Approved Code No. 84 — Supplement No. 51 Registry No. 1328—15 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE :efiiigeration valves and fittings manufacturing industry (A Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry) AS APPROVED ON SEPTEMBER 6, 1934 D2 UN!V OF i' - -ii V/E DO CUR PART CUMEi^TS DEP" U.S. DEPO^TC^'V UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1S34 For sale by the Superintendent of Documents, Washington, D.C. Price 5 centa 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 COMMERCB Atlanta, Ga. : 501 Post Office BuUding. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1801 Customhouse. Buffalo, N.Y. : Chamber of Commerce Building. Charleston, S.O. : Chamber of Commerce Building. 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Approved Code No. 84 — Supplement No. 51 SUPPLEMENT TO CODE OF FAIR COMPETITION FOR THE REFRIGERATION VALVES AND FITTINGS MANU- FACTURING INDUSTRY As Approved on September 6, 1934 ORDER Approving Supplementary Code of Fair Competition for the Refrigeration Valves and Fittings Manufacturing Industry a division of the fabricated metal products manufacturing and metal FINISHING AND METAL COATING 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, and in accordance with the l^irovisions of Section 1 of Article VI of the Basic Code for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved November 2, 1933, for approval of a Supplementary Code of Fair Competition for the Refrigera- tion Valves and Fittings Manufacturing Industry, and hearing hav- ing been duly held thereon: and the annexed report on said Supple- mentary Code, containing findings with respect thereto having been made and directed to the President : NOW, THEREFORE, on behalf of the President of the United States, I, Hugh S. Johnson, Administrator for Industrial Recovery pursuant to authority vested in me by Executive Orders of the Presi- dent, including Executive Order No. 6543-A, dated December 30, 1933, and otherwise ; do hereby incorporate by reference said an- nexed report and do find that said Supplementary 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 Supplementary Code of Fair Competition be and it is hereby approved. Hugh S. Johnson, Administrator for Industrial Recovery. Approval recommended : Barton W. Murray^, Division Administrator. Washington, D.C, Septeviher 6', 193 If.. 84630" 1181-1 G 34 (1) EEPORT TO THE PRESIDENT The President, The 'White House. SiE : This is a report on the Supplementary Code of Fair Compe- tition for the Refrigeration Valves and Fittings Manufacturing Industry, a Division of the Fabricated Metal Products Manufactur- ing and Metal Finishing and Metal Coating Industry, the hearing having been conducted thereon in Washington, D.C., April 9, 1934, in accordance with the provisions of Title I of the National Indus- trial Recovery Act. GENER/\X, STATEMENT The Refrigeration Valves and Fittings Manufacturing Industry, being truly representative of this Division of the Fabricated Metal Products Manufacturir.g and Metal Finishing and Metal Coating Industry, has elected to avail itself of the option of submitting a Supplementary Code of Fair Competition, as provided for in Section 1 of Article VI of the Basic Code, for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry, approved by you on the second day of November, 1933. RESUME OF THE CODE Article I states the purpose of the Supplementary Code. Article II accurately defines specific terms employed in the Sup- plementary Code. Article III. This Industry is a Division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and the labor provisions of itvS Basic Code as approved on November 2, 1933. are the labor provisions of this Supplementary Code. Article IV establishes a Supplementary Code Authority consist- ing of five (5) members, to be elected by the members of the Industry at a meeting called by the temporary Supplementary Code Author- ity, and gives the Administrator the authority to a)>point one addi- tional member without vote, and ])rovides the machinery for obtain- ing statistics and the administration of the Supplementary Code. Article V provides for the formulation of an accounting system and methods of cost finding and/or estimating. Article VI sets forth the standards of fair com))etition for the Industry, with reference to pricing practices and forbids wilfully destructive price-cutting. Article VII provides for tlie filing of jirices witli a confidential and disinterested afrent of the Sui>plomentarv Code Authority or, if none, then with such agent designated hy tlH> Administrator. ]Mecha- nJsm is also provided for the filing of [u-ice revisions. Article VIII incorj^orates the unfair trade practices of this Sup- plementary Code which have been designed to olF-set unfair comjie- tition in tliis Division of the Industry. (2) Article IX provides against monopolies or monopolistic practices. Article X contains the mandatory provisions contained in Section 10 (b) of the Act and also provides for submission of proposed amendments to the Su^jplementary Code. Article XI recognizes that price increases be limited to actual addi- tional increases in the sellers costs. Article XII states the effective date of this Supplementary Code. FINDINGS The Assistant Deputy Administrator in his final report to me on said Supplementary Code, having found as herein set forth and on the basis of all the proceedings in this matter : I find that: (a) Said Supplementary Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including removal of obstructions 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 organiza- tion of industry for the purposes of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanctions and super- vision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of in- dustries, by avoiding undue restriction of production (except as may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said Industry normally emploj^s not more than 50,000 em- ployees; and is not classified by me as a major industry. (c) The Supplementary Code as approved complies in all respects 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 association is an industrial association truly representative of the aforesaid Industry ; and that said association imposes no inequitable restrictions on admission to membership therein. (d) The Supplementary Code is not designed to and w411 not per- mit monopolies or monopolistic practices. (e) The Supplementary Code is not designed to and will not elim- inate or oppress small enterprises and will not operate to discrim- inate against them. (f ) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Supplementary Code. For these reasons, therefore, I have approved this Supplementary Code. Respectfully, Hugh S. Johnson, A dininis trator. September 6, 1934. Supplementary Code of Fair Competition for the Refrigeration Valves and Fittings Manufacturing Industry A division of the fabricated metal products manufacturing and METAL FINISHING AND METAL COATING INDUSTRY Article I — Purposes To effectuate the policy of Title I of the National Industrial Re- covery Act, the following provisions are established as a Supple- mentary Code of Fair Competition for the Refrigeration Valves and Fittings Manufacturing Industry. Pursuant to Article VI of the Basic Code of Fair Competition for the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry ap- proved by the President of the United States on the second day of November, 1933, the provisions of the Supplementary Code shall be the standard of fair competition for the Refrigeration Valves and Fittings Manufacturing Industry and shall be binding upon every member thereof. Article II — Definitions Section 1, The term " Refrigeration Valves & Fittings Manufac- turing Industry " hereafter referred to as the " Industry " is defined to mean the manufacture for sale of valves and fittings as used on household or commercial refrigerating or the refrigerating equipment of air conditioning installations, or any part thereof, for controlling the flow in or (connecting the tubing lines. Valves and Fittings for refrigerating equipment using ammonia as a refrigerant, are in- cluded in this Industry only when such valves and fittings are made from a non-ferrous alloy. The term " Refrigeration Valves and Fittings Manufacturing In- dustry " as above defined shall not include valves and/or fittings and their parts prochiced by manufacturers of household or connnercial refrigeration equipment or air conditioning equipment for use in their products. Sec^iion 2. The term " employee ■' as used herein includes anyone engaged in the In(kistry in any capacity receiving comj)ensation for his services, irrespective of the nature or method of payment of such compensation. Section 3. The term " employer " as used herein includes anyone by whom any such employee is compensated or employed. Seciton 4. The term " member of the industry " as used herein includes but without limitation any individual, partnership, asso- ciation, corporation or other form of enteri)rise engaged in the industry either as an eni])loyer or on his own or its own behalf. Section 5. Tlie terms '' President ", '"Act ", and "Administrator " as used herein sliall mean respectively the President of the United (4) States, Title I of the National Industrial Recovery Act, and the Administrator for Industrial Recovery. Section 6. The term "'Basic Code ', as used herein, is defined to mean the Basic Code of Fair Competition for the Fabricated Metal I'roducts Manufacturing and Metal Finishing and Metal Coating Industry, as approved by the President on the i^nd day of November, 1933. Section 7. The term " Supplementary Code Authority " as used herein means the agency whicn is to administer tnis Supplementary Code as hereinafter provided. Section y. ihe term '•Association " as used herein, is defined to mean the Refrigeration Valves and Fittings Manufacturing Asso- ciation or its successor. Section 9. The term " Suppl-ementary Code Conunittee " is defined to mean the Executive Connnittee of the Association. Section 10. l he t-erm ^ Impartial Agent '' as used herein is defined to mean the impartial agency designated by the Supplementary Code Authority. Section 11. The term " Federation " as used herein is defined to mean the Fabricated Metal l^roducts Federation or its successor. Article III — Employment Provisions This Industry is a division of the Fabricated Metal Products Manufacturing and Metal Finishing and Metal Coating Industry and without limitation the wage, hour and labor provisions in Article III of its Basic Code as approved by the President, Novem- ber 2, 1933, including Section 1 of said Article III, by which the pro- visions of subsections (1), (2) and (3) of Section 7 (a) of Title I of the Act are made conditions of this Supplementary Code, are specifically incorporated herein and made a part hereof as the wage, hour and labor provisions of this Supplementary Code. Article IV — Organization and Administration Section 1. During the period not to exceed sixty (60) days fol- lowing the effective date of this Supplementary Code, the Supple- mentary Code Committee of the Industry shall constitute a tem- porary Supplementary Code Authority until the Supplementary Code Authority is elected. There shall be constituted within the sixty-day period a Supplementar}'- Code Authority consisting of five members to be elected by the members of the Industry, at a meeting called by the Temporary Supplementary Code Authority, upon ten days' notice sent by registerecl mail to all members of the Industry whose names may be ascertained after diligent search, who may vote either in person or by proxy. The members of the Supplementary Code Authority first elected shall serve until the following annual meeting of the Association, and thereafter, members of the Supple- mentary Code Authority shall be elected by the members of the In- dustry, such election to be held at the time and place of each annual meeting of the Association to serve until the following annual meet- ing. The members of the Supplementary Code Authority shall be elected in the followiuir manner: 6 (a) One member who shall be a member of the Industry by a majority vote of all members of the Industry present in person or by proxy, each member to have one vote. (b) One member who is a member of the Industr}- but not a member of the Association by a majority vote of all those members of the Industry, who