Approved Code No. 181 Registry No. 1328-02 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

COMMERCIAL 

REFRIGERATOR INDUSTRY 

I I ' 

AS APPROVED ON DECEMBER 23,1933 

BY 

PRESIDENT ROOSEVELT 

I • -.. - ,... -- ~ .. 

2. Letter of Transmittal 

8. Code 

UNITE D STATES 

GOVERNMENT PRINTING OFFICE 

W ASHil'{GTON : 1933 

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - Price 5 cents 
This publication is 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 

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Boston, Mass. : 1 01 ustomhouse. 

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

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Detroit, Mich.: 2213 First National Bank Building. 

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Indianapolis, Ind.: Chamber of Commerce Building, 

Jacksonville, Fla. : hamber of Commerce Building, 

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Louisville, Ky.: 40 Federal Building . .Memphi , Tenn. : 229 Federal Building. 

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an Francisco, nlif.: 310 u tombouse. 

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Approved Code No. 181 

CODE OF FAIR COMPETITION 

FOR THE 

COMMERCIAL REFRIGERATOR INDUSTRY 

As Approved on December 23, 1933 

BY 

PRESIDENT ROOSEVELT 

Executive Order 

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

compliance with the provisions of Title I o the National Industrial 

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

of Fair Competition for the Commercial Refrigerator Industry, 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 sub-section (a) of Section 3 of said Act have 

been met: 

NOW THEREFORE, I, Franklin D. Roosevelt, President of the 

United ~tates, 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 approve the report, recommendations and 

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

Fair Competition be and it is hereby approved. 

Approval recommended: 

HuGHS. JoHNsoN, 

Administrator. 

The WHITE HousE, 

December ~3, 1933. 

FRANKLIN D. ROOSEVELT. 

28772°----296-53----83 (441) 
The PREsiDENT, 

DECEMBER 5, 1933. 

The White House. 

Sm: 1. This is a report on the Code of Fair Competition for The 

Commercial Refrigerator Industry in the United States as revised 

after the hearing conducted in Washington on November 9, 1933, in 

accordance with the provisions of the National Industrial Recovery 

~ct. 

PROVISIONS OF THE OODE AS TO HOURS, WAGES, AND GENERAL LABOR 

PROVISIONS 

ABTIOLEI Ill-HOURS 

2. This Article stipulates that no employee shall work in ex ess of 

forty (40) hours a week, nine (9) hours a day, and five (5) days a 

week, excepting that in peak periods, and for times not to exceed 

eight (8) weeks in any six (6) months' period, employees may work 

forty-eight ( 48) hours per week, provided, however, that at least 

one and one half (llh) times the normal rate of pay is paid for 

hours in excess of fortl ( 40) hours a week and eight ( 8) hours per 

day. There are certain exceptions. The first of these covers employees in emergency maintenance and emergency repair work involving breakdowns or protection of life and property with one and 

one half (llj2 ) for overtime. The second exception is travellinO' 

salesmen and employees engaged in managerial and executive work 

who receive more than thirty-five dollars ($35.00) per we k. The 

third exception from the general rule covers the week of office and 

clerical employees, which is made five and one half ( 5lj2 ) days instead of five (5) days. The fourth exception i fir men, who hall 

not work more than forty-eight ( 48) hours per week or more than 

ten hours per day. The fifth exception is watchmen whose hours 

per week are limited to forty-eight ( 4 ) . The final exception is 

truck drivers, in tallation, repair and/ or er ction employe s wh 

are allowed a tol ranee of ten (10) percent in any e k an r ive 

one and one half (llj2 ) for time worked in exc s of nin (. ) h urs 

per day. 

ARTICLE IV- W AGES 
443 

with the proviso that no member of the industry shall allow this 

category of workers to exceed 5% of the total number of workers 

which the member employs. Learners are defined as beginner employees requiring instruction and/or experience for a period of 

three (3) months and employees can be classified as learners only 

once. 

This Article establishes a minimum rate of pay regardless of 

whether the employee is compensated on a time rate, piece work, or 

other basis; prohibits any evasion of the wage schedules through dismissals and reemployment; provides for an equality of pay as between 

males and females; limits the employment of handicapped persons 

to such persons and conditions of employment prescribed by such 

State authority as is designated by the United States Department 

of Labor; and provides, finally, for an equitable readjustment of 

all wages above the minimum. 

ARTICLE V~ENERAL LABOR PROVISIONS 

4. This Article provides that no person under sixteen ( 16) years 

of age shall be employed in the industry, nor anyone under e1ghteen 

(18) years of age at operations or occupations which are hazardous 

in nature or dangerous to health. 

This Article embodies subparagraph (a) of Section 7 of Title I 

of the National Industrial Recovery Act. 

