Approved Code No. 340 Registry No. 1412:-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

MOTORCYCLE 

MANUFACTURING INDUSTRY 

AS APPROVED ON MARCH 17, 1934 

WE DO OUR PART 

\ I I 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

I I 

l 

I ( 

For sale by the Superintendent of Documents, Wasltington, D.C. - - - - • • • • Price 5 ce nts 

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Approved Code No. 340 

CODE OF FAIR COMPETITION 

FOR THE 

MOTORCYCLE MANUFACTURING INDUSTRY 

As Approved on March 17, 1934 

ORDER 

APPROVING CoDE OF F .AIR CoMPETITION FOR THE Mo'!'ORCYCLE 

MANUFACTURING INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

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

Fair Competition for the Motorcycle Manufacturing Industry, and 

hearings having been duly held thereon and the annexed report on 

said Code, containing findings with respect thereto, having been 

made and directed to the President: 

NOW, THEREFORE, on behalf o.f the President of the United 

States, I, Hugh S. J ohn,son, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the 

President, including Executive Order No. 6543-A, dated. December 

30, 1933, and otherwise; do hereby incorporate by reference said 

annexed report and do find that said Code complies in all respects 

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

of Fair Competition be and it is hereby approved. 

HUGH S. JOHNSON, 

Adndnistra.tor· for I ndustrial R ecovery. 

Approval recommended: 

K. M. SIMPSON' 

Division Administrator. 

w .ASHINGTON' D.C., 

March 17, 1934. 

47020°----425-100----34 (141) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: The original Code of Fair Competition for the l\1otorcycle 

Manufacturing Industry was subnlitted ·on August 24, 1933, by the 

l\1otorcycle lVIanufacturers Association, an unicorporatecl nlembership society organized in 1933, representing 100% of the known members of the Industry in volume of production. Several revisions of 

the Code were made prior t.o the pu-blic hearing held on December 

12, 1933. The Code was revised during the recess of this hearing 

and submitted in its final form for approval. Every person who 

requested an appearance was properly heard in accordance with 

statutory and regulatory requirements. 

The Motorcycle Industry includes the manufacture of motorcycles, 

motorcycle parts, aeces orie. , . idecars and trailc.rs. 

The Motorcycle Industry today is represented by two known member·, both of whom an~ members of the Motorcycle l\1anufacturers 

Association. There were six ·establishments in the Industry in 1931. 

Despite, however, the nmnber of establishments which m:ay h-ave 

been or are now eng.aged in the Industry, it 1nay be inferre 1 that 

two establishments represent 1nost of t.."le Indu. try at the present 

time, because in 1929 these two establishmtmts sold 88 !{) of ali the 

products o£ the Industry. 

It is, of course, patent, that tl1e Motorcycle Industry, because of its 

competitive relations with the Automobile Industry, is a relativ-ely 

.decli11ing one. From 1923 to 1929, when the pr-ocln~tion of the average indu try was expandtng rapidly, the produ<!tion of motorcycles 

declined 25% . The Indu try ·apparently ha attempted to lll"'et the 

{!On1petition ()f the Automobile Ind:u.stry by improving the quality 

and performance of its product rather than by produ{!inp; a cheaper 

produc.t, as is evidenced by the fact that the value of the average 

motorcycle cll.an:ged little during this period. 

Since 1929 the Indu try has had to face, in addition to an unfavorable competitive situation, the diminution of general purchasing 

power. As a consequence, sales declined 50 % from 1929 to 1931. 

The two establishments report that there wa a further decline of 

50% in sales from 1931 to 1933. 

In 1929, 2,234 workers were engaged in the Indu:stry. From 1929 

to the beginning of 1933 employn1ent declined 68 %. It is .obvious 

that the Industry cannot in the near future reernploy all the wage 

earners engaged in the Industry in 1929. Payrolls of the Industry 

declined 76 ~ from 1929 to 1932. Average hourly earnin o·s 

increased 17% under the President's Reemployment AoTeement. 

The propo ed minimum wage and equitable adjustment· in the pay 

~c hedules above the minimmn , made in conformity with the customary interpretation, would have increa ·eel hourly earnings 30%. 

(142) 
143 

A 7.5% increa e in prices would coYer a 30% incrca ·e in labor costs. 

