,__ 

Approved Code No. 544 Registry No. 1405-11 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

AUTO REBUILDING 

AND REFINISHING TRADE 

AS APPROVED ON JANUARY 24, 1935 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR Pill 

UNIV. OF Ft LHi. 

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UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1935 

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

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• 

Approved Code No. 544 

CODE OF FAIR COMPETITION 

FOR THE 

AUTO REBUILDING AND REFINISHING TRADE 

As Approved on January 24, 1935 

BY 

PRESIDENT ROOSEVELT 

EXE<:UTIVE ORDER 

CoDE OF F AIR Co~IPETITION FOR THE A uTo REBUILDIN o AND 

REFINISHING TRADE 

An application having been duly made, pur uant to and in full 

compliance with the provisions of Title I of the National Industrial 

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

of Fair Competition for the Auto Rebuilding and Refinishing Trade, 

and hearings having been duly held thereon, and the National Indus- trial Recovery Board having rendered its report containing an analysis of the said Code of Fair Competition, together with its recommendations and findings with re pect thereto, and the National Industrial Recovery Board having found that the aid Code of Fair 

Competition complies in all respects with the pertinent pr-0visions 

of Title I of said Act, and that the requirement of Clauses (1) and 

(2) of Sub-Section (a) of Section 3 of the ~aid Act have been met: 

NOW, THEREFORE, I, Franklin D. Roosevelt, Pre ident of the 

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

the National Indu trial Recovery Act, approved June 16, 1933, and 

otherwise, do adopt and approve the report, recommendations, and 

findings of the National Industrial Recovery Boa,rd, and do order 

that the said C-Ode of Fair Competition be and it is hereby approved; 

provided, however, that Sections 2 and 3 of Article VII and Rule 14 

of Article VIII be and they are hereby stayed pending the further 

order of the National Indu trial Reco-very Board. 

FRA:NKLIN D. Roo EVELT. 

Approval recommended : 

NATIO:NAL IND"GSTRIAL RECOVERY BOARD, 

By w. A. H ARRil\IAN, 

Administrative Officer. 

THE 1V HITE Ho E, 

January f 4, 1935. 

111037°-l4G5- 10T-35 (1) 
LETTER OF TR .. NS!ITTTAL 

The PRESIDENT, 

The White H ou.se. 

Srn: This i a rep rt on the Code of Fair Competition f or th e 

Auto Rebuilding and Refinishing T rade as revised after the hearing 

conducted in Wa hington on March 14 1934 and in accordance with 

the provision of the J ational Industrial &cov ry t. 

PROYI IONS OF THE CODE AS TO HO S WAGE A TD GE ER L LABOR 

PROVISION 

This Code provide for a maximum work week of fort -four 

hour with the following exceptions and exemptions: 

(a) Clerical or office employees, who may work two a lditional 

hours in any two twenty-four hour periods in any thirty day peri d; 

(b) Watqhmen, who may work not in exc s of fifty- ix hour. in 

any seven day period but not over twelve hours in any twent -f ur 

hour period nor over six days in any seven :la. p riod · ( c) Employee engaged wholly in outside elling; 

( d) Apprenti es (subject to Executive Ord r o. G750- ) · 

( e) Persons engaged in a manag rial or executi e capa it who 

arn regularly thirty-five dollars per week or more. Owners, managers or other executives hall when eno-a d in 

performing any work not of a managerial or ecuti e nature nform to he maximum hour provided for emplo p rformin 0 

such work. 

This Code e tabli he a minimum rate f pa f 

per eek except that no productive employee not 

be paid le than fifty cent p r hour. Other ~ 

productiv employ on call apprenti 

per on . 

per n under ei ·h n . ar f aotion or c upation which ar hazar l u 

h alth and no per on un l r ix n ar 

in an capa i .. Emplo ee hall haY 

tiv ly through repr nta i, n 

hall be r quir d a a n liti n of mplo n nt J 1n an 

uni n r r frain from j inino- a lab r r anizati n f hi. ing. mpl y ·hall b li. harg d, 1 m 11 r th 

riminat<.>d a ·ain t b, r a on f m, kin · a mplaint 

d n ith r . p t t an , 11 er l i lati n f thi. 1 

Th 

hara 
3 

sand with a total annual volume of approximately three hundred 

and ninety million dollar and employ approximately eventy 

thou and individuals. 

Highly skilled craftsmen in painting, ur hol terino- woodworking, 

metal working and black mithing are r equired in this Tra.de, the majority of whom must serve as apprentices for an ex'"en ive period. 

Therefore, it is neces ary to employ apprentice in thi Trade and 

pro-vi ions are made in the ode to conform with Executive Order 

o. 6750-C, i sued June 27 1934. 