This Article further provides that employers shall not reclassify 

employees or the duties of occupations so as to defeat the purpose of 

the Act and requires every employer to make reasonable provision 

for the safety and health of his employees, to post complete copies 

of this Code in accessible places and to make payment of all wages 

at regular pay periods and in lawful currency or by negotiable check 

payable on demand. 

ECONOMIC EFFECT OF THE CODE 

5. The members of this industry manufacture commercial refrigerators and the state of the industry is necessarily dependent upon 

factors outside the industry, such as the demand for vegetable and 

animal products whose retail distribution requires refrigeration. 

According to the report of the Division of Research and Planning 

the decline in employment in this industry since 1929 has been 31%, 

which represents a numerical decline of 1,250 men. Assuming that 

demand returns to the 1931 level, this same report indicates that the 

forty-hour week provided in this Code will re-absorb at least 450 

workers and create employment at least 14.2 percent greater than 

the 1931 level, or 91.4 percent of the 1929 level. 

In addition to the re-employment which should, in this Industry, 

follow approval of this Code, the purchasing power of the employees 

should also be developed. The r~port of the Research and Planning 

Division shows a decline in the wages of this Industry since 1929 

of approximately 21 percent for unskilled and skilled labor alike. 

This represents a decline from 67.3 in 1929 to 53.3 in 1933 in the 

average hourly earnings for skilled labor, and from 43.7 in 1929 to 

34.5 in 1933 in the average hourly earnings for unskilled labor. 

The members of the Industry have been as desirous as anyone of 
444 

stemming this decline. By cooperating through the President's Reemployment Agreement they have stemmed it, and the wage rates 

provided in this Code promise, with such adjustments as are outlined in the Code, to fulfill the objects of the Act. The minimum 

wage stipulated is five and one half cents ($0.051j2 ) higher than 

the average wage now paid and but three and seven tenths cents 

($0.037) lower than the average paid in 1929. This is a substantial 

increase over the wage levels of last spring. 

FINDINGS , 

The Administrator finds that: 

(a) The Code as recommended complies in all respects with the 

mandatory provisions 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 applicant group imposes no inequitable restrictions on 

admission to membership therein and is truly representative of the 

Commercial Refrigerator Industry; and that 

(c) The Code as recommended IS not designed to promote monopolies or to eliminate or oppress small enterpnses 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 reconunended, therefore, that this Code be approved. 

Respectfully, 

HuGHS. JoHNSoN, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

COMMERCIAL REFRIGERATOR INDUSTRY 

ARTICLE I-PURPOSES 

To effect the policies of Title I of the National Industrial Recovery Act this Code is submitted as a Code of Fair Competition for 

the Commercial Refrigerator Industry, and upon approval by the 

President its provisions shall be the standards of fair competition 

for such industry and shall be binding upon every member thereof. 

ARTICLE II-DEFINITIONS 

SECTION 1. The term "Commercial Refrigerator Industry" or 

"Industry", as used herein, is defined to include the manufacturing 

and the installing, andjor repairing (by the manufacturer) of commercial refrigerators, and such branches or subdivisions thereof as 

may from time to time be included under the provisions of this Code. 

SEc. 2. The term " Commercial Refrigerator " as used herein is 

defined to mean an insulated room, box, chest, cabinet, display case 

or counter, when not a part of the fixed construction, for the storage 

and/or display of perishable food or other products under refrigeration, in meat markets, grocery and delicatessen stores, florists' shops, 

hotels, restaurants, clubs, institutions, and such other similar establishments where such food or other products are retained or stored 

in large quantities for purposes of sale or service; provided, however, that this term does not include the refrigerating unit or agent. 

SEc. 3. The term "member of the industry " includes but without 

limitation any individual, partnership, association, corporation, or 

other form of enterprise engaged in the industry, either as an employer or on his or its own behalf. 

SEc. 4. The term "employee" as used herein includes any and 

all persons engaged in the 1ndustry, however compensated, except 

a member of the industry. 

SEc. 5. The term " learner " as used herein is defined to mean and 

include all beginner employees requiring instruction and/or experience in their duties and/or occupations for a period not to exceed 

three ( 3) months. 

SEc. 6. The term " trade " as used herein shall mea.n all channels 

of distribution of the products. 

SEc. 7. The term "Association" as used herein is defined to mean 

"The Commercial Refrigerator Manufacturers Association." 

SEa. 8. The term " South " as used herein shall mean the States of 

South Carolina, Georgia, Florida, Arkansas, Alabama, Mississippi, 

Louisiana, Arizona, Oklahoma, Texas, and New Mexico. 