Hourly earnings of fa tory workers leclin c1 approximately 23% 

from J unc, 1929, to June, 1933. From J unc, 1933, to Q<;r,ober, 1933, 

during the interim between which the President s Reemployment 

AgTeement for a 40¢ minimum was adopted by the Industry, a 17% 

increase in hourly earnings was effected. The increase in weekly 

earnings was greater-25%-due to the greater number of hours 

worked per week. 

ARTICLE I. Pu1·pose.-States the purpose of the Code. 

ARTICLE II. Defonitions.-Accurately defines specific terms applicable to the Motorcycle Manufacturing Iridu try as used in this Code. 

ARTICLE III. Hours.-The maximum hours are limited to forty 

hours per week for employees engaged in the processing of products 

and labor incident thereto, except that during eight weeks in any 

six month period of a calendar year, in order to meet seasonal peak 

demands, employees may be permitted to work not more than forty 

fiye hours per week and not more than nine hours in any one day. 

Office, salaried and other employees not covered by the above who 

receive less than $35.00 per week, shall not be permitted to work in 

excess of an average of forty hours in any one week during any five 

week period, and not to exceed forty-eight hours in any one week. 

Watchmen shall be permitted to work not more than fifty-six hours 

in any one week. Employees engaged in an executive, managerial or 

supervisory capacity who receive not less than $35.00 per week are 

not subject to any hourly limitations. The maximum hours shall 

not apply in cases of emergency repairs or maintenance where the 

safety of life or health or the protection of property necessitates 

longer hours. No employee shall be permitted to work more than 

six days in any seven day period. 

ARTICLE IV. W ages.-The minimum wage for employees engaged 

in the processing of products or any labor incident thereto is at 

the rate of forty cents per hour for any pay period. Female employees shall be paid the same rate of pay as male employees for 

doing the same work or performing the same duties. No person 

employed in clerical or office work shall be paid less than at the 

rate o-f $15.00 per week except that office boys and girls may be 

paid a minimum of· 80% of the established minimum :for office 

employees. The established minimum rate o:f pay for work performed in any period shall apply irrespective of whether any employee is actually compensated on a time rate, piece work or other 

basis. Provision is made for the employing of handicapped persons 

who shall be paid not less than 80% of the minimum wage scale. 

Provision is also made :for the adjustment of wages above the minimum fixed in this Code if such has not been made since July 1st, 

1933. 

ARTICLE V. General Labo1· Provisions.-Provides that no employer 

shall employ any person under 16 years of age and that no person 

under 18 years of age shall be employed at operations or occupations 

which are hazardous in nature or dangerous to health. This Article 

also sets forth the mandatory provision respecting the rights of 

employees to organize and bargain collectively. It also provides 

for matter havin to do with reclassification of employees, standards for safety and health the obsern111ce of State laws and the 
144 

posting of complete copies of the code so that they are accessibleto employees. 

ARTICLE VI. Ad/1ninistration.-Establishes a Code Authority 

which shall consist of the Board of Directors of the Motorcycle 

l\1anufacturers Association to be elected by a fair method of selection so as to be truly representative of the Industry, subject to the 

approval of the Administrator. In addition to the Board of Directors named above there may be one or three representatives, without 

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

Administrator for such terms as he may specify. In addition to 

the organization of the Code Authority, the powers and duties 

thereof are also outlined in this Article. 

ARTICLE VII. Llf arketing and T Tade P1·actice Rules.-Sets forth 

Trade Practices for the Industry. 

ARTicLE VIII. Expo1't Trade.-N o provision of this Code relating 

to prices or terms of selling, shipping or n1arketing, shall apply to 

export trade or sales or shi pn1ents for export trade. 

ARTICLE IX. JJ!J odification.-This Code and all the provisions 

thereof are expressly made subject to the right of the President in 

l:tccordance with Sub-Section (b) of Section 10 of the Act, to cancel 

or modify any order, approval, license, rule or regulation issued under 

said Act. 

ARTICLE X. lJJ onopolies.-N o provision of this Code shall be so 

applied as to permit monopolies or monopolistic practices, or to eliminate, oppress or discrin1inate against small ent-erprises. 

ARTICLE XI. P1·ice Increases.-This Article indicates that the ,_ increase in selling price, so far as possible, will be limited to actual 

additional increases in seller's costs. 

ARTICLE XII. Etfecti'L•e date.-This Code shall become effective 

beginning ten days after its approval by the Administrator. 

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

having found as herein set forth and on the basis of all the proceedings in this 'matter, I find that: 

(a) The Code will promote the policies and purposes of Title I 

of the Act, including removal of ob tructions of the fre-e flow of 

interstate and foreign com1nerce which tend to diminish the amount 

thereof and will provide for the general welfare by promoting the 

organization of industry for t.he purpose of cooperative action an1ong 

the trad-e groups, by inducing and maintaining united action of labor 

~nd management under adequate gov~rnmental sanctions and supervisions, by eliminating unfair competitive practices, by promoting 

the fullest possible utilization of the present productive capacity of 

industries, by avoiding undue restriction of production (except as 

may be temporarily required), by increasing the consumption of 

industrial and agricultural products through increasing purchasing 

power, by reducing and relieving unemployment, by improving 

standards of labor, and otherwise r ehabilitating industry. 

(b) Said industry normally employs less than 50,000 employees; 

and is not classified by me as a major industry. 

(c) The Code as revised complies in all respects with the pertinent 

provisions of Title I of the Act, including 'vithout limitation subsection (a) of Section 3, sub-section (a) of Section 7, and sub-section 

(b) of Section 10 thereof; and that the ~1otorcycle Manufacturers 
1±5 

A ·ociation wa and i an indu trial oTou p truly rcpre ntat.ive of 

the indu try; and that ni<.l a.·c.:ociation imr osed and impo ·es no 

inequitabl re. tri ti ns on aclmi ion to memb rship therein. 

(d) The Cod" is not designed to and will not permit monopolies 

or monopolistic practices. 

(e) The Code is not de igned to and will not eliminate or oppress 

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

(f) Tho e engaged in other teps of the economic process have 

not been deprived of the right to be heard prior to approval of 

said Code. 

For the e reasons, therefore, this Code has been approved. 

Respectfully, 

MARCH 17' 1934. 

HuGH S. JOHNSoN, 

.Adn~inist1·ator. 
CODE OF FAIR COMPETITION FOR THE MOTORCYCLE 

MANUFACTURING INDUSTRY 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, this Code is established as a Code of Fair Competition 

:for the Motorcycle Manufacturing Industry and its provisions are 

the standards of :fair competition for such industry and are binding 

upon every member thereof. 

ARTICLE II-DEFINITIONS 

Wherever used in this Code, or any supplement appertaining 

thereto, the terms enumerated in this Article shall have the meanings herein defined unless the context shall otherwise clearly indicate. 

SECTION 1. The term "President" as used herein shall mean the 

President of the United States. 

SECTION 2. The term "Act" as used herein hall mean the National 

Industrial Recovery Act. 

SECTION 3. The term "Adm.inistrator " as used herein shall mean 

the Administrator for Industrial Recovery under Title I of said Act. 

SECTION 4. The term "Motorcycle Manufacturing Industry" or 

"Industry" as used herein means the manufacture of motorcycles, 

replacement parts, accessories and other products which are u ed in 

connection with the manufacture or maintenance of motorcycles, 

including motorcycles as used for any and all purposes, motorcycle 

sidecars, motorcycle trailers and other vehicles of like nature. 

SECTION 5. The term "lVIember of the Industry" includes anyone engaged in the Industry, either as an employer or on his or its 

own behalf. 

SECTION 6. The term "Employee" as nsed herein means and 

includes anyone engaged in the Industry in any capacity r eceiving 

compensation for his services irrespective of the nature or method 

of payment of such compensation, except a member of the Industry. 

SECTION 7. The term "Employer" as used herein includes anyone 

by whom any such employee is employed or compensated. 

SECTION 8. The tern1 "Apprentice" as used herein means an individual (usually a Ininor), bound by indenture executed in compliance 

with the laws of the state where the service provided for therein is 

to be performed to serve an employer for a term of years at a predetermined wage for the period of the indenture in order to learn a 

trade, art or craft. 

ARTICLE III-Houns 

SEcTION 1. 111 axin"Lum H oul's.-N o employee shall be permitted 

to work in excess of forty ( 40) hours in any one week or eight ( 8) 

hours in any twenty-four (24) hour period, except as herein otherwise provided. A normal work clay shall not exceed eight(8) hours. 

(146) 
147 

SECTION 2. H OU7'S foT C?e7·ical rwd OjfiCf Employees.-N o person 

employed in clerical or office \York shall be permitted to work in 

exce ·s of an a verag ~ of forty ( 40) hour.· p~r week during any five 

( 5) week period nor in excess of forty-eight ( 48) hours in any one 

week. A normal "orlc day shall not exceed eight (8) hours. 

SECTION 3. Ex ·eptions as to li ettl's.-The limitation as to hours of 

labor as . pecified in Se tion 1, 2 nnd 4 of this Article III shall not 

apply to the follow]ng: 

(a) To production employees, mechanical workers or artisans in 

this Indu try \vho shall not be employed in excess of forty ( 40) 

hour in any one week nor more than eight (8) hours in any twentyfour (24) hour period; provided, hmvever, that during any period in 

which a concentrated demand upon any division of the Industry shall 

place an unusual and temporary burden for production work upon 

its facilities or in which it is nece ~s ary to meet peak seasonal requirements or emergencies, but in no event during more than eight (8) 

week ~ in any six (6) month period, such employee of such division 

may be permitted to work not more than forty five ( 45) hours in 

any one week, an~ not n1ore than nine (9) hours in any twenty 

four (24) hour penod. 

(b) To employees engaged in emergency maintenance, or emergency repair work, involving breakdown or protection of life or 

property, provided that in such special cases at least one and one 

half times the normal wage rate for any employee so employed 

hall be paid for all hours worked in excess of forty (40) hours in 

any one week; provided that this overtime provision shall not apply 

in case of catastrophe · involving loss of life. Such Sp€Cjal cases, 

however, shall be reported to the Code Authority. 

(c) To outside sales or sales service men; nor to persons in a 

managerial, executive or supervisory capacity who receive not less 

than $35.00 per week. 

(d) To watchmen, who shall be permitted to work not more than 

fifty -six (56) hours in any one week. 

(e) There may be a tolerance of 10% additional hours over the 

:forty ( 40) hours in any one week for employees engaged in the 

preparation, care and maintenance of machinery and production 

facilities, and for stock and shipping clerks and truckmen engaged 

iiL out ·ide delivery and pick-up serv1Ce. 

SECTION 4. Standard 1V eelc.- N o employee shall be permitted to 

work more than ix (6) days in any seven (7) day period. 

SECTION 5. En1-ployment by Several Employers.-No employer 

shall knowingly permit any employee to work for any time, which, 

when totalled \:vith that already performed with another employer 

or employers exceeds the maximum permitted herein. 

AnTICLE IV-\V AGES 

SECTIO ~ 1. 1llininwm TVages.-On and after the effective date, no 

employee ·hall be paid in any pay period less than at the rate of 

forty ( 10) cent per hour, except as herein otherwise provided. 

SECUON 2·. Piecework Oompensation.-:Minimum \'Vages. __ 

The establi hed minimum rate of pay for the work performed in 

any pay period shall apply irre ·pective of whether an employee is 

actually compen ated on time rate, piec~ work, or other basis. 
148 

SECTION :3. \Vithin si .:ty (GO) (lays from the date of approval of 

this Code, an acl ju s~u nt or \Yage above the minimum provided 

jn this Code .-hall b.-. made by the m:.> :111Jcrs of Industry who have 

not heretofore made nch adjuc;tment. Such adjustment shall mean 

that differentials in compensabon betwe n employees r eceiving the 

minimum wage and mployees above the minimum existing prior to 

the date of approval of this Code shall be maintained; provided, 

however, that in no event shall rates of pay be reduced. Each member of the Industry shall m·ake a report of ch adjustment whether 

made prior to or subsequent to the date of approval of this Code to 

the Code Authority. 

SECTION 4. Female Employees.-Female employees performing 

substantially the same work as male employees shall receive the same 

rate of pay as male employees. 

SECTION 5. Handicapped Pe1·sons.-A person whose earning capacity is limited because of age or physical or mental handicap may 

be employed on light work at a wage not below 80% of the minimum 

established by this Code, if the employer obtains from the State 

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. Such handicapped persons shall not 

constitute more than 5% of the total number of employees of any 

one employer. 

SECTION 6. lJ!linimum Wage Fm· Oler·ical and Office Employees.- N o accounting, clerical, office, sales or service employees working 

on a weekly basis in any office shall be paid less than ut the rate of 

fifteen ($15.00) dollars per week; provided, however, that office 

boys and girls and messengers may be paid at a rate not less than 

80% of such minimum, and provided further that the number of 

such boys and girls and messengers so paid shall constitute not more 

than 5% of the total number of such employees of any one establish- · 

ment of any one employer, but in any case such employer shall be 

entitled to at least two such employees. SECTION 7. Apprentices.-Employment of apprentices at rates 

of compensation below the minimum provided herein shall be permitted where they are apprenticed to an employer by an indenture 

made pursuant to the laws of the state in which such service is to be 

performed, under any apprentice system established and maintained 

by such employer, provided such indenture agreements are filed with 

the Code Authority. Employers shall not be allowed to have apprentices in number exceeding 5% of the total number of skilled craftsmen of their special class, except that each employer shall be entitled 

to employ at least one such employee. In no case shall an apprentice 

be paid less than the minimum wage provided in Section 1 of Article 

IV in states which do not have laws governing apprentices. 

ARTICLE V-GENERAL LABOR PROVISIONS 

SECTION 1. Ohild L abo?'.-No person under sixteen (16) years of 

age shall be employed in the Industry. No person under eighteen 

(18) years of age shall be employed at operations or occupations 

which are hazardous in nature or dangerous to health. The Code 
149 

Authoritv hall submit to the Admini ·trat r within ixty (GO) days 

after the effective date of thi · Cole a li t of such operations or 

occupation . In any tate an employer ·hall be deemed to have 

complied with this requirement if he has on file a ertificate or permit duly signed by the Authority in uch stat empowered to issue 

employment or age certificates or permit· showing that the employee 

is of the required age. SECTION 2. Provisions fr01n the Act.-(a) Employees shal1 have 

the right to organize and bargain collectively through representatives of their own choosing, and shall be free from the interference, 

restraint or coercion of employers of labor, or their agents, in the 

de ignation of such representatiYes, or in self-organization, or in 

other concerted activities for the purpo e of collective bargaining or 

other mutual aid or protection. 

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

as a condition of empl'oyment, to join any company union or to 

refrain from joining organizing or as i ting a labor organization of 

his O\\n choosing. 

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

minimum rate of pay and other conditions of employme.nt approved 

or prescribed by the President. 

SECTION 3. Reclassifica)tion of Em.ployees.-N o employer shall 

reclassify employees or duties of occupation performed or engage 

in any other subterfuge for the purpose of defeating the purposes or 

provisions of the Act or of this Code. 

SECTION 4. Standards for Safety atul H calth.-Every mployer 

shall make reasonable provision for the afety and health of his 

en1ployees at the place and during the hours of their employment. 

Standard of safety and health for the Industry shall be ·ubmitted 

to the Administrator within six (6) month· after approval of this 

Code. 

SECTION 5. State La:'los.-No provision in thi Code hall ·upersede 

any State or Federal Law which imposes on employers more strin- gent requirements as to age of employees, wage , hours of work, or 

as to safety, health, sanitary or general working condition , or 

insurance or fire protection, than are impo eel by this Code. 

SECTION 6. Posting.-All employers shall keep posted complete 

copies of this Code and any amendment. thereto in conspi nons 

places acces ible to employees. 

ARTICLE VI-ORGANIZATION. PowERS AND DunE OF THE CoDE 

Aun:IoPJTY 

SECTION 1. 01·ganization and Oonstitution.-A Code Authority 

to administer this Code is hereby established and shall consist of 

the Board of Directors of the Motorcycle Manufacturers Association, which shall be truly representative of the various interests 

of the Industry. This Code Authority shall make inYestigations as 

to the functioning and obser\ance of any provisions of this Code 

at its own instance or upon complaint of any per on affected and 

shall report the same to the Admini trator. 

SECTION 2. In addition to the above membership there may be one 

and not more than three members, without Yote, and without expense 

., 
150 

to the Industry, appointed by the Administrator as he may specify 

to ,serve for six month or t\\<:>lvc month terms from the d·ate of 

appointment. 

SECTION 3. ~uch trade or industrial association directly or indirectly participating in the selection or activities of the Code Authority shall, (1) impose no inequitable restrictions on membership and, 

(2) submit to the Admini. trator true copies of its Articles of Association, By-Laws, Rnle.s and Regulations and any am~:adment when 

made thereto, together \vith such information as to membership, 

organization and activities as the Administrator may deem necessary 

to effectuate the purposes of the Act. 

SECTION 4. In order that the Code Authority shall at all times b~ 

truly representative of the Industry and in other respects comply 

with the provi. ions of the Act, the Administrator may prescribe 

suc_h hearings as he may deem proper, and therea.fter 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 re<J-!1ire 

an appropriate modification in the method of :selection of the Code 

Authority. 

SECTION 5. :Members of the Industry shall be entitled to participate in and share the benefits of the activitie,s of the Code Authority 

and to participate in the selection of the members thereof by assenting to and complying with the requirements of this Code and sustaining their reasonable share of the expenses of its administration. 

Such rea. onable share of the expenses of administration shall be 

determined by the Code Authority, subject to review by the \..dministi·ator, on the basis of volume of business and/ or such other factors 

as may be deemed equitable. 

SECTION G. Nothing contained in this Code shall constitute the 

members of the Code Authority partners for any purpose. Nor 

;Shall this Code be construed to impose upon any member of the Code 

Authority any liability in any manner to anyone .for an act of any 

other member, officer, agent or employee of the Code Authority. 

Nor shall this Code be construed to impose upon any member of the 

Code Authority exercising reasonable diligence in the conduct of 

his duties hereunder, liability to anyone for any act or omission to 

act under this Code, except for his own willful misfeasance or 

non-feasance. 

SECTION 7. Powers and Duties.-Subject to such rules and regulations as may be is ued by the Administrator, the Code Authority 

shall have the following further powers and duties, the exercise of 

which shall be reported to the Administrator and shall be subject 

to his right, on review, to disapprove any action taken by the Code 

Authority. If the Administrator shall determine that any adion of 

a Code Authority or any agency thereof may be unfair or unjust 

or contrary to the public interest, the Administrator may require 

that such action be suspended to afford an opportunity for investigation of the merit of such action and further consideration by such 

Code Authority or agency pending final action which shall not be 

effective unless the Administrator approves or unless he shall fail 

to disapprove after thirty days' notice to him of intention to proceed 

with uch action in jt · original or modified form. 
151 

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

provide for the compliance of the Industry with the provisions of 

the Act. · 

(b) To adopt By-Laws, Rules and Regulations for its procedure 

and :for the administration and enforcement of the Code. The Code 

Authority shall promptly report to the Administrator any By-Laws, 

Rules or Regulations adopted pursuant to this paragraph. 

(c) To obtain from members of the Industry such information and 

reports as are required for the administration of the Code, and to 

provide for submission by n1embers of such information and reports 

as the Administrator n1ay deem necessary for the purposes. recited 

in Section 3 (a) of the Act, which information and reports shall be 

submitted by members to such administrative and/ or governmental 

agencies as the Admjnistr.ator m..'Ly designate, provided that nothing 

in this Code shall relieve any member of the Industry of any existing 

obligations to furnish reports to any govermnental agency. No individual report shall be disclose·d to any other member of the Industry. 

or any other party except to such governmental agencies as n1.ay be directed by the Administrator. In addition to info:rmation n~quired to 

be submitted to the Code Authority, there shall be furnished to .governmental agencies such statistical information as the Administrator 

n1ay deem necessary for the purpose recited in Section 3 (a) of the 

National Industrial Recovery Act. 

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

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

herein, provided that nothing herein shall reliev,e the Code Authority of its duties -or responsibilities under this Code and that suen· 

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

comply with the provisions hereof. 

(e) To make recommendations to the Administrator for the coordination of the adm.inistration of this Code with such other Codes, 

if any, as m.ay be related to the Industry. 

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

of any N.R.A. insignia solely by those m.em.bers of the Industry who 

have assented to, and are complying with this Code. . 

{g) To recommend to thB Administrator fu.rther fair trade practice provisions to govern members of the Industry in their ~.·elations 

with each .other or with other industries and. to recon1mend to the 

Administrator measures for industrial planning and production control, including stabilization of en1ployment . 

.L-lRTicLE VII-TnADE PRACTICE Rums 

The following trade practices are declar~d to .constit~te unfair 

methods of competition between members of the Industry, -and no 

me1nber of the Industry shall use any of the~ either directly or 

indirectly, through any officer, agent, or employee. The violation 

of any one or more of these, together with such other trade practice 

provisions which may be recommended to the Administrator and 

approved by him after such notice and hearings .as he may prescribe, 

shall constitu-te a violation of this Code. 

1. No member of the Industry shall publish adv.ertising (whether 

printed, radio, display, or of any other nature), which is misleading 
152 

or inaccurate in any material p~rti ular, nor shall any mmnber in 

any way misrepresent any goods (inrlucling but without limitation 

its :~se, trade-mark, grade, quality, origin, size, substance, character, 

nature, finish, material, content or preparation) or credit terms, 

values, policies, services, or the nature or form of the business 

conducted. 

2. No member of the Industry shall knowingly withhold from or 

insert in any quotation or invoic-e any statement that makes it inaccurate in any material particular. 

3. No member of the Industry shall brand or mark or pack any 

goods in any manner which is intended to or does deceive or mislead 

purchasers with respect to such goods (including, but without limitation, the brand, grade, quality, quantity, origin, size, substance, 

character, nature, finish, material, content or preparation of such 

goods). 

4. No member of the Industry shall publish adv:ertising which 

refers inaccurately in any material particular to any competitors or 

their goods, prices, values, credit terms, policies or services. 

5. No member of the Industry shall publish or circulate unju tifiecl 

or unwarranted threats of legal proceedings which tend to or have 

the effect of harassing competitors or intimidating their customers. 

Failure to prosecute in clue course shall be evidence that any such 

threat is unwarranted or unjustified. 

6. No member of the Industry shall secretly directly offer or make 

any payment or allowance of a rebate, refund, commission, credit, 

unearned discount or excess allowance, whether in the form of money 

or otherwise, nor shall a member of the Industry secretly offer or 

extend to any customer any special service or privilege not extended 

to all customers of the same class, for the purpose of influencing 

a sale. 

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 commercial bribery provision shall not be construed to prohibit 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. 

8. No m.ember of the Industry shall attempt to induce the breach 

of an existing contract between a competitor and his customer or 

source of supply; nor shall any such member interfere with or 

obstruct the performance of such contractual duties or services. 

9. No member of the Industry shall require that the purchase or 

lease of any goods be a prerequisite to the purchase or lease of any 

other goods. 

ARTICLE VIII-ExPORT TRADE 

SECTION 1. No provision of this Code relating to prices or terms 

of selling, shipping or marketing, shall apply to export trade or 

sales or shipments for export trade. 
153 

AnTICLE IX-MonJFICATION 

SECTION 1. This Code and all the provision;:, thereof are expre sly 

made subject to the right of the Pre ident, in accordance with the 

prm isions of Sub-section (b) of Section 10, Title I of the 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 of the Pre id€nt, to cancel or modify 

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

such approval. 

SECTION 2. This Cod , except as to provisions required by the Act, 

may be modified on the basis of experience or changes in circumstances. The Code Authority may propo. e such modifications, and, 

upon approval thereof by the Administrator, after such notice and 

hearing as he may prescribe, the same shall become effective as a 

part of thi Code. 

ARTICLE X-MONOPOLIES 

No provision of this Code shall be so applied as to promote monopolies or monopolistic practices, or to eliminate, oppress, or di criminate again t small enterprises. 

ARTICLE XI-PRICE IKCREASES 

'V"hereas the policy of the Act to increase real purchasing power 

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

services increase as rapidly as wages, it is recognized that price increases except such as may be required to meet individual cost should 

be delayed, but when made such increases should, so far as possible, 

be limited to actual additional increases in the seller's costs. 

ARTICLE XII-EFFECTIVE DATE 

This Code shall become effective beginning ten days after its 

approval by the Aillninistrator. 

Approved Code No. 340. 

Registry No. 1412--02. 

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UNIVERSITY OF FLORIDA 

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