotive merchandise at a price or upon such terms or conditions as 

will result in the customer paying for the goods received less than 

the cost to the seller, determined in accordance with the uniform 

system of cost accounting hereinabove described, except as provided 

in Section F in Article VII ; and further provided that this provis10n shall not be construed in such manner as to interfere with 

the sale and/ or exchange of merchandise between one member o:f 

the trade and another ; and further provided this provision hall 

not apply when manufacturers resale schedules may be less than 

herein provided. 
192 

ARTICLE VI 

It has been alleged that certain unfair and discriminatory prac- tices exi t in the trade which tend to eliminate or oppress small 

enterpri es and to promote monopolies. Accordingly, it is provided 

that the Code Authority shall designate a representative or representatives who, in cooperation with such representative or representatives as may be designated by the National Automobile 

Chamber of Com,merce, the Code Authority for the Automotive 

Parts and Equipment :Manufacturing Industry, and the Emergency 

National Committee for the ~Iotor Vehicle Retailing Trade, shall 

make a complete study of the aforesaid alleged unfair and discriminatory practices. 

The number of such representatives shall be determined by the Ad- n1inistrator, but the respective designating authorities shall be 

entitled to equal representation. The Ad,ministrator shall have the 

power to designate a chairman for such committee who may or may 

not be one of such representatives. If the National Automobile 

Chamber of Commerce, or the Code Authority for the Automotive 

Parts and Equipment Manufacturing Industry, or the Emergency 

National Committee for the Motor Vehicle Retailing Trade shuu! d 

refuse or neglect to designate representatives, the study shall 

nevertheless proceed. 

The facts found, together with such recommendations as may be 

calculated to effectuate the policy of Title I of the National I ndustrial Recovery Act, shall be reported by such Committee to the Administrator as soon as possible, but in any event within ninety days 

from the date of approval of this Code. If, upon the basis of such 

report, the Administrator shall find that such unfair and discriminat ory practices do exist and that the execution of the proYisions hereinafter set forth will effectuate the purposes of the Act and will not 

be contrary to the public interest, and shall notify the respective 

authorities hereinabove described to that effect, the following pro- visions shall become effective as a part of this Code immediately upon 

such notification : 

(1) The sale by any member of the Trade of any branded or trade- marked merchandise at a price lower or on terms more favorable 

than the prices and terms in the currently published suggested resale 

schedules of the manufacturer thereof, is an unfair method of competition. 

(2) The sale by any member of the Trade of any article of automotive merchandise known to the Trade to be identical with and to 

be manufactured by the manufacturer of some branded or trademarked article at a price lower or on terms more favorable than the 

prices and terms in the currently published suggested resale schedules of said manufacturer for said branded or trade-marked article, 

is an unfair method of competition. 

(3) The sale by any member of the Trade of any article of automotive merchandise in such manner as to indicate to the purchaser 

thereof that such article is identical "ith and manufactured by the 

mann-facturer of some branded or trade-marked article at a price 

lower or on terms more favorable than the prices and terms in the 

currently published sugge -ted resale schedules of aid manufacturer 
193 

for said branded or trade-marked article, is an un:fair method of 

competition. 

Provided, however, that the Administrator, in connection with 

such notification to the respective ll,uthorities aforesaid, may make 

such n10rlification of the aforesaid provisions as may be indicated by 

the facts found and recommendations made. 

ARTICLE VII-TRADE PRACTICE RULES 

The following are un:fair methods of competition and if engaged 

in by any member of the trade shall constitute a violation of this 

Code: 

(A) Markjng, branding, or failure to brand, or the describing of 

merchandise in catalogues or circulars for the purpose or with the 

effect of misleadin~ or deceiving purchasers or prospective purchasers in any material particular is an unfair n1ethod of competition. 

(B) The making of statements by advertisement or otherwise and 

selling or offering to sell any automotive merchandise with intent to 

deceive purchasers or prospective purchasers is an unfair method of 

competition. 

( C) To prevent unfair methods of competition, the Code Authority shall, subject to the disapproval of the Administrator, establish 

a fair and equitable classification of accounts, and such classification shall be adhered to by all members of the Trade. No member 

of the Trade shall sell merchandise to any customer at prices lower 

than are offered to all other customers of the same class for the same 

quantity, grade, quality, or style. Provided, however, that due 

allowance may be made for differences in transportation costs, it 

being understood that transportation costs may be equalized by any 

individual member of the trade acting independently as between 

recognized wholesaling centers. 