(445). 
446 

SEc. 9. The terms "Act" and "Administrator" as used herein 

mean, respectively, Title I of the National Industrial Recovery Act 

and the Administrator for Industrial Recovery. 

ARTICLE III-Houns 

SECTION 1. Maximum hours.-N o employee shall be permitted to 

work in excess of forty ( 40) hours per week (except that in cases of 

peak demand employees may work forty-eight ( 48) hours for eight 

(8) weeks in any six (6) months period), or nine (9) hours in any 

twenty-four (24) hour period, or more than five (5) days in any week 

(seven ( 7) day period). At least one and one half ( 11/2 ) times the 

normal rate shall be paid for hours worked in excess of eight (8) 

hours in any twenty-four (24) hour period and forty (40) hours in 

any five ( 5) day period. 

SEc. 2. Exceptions a8 to hours.-The maximum hours otherwise 

fixed herein shall not apply to employees in emergency maintenance 

or emergency repair work involving breakdowns or protection of life 

or property, but in any such special case at least one and one half 

( 1Jf2) times the normal rate shall be paid for hour worked in exce s 

of the maximum hours otherwise herein provided. 

SEc. 3. Excepted also shall be travellin~ salesmen and employees 

engaged in managerial or executive work who receive more than 

thirty-five dollar ($35.00) per week (seven (7) day period). 

SEc. 4. Excepted also shall be office or clerical employees, who 

shall not work or be permitted to work in excess of forty ( 40) hours 

per week (seven (7) day period), or nine (9) hours in any one 

twenty-four (24) hour period, or more than five and one half (5Y2 ) 

days In any week. 

SEc. 5. Excepted also shall be firemen who shall not be permitted 

to work more than forty-eight (48) hours per week (seven (7) day 

period) or more than ten (10) hours in any twenty-four (24) hour 

period. 

SEc. 6. Excepted also shall be watchmen who shall not be permitted to work more than forty-eight (48) hour in any week (se,en 

(7) ay period). 

SEo. 7. Excepted al o shall be truck drivers in tallation, repair, 

and/or erection employees who shall be permitted a tolerance of ten 

percent (10%) in any week (seven (7) day period, provided1 however, that such employees who work in exc ss of nine (9) hours In any 

twenty-four (24) hour period or more than forty-four ( 44) hours 

per week shall be aid not less than one an one half (il!z) times 

their normal rate of pay for said excess. 

EC. 8. Employment by several employers.-No mployer hall 

knowingly permit any mployee to work for any tim whi h, when 

totaled w1th that alr a y performe with an h r mpl y r r mployers in this industry, ex eeds the rna im m p rmitt h r in. 

ARTICLE IV-W 

ECTION 1. M ini1nwm wage .-No em pl 

pay eri d I than t the rate of forty n 

us h r in oth rwi e pr vi d. 
447 

SEc. 2. Employees in the South may be paid not le. than at the 

rate of thirty-seven and one half cents (371j2¢) per hour. This 

differential shall be a subject of study and inve tigation by the Code 

Authority with a view to its elimination at the earlie t time practicable for the industry. 

SEc. 3. llfinin1u1n wage foJ' clerical and office employees.-N o clerical or office employee shall be paid in any pay period le s than at the 

rate of fifteen dollar· ($15.00) per week. 

SEc. 4. 1r aqes for l arners.-.N o employee hall be engaged a · a 

lea.rner more than once nor be paid in any pay pe.i·iocl less than at 

the rate of thjrty-two cents (32¢) per hour, provided, howeYer that 

the total number of all such employees employed by any one member 

of the indu try during any calendar month shall not exceed fiye percent ( 5% ) of the total number of all employees employed by such 

nnployer (exclusive of office and clerical employees). 

SEc. 5. Piecework cmnpensation, minimum ~oa s.-This article 

establi ·hes a minimum rate of pay which shall apply, irrespective of 

whether an employee is actually compen ated on a time rate, piecework, or other basis. 

SEc. 6. Evasion th1·ough ree11~ployrnent .-No employee now employed at a rate in excess of the minimum shall be discharged and 

reemployed at a lower rate for the purpose of evading the provi ions 

of this Code. 

SEc. 7. TVages above 1ninimwn.-Employers sha11 not reduce the 

rates of wages for employee who e. rate are now in exces of the 

minimum rate of wages herein pro' ided (!lotwithstanding that the 

number of hours worked in such employment may be hereby decreased), and where in any case an employer has not increa eel the 

rates of wages for such employees prior to the effective date of this 

Code by an equitable readju tment of all wage rates such employer 

shall readjust all such wage rates. This provision shall be interpreted in the same manner that paragraph 7 of the President's 

Reemployment Agreement has been interpreted by the Admini trator 

in Interpretations Nos. 1 and 20. 