FINDINGS 

The Deputy Administrator in his final report to u on aid Code 

having found as herein set forth and on the ba is of all the proceedings in this matter ; 

The .r ational Industrial Recovery Boar l find that : 

(a) Said ode is well designed to promote the policie and purposes of Title I of the ational Indu trial Recovery Act including removal of ob truction to the free flow of interstate and foreign 

commerce which tend to dimini h the amount thereof a.nd will provide for the genera.I welfare by promoting the organization of industry for the purpose of cooperative action among trade groups, 

by inducing and maintaining united action of labor and management under adequate governmental sa.nctions and supervision, by 

eliminating unfair competitive practices, by promoting the fullest 

possible utilization of the pre ent productive capacity of indu trie , by avoiding undue restriction of production ( except as may be temporarily required), by increasing consumption of industrial and 

agricultural products through increasing purchasing power, by reducin o- and relieving unemplo ment by improving tandard of 

labor,0 and by otherwise rehabilitating industry. . (b) The Code as approved complies in all respect with the pertinent provisions 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 a trade as ociation truly representative of the aforesaid trade· and 

that aid association imposes no inequitable restrictions on admi -

sion to member hip therein. 

( c) The Code is not designed to and will not permit monopolies or 

monopolistic practices. 

( d) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminat~ against them. 

( e) Tho e engaged in other steps of the economic proce s have 

not been deprived of the right to be heard prior to the a pprova.I of 

said Code. 

(f) The Auto Rebuilding and Refinishing Trade normally employs approximately seventy thou and emplo3 ee and is cla sified 

by u as a major Industry. 

For these rea on therefore, the National Indu trial Recovery 

Board recommend the approval of thi Code. 

For the ational Industrial Recover Board. 

JANUARY 23, 1935. 

w. A. HARRIMAN, 

Administrative Officer. 
CODE OFF AIR COMPETITIO FOR THE AUTO REBUILDING AND REFINISHING TRADE 

ARTICLE I-PURPOSES 

To effectuate the policies of Title I of the National Indu trial 

Recovery Act, the following provisions are established as a Code of 

Fair Competition for the Auto Rebuilding and Refini hing Trade, 

and hall be the standard of fair comp tition for this Trade and 

binding upon every member thereof. 

ARTICLE Il-DEFI ITIONS 

4 
5 

tion, corporation or other form of enterprise engaged in the Trade, 

either as an employer or on his or its own behalf. 

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

all persons engaged in the trade, however compensated, except a 

member of the trade. 

SECTION 5. The term " employer " as used herein includes anyone 

by whom any such employee is compensated or employed. 

SECTION 6. (a) The term " salesman " as used herein is defined to 

mean and include an employee engaged in the selling and/or promoting the sale of the products and/ or services of this trade, and 

the functions of selling or promoting the sale are hereinafter referred 

to as " selling." 

(b) The activities of selling are divided into two classes : the first 

including those activities requiring the presence of a salesman on or 

in the premises of the member of the trade; and the second requiring 

the presence of the salesman away :from the premises of the member of the trade except for the demonstration of the product and/or 

service to be sold or for the making, recording or execution of an 

estimate, order or other document in connection with any sale or 

for the receiving of instructions. For the purposes of this Code 

all time of a salesman occupied in the first class is referred to as 

"inside selling " and all time in the second class as "outside selling." 

SECTION 7. The term "productive employee" as used herein is defined to mean and include any employee (including an apprentice) 

engaged in any of the operations described in paragraph (a) of Section 1 of this Article. 

SECTION 8. The term "apprentice" as used herein, shall mean a 

person of at least sixteen (16) years of age who has entered into a 

written contract with an en1ployer or an association of employers 

and which contract provides for at least two thousand (2000) hours 

of reasonably continuous employment for such person a:r;id his participation in an approved progTam of training as provided for in 

Article IV, Section 4 of this Code. 

SECTION 9. The term "Association" as used herein is defined to 

mean the "Auto Rebuilders Association of the United States", an 

incorporated trade association. 

SECTION 10. The terms "President" and "Act" as used herein, 

mean respectively, the President of the United States and Title I of 

the National Industrial Recovery Act. The term " National Recovery Administration" as used herein means such person or persons, board or agency, as may from time to time be designated by the 

President, pursuant to Section 2 (b) of the Act, to administer the 

provisions of this Code. 

ARTICLE III-HoURs 

SECTION 1. M axinium, H ours.-N o employee shall be permitted to 

work in excess of forty-four (44) .hours in any seven (7) day period 

or eight (8) hours in any twenty-four (24) hour period or six (6) 

days in any seven (7) day period, except as herein otherwise 

provided. 