If an_y application of the foregoing classification should work 

unjust hardship upon any member of the Trade or any customer, 

such members of the Trade or customer may appeal to the Code 

Authority) which shall have power to make such reclassification as 

justice requires. If the Code Authority should refuse relief or 

should fail to take action upon any appeal within fifteen (15) days, 

such member or customer may appeal to the Administrator, who 

shall have power to grant relief. 

(D) No cash discount of greater than 2% shall be allowed by 

any member of the Trade. No cash discount shall be allowed where 

payment of an invoice is made by warrant, note, or trade acceptance, 

or where there is an unpaid balance due, unless such balance is due 

to and confined to items in dispute. 

The Code Authority may recommend to the Administrator such 

other provisions in regard to uniform credit terms, as shall seem 

necessary to help stabilize the trade. Upon approval thereof by the 

Administrator, after such hearing as may be prescribed, such provisions shall become part of this Code. 

(E) Accepting an order for a large quantity of merchandise at a 

large quantity price with the intention of making delivery of less 

than the quantity ordered is unfair method of competition. 

(F) vVhen a member of the Trade deems it necessary to liquidate 

surplus, slow-moving stock of merchandise, dropped lines, seconds, 
194 

or inventories "·hich must be converted into cash to meet emergency 

needs, such merchandise may be disposed of in such manner and on 

such term and conditions as the Code Authority may approve and 

as are necessary to move such merchandise into buyers' hands, provided that all invoices covering sales of merchandise so sold shall 

plainly display the following wording: "Special Close-out Prices." 

Failure to obserYe this rule or increasing such stock during liquida- tion at the special prices is an unfair method of competition. If the 

Code Authority should deny approval as aforesaid, or should fail 

to notify the member of the trade affected of its decision within 10 

days after application for approval, such member of the trade may 

appeal to the Administrator, who may grant approval. 

It is recommended with reference to the above rule that any wholesaler finding himself in this position should first offer the surplus of 

merchandise to the manufacturer or seller thereof, and, failing disposal of such merchandi e by this method, should offer same to his 

competitors in the district or local group. 

( G) The consignment of goods is an unfair trade practice unless 

the consignor obtains the approval of the Code Authority. If the 

Code Authority refuses approval or should fail to notify the member of the trade affected of its decision within 10 days after application for approval such member of the trade may appeal to the 

Administrator, who may grant approval. Consignment as used 

herein shall include, but without limitations, the carrying of floating 

ledger balances. (H) To give, directly or indirectly, or to permit to be given, or to 

offer money or anything of value to customers, prospective customers, 

employees, or representatives of customers or prospective customers, 

as an inducement to influence sales or to influence such customers or 

employees to refrain from dealing or contracting to deal with competitors, is an unfair method of competition. This rule includes the 

giving or permitting to be given, or holding oneself as giving socalled " Free Deals " and " free " mechanical service except as provided by the manufacturers' warranty and/or sales policy in connec- tion with the sale of merchandise or mechanical service by automotive wholesalers. 

(I) The practice of coercion in the wholesale distribution of automotive products in any form whatsoever or through the instrumentality of any devices whatsoever is unfair competition. 

(J) Willfully inducing or attempting to induce the breach of existing contracts between competitors and their customers by any 

false or deceptive means whatsoever, or interfering with, or obstruct- ing the performance of any such contractual duties or services by any 

such means, is unfair trade practice. 

(K) The defamation of competitors by falsely imputing to them 

dishonorable conduct, inability to perform contracts, questionable 

credit standing, or by other false r epresentations, or the false disparagement of the grade or quality of their goods, is unfair trade 

practice. (L) ,villfully withholding from or inserting in the invoice statements which make the invoice a false record, wholly or in part, of 

the transaction represented on the face thereof, is an unfair trade 

practice. 
195 

(M) The minimum hours of any store or service operation in the 

Wholesale Automotive Trade shall be fifty-two hours in any one 

week unless such hours were less than 52 hours per week before 

July 1, 1933, in which case such hours less than 52 may apply. 

No member of the trade shall perform any store or service operation on Sundays and/ or holidays as are generally obc::erved in any 

given district as applying to that district. 

Emergency sales or service may be performed in hours not specified in this section under such conditions as the Code Authority may 

prescribe, subject to the disapproval of the Administrator. 