SEc. 8. Handicapped persons.-A person whose earning capacity 

is limited because of age or physical or mental handicap may be 

employed on light work at a wage below the minimum established 

by this Code, provided the employer obtains from the State authority 

designated by the United States Department of Labor a certificate 

authorizing hi employment at such wages and for such hours as hall 

be stated in the certificate. Each employer hall file with the Code 

Authority a list of all such persons employed by him. 

SEc. 9. Fenwle employees.-Female employees performing substantially the same ·w·ork as male employees ·hall receive the . ame 

rate of pay as male employees. 

ARTICLE V-GENETI.lL L.-.BOR PRon roKs 

SECTION 1. 0 hild labor provision.-N o per on under sixteen ( lG) 

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 Authority shall ubmit to the Administrator before F ebruary 

2 772°----~96-53----33----2 
448 

1, 1934, a list of such operations or occupations. In any State an 

employer shall be deemed to have complied with this provi ion as to 

age if he shall have on file a certificate or permit duly is ·u 1 by the 

Authority in such State empowered to issue employment or age 

certificates or permjts sho,Ying that the employee i"' of the required 

age. 

SE . 2. P1·ovisions frmn the act.-In compliance with Section 7 

( :1) of the Act, it i provided: 

(a) That employee · hall have the right to organiz and bar~·ain 

collectively, through re1)l'esentatives of their own choosi !!, and shall 

be free from the interference, restraint, or coer ion of empl yers of 

labor, or their agents, in the de. ignation of uch repre ·e ntatin~s or 

in self-organization or in other concorted activities for the purpose 

of collective bargaining or other mutual aid or protection. 

(b) That no employee an l no one seeking employment hall be 

required as a condition of employment to join any company union 

or to refrain from joining, organizing, or a si tin()' a labor ro·anization of his own choo ing and 

(c) That employers . ·hall ·om ply with the maximum hour · f 

labor, minimum rate· of pay, and other conditions f employment 

approved or prescribed by the President. 

SEc. 3. R eclassificmtion of e7nployees.-N o employer hall recla -

~:ify employee. or duties of occupations performed f or the pnrp c of 

defeating the provi ions of the Act or of thi · Code. 

SEc. 4. Standards fm· safe ty and health.-Every employer hall 

make rea ·onable provision for the safety and health of his employ es 

at the place and during the hours of their employment. Stm rln r 1s 

-for safety and health hall be . ubmitted by the Code Authority to 

the A lministrator ~rithin ix (6) months after th dfectiY date of 

t.hi. Cod . 

SEc. 5. 1 'tate laws.-N o pro,·ision in this Code shall .. up r. de any 

State or F deral la, ..... - which impo -cs on employ r · more trinO" nt 

r quirement a · to ab of employee , \\ao-~ hour of work, or a to 

afety, health, sanitary or general working con 1itions r insnr, nee 

or fire protection, than ar impo,.ed by this Col . 

SEc. G. Posting.-Each employer ·hall p t comple c p1 · f 

tlli · Col in onspi uous place ac es ible to employee, . 

'Ec. 7. Paym.cnt of '1. ages.-Each mployer .. hall nuth~ p~ ym nt 

f all "'·ages due .in laYdul CUlT n y r by n g tiable ch el- ther f r 

pa a1 le on demand. ' aO'CS shall be I ail at th end · a<:h rc~ular 

I ay p rio l but not to .·ceed mimont hl int n al ·. ' he..; "age~ 

shall be ex mpt from nn,v payment for p n ·io l'-, in:-umnc . m· sn ·h 

b n fits th r than tho:-.e Yoluntaril)' pa il by 11ploy ·. _ ~o mplo. • r r hi · a nt .. hall a ep . <lire tly r in lir · ly, , ny r l atp m 

sn h ng : r giY anything of n1lnc r .·t n 1 an.· f:n )1':-. o an.' 

p r. on f r th pnrpo. c influencing rat · of wag'~ or \orkin6 

on<liti ns < f th ir empl )' , . r h ]1' yj, i )}1,' of thi .. ' ·t' n l' ganling pn, '111 11 of ''lg<' nt th 

n1 of ach p, .' peri cl hall n aptlY t.o 1 er:·< 11 <'mplo. ·l tl in n 

mnung<'rial o1· P\.<'L'U ti\ l ·a pacit~· ho <'arn 11 1t ]p .... that I t hid. ·-fl '<' 

lollar.' (:"t>.OO) JlPl' \\t'•k nn· to }HJ's<n lllplo~<·d in cl~. rit'll or 

oflin' "ork. Th wtte; for p ·r. Olh l'lnpln.' · 1 in l'l 1 i ·al or olli 

worl' hall hl' pni l ; t the tlnd of p;1y p l'i d n t to < "l' d . mimonth I · j)('ri 1~. 
449 

AnTI LE VI ~RGANIZATION, PmvERs, AND DunEs OF THE CoDE 

AuTHORITY 

SEcTION 1. 01'ganization ancl constit~ tion. A Code Authority is 

hereby constitute l to cooperate w·ith the Admini trator in the admini.stration of this ode. 

SEc. 2. The Code Authority shall consist o.f even (7) individuals 

to be selected as follows: :Members of the industry shall elect the 

industry members of the Co'Ie Authority by a majority Yote of the 

member of the industry. As 1.1any (but not exceeding two (~)) 

of uch inclu try members of the Code Authority , hall b sel cted 

from those members of the industry which are not members of the 

As ociation as may be eligible to uch representation as proYided by ~e tion 8 of tllis Article at the time of election. Th complement of 

the indu. try members of the Code Authority shall be selected from 

member of the indu,stry which are members of the As ociation. 

Each industry member of the Code Authority hall be a director, 

officer, or executive of the member of the industry. 

SEc. 3. The A ociation is hereby desj rrnatecl as the agency to 

conduct an election o.f the me.mbers of the Code Authority within 

fifteen (15) days after the effectiYe date of this Code, and any other 

election of members .of the Code Authority which may thereafter 

be held. l\1embers of the Code Auth rity hall be elentecl to erve 

for a term of one ( 1) year or until their succe .sors are elect l at 

the next annual meeting of the members of the industry. In the 

event of any yacancy in the member hip of the Code Authority, :t 

specjal meeting of the members of the industry for an election to fill 

the incomplete term of such members hall be called by the Association. Notice of the time and place of each election shall be sent 

to each member of the industry at his addre , as regi tered in accord- ance with Article XII, at least ten days in adYance of such election, 

and voting at such election may be by person, by proxy, or by letter 

ballot. Each member of the industry shall have one (1) yote at 

each election. 

SEc. 4. In addition to member ·hip as abo,·e pro-vided there may 

be three (3) members, without -vote, to be appointed by th Administrator, to serYe for terms of from ix ( 6) n1onths to one ( 1) year 

so arranged that the terms do not expire at the same time. 

SEC'. 5. The representatives who may be appointed by the Admin- i tl·ator, together with the Achninistrator, hall be gi\·en notice of 

and shall be permitted to sit at all meeting · of the Code Authority. 

SEc. 6. Each trade or industrial association directly or indirectly 

participating in the selection or activities of the Code Authority 

shall (1) impose no inequitable re tr.ictions on membership, and 

(2) submit to the Administrator true copies of its articles of association, bylaws, regulations, and any amendments when made 

thereto, together with such other information as to membership, 

organization, and activities as the Admini,·trator mav deem necessary to effectuate the purposes of the Act. · 

SEc. 7. In order that the Code Authoritv shall at all times be 

truly representative of the indn -try and in' other respect·· comply 

with the provisions of the Act, the Administrator m.ay prescribe 

such hearing as h" may d em proper; and thereafter if he shall 
450 

find that the Code Authority is not truly representative or does not 

in other respects comply with the provi ions of the Act, may require an appropriate modification in the method of selection of the 

Code Authority. 

SEc. . ~Iemb r of the industry shall be entitled to parti ·ipate in 

and share the benefits o:f the activiti of the Cole Authority and to 

particir ate in the selection of the members thereof by senting to 

and complying with the requirem nts of this Code and su taining 

their reasonable share of the expenses of its admini tration. Such 

reasonable share of the expenses of administration hall be letermined by the Code Authority, subj ect to reYiew by he lministrator, 

on the basis of volume of bu ine s and/ or nch other factor a may 

be deemed equitable. 

SEc. 9. Nothing contained in this ode hall con titute th members of the Code Authority partners for any purpo e. Nor shall 

any member of the Code \..uthority be liable in any manner to anyne for any act of any other memb r, officer, agent, or employee of 

the Code Authority. Nor shall any men1ber· of the Cole Authority, 

exercising reasonable diligence in the con luct of his duti hereunder, 

be liable to anyone for any action or omi sion to act un ler this ode, 

xcept for his own wilful misfeasance or nonfeasance. 

SEc. 10. Po'wers and Duties.-The Code Authority ·hall have the 

following further power · and duties, which shall be subj ct to the 

right of the Administrator, on r view, to li approve: 

(a) To insure the ex cution of the proYi ion of thi · Cole and 

provide for the compllance of the industry with th I roYi ·ions of 

the Act. 

(b) To adopt by-law and rule and regulations for it procedure 

an 1 for the admini tration and enforcem.ent of the ole. 

(c) To obtain from m mbers of the indu try such information and 

report as are required for the admini ·tration of th ocl and to 

provide for submission by member of uch information and reports 

a · th~ Admini trator may deem ne e ary for the purpo recited 

in Section 3 (a) of the Act, which information an 1 r port · hall be 

·ubmitted by member to uch aclmini trative an 1/ r a Y rnment 

agencie as the Administrator ma. le. ignat · provi] l that nothing 

in thi · ode hall relieYe an. member f th indu tr r f an. xi tin~ 

bli ation t furnish r port to any g v rn1n nt a a n } . T indiYidual 1 ports shall be eli ·cl c l to an. other m mb r of th indu try 

r an r other part. x I t to uch 0 0Y rnn ntal a< n i b 

clir ct 1 b th A mini tl·ator. 

(d) T ·u ·e ·u h trac1 a ociati n · an l ther ag n ie a. i 1 m 

prop r for th arryin · nt of an £ it · activiti I r itl l for 

herein, pro,·id 1 that n thing h r in ·hall r li Y th d \..uth rit 

of it · luti · or 1· ·p n ·ibilitie uncl r thi · t1 an l that lPh tra 1 

a · ·o iati n an<l ng nci · . hall at all tim · b . ubj t an 1 1111 1 

"·itl th provi i n h reo£. 

( ) T mak r ·omnwiHlati n · t th 

coordination of th aclmini trati n f thi 

· cl · if anv as ma · b r lat c1 t th in 1ustx·y. 

(f) 'I ~e ·ur fr m m mb r f th in<hi:-;tr: 

pr p rti nat I ayment of th r • ~ tl<l 1 

th 1 nth rit antl it a tiYiti , . 

<ruita l an 

f maintainin<Y 
451 

(g) To cooperate with the Administrator in regulating the use of 

any N.R.A. insignia solely by those members of the industry who 

have assented to and are complying with this Code. 

(h) To recommend to the Administrator further fair trade practice provisions to govern members of the industry in their relations 

with each other or with other industries, and to recommend to the 

4-dministrator measures for industrial planning, including stabilization of employment. 

ARTICLE VII-TRADE PRACTICE RULEs 

GENERAL DEFINITION 

For all purposes of the Code the acts described in this Article 

shall constitute unfair practices. Any member of the industry who 

shall directly, or indirectly through any officer, employee, agent, or 

representative, knowingly use, employ, or permit to be employed, 

any of such unfair practices shall be guilty of a violation of the 

Code. 

Rule 1. Inaccurate Reference to Competitors, eto.-No member 

of the industry shall publish advertising which refers inaccurately 

in any material particular to any competitors or their goods, prices, 

values, credit terms, policies, or services. 

Rule~. I1WCcttrate Advertiainr;.-No member of the industry shall 

publish advertising (whether pnnted, radio, display, or of any other 

nature), which is misleading or inaccurate in any material particular, nor shall any member in any way misrepresent any goods 

(including but without limitation its use, trade-mark, grade, .quality, 

quantity, origin, size, substance7 character, nature, finish, material, 

content, or preparation) or credit terms, values, policies, services, or 

the nature or form of the business conducted. 

Rule 3. Commercial Bribery.-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. Commercial bribery provisions 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. 

Rule .f. Interference with Another's Contracts.-No member of the 

industry shall induce or attempt to induce the breach o:f an existing 

contract between a competitor and his employee or customer or 

source of supply; nor shall any such member interfere with or obstruct the performance of such contractual duties or services. 

Rule 5. Secret Rebates.-N o member of the industry shall offer 

or make any secret or discriminatory 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 offer or extend to any customer any secret or discriminatory service or privilege for the purpose of influencing a sale. 
452 

Rule 6. Giving Prizes, Premiwms, or Gifts.-No member of the 

industry shall offer or give prizes, premiums, or gifts in connection 

with the sale of products, or as an inducement thereto, by any scheme 

which involves lottery, misrepresentation, or fraud. 

Rwle 7. Defamation.-N o member of the industry shall defame 

competitors by falsely imputing to them dishonorable conduct, inability to perform contracts, questionable credit standing, or by other 

false representations or by the false disparagement of the grade or 

quality of their goods. 

Rule 8. Threats of LC!/Wswits.-N o member of the industry shall 

publish or circulate unjustified or unwarranted threats of legal .rroceedings which tend to or have the effect of haras ing competitors 

or intimidating their customers. Failure to prosecute in dne course 

shall be evidence that any such threat is unwarranted or unjustified. Rule 9. Espionage of Oompetiton.-No member of the In lustry 

shall secure or attempt to secure confidential information concerning 

the business of a competitor by a false or misleading statement or 

represe.ntation or by false impersonation of one in authority by 

bribery or any other unfair method. 

Rule 10. Selling below cost.- No member of the industry shall sell 

below his allowable cost. Pursuant to the provisions of Article VI, 

the Code Authority shall formulate or cause to be formulated stand- ard methods or systems of cost accounting for use in this industry, 

which methods or systems shall be adaptable to the cost-accounting 

procedure of and to the business of this industry. Such methods or 

systems shall specify the factors that shall determine the allowable 

cost for each member of the industry pursuant to the provisions of 

this section. Upon approval of such methods or systems by the 

Administrator the Code Authority shall furnish to each member of 

the industry complete details of such methods or system . Thereafter in determining costs each member of the indu try shall use a 

co t-accounting system which shall be at least as complete and detailed as the cost-accounting method or system recommended by the 

Code Authority and approved by the Administrator. 

The cost of a used refrigerator or other product of this indu try 

for which a trade-in allowance has been made by the seller of new 

quipment to replace that taken in exchange hall be not les than 

the amount of the allowance sho n on the purcha e contract for 

uch new equipment. This provi ion doe not apply to the ale of 

obsolete or dama ·ed products, whi h product rna. be sold only at 

uch price and under su h t rm and conditions of ale as shall be 

establi ·hed by the Code Authority. 

Rule 11.-N o member of th industry shall dire tly or indir tly, 

di criminate in price betw en diff r nt purchn r f th pr u ts 

of thi industry; providedi howe r that n thing ntaine in thi 

ction hall pr ent dis runination in pri e b twe n pur hn. r f 

the arne la s on account of diff rene in th tracl qualit r 

quantity f the produ t old or which mak nly u ali wan f r 

differ nee in the co t of ellinb or tran portati n. 

Rule 1~.-No memb r of the indu try shall r II refriCY ratin(Y 

units, a . orie , equipment, or oth r produ t of ther in u tri s, 
453 

without the addition to the invoice cost of all other elements of cost 

as determined in accordance with Rule No. 10 of this Article. 

Rule 13.-N o member of the industry shall sell any commercial 

refrigerator or other product of this industry of special design or 

size at less than the estimated co t of such pursuant to Rule 10 of 

this Article. 

Rule 14.-No member of the industry shall, directly or indirectly 

permit or allow his employees, agents, or representatives to lend 

money or anything of value to any purchaser for the purpose or with 

the effect of financing or assisting to finance any contract for the 

purchase of the products of this industry. 

Rule 15.-N o member of the industry shall postdate or predate 

any contract, invoice, quotation or receipt, or withhold from or insert in any contract, invoice, quotation, or receipt any statement which 

makes such contract, invoice, quotation, or receipt a false statement 

either in whole or in part. 

Rule 16.-N othing in this Code shall limit the effect of any adjudication by the Courts or holding by the Federal Trade Commission 

on complaint, finding; and order, that any practice or method is 

unfair; provided, that such adjudication or holding is not inconsistent with any provision of the Act or of this Code. 

ARTICLE VIII-PuBLICITY OF PRICEs, TEmvrs, AND CoNDITIONS 011' 

SALE 

SEcTION 1. Within ten (10) days after the effective date of this 

Code each member of the industry shall file and shall maintain on 

file with the Code Authority, or with such agency as the Code Authority may designate, such member's current and most recently 

published catalogue and specifications and a full and complete price 

list with discounts applicable thereto for all his standard products. 

Such price lists shall be based on the net retail selling price f.o.b. 

manufacturing point and include all discounts, terms, and conditions 

of sale to the consumer trade, provided, however, that no such price 

list and/or discount applicable thereto shall provide for prices less 

than the member's individual cost as determined by Rule 10 of 

Article VII. A schedule of all such specifications, price lists, discounts, and terms and conditions of sale shall be immediately distributed by the Code Authority to all interested members of the 

industry. 

SEc. 2. In the event of any change by any member of the Industry in any price, discount, specification, term, or condition of sale, 

he shall file full and complete copies of every such change with 

the Code Authority ten (10) days in advance of the effective date 

of any such change. Copies thereof, with notice of the effective 

date of such change, shall be immediately published and distributed 

by the Code Authority to the interested members of the Industry 

who may file, if they so desire, revisions of their prices, discounts, 

specifications, terms, or conditions of sale, which, if filed not less 
454 

than five (5) days :prior to such effective date, shall be effective on 

the same such effective date. 

SEc. 3. Such catalogues, specificationshprice lists, discounts, and. 

terms and conditions of sale together wit any changes thereto shall 

be open to inspection at all reasonable times by any interested party. 

SEc. 4. No member of the Industry shall sell, pay a rebate, or 

allow a deduction at any time to any person except in accordance 

with his prices, discounts, terms, and conditions of sale filed in the 

manner described hereinabove. Each member of the Industry shall 

have the right, individually, to file new prices, discounts, terms, and 

conditions of sale, from tune to time, as herein provided. 

SEc. 5. No member of the industry shall render any service other 

than advice and consultation to any purchaser of any product of 

the industry in connection with the sale, installation or repair of any 

product unless not less than the cost of such services to the member 

shall be charged such purchaser. 

SEc. 6. The following rules shall be observed in the making of 

contracts by the members of this industry. Action of the Code 

Authority under this section shall be subJect to the right of the 

Administrator to approve or-disapprove. 

(a) Charges for time payments extending more than three (3) 

months shall in no event be more liberal than those established by 

the Code Authority. 

(b) The allowance value of any trade-in together with a detailed 

description of such shall be clearly stated in the sales contract for 

which such trade-in is received as a part :payment. 

(c) Trade-ins shall not be accepted in heu of cash down or arrival 

payments. 

(d) Down payments shall be based on the net delivered price, after 

deduction of credit for any trade-in made. 

(e) Down payments, arrival payments, monthly payments or other 

periodic payments shall represent only payments in cash made or to 

be made by the purchaser. 

(f) Payments in kind shall not be accepted in lieu of cash. 

(g) The last payment in any series of payments shall not be substantially larger than any other payment in the same series. 

(h) The first monthly installment payment shall be due and payable not more than forty-five ( 45) days from the date of shipm nt. 

(i) Each contract for the sale of products of this industry shall 

include complete and exact specifications of the product and the 

equipment to be furnished; provided, however, that if a stanuard 

new product of a member of the industry is to be furni hed, r f renee shall be made to the member's standard mod l number sp cifications of which are on file with the Code Authority pur uant to 

Section 1 hereof. Any deviation from the speci cations of standard 

products shall be clearly set forth on a spe ification form to be 

approved by the Code Authority which shall be attach to and 

made a part of the sales contract. 
455 

SEo. 7. No member of the Indu try hall provide more favorable 

time and term of pa:n ent for in tallm nt ale. than: 

(a) Ca h amOtmting to at lea t ten percent (10~) of the net sales 

price to accompany the order. 

(b) Cash amounting to at least twenty percent (20 % ) of the net 

sales price to be paid prior to delivery to the purcha er. 

(c) Balance due on any contract for sale to be paid in not more 

than twenty-four (24) months from the date of such contract. 

(d) Each monthly installment shall amount to not less than fifteen 

dollars ($15.00) except on sales of used equipment not exceeding 

three hundred dollars ($300.00) in value. 

ARTICLE IX-MODIFICATION 

SECTION 1. Thi Code and all the provisions thereof are expressly 

made subject to the right of the President, in accordance with the 

provision of subsection (b) of Section 10 of the Act, from time to 

time to cancel or modify any order, approval, license, rule, or regulation i ued under aid Act. 

SEc. 2. This Code, except as to provisions required by the Act, may 

be modified on the basis of experience or changes in circumstances, 

such modifications to be based upon application to the Administrator and such notice and hearing as he shall specify, and to become 

effectiYe on approval of the President. 

ARTICLE X-MONOPOLIES, ETO. 

No provision of this Code sh~ll be so applied as to permit monopolies or monopoli tic practices, or to eliminate, oppress, or discriminate against small enterprises. 

ARTICLE XI-PRICE INCREASES 

'Vhereas the policy of the Act to increase real ~urchasing power 

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

sen ices increase as rapidly a.s wages7 it is recognized that price 

increases, except such as may be reqmred 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-REGISTRATION OF MEMBERS OF THE INDUSTRY 

Each member of the Industry shall within thirty (30) days of the 

effective date of this Code register with the Code Authority. All 

members of the Industry who may engage in the Industry thereafter 

shall likewise register with the Code Authority. Registration of a 

member of the Industry shall include the full name and mailing 

address of the member. The time limit for the registration by any 

member of the Industry may be extended whenever, in the opinion 
456 

of the Administrator, the time limit as provided herein might cause 

an injustice to any member of the Industry. 

ARTICLE XIII-REPORTS 

In addition to information required to be submitted to the Code 

Authority, all or any of the persons subject to this Code shall furnish 

such statistical information as the Administrator may deem necessary for the _purposes recited in section 3 (a) of the Act to such 

Federal and State Agencies as the Administrator may designate; and 

nothing in this Code shall relieve any person of any existing obligation to furnish reports to Government agencies. 

ARTICLE XIV-EFFECTIVE DATE 

This Code shall become effective on the second Monday after its 

approval by the President. 

Approved Code No. 181. 

Registry No. 1328-02. 

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UNIVER S ITY OF FLORIDA 

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