SECTION 2. Exceptions to S ection 1.-(a) A person employed in 

clerical or office work may be permitted to work two (2) additional 
6 

hours in each o:f, but not more than, two (2) twenty-four (24) hour 

periods in any thirty ( 30) day period. 

(b) A watchman may be permitted to work not in excess of 

fifty-six (56) hours in any seven (7) day period nor in excess of 

twelve (12) hours in any twenty-:four (24) hour period, nor in excess 

o:f six ( 6) days in any even (7) day period. 

SECTION 3. The provisions of Section 1 o:f this Artj cle sh.all apply 

to salesmen engaged in inside selling in whole or in part. 

SECTION 4. Exemptions to Section 1.-(a) The provi ions o:f this 

Article respecting hours o:f employment shall not apply to sale men 

engaged only in outside selling, nor to apprentices as herein otherwise provided by Section 4 o:f Article IV of this Code, nor to per ons 

engaged in a managerial or executive capacity who earn r gula.rly 

thirty-five dollars ($35.00) per week or more except as herein 

otherwise provided by Section 6 o:f this Article! 

SECTION 5. (a) An employee shall be deemed to be continuou ly 

in the employ o:f his employer during all periods of time his employer 

requires him to be " on call " or to be " available " waiting for the 

performance of specific work. 

(b) Employment "on c.all" or "available' waiting :for the performance of specific work is not to be constru d as affecting the 

classification or occupation of an employee. 

SEGTION 6. Members of the trad , themselve , shall not ork, 

nor permit their executives or managers to work, when eno-aged 

in perfonning any work not of a managerial or executive nature, 

in excess of the maximum hours herein pre cribed for other employees performing such work. 

SECTION 7. No employer shall knowingly p rmit any emplo ee to 

work for any time which when added to time spent at ork for 

another employer or employers exceeds the maximum p rmitted 

herein. 

SE TION 8. No mployer shall permit any employee, engaO'ed in 

performing work of more than one classification or o cupation to 

work for any tim in exces of the lea t of he ma imum number 

o:f hours pre crib d herein for su h 11. ifi ation r oc upati n . 

ECTIO 9. For the purpo es of al ulatin · the tim in any t nt -

four (24) hour p riod for whi h wao· ar du and payabl an 1 f r 

al ula ino- the maximum hour th tim of mpl ment ha 1 b 

reckon d ontinu u ly fr m th tartino- tim in an u h w nt -

four (24) hour p ri d ex pt :for a m al-time p ri of n t m re 

than one (1) hour. 

ARTICLE IV-"\ 

c hall b 

r w k 
7 

for the first four ( 4) hours, or any part thereof, tha~ he is " on call " 

or " available" waiting for the performance of pec1fic WOl'k in each 

twenty-four (24) hour period;_ nor_ les than on~-half (1⁄2) _hi 

hourly r ate of pay, f or his cla s1ficat10n or occupat10n, for all time 

" on call " or " available " waiting for the performance of specific 

work, in excess of four ( 4) hours in each tw nty-four (24) hour 

period; provided, however, that in no event hall such latter '' on 

call " or "available" rate be less than thirty-six cents ($0.36) p r 

hour. 

SECTION 4. lVages for Apprentic s.-Subject to uch rules and 

reo-ulations as may be issued or pre cribed pur uant to the Act, 

in~luding but without limitation, Ex cuti-ve Order No. 6750-C, i sued 

June 27, 1934, and subject to the provi ions of ection 1 of Arlicle V, 

each employer may employ apprentices; provided, however, that for 

the first period of indenture no apprentice shall be paid ut lec::s than 

thirty per cent ( 30%) of the minimum rate for other productive 

employees in the trade or occupation in which the apprentice is 

indentured, and in no event at less than the rate of twenty-five cents 

($0.25) per hour ; and provided, further, that at no time hall the 

number of such apprentices employed by any one employer exceed 

the ratio of one (1) apprentice to each five (5) other productive 

employees employed by such employer in the trade or occupation for 

which the apprentice is indentured. The rates of wages to be paid 

to apprentices during other periods of apprenticeship shall be in 

accordance with the contract or indenture which in no event shall 

provide for a rate, during the last period of indenture, less than 

eighty per cent ( 80%) of the minimum rate of other productive 

employees in the trade or occupation in which the apprentice is 

indentured. Each employer shall, within thirty ( 30) days after the 

constitution and organization of the Code Authority, file a certified 

copy of each apprenticeship indenture for each apprentice in his 

employ and, thereafter, shall likewise file similar documents within 

thirty (30) days after the employment of any oth0 r apprentice. 

SECTION 5. Employees engaged in performing work of more than 

one classification or occupation shall be paid for all time during any 

twenty-four (24) hour period at not less than the highest of the 

minimum rates prescribed for such classifications or occupations in 

which such employee is engaged. 