ARTICLE VIII-ORGANIZATION .AND PROCEDURE 

(A) There is hereby constituted a Code Authority for the purpose 

of assisting the Administrator in administering, supervising, and 

promoting the performance of the provisions of this Code by the 

members of the Wholesale Automotive Trade. 

(B) The Code Authority shall consist of twenty-two (22) members of the trade selected in a manner herein provided for from 

among the memberships of the associations specifically named in 

designating the National Administrative Committee ( defined in 

Article I of this Code) in the following proportions: 

Five representatives of the Motor and Equipment Wholesalers 

Association ; 

Five representatives of the National Standard Parts Association; 

Three representatives of the Automotive Electric Association; 

Three representatives of the National \Vheel & Rim Association; 

Three representatives of the National Automotive Parts Association; 

Three representatives of the Automotive Engine Rebuilders 

Association. 

Additional members of the Code Authority may be selected from 

members of the Trade to provide representation of interests not 

in the membership of any of the herein named associations in 

such manner and under such conditions as the Administrator may 

prescribe. 

The members of the Code Authority selected from the memberships of the herein named associations shall be chosen as follows : 

The board of directors or corresponding authority of each association shall appoint a nominating committee not later than fifteen 

(15) days from the date of approYal of this code by the President. 

Each said committee shall within twenty (20) days from the date 

of its appointment submit to the secretary of its association names 

o:f nominees to the Code Authority, numbering not less than twice 

the number of representatives from said association. The secretary 

of each association shall immediately transmit the names of such 

nominees to the membership of his respective association. 

Additional nominations may be made by the members of each 

association by petition signed by not less than ten members, provided that said petition is filed with the secretary of the association 

addressed to the headquarters of the association not later than 

twenty (20) days after the date of notification by the secretary of 

nominees by the nominating committee. 
196 

- The secretary shall imn1ediately transmit to the members a ballot 

containing the names of all nominees, said ballot to be returned in 

a self-addressed envelope directed to the Board of Directors or other 

corre ponding authority, care of headquarters of the as.sociation not 

later than twenty (20) days from the date of its tran rmttal to members. The Board of Directors or a duly authorized board of canvassers shall immediately canvas the result and certify same to the, 

national administrative committee, who shall immediately certify 

said result to the Administrator. Participation in the selection of members of the Code Authority 

chosen from the memberships of the associations shall be limited to 

duly accredited representatives in the associations of members thereof who are members of the trade. Only such duly accredited representatives shall be eligible for election to the Code Authority as 

representatives of such associations. 

The National Administrative Committee as constituted on the date 

of approval of this Code shall be the Code Authority until procedure 

governing election as herein above provided shall have been 

complied with. 

The Code Authority as constituted on the date of approval of this 

Code and as determined in accordance with procedure herein provided shall have the power to delegate its authority as it may 

determine subject to the disapproval of the Administrator, provided, however, that no such delegation shall relieve it of its duties 

and re ponsibilities under this Code. 

Vacancies in the membership of the Code Authority may be filled 

by the Code Authority in such manner as it may prescribe subject to 

the disapproval of the Administrator, provided that the person or 

persons selected to fill such vacancy or vacancies be selected from 

the membership of the as ociation in which it or they occur. 

The Code Authority as elected in the manner herein provided 

shall serve until the date of the expiration of the Act, or sooner 

if the President shall have declared the emergency under which the 

Act was created to have ended. 

(C) No inequitable restrictions upon membership in any of the 

associations which designated the National Administrative Committee or in any other association, national or local, which participates in the administration of this code, shall at any time be 

imposed. 

(D) The Code Authority shall have the powers and duties prescribed in this Code, subject to the right of the Administrator, upon 

review, to disapprove any action taken by the Code Authority. 

With a view to keeping the Administrator informed as to the 

observance or nonobservance of this code and as to whether appropriate steps are being taken to effectuate the purposes of the Act, 

each member of this trade shall furnish certified reports to the Code 

Authority when and in such form as it shall, subject to the disapproval of the Administrator, prescribe. Each member of the Code 

shall permit a disinterested agency, designated by the Code Authority, with the approval of the Administrator, to make such examination of the relevant records o,f each member of this trade as may, 

subject to t!ie approval of the Administrator, be necessary for the 

purpose of verifying the accuracy of such reports. 
197 

(E) The Administrator may designate not more than three representatives to participate in the conferences of the Code Authority 

with respect to the application of this Code and such repre. entatfres 

shall have access to all data and statistics collected by the Code 

Authority as hereinabove provided. The Code Authority shall hold 

itself in readiness to assist the Administrator and to meet with the 

Administrator's representatives from time to time as required, to 

consider and study any suggestions or proposals pre ented upon 

behalf of the Administrator or any member of the trade regarding 

the operation, observance, or administration of this Code. Such 

representatives shall receive such notice of meetings of the Code 

Authority as is given to members of the Code Authority. 

