Approved Code No. 347-Supplement No. 36 Registry No. 1328- 09 

NATIONAL RECOVERY ADl\HNISTRATION 

SUPPLEMENTARY 

CODE OF FAIR COMPETITION 

FOR THE 

REFRIGERATING MACHINERY 

INDUSTRY 

(A Division of the Machinery and Allied Products Industry) 

AS APPROVED ON JULY 30, 1934 

WE DO OUR PAR'!'. 

, . f ft ,... r 

U.S. DEPOfflTORY 

UNITED ST ATES 

GOVERNMENT P RINTING OFFICE 

WASHINGTON : 1934 

\ ( 

For s ale by the Superin tendent of Docur:ients, ·wasltington, D.C. - - - - - - - - Price 5 cents 
This publication is for sale hr 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 DEPARTl\'lENT <W COMMERCE 

Atlanta, Ga.: 504 Post Office Building. , Birmingham, Ala.: 257 Federal Building. ~-=:_ 

Boston, Mass.: 1801 Customhouse. Buffalo, N .Y.: Chamber of Commerce Building. 

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

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

Cleveland, Ohio: Chamber of Commerce. Dallas, Tex.: Chamber of Commerce Building. 

Detroit, Mich.: 2213 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 , outh Broadway. Louisville, Ky .: 408 Federal Building. 

Memphis, Tenn.: 229 Federal BuildinO'. 

Minneapolis, Minn.: 213 Federal BuildinO'. 

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

New York, .Y.: 734 Customhouse. 

Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa.: 933 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. ~ t. Louis, Mo.: 506 Olive Street. 

San Francisco, Calif.: 310 Customhouse. 

eattle, Wash.: 809 Federal Office Building. 
Approved Code No. 347-Supplement No. 36 

SUPPLEIVIENTARY CODE OF FAIR COMPETITION 

FOR THE 

REFRIGERATING MACHINERY INDUSTRY 

As Approved on July 30, 1934 

ORDER 

APPROVING SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE 

REFRIGERATING MACHINERY L "DUSTRY 

A DIVISION OF THE l\IACHINERY AND ALLIED PRODUCTS 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 Supplemental Code of Fair Competition for the Refrigerating Machinery 

Subdivision of J.VIachinery and Allied Products Industry, and hearings having been duly held the1·eon and the annexed report on said 

Supplemental Code containing findings with respect thereto, having 

been made and directed to the President : 

NOW, TI-IEREFORE, on behalf of the President of the United 

State , I , Hugh S. John on, 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 r port and do find that said Supplemental 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 Supplemental Code of Fair Competition be and it is hereby 

approved subject to the following conditions : (1) that the provisions 

of Articles VI, VII, VIII, and IX be and they hereby are stayed for 

a period of fifteen (15) days; then to become effective unless I, by 

my further order, otherwise direct; within which time cause may be 

hown, if any there be, why the abo-ve provi ·ions should not become 

effecti,;-e; and that the Code Authority send notice of Urn stay of 

these provi ions and of the opportunity to how cause why they 

should not become effective to all known employers of the Subdivision; and (2) that the provi ions of Article VIII, Section (a), 

insofar as they pre ·cribe a waiting period between the filing with 

the Code Authority ( or such agency a may be de ignated in the 

Supplemental Code) and the effective date of price lists or revised 

77106 °- S29- 167--34-1 (1) 
2 

terms and conditions of ale, be and they her by are stayed pending 

my further order. 

HUGH s. JOI-INS N, 

Adm.,inistrator f m· I nclustrial R ecovery. 

Approval recomm n led : 

BARTON ,v. 1 RRAY, 

Division ~l.dmini frator. 

'\-VASHI:NGTO:N, D.C., 

J uly 30, 1934. 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

The 1¥ hite H oitse. 

SIR: This is a report on the Supplemental Code of Fair Com. 

petition for the Refrigerating Machinery Subdivision of Machinery 

and Allied Products Industry, a Public Hearing on which was 

held in Washington, D.C., on December 21, 1933. The Hearing 

was conducted in full accordance with the provisions of Title I 

of the National Recovery Act. 

GENERAL STATEMENT 

The Refrigerating Machinery Subdivi ion being representative 

of the manufacturers of the products defined in Article II of the 

Supplemental Code, has elected to formulate and submit a Supplemental Code of Fair Competition as provided in the second 

paragraph of Article I of the Code of Fair Competition for the 

Machinery and Allied Products Indu try approved on the seventeenth clay of ~larch 1934. 

The Refrigerating l\1achinery Subdivision mean the engineering, 

design, and production of commercial and industrial ice making and 

refrigerating niachinery and equipment incidental thereto. It is 

expressly stated for the purposes of this Code that it is to apply 

to the engineering, design, manufacture, and ale, as well a, · erection and/ or installation of such m.achinery and equipment incidental 

thereto. Any work or proce s incidental to and carried on by an 

employer at his plant or elsewhere as a part of the manufacture 

of any product of the Subdivision shall be governed by the provision of this Code rather than of any other Code. 

ECONO::urc EFFECT 

This Subdivision has been severely affected by the recent depression. This is evidenced by the steady decline in annual sales after 

J 929 from $37,769i000 in 1929 to $20,580,000 in 1932 or 45.2 per cent. 

In 1929 this Subdivi ion employed approximately 6,759 factory 

workers, which total declined to about 4,339 workers as of N ove1nber 

15, 1933 or 35.8 per cent. Approximately 56 per cent of the workers 

were working more than 40 hours per week as of June 15, 193·3 as 

c:ompared to an average work week of 50.6 hours in 1929. 

Estimated man hours declined from .an average of 342,000 per week 

in 1929 to 133,210 as of November 15, 1933 or 61 per cent. Until 

there is a further increase in man hour requirements, the adoption 

of the 40 hour week will probably cause no increase in employment 

in this Subdivision. 

(3) 
4 

Estimated weekly earnings declined from an average of $27.02 in 

1929 to a minimum of $13.38 in the last half of 1932, or 50.5 per cent. 

Based on the distribution as of June 15, 1933- and the specified 

percentages of number of wage earners r ceiving le ~ than rates 

I reviously prevalent in this Subdivision, the adoption of the propo ed minimum hourly rates will cau e an increa~e in fa tory payroll in thi Subdivision. 

The wa.;c provisions for the Subclivi ion, which is operating 

under the Code of the lVIachinery an l Allied Products Industry, 

provide that employee engaged in plant operation shall be pail Gs 

follow : ( 1) in citie of n1ore than 50,000 population and their 

immediate vicinity, 40 cent per hour; (2) in cities of n10re than 

10,000 but not more than 50,000 population and their immecliat 

vicinity, which citie are not in the immediate vicinity of a city of 

more than ;:,0,000 population, 38 cents p r hour; ( a) in ities f 10 000 

population or le s and their immediate vicinity, which citi are not 

in the immediate vicinity of a city of more than 10 00 por ulation, 

36 cent per hour, except that employee· eno·aged in 1 lant operation 

in all localitie in the state of Viro·inia, N rth arolina, S uth 

Carolina, Georgia, Florida, Tenne ee, Alabama, l\1i · i sippi, rkansa , Loui i.ana, Texas, and Oklahoma, shall be paid not le than 32 

cent · per hour. \Vhen females do ub tantially the same work a males or replace 

1nales, they shall receive the ame pay. However, no f male mployeo 

hall be paid les than 71⁄2 o of the proper rate for the 1 cality in 

which employed. Em1 loyee · other than tho e eno·.agecl in plant operations hall receive not le than 15.00 per week. 

Offi b y and girl~ and apprenti " S shall be I aid not le than 

80% of the minimum wag . 

Thi Sui pl mental Code provi le un 1 r ixt en 

years of ag hall b mployecl in thi 

th uba1H.l m •th l • , 
5 

Article VIII provides for methods of setting up, revising, and 

filing price lists and discount sheets and terms of sale and payment. 

Article IX sets forth tra le practices for the Subdivision. 

Article X provides that no provision of this Supplemental Code 

relating to pricing and marketing shall apply to export sales. 

Article XI: This Supplemental Code and all the provisions 

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

accordance with subsection (b) of Section 10 of the Act, from time 

to time to cancel or modify any order, approval, license, rule or 

regulation issued under said Act. Provi ion is also made that modifications may be submitted by the Code Authority to the Administrator for approval. 

Article XII provides means for withdrawal of thi Subdivision 

from the Basic Code and its continuance as an autonomous Code. 

Article XIII establishes that no provision of this Supplemental 

Code shall be so applied as to permit monopolies and monopolistic 

practices as to eliminate, oppress, or discriminate against small 

enterprises. 

Article XIV states the effective date of this Supplemental Code. 

FINDINGS 

The Assistant Deputy Administrator in his final report to me 

on said Supplemental Code having found as herein set forth and 

on the basis of all the proceedings in this matter : 

I find that: 

(a) Said Supplemental Code is well designed to promote the 

policies and purposes of Title I of the National Industrial Recovery 

Act, including removal of ob tructions to the free flow of interstate 

and foreign commerce which tend to diminish the amount thereof 

and will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the 

trade groups, by inducing and maintaining united action of labor 

and management under adequate governmental sanctions and supervision, 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 increa ing purchasing 

power, by reducing and relieving unemployment, by im.proving 

standards of labor, and by otherwise rehabilitating industry. (b) Said Subdivi ion normally employs not more than 50,000 

employees; and is not classified by me as a major industry. 

( c) The Supplemental Code as approved complies in all respects 

with the pertinent provision of said Title of said Act, including 

without limitation Subsection (a) of Section 3, Subsection (a) of 

Section 7, and Subsection (b) of Section 10 thereof; and that the applicant association is an industrial association truly representative of 

the aforesaid Subdivision; and that said Association imposes no inequitable restrictions on admission to membership therein. 

( d) The Supplemental Code is not designed to and will not permit monopolies or monopolistic practices. 
6 

( e) The Supplemental Code is not designed to and will not elim- ina"te or oppress small enterprises and will not operate to discriminate against them. (f) Tho e engaged in other step of the economic process have not 

been deprived of the right to be heard prior to approval of the said 

Supplemental Code. For these reasons, therefore, I have approved this upplemental 

Code, provided that certain provi ions relating to accounting and 

costing, sellino· below rea. onable cost, price lists, and unfair trade 

prac'·ic ar stay cl as stated in the Order. 

Respectfully, 

J UI,Y 30, 1 !->34. 

HUGH s. JOHNSON , 

Administrato1'. 
SUPPLE~1ENTARY CODE OF F AIR COMPETITION FOR 

THE REFRIGERATING ~fACHINERY INDUSTRY 

A DIVISION OF THE l\IACHIXERY .AND ALLIED PRODUCTS IN"DU TRY 

ARTICLE I-PU RPOSES 

To effectuate the policy of Title I of the National Industrial 

Recovery Act, th 0 following provisions are established as u Supplemental Code of Fair Competition for the Refrigerating :l\1achinery 

Subdivision of the Machinery and Allied Product~ Industr,y, ancl 

together with the Code of Fair Competition f or the :Machinery ancl 

Allied Products Industry, shall be the standard of fair competition 

for this Subdivision, and shall be bindi11g on every Emr loyer therein. 

ARTICLE II-DEFINITIONS 

"Applicant" means the Refrigerating Machinery Association, a 

trade organization, all members of which are engaged in the manufacture for sale of the products of the Refrigerating lVIachinery 

Subdivision of the Machinery and Allied Products Indnstry. 

"Indusfry "means the Machinery and Allied Products Industry, as 

defined in its Code as approved by the President, and as such definition may from time to time be amended. 

"Subdivision" means the Refrigerating Machinery Subdivision 

of the Machinery and Allied Products Industry as defined and set 

forth in paragraph 26, Article II of the Code of Fair Competitio'!1 

for the Machinery and Allied Products Indu try as follows: 

"Refrigerating Machinery Subdivision" means the engineering, 

design, and production of commercial and industrial ice making and 

refrigerating machinery and equipment incidental thereto. It is 

expressly stated for the purposes of -this Code that it is to apply to 

the engineering, design, manufacture, and sale, as well as erection 

and/ or installation of such machinery and equipment incidental 

thereto. Any work or process incidental to and carried on by an 

Employer at his plant or elsewhere as a part of the manufacture of 

any product of the Subdivision shall be governed by the provisions 

of this Code rather than any other Code. 

"Oode" means the Code of Fair Competition for the Machinery 

and Allied Products Indu try as approved by the President, March 

17, 1934, and as from time to time amended. 

"Person" means a natural person, a partnership, a corporation, 

an association, a trust, a trustee, a trustee in bankruptcy, a receiver 

or other entity. 

"Employer" means any person engaged in this Subdivi ion either 

on his own behalf or as an employer of labor. 

"E11iployee" means any one who is employed in the Subdivision 

by any such Employer. 

77106°-829-167-34--2 (7) 
8 

uThe Act" means Title I of the National Industrial Recovery Act. 

"The President" means the President of the United States. 

"The Administrator" means the Administrator for Industrial 

Recovery. 

"Basic Code Authority" means the Code Authority for the J\fachinery and Allied Products Industry as con tituted by the Code. 

"Code Authority" means the Code Authority con tituted for this 

Bubdivision a provided by the Code and by this Supplemental Code. 

"G1·oup Oode Authority" means the Code Authority for any 

group or product classification within this Subdivi ion. 

"Publish" means to make available to the public. 

ARTICLE III-EMPLOYMENT PROVISIONS 

The following Articles of the Code, viz; Article III, " Working 

I-lour " · Article IV " ,v aaes "· and Article V " General Labor ' ' I:) ' ' Provision " are hereby made a part of thi Supplemental Code, 

with the ame effect as if they were written into this Supplemental 

Code. 

ARTICLE IV-ADOPTION OF OTHER PROVISIONS OF CODE 

The following Articles of the Code, viz; Article II, "Definitions"; Article VI, "Administration", to the extent that they shall 

be applicable to this Supplemental Code as uch or as it may hereafter be administered as an autonomous Code; and Article VIII, 

"Modifications and Termination", are hereby adopted and made a 

part of thi Supplemental Code with the same effect as if they were 

written into this Supplemental Co<le. 

ARTICLE V-ADl\fINT TRATI N l 

an 1 

1 ee para rra1)h 2 f orcl r approving thl de. 
9 

2. To submit to the Administrator :for his approval, subject to 

such notice and opportunity to be heard as he may deem necessary: 

(A) An itemized budget of its estimated expenses for the 

foregoing purpose , and 

(B) An equitable basis upon which the funds neces ary to 

support such budget hall b 0 contributed by all employer of 

the Subdivision· 

(C) After such budget and ba. is of contribution have been 

approved by the Admini trator, to determine and obtain 

equitable contributions as above set forth by all employers of 

the Subdivision, and to that end, if nece ary to institute legal 

proceeding therefor in its own name. 

3. Each employer of the Subdivision hall pay his or its equitable 

contribution to the expen es of the maintenance of the Code uthority, determined as hereinabove provided, and ubject to rules and 

regulations pertaining thereto i sued by the Administrator. Only 

employers of the Subdivision complying with the Code and contributing to the expen e of it administration, as hereinabove provided, unless duly exempte l from making uch contributions, shall 

be entitled to participate in the selection of the n1-embers of the Code 

Authority or to receive the benefits of any of its voluntary activities 

or to make use of any emblem or insignia of the ational Recovery 

Admini tration. 

4. The Code Authority shall neither incur nor pay any obligation in excess of the amount thereof as e timated in its approved 

budget, except upon approval of the Administrator; and no subsequent budget shall contain any deficiency item for expenditures in 

excess of prior budget estimates e:s:cept those which the Administrator shall have so approved. 

(c) In order that the Code .Authorjty shall at all times be truly 

representative of the Subdivi ion and in other respects comply with 

the provisions of the Act, the Admini tra tor .may prescribe uch 

hearings as he may deem proper; and thereafter if he shall find 

that the Code Authority is not tn1ly r epre entative or .does not in 

other respects comply with the provision of the Act, may require 

an appropriate modification in the method of selection of the Code 

Authority. 

( d) Action by Employer in any Subdivision meeting for the 

election of Code Authority hall be by vote of the Employers entitled 

to vote as provided in Section (b3) of this Article V, and who are 

present in person or by proxy each such Employer to have one vote 

onl,Y. 

( e) Action by Employers in any Subdivi ion meeting for the 

adoption of procedural rules re, isions or additions to the Supplemental Code, or the tran action of other busine s of the Subdivision 

under this Supplemental Code, shall be by vote of the Employers 

who are entitled to vote thereat as provided in Section (b3), Article 

V of this Supplemental Code and are present in person or by proxy 

duly executed and filed with Code Authority; cast and computed in 

the 1nanner provided in Section ( d), Article VI of the Code. All 

questions as to the number of votes which each Employer shall be 

entitled to cast at any meeting of Employers other than the meeting held to vote for the election of the permanent Code Authority 
10 

shall be determined by Code Authority, in accordance with Sec- tion ( d) , Article VI of the Code. 

(f) Employers in this Subdivision having a common intere t and 

common problems may be grouped by Code Authority for admini - tratiYe purpo es. There shall be a Group Code Authority approved 

or appointed by Code Authority for each such group. 

(g) If formal complaint is made to Code Authority that provisions of this Supplem.ental Code have been violated by any Employer, 

Code Authority or the proper Group Code Authority hall inv tigate the comr laint, and to that encl, may to the extent p rmitted by 

the Act, cau e u h investigation, examination or audit to be made, as 

may be deemed nece sary. If such investigation is made by Group 

Code Authority, it shall r port the result of such inve tigation or 

audit to Cod \..uthority for action. 

(h) The Code Authority may appoint a Trade Practi e Commit- tee which shall meet with the Trade Practice Committee appointe,1 

under uch other Codes as may be related to the Subdivi ion for the 

purpo e of formulating fair trade practices to gov rn the relation- ships between production and di tribution Employ r under this 

Supplemental Code and un ler such others to the en l that such fai1· trade practice 1nay be proposed to the Administrator as amend- ments to this Supplemental Code and such other Codes. 

ARTICLE VI 1- AccouNTIN G AND CosTING 

The Code Authority shall cause to be formulated an accounting 

system and methods of co t fin dino- and/or e timating capable of u.~e 

by all Employers of this Subdivi ion. After uch sy tern ancl 

methods have been formulated, full detail concernino- them haH 

be made available to all employers. Thereafter all Employer hall 

determine and/ or e timate co ts in accordan e with th I rincipl of 

such method . 

ARTI LE \ II 1- SF.LLIKG BELOW RE\. ON ABLE T 

1 ·c • para"ra[lh 2 f orrl r ap1n·ovin~ this 'ode. 
11 

SECTION 2. The :foregoing Section (1) shall not apply to (a) 

dropped lines, or (b) seconds, or ( c) inventories which must be 

converted into cash to meet emergency needs, all of which 1nay be 

disposed of by any employer at any price and on any t erms or conditions, but only if such employer, not less than two weeks before 

such proposed disposal, has filed with Cod Authority a statement 

in writing setting forth the facts of, Pn,l rea ons for, such proposed 

disposal and the price terms and corn.litions of sale, and Code Authority has not, ( with the approval of the Administrator), before 

the termination of such two week period, in writing, disapproved 

the proposed disposal. Notice of such dispo al, if not disapproved, 

shall be sent immediately to all em.ployers manufacturing products 

of equivalent design, charucter, quality or specifications, who ma.y 

sell such products nt prices and on terms and conditions as favorable as those stipulated in the proposed di posal, when meeting the 

competition of such proposed disposal. 

SECTION 3. The foregoing Section (1) shall not apply to a sale 

rn.acle in order to meet competition on product manufactured outside the United States. For such disposal, any employer may sell, 

at prices and on terms and conditions as favorable as those of the 

competing foreign product, but only if he has first reported to the 

Code Authority hjs intention so to sell, and the facts as to the 

competition which justifies such action. 

AnTICLE VIII 1-PmcE LISTS 

(a) If and when the Code Authority of this Subdivi ion determines that in any branch or group of the Subdivi ·ion it has been 

the generally renognized practice to sell a pecifiecl product on the 

basis of net price lists, or price lists with discount sheet.;:, and terms 

of sale and payrn.ent each employer shall, within ten (10) days 

after notice of such determination, file with the Code Authority a 

net price list, or a price list and discount sheet, as the case may be, 

individually prepared by him, showing his current prices, or prices 

and discounts, an l terms of sale nnd payment, for such specified 

product, and the Code Authority shall immecliat ly publish and 

send copies thereof to all known employers who are cooperating in 

this Supplemental Code as described in Section (b3) of Article V 

hereof. 

Revised price lists and/ or discount sheets and/or terms of sale 

and payment for such product may be filed from time to time thereafter with the Code Authority by any employer, but such revised 

price lists and/ or discount sheets and/or terms of sale and payment 

shall be filed with the Code Authority ten (10) clays in advance of 

the effective date. Copies of such revised price lists and/or di count 

sheets and/or t erms of sale and payment, for such product, with 

notice of the effective date specified, shall be immediately publi heel 

and sent to all known employers who are cooperating in this Supplemental Code as described in Section (b3) of Article V hereof, any 

of whom 1nay file, if he so desires, to become effective upon the date 

when the revised price list and/or discount sheet and/ or terms of 

sale and payment first filed shall go into efi'ect, revisions of his price 

1 See paragraph 2 of order approving this Code. 
12 

lists and/or discount sheets and/or terms of sale and payment estab- lishing prices or prices and discounts not lower or terms of sale and 

payment not more favorable than those established in the revised 

price lists and/or discount sheets and/or terms of sale and payment 

first filed. Nothing in the foregoing shall constitute a limitation 

upon the right of any employer to file revised Ii ts fixing his own 

prices, discounts and/or terms of sale and payment, which prices 

and discounts may be either more or less favorable than those contained in any other price list, to be e:ff ecti ve as provided in the first 

sentence of this paragraph.

1 

(b) If and when the Code Authority shall determine that in any 

branch or group of the Subdivision not now selling its product on 

the basis of price lists, with or without discount sheets, with terms 

of sale and payment, the distribution or 1narketing conditions in said 

branch or group are the same as, or similar to, the di tribution or 

marketing conditions in a branch or ~roup of the Subdivision where 

the use of price lists, with or with.out cti count sheets, and/ r terms of 

sale an l payment, is well recognized, and that a system of selling on 

net price lists or price lists and discount sheets with terms of sale and 

payment for such product should be put into effect in u h branch 

or group, then each employer of such branch or group ·hall within 

ten ( 10) days after notice of such determination, file with the Code 

Authority net price lists or price lists and discount sheets, containing 

terms of sale and payment, showing his current price and discount 

and terms of sale and payment, and such price lists and/or di count 

sheet and/or terms of sale and payment may be thereafter r evi cl in 

the manner hereinabove provided; and such methods of pricing and 

r evisions thereof shall be " published and sent " as described in rticle VIII (a) ; provided, however, that the Code Authorit. hall 

111ake no determination to place any product of the ubdivi ion (not 

now on a price list basis) on a price list basis, as provided in thi 

paragraph (b) of Article VIII, unle s the employer who are at 

that time engaged in manufacturing uch. produ t and ar a that 

time cooperating, have given their a:ffirmativ on ent to u h det rmination. The eligibility r quirements, metho l an l ffect f u h 

votino· hall b th ·ame as I rovided in secti n ( e) of Arti 1 '\ . Ea ·h employer ·hall I repar and hall furni ·h the l .L uth rit 

for di tribntion ·with uch number of opi s of hi pri 

li ount heets and/ r terms of sale and payment a· 

ity may pre. cribe. 

(c) Jo emplo er shall ell lire tly r in hr tl} by an.7 m an 

whaLo Y r any I rocln t of th nb liYi ·i n o,· r 

of thi. \..rti 1 \ III ut a pri or a di. nnt. r n t rm. of .·nl 

rind paym nt cliff r nt from h · 1 roYi. l 1 in hi: ,Yn ·n1T n n 

I ri li:t:' 1· pri · list· an l cli: 'm111t . he t~, 1 r Yicl 1 thnt nothin~ 

in th ab v . hall 1 r n'n an rnploy r from al 1ing to bi. own 1 ri 

and/ r I ric li. ·t and ch · ount .-h ts b)· in r n ·ine-: hi:-; jc prie 

in ·lu l unusual . clling 'nginr rino·, :-, 1Ti ·ini-: finnn in<. finan ·i al 

ri.·l .-, or th r similar ~p ·i al ·harp: s l roYi 1 cl h \\ Y r, thn i th 

v nt of an 'lllploy r qu< ting a highrr pri <' han th pri '< 1 ubli. h 1 

in hi.· own pri · list nncl/or pri ·' li:-- di::-- ·ount .-h h t tal· 

1 p:u:i~ra pl1 2 of o n! r n Jl lll'nvi 11~ t bi: t 'nu . 
13 

care o:f unusual selling, engineering, serv1c1ng, financing, financial 

risks, or other similar special charges, he shall not subsequently 

quote a lower price on said prospective sale than that price first 

quoted, except in accordance with revised price lists duly filed or 

unless he simultaneously eliminat€s part or all o:f the unusual engineering, servicing, financing, financial risks or other similar special 

charges, :for which a corresponding reduction only may be made. 

(d) Wherever by the provisions of this Article VIII an employer 

is o'r may be required to or permitted to file terms of sale and payment, such terms shall mean usual or standard terms, and to cover 

any special and/ or unusual terms definite formulae for determining 

such special and/or unusual terms shall be filed. 

( e) If and when Code Authority shall determine that it is undesirable to continue the filing of net price lists and/or price lists 

with discount sheets and/or fixed terms of sale and payment on 

any product in respect of which such filing has heretofore been 

required, such filing shall cease and the provisions of this Article 

shall not apply to such product unless and until Code Authority 

shall again determine that such filing be made. 

(f) The Code Authority shall from time to time, with the approval of the Administrator, formulate, pre cribe and distribute to 

persons in the Industry regulations with respect to minimum cash 

payments, and/or maximum deferred terms, and/ or carrying or 

finance charges. 

ARTICLE IX1- UNFAIR TnADE PRACTICES 

The following practices constitute Unfair Methods of Competition for employers of the Subdivision. They are prohibited and are 

in violation of this Code : 

1. No Employer shall knowingly make any misrepresentation in 

connection with the sale or advertisement for sale and/ or marketing 

of any products of this Subdivision with the intent or effect of misleading or deceiving buyers, or prospective buyers, regarding their 

quality, composition, or service features. 

2. No employer shall give, permit to b given, or directly offer to 

give, anything of value for the purpo e of influencing or r ewardjng 

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, prin,...ipal or party. This Com.mercial bribery 

provision shall not be construed to prohibit free and general distribution of articles commonly used for a 1vertising except so far as 

such articles are actually used for commercial bribery as hereinabove 

defined. 

3. No employer shall induce or attempt to induce by any means 

any party to a commercial agreement with another Employer to 

violate such agreement. 

4. No Employer shall secretly 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 

J Sf'r par agraph 2 of onlcr approving this Colle. 
14 

shall any Employer 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. 

5. No Employer shall publish or circulate threats of suits for infringement of patents or trade marks, or of any other legal proceedings not made in good faith, with the ten lency or effect of haras ing 

competitors or intimidating their customers. 

6. No Employer shall procure, otherwise than with the consent 

of any other employer, any information concerning the busine s of 

such employer, which i · properly regarded by uch employer as a 

trade secret or confidential within his or its organization. 

7. No Employer shall accept a contract wherein the Employer assumes re ponsibility for indirect or consequential damage nor shall 

any Employer grant a guaranty covering defective workman hip, 

material or design to extend for a longer period than ne year. The 

term "indirect or oon equential damao-es" is defined to mean damages ( 1) other than, or in excess of, the reasonable ost of repairing 

or replacing any defective machinery, equipment or part furni hed 

by the Employer under the contract, or (2) other than stipulated, 

liquidated damages relating to deliYery, completion and/ or 

p rformance. 

8. No Employer shall guarantee co t of power con. urned or co t 

of product produced by products of the Subdivi ion. 

9. No Employer shall, except in order to comply with the writt n 

specifications of any agency of the Federal Government, tate Government, or any Subdivi ion thereof, accept contra t embo 1 ing 

penalty or bonus clauses relative to dates of completion of contra ts. 

10. No Employer shall guarantee co t of nrnintenance of pr du t 

of the Subdivision. 

11. No Employer hall make an allowance or trade-in Yalu to a 

buyer for u ed or second-han 1 produ t . 12. Jo Employer shall indulge in le tructiYe l ric -cnttino-. 

ARTI LE X - S ALE F OR EXPORT 

war ~, or m 

manufactur 

RTIC'LE .... T - ... l uDIFIL\TIO .. -

(a ) .· provi l l by ~ diem 1 ( ) of th .\. ' . th Prr:id n may 

f r nn time to tim c·nnc· l )1' modify any onh'r. a1 pr , al li n. 

rult> < r rrp:ulati n is u cl 1111 I r Ti t!' I of th • ·t. ... \.ny am ndm •nt ·, a l liti on.· l' 'Yi~ion.· or ~111 p lt>ment-.:· f thi: ,' nppl m •nt al 
15 

Code authorized by the affirmative vote of 66%% of the Employers 

in this Subdivi ion shall be in full force and effect upon approval 

by the Administrator. The eligibility requirements, method and 

effect of such voting shall be the same as provided by Article V, 

Section ( e) hereof. 

ARTICLE XII- 1V ITHDRA w AL 

Upon thirty (30) days' notice to the Basic Code Authority and 

to the Administrator, this Subdivision may, upon the concurring 

affirmative vote of Employers, within the said Subdivision entitled 

to cast two-thirds or more of all the votes that might be cast by all 

Employers within the Subdivision entitled to vote thereon, withdraw · 

from the jurisdiction of the Basic Code Authority. The eligibility 

of voters shall be in accordance with Article V, Section (b3) and the 

n1.ethod and effect of such voting shall be in accordance with the 

provisions of Article V, Section ( e) hereof. After and in the event 

such withdrawal is accomplished this Supplemental Code, together 

with the provi ions of the Code shall become and be the sole code 

governing this Subdivision, and the Code Authority shall for this 

Subdivision becomE, and be the sole Code Authority and shall perform all the functions with respect thereto. 

ARTICLE XIII-MONOPOLIES 

Applicant imposes and shall impose no inequitable restrictions on 

membership therein. The Supplemental Code presented by it is 

not designed to promote monopoly, and shall not be so construed or 

applied as to oppress or eliminate small enterprises or discriminate 

against them, and is designed to effectuate the policy of the Act. 

ARTICLE XIV-EFFECTIYE DATE 

This Supplemental Code shall become effective and binding on all 

employers engaged in the Subdivis1on on the eleventh day after : 

its approval. 

Approved Oocle o. 347-Supplement No. 3G. 

Registry No. 1328--09. 

0 


UNIVER SITY OF FLORIDA 

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