SECTION 6. Female employees performing substantially the same 

work as male employees shall receive the same rate of pay as male 

employees. 

SECTION 7. This Code provides for rates of pay which shall apply 

irrespective of whether an employee is compensated on a time rate, 

piecework, commission or other basis. 

SECTION 8. A person whose earning capacity is limited b~cause of 

age, physical or mental handicap, or other infirmity, may be employed on light work at a wage below the minimum establi hed by 

this Code if the employer obtains from the State authority designated 

by the United States Department of Labor a certificate authorizing 

h is employment at such wages and for such hours as shall be stated 

in the certificate. Each employer shall file monthly with the Code 

Authority a list of all such persons employed by him, showing the 

wages paid t o, and the maximum hours of work for, such employee. 

111037°- 1465-107-35-- 2 
8 

SECTIO 9. Each member of the trade shall make payment for all 

wages and/or other form of compen ation due, in lawful currency 

or by negotiable check, payable on demand. Wages and/or other 

form of compensation shall be due and payable at the end of each 

pay period, at lea t at semi-monthly intervals. 

SECTION 10. Upon the effective date hereof ach employer shall 

promptly adjust the chedule of wages of his employees in uch an 

equitable manner as will conform to the provi ions hereinabove set 

forth and till pre erve wage diff r ntials rea onably proportionate 

to those in effect I rior to the eff tiv date of this Code. All employers shall file with the Code Authority, within ninety (90) days 

after the effective date of this Code, complete reports setting f orth 

wage and hour adjustments of all employees. Such reports shall 

be available to the N ationul Recovery Administration. 

SECTION 11. In no v nt, in effec ing the adjustments made nece -

sary by thi Co le, hall rates of pay be reduced, irrespe tive of 

whether compen ation is actually paid on an hourly, weekly or 

other basis, nor shall any wages b at less than the minimum rates 

provided in this Code. 

ARTICLE V --GENERAL LABOR PROVId N 

SECTION 1. No person under eighteen ( 18) years of age shall be 

employed in the trade at operations or occupations which are hazardous in nature or dangerous to health. No person under sixteen (16) 

years of age shall be employed in the trade in any capacity. In an_y 

State any employer hall be deBmed to hav complied with this 

provision as to age if he hall ha e on file a certificate or permit 

duly signed by the uthority in such State empowered to issue 

employment or age certificates or permi howing that the employee 

is of the required age. Within ninety (90) days after ffective date 

of this Code, the Code Authority shall ubmit to the National R ecovery Aclmini tration a Ii t of su h operation or occupation in 

the trade which are hazardous in nature or dano- rous to health. 

SECTio 2. (a) Emplo ee hall ha e the right to oro-anize and 

bargain collectively through repr entativ of h ir own hoosin 

and shall be free from the inter£ r nc , r ·-traint or oer ion f 

employer f labor, r th ir ao-cnt , in th d i nation of u h 

repr enta iv or in elf-oraanization or in h r one rt activitie for the purpo e of coll cti bargaining r ther mutual ai or 

protection. 

(b) mplo and no n kin 

as a condition of emplo ment to join an 

from joinino- organizino- or a i tin 

n shoosino- and 

(c) Emplo er hall compl with h 

minimum ra of pa , and h r conclitio 

r pr rib d b th Pr id nt. 

SECTI 3. mplo r h, 11 r la if 

oc upati p rform d r no-ao- in an 

d f at th purp . r pr i ·i n £ th 

. E r mpl r hall 1 I r 

nd h Ith f hi m pl T 
9 

hours of their employment. Standards for safety and health shall 

be submitted by the Code Authority to the National Recovery Administration for approval within three (3). months after the effective 

date of this Code. The standards ar proved shall thereafter be a 

part of this Code and binding as such. 

SECTION 5. No provision of this Code shall supersede any State 

or F ederal law which imposes on employers more stringent requirements as to age of employees, wages, hours of work or as to safety, 

health, sanitary or general working conditions or insurance or fire 

protection than are imposed by this Code. 

SECTION 6. All employers shall post and keep posted copies of this 

Code and/or any amendments thereto in conspicuous places accessible to all employees. Every member of the trade shall comply with 

all rules and regulations relative to the posting of provisions of 

Codes of Fair Competition which may from time to time be prescribed by the National Recovery Administration. 

SECTION 7. No employee shall be discharged, demoted, or otherwise 

discriminated against by reason of making a complaint or giving 

evidence with respect to an alleged violation of this Code. 

ARTICLE VI-ORGANIZATION' POWERS AND DUTIES OF THE CODE 

AUTHORITY 

A. ORGANIZATION 

SECTION 1. A Code Authority is hereby established. 