(F) Any and all information with respect to sales volume, costs, 

and other details of operations as may be furnished by the members 

of the trade to the Code Authority shall be considered confidential 

and shall not be supplied or made available to others except to the 

duly appointed and constituted representative of the President. 

( G) In addition to information required to be submitted under 

this Code there shall be furnished to government agencies such statistical information as the Administrator may deem necessary for 

the purposes recited in Section 3 (a) of the Act. 

(H) Each member of the Code shall bear his proportionate share 

toward the cost of preparation and administration of the Code, 

including the cost of assembly and analysis of such reports and 

data as may be required under the Code and the cost of the maintenance of the Administrative agency and its activities. Said proportionate share shall be determined by the Code Authority -n-ith 

the approYal of the Administrator. Only members of the Code may 

participate int.he activities of the Code Authority. 

(I) In order that the Code Authority shall at all times be truly 

representative of the trade and in other respects comply with the 

provisions of the Act, the Administrator may prescribe such hearings 

as he may deem proper; and thereafter if he shall find that the Code 

Authority is not truly representative or does not in other respects 

comply with the provisions of the Act, may require an appropriate 

modification in the method of selection of the Code Authority. 

ARTICLE IX-AMENDMENTS 

(A) This Code and all provisions thereof are expressly made subject to the right of the President, in accordance with the provision 

of Section 10 (b) 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 the right qf the President to cancel or modify 

his approval of this Code or any conditions imposed by him upon 

his approval thereof. 

(B) Such of the provisions of this Code as are not required to be 

included therein by the National Industrial Recovery Act may, with 

the approval of the President, be modified or eliminated as changes 

in circumstances or experience may indicate, upon application of the 

Code Authority and approval by the President after such hearings 

as may be prescribed. It is contemplated that from time to time 
198 

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3 1262 08336 699 6 

supplementary provisions or supplementary codes to this Code will 

be submitted for the approval of the President to prevent unfair 

competition in price and other unfair and destructive competitive 

practices and to effectuate the other purposes and policies o:f Title I 

of the National Industrial Recovery Act consistent with the provisions hereof. 

ARTICLE X -GEN ER.AL 

(A) No prov1s1on in this Code shall be interpreted or a pp lied 

in such manner as to promote monopolies, permit or encourage unfair competition, eliminate or oppress or discriminate against small 

enterprises. 

(B) If any employer of labor in the wholesale automotive industry is also an employer of labor in any other industry, the provisions of this Code shall apply to and affect only that part of his 

business which is included in the wholesale automotive industry. 

(C) (1) Employees shall have the rio·ht 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 agents1 in the designation of such representatives or in 

self-organization or 1n other concerted activities for the purpose of 

collective bargaining or other mutual aid or protection; (2) no employee and no one seeking employment shall be required as a condition of employment to join any company union or to refrain from 

joining, organizing, or assisti_ng a labor organization of .his own 

choosing; and (3) employers shall comply with the maximum hours 

of labor, 1ninimum rates of pay, and other conditions of employment, 

approved or prescribed by the President. 

(D) Nothing contained in this Code shall constitute the members 

of the Code Authority partners for any purpose; nor shall this 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 o:f 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 willful misfeasance or nonf easance. 

(E) No member of this Code shall be held to have consented to 

any modification thereof or to any provision or interpretation of the 

National Industrial Recovery Act if declared unconstitutional by the 

Supreme Court of the United States. 

(F) All employers shall post the labor provisions of this Code in 

conspicuous places accessible to employees. 

( G) No provision in this Code shall supersede any State or Federal law which imposes on employers more stringent requirements 

as to age of employees, wages, hours of work, or as to safety, health, 

sanitary, or general working conditions, or insurance, or fire protection, than are imJ?osed by this Code. . . (H) The effective date of this Code shall be the 10th day after the 

date of its approval by the President of the United States. 

Registry No. 1404-3-14. 

Approved Code No. 163. 

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