SECTION 2. The Code Authority shall consist of nine (9) trade 

members, to be selected in the following manner : 

(a) The members of the trade shall elect the trade members of the 

Code Authority by a majority vote of the members of the trade 

participating in the election. 

(b) Each member of the trade shall have equal voting rights. 

(c) As many as, but not exceeding, two (2) of the trade members 

of the Code Authority shall be selected from members of the trade 

who are not members of the Association, and who are eligible as provided by Section 12 (i) of this Article, if any, and who will serve. 

The complement of the trade members of the Code Authority shall 

be selected from members of the trade who are members of the Association, who are likewise eligible as provided by Section 12 (i) o.f 

this Article and who will likewise serve. 

( d) The trade members of the Code Authority shall be elected to 

serve for terms not to exceed one (1) year. 

( e) In the event of any vacancy in the membership of the trade 

members of the Code Authority, due notice shall be given and an 

election held within thirty (30) days after such vacancy shall have 

occurred to fill the incomplete term of such membership. 

( f) Notice of the time and place of each election shall be sent to all 

known and ascertainable members of the trade and to the National 

Recovery Administration at least twenty (20) days in advance of 

each election. 

(g) Voting at any election may be in person, by proxy or by letter 

ballot. 

SECTION 3. At no time shall the Code Authority include more 

than one (1) member affiliated or associated with or employed by 
10 

the same member of the trade and at no time shall the Code Authority include more than one (1) member selected from members of the 

trade who have a financial int-ere t in or otherwise exercise control 

over each other. 

SECTION 4. The As ociation is h reby designated as an aO'ency to 

conduct the election of the first Cod Authority within forty-five (45) 

days after the effectiv 0 date of thi Cod . SECTION 5.-( a) The National Recovery Administration may make 

such temporary appointment of Trad J\fembers to the Code Authority as may be neces ary; or in the case of, and £or the period of, any 

vacancy on the Code Authority. 

(b) The National Recovery Administration may make uch temporary appointments of Trade :Member to act as a Temporary Code 

Authority, with all the powers and duties as are herein prescribed 

£or the Code Authority and to serve until such time as the first Code 

Authority is duly constituted and organized, as provided by this 

Code. 

SECTION 6. In addition to the membership as hereinbefore provided, there may be not more than three (3) members, without vote 

and without expense to the trade to be known as Administration 

:Members, to be appointed by the National ~covery .A.dmini tration 

to serve £or such terms as it may specify. The representati es who 

may be appointed by the .r ational Recovery Administration, together 

with the ational Recovery Administration, shall be given notice 

of and may sit at all meetings of the Code Authority. 

SECTION 7. No member of the Code Authority shall be permitted 

to act as a men1ber of the Code Authority or any agency or committee 

under this Code in any matter involving a violation or an alleged violation by, or a complaint again t, a member of the trade by which 

he is employed or with which he is associated or affiliated. 

SECTION 8. Each trade or industrial association directly or indirectly participating in the selection or activities of the Code uthorit 

shall (1) impose no inequitable restrictions on me1nber hip and (2) 

submit to the a tional R0 co ery Administration true copies of i 

articles of as ociation, by-1 ws, reO'ulations, and an. amen ment 

when made th reto, together with such other information as to membership, organization, and activities as the ational Recover dmini tration may dce1n nece ary to ffectuate the purpo f th 

t. 

SEcTio - 9. In ord r that the Code uthority shall at r.11 tim 

truly representative of the trade an in other respe t compl with 

the proYi ion of the ct, the ational Reco ery dmini -tra ion ma. 

pr crib uch hearing a it ma deem prop r · an th r after if it 

hall find that the o uthorit r i not trul r pr entatiY or 

not in other re p cts comply ith the provi ion oi h t ma 

quire an ap ropriate m dification of the Cocle uth rit . ECTI .l 10. othin ontain 1 in thi ode hnll c n -{jtut th 

m mber f the ode uth rif- or of an ta r <Ti nl 1 r 1i t.ri 

ao- nc f he ode u horit p· rtn £or an I urp . A r hall 

any such member b liabl in an manner any n f r l ny n · any ther m mb r ffi er ao- nt r mr 1 . f th cl nth rit, 

r fan u h an-en f th o • u h rit r hall nny m m r 

of the ocl uthorit or of an uch a0 nc , r i in 1~ a nabl 
11 

diligence in the conduct of his duties hereunder, be liable to anyone 

for any action or omission to act under this Code, except for his own 

wilfull malfeasance or nonfeasance. 

SECTION 11. If the National Recovery Administration shall at any 

time determine that any action of the Code Authority or any agency 

thereof may be unfair or unjust or contrary to the public interest, the 

National Recovery Adnunistration may require that such action be 

suspended to afford an opportunity for investigation of the merits of 

such action and further consideration by such Code Authority or 

agency pending final action which shall not be effective unless the 

National Recovery Administration approves or unless it shall fail 

to disapprove after thirty (30) days' notice to it of intention to proceed with such action in its original or modified form. 

B. POWERS AND DUTIES 

SECTION 12. Subject to such rules and regulations as may be issued 

by the National Recovery Administration, the Code Authority shall 

have the following powers and duties, in addition to those authorized 

by other provisions of this Code : 

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

provide for the compliance of the trade with the provisions of the 

Act. 

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

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

reports as are required for the administration of the Code. In addition to information required to be submitted to the Code Authority, 

members of the trade subject to this Code shall furnish such statistical information as the National Recovery Administration may deem 

necessary for the purposes recited in Section 3 (a) of the Act to such 

Federal and State agencies as it may designate; provided that nothing in this Code shall relieve any member of the trade of any existing 

obligations to furnish reports to any Government agency. No individual report shall be disclosed to any otl;ier member of the trade or 

any other party, except to such other Governmental agencies as may 

be directed by the National Recovery Administration. 

( d) To use any trade association or otlier agency as it deems 

proper for the carrying out of any of its activities; provided, that 

nothing herein shall relieve the Code Authority of its duties or 

responsibilities under this Code and that such trade associations and 

agencies shall at all times be subject to and comply with the provisions thereof. 

( e) To make recommendations to the National Recovery Administration for the coordination of the administration of this Code 

with such other codes, if any, as may be related to or affect members 

of the trade. 

(f) To cooperate with the National Recovery Administration in 

regulating the use of any N. R. A. insignia. 

(g) To recommend to the National Recovery Administration any 

action or measures deemed advisable, including further fair trade 

practice provisions to govern members of the trade in their relations 

with each other or with other trades, measures for industrial plan- ning, and stabilization of employment, and including modifications 
12 

of this Code which shall become eff ctive as part hereof upon approval by the National Recovery Administration after such notice 

and hearing as it may specify. 

(h) To appoint a Trade Practice Committee which shall meet 

with the Trade Practice Committees appointed under such other 

codes as may be related to the trade for the purpose of formulating 

fair trade practices to govern the relationships between mployers 

under this Code and under other codes to the end that such fair 

trade practices may be proposed to the National Recovery Administration as amendment to this Code and such other code . 

(i) 1. It being found nece sary in order to upport the administration of this Code and to n1aintain the standards of fair competition established hereunder and to effectuate the policy of the Act, 

the Code Authority is authorized: 

(a) To incur such reasonable obligations as are nece sary and 

proper for the foregoing purposes, and to meet such obligations out 

of funds which may be raised as hereinafter provided and which 

shall be held in trust for the purposes of the Code; 

(b) To submit to the National Recovery Admini tration for it 

approval, subject to such notice and opportunity to be heard as it 

may deem necessary (1) an itemized budget of its estimated expenses for the foregoing purposes, and (2) an equitable basis upon 

which the funds necessary to support such budget shall b contributed by members of the trade; 

( c) After such budget and basis of contrjbution have been approved by the National Recovery Admirustration, to determine 

and obtain equitable contribution as above set forth by all members of the tra le, and to that end, if necessary, to institute legal 

proceedings therefor in its own name. 

2. Each member of the trade shall pay his or its equitable contribution to the expenses of the maintenance of the Code uthori , 

determined as hereinabove provided, and subject to rul and r gulation pertaining thereto i ued by the National Recov r dmini -

tration. Only members of the trade complying with the od and 

contributing to the expen es of its admini tration a her inabove 

pro ided ( unless duly exempted from making u h contribu ion ) 

shall be entitled to participate in the 1 tion of memb r of he 

ode uthority or to receive the b n fit of any of i volun a 

a tiviti s or to mak u of any mbl m r in ignia f th ati nal 

Recov ry dmini tration. 

3. The le Authority hall n ith r in ur nor pay 

tion ub tantiall in exc of the am unt th reof a 

its appro, d bud t an 1 all in n ent x d th tal am unt 

on ain l in h appr budo- t pt up n a1 pr al 

ati nal R . mini tration · an no ub qu n bud 

ont in a d fi i n it n1 for p ndi ur in x , 

bu l t · imat - pt h hi h th ati nal R 

i tr ti n 1 11 ha appr d. 

(j) pr I r an ubn i 

tra i n a lan r I lan f r th abli hm nt f 

th r i ri t f r the fur h r ad.mini ra i n f thi 

ar as. 
13 

(k) To prepare and submit to the ational Recovery Administration within ninety (90) days after the effective date of this 

Code, a plan or plans for the appointment or selection of any State, 

Regional or other Committees JJ.~d their Chairmen. (1) To provide for the appointment or the selection of any other 

regional, distric'.., or other committee for the further administration of this Code. 

(m) To employ such agent and employees as it may deem necessary for the administration of this Code. 

(n) To delegate, subject to the limitations as provided herein by 

paragraph ( d) of this Section, such of its powers and duties to 

such State, Regional or other Committees as it may deem appropriate for the further administration of this Code and to suspend 

and/ or cancel any such delegated powers or duties at any time. 

( o) To provide appropriate facilities for arbitration, and, subject to the approYal of the National Recovery Administration, to 

prescribe rules of procedure and rules to effect compliance with 

awards and determinations. 

SECTION 13. Any interested party shall have the right to appeal 

to the National Recovery Ad.nunistration from any decision, act or 

omisison to act, of the Code Authority or any of its agencies. 

ARTICLE VII 1-CosT FINDING AND AccoUNTING 

SECTION 1. The standards of fair competition for the trade with 

reference to pricing practices are declared to be as follows : 

SECTION 1 (a). 'I he Code Authority shall cause to be formulated 

-methods of cost finding and accounting capable of use by all members of the trade, and shall submit such methods to the National 

Recovery Administration for review. If approved by the National 

Recovery Administration, full information concerning such methods 

shall be made available to all members of the trade. Thereafter, 

each member of the trade shall utilize such methods to the extent 

found practicable. Nothing herein contained shall be construed to 

permit the Code Authority, or any agent thereof, or any member of 

the trade, to suggest uniform additions, percentages or differentials 

or other uniform items of cost which are designed to bring about 

arbitrary uniformity of costs or prices. 

COSTS AND PRICE CUTTING 

SECTION 2. Wilfully destructive price cutting is an unfair method 

of competition and is forbidden. Any member of the trade or o:£ 

any other trade or the customers of either may at any· time complain 

to the Code Authority that any offered price constitutes unfair competition as destructive price cutting, imperiling small enterprise or 

tending toward monopoly or the impairment of code wages and working conditions. The Code Authority shall within five (5) days afford 

an opportunity to the member offering such price to answer such 

(:Omplaint and shall within fourteen (14) days make a ruling or adjustment thereon. If such ruling is not concurred in by either party 

to the complaint, all papers shall be referred to the Research and 

1 See parn.graph 2 of order approving this Code. 
14 

Planning Division of N. R. A., which shall render a report and recommendation thereon to the National Recovery Administration. 

(a) ,vhen no declared emergency exists as to any given product, 

there is to be no fixed minimum basis for prices. It is intended 

that sound co t estimating methods should be used and that consideration should be given to costs in the determination of pricing 

policies. 

(b) ,vhen an emergency exists as to any given product or service, 

sale below the stated minimum price of such product or service, in 

violation of Section 3 hereof, is forbidden. 

EMERGENCY PROVI IONS 

SECTION 3. If the National Recovery Admini tration, after investigation, shall at any time find both ( 1) that an em-erg ncy has arisen 

within the trade adversely affecting small enterprises or wages or 

labor conditions, or tending toward monopoly or other acute conditions which tend to defeat the purpo es of the Act; and (2) that 

the determination of the stated minimum price for a specified product or service within the trade for a limited .period is neces ary 

to mitigate the conditions constituting such emergency and to ffectuate the purposes of the Act, the Code Authority may cau e an 

impartial agency to investigate costs and to recommend to the 

National Recovery Administration a determination of the stated 

minimum price of the product or service affected by the emergency, 

and thereupon the National Recovery Administration may proce d to 

determine such stated minimum price. 

(a) When the National Recovery Administration shall ha v determined such stated minimum price for a specified product or service for a stated period, which price shall b r a onabl alculated 

to mitigate the conditions of su h emergency and to effectuate the 

purposes of the National Industrial Recovery ct, it shall publi h 

such price. Thereafter, during uch stated period, no m mb r f 

the trade shall sell such specified products or servic at a n t realized price below said tated minimum price and any u h ale hall 

be d emed cl structive price cutting. From time to time, he od 

Authority may recommend review or r con id ration or th ational 

R very dmini tration may au e any det rminations her und r 

to b revi wed or r on id r d and appropriat a tion taken. 

ECTI o memb r of th trade hall nt r in an a r m n 

und r tandinff ombinati n or on pirac to fi. r maint in pri 

rm nor au or a mpt t a 1 an m n b r f h tra t 

hano-e hi I rice t rm by th u f in imi l i 

th r infiu n in on i t nt wi h th maint nan 

mark t. For th puq f thi l h term 

but without ljmi a i n b l fin d m an an 

li unt , r bat all \Yan e and all 

al . 

I I - R,\ E p \. TI E R 
15 

any way misrepresent any goods or services (including, but without 

limitation, their use, trade-mark, grade, quality, quantity, origin, 

size, substance, character, nature, finish, material, content, or preparation thereof) or credit terms, value, policies, or the nature or 

form of the business conducted. 

RULE 2. No member of the trade shall knowingly post-date or predate any contract, invoice, quotation or receipt; knowingly withhold 

from or insert in any contract, invoice, quotation or receipt any 

statement which makes such contract, invoice, quotation or receipt 

a misleading or inaccurate statement in any material particular; or 

accept or offer to accept any such contract for the purpose of and 

with the effect of injuring the business of a competitor or of violating or evading the provisions of this Code. 

RULE 3. No member of the trade shall publish or circulate unjustified or unwarranted threats of legal proceedings which tend to, or 

have the effect of, harassing competitors or intimidating their 

customers. 

RULE 4. No member of the trade shall defame a competitor by 

falsely imputing to him dishonorable conduct, inability to perform 

contracts, questionable credit standing, or by other false representations, or by falsely disparaging the grade or quality of his goods 

and/ or services. 

RULE 5. No 1nember of the trade shall give, permit to be given 

or offer to give, money or any other thing 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 a.gent or the represented 

party, without the knowledge of such employer, principal or party. 

This 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. 

RULE 6. No member of the trade shall attempt to induce the breech 

of an existing contract between a con1petitor and his customer or 

source of supply; nor interfere with or obstruct the performance of 

such contractual duties or services. 

RULE 7. No member of the trade 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 shall a member of the trade off er 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. 

RULE 8. No member of the trade shall offer or give prizes, premiums or gifts of any nature, including the products or services of 

this trade or any other trade or industry, in connection with the 

sale of the products and/or services of this trade, or as an inducement thereto (unless such prizes, premiums or gifts are offered or 

given to all buyers or potential buyers of the same class) ; or by any 

scheme which involves lottery, misrepresentation or fraud. 

RULE 9. No member of the trade shall fail to include a complete, 

accurate and itemized list of all materials, parts or services and the 

selling prices thereof in either the contract, invoice, quotation or 
16 

receipt covering any sale or offer of sale thereof. All new and/or 

second-hand materials and/or parts shall be so designated. 

RULE 10. No member of the trade shall fail to render an invoice 

or bill for each sale of the product or services of this tra :le. 

RULE 11. No member of the trade shall combine, in quotations or 

contracts for the ale of the products or en ices of thi trade, a 

quotation or a contract for the ale of the products or servic s of any 

other trade or indu try, for the I urpo e or with the effect of concealing the true "Hino· prices of the products or services of this 

trade. RuLE 12. No memb 0 r of the trad hall oerce or oth rwise constrain an employee to purchase or obli/")"ate him elf, directly or indirectly, to purchase tocks, bonds, e urities or other f rm of ownr hip, morJ.gage, or indebtedness in it ent rpri e or in any oth r 

enterprise or to make any other purcha e or oblio-ation. 

RULE 13. No member of the trade shall r equire that the purcha e, 

ale or lease of any product or servi e of this trade or of any ther 

tra :le or industry, shall be a requi ite or a prerequisite to the purcha e, ale or lea e of the products or service of this trade. 

RuLE 14. No member of the trade shall recall or revi e or off r 

to recall or revi e any written quotation, proposal or bid ubmitted 

to a buyer or potential buyer of any produ or s rvices of this 

trade, for the purpose of submittino- more favorable price term 

unless the buy r has proposed a revi ion in the quantity and/ r 

quality of the products and/or ervi es to be purcha ed.

2 

RULE 15. No member of the trad shall furnish any product or 

service of this tra :le to any person ( except to charit ) , xcept for 

such consideration, expres ed or implied, a may be included by a 

quotation, contract, guaranteB, warranty or other agreement co ring such product or service, except a herein otherwi e provided b 

Rule 8. 

RULE 16. o member of the trade shall fail to keep a ompl te 

accurate and itemiz d r cord of all wag s alari comm1 10n 

drawing accounts or other allowances or r dit paid to all 

employee , including sal smen and ac-rents. 

AnTICLE IX-GE ERAL 

E TIO 1. 

2 para ra11h 2 r r 1 r a ppr , in thi 

t 

ppr 

a ar n r <]Uir <1 

h a.pr r Yal f th 
17 

Presi,dent, be modified or eliminated as changes in circumstances or 

experience may indicate. It is contemplated that from time to time 

supplementary provi ions of this Code, or additional codes, will be 

submitted for approval of the President to prevent unfair competition and other unfair destructive competitive practices and to effectuate the other purposes and policies of Title I of the Act. 

SECTION 4. This Code shall become effective on the second Monday 

after its approval by the President. 

Approved Code o. 544. 

Registry No·. 1405--11. 

0 
UIJIVERSITY OF FL O RIOA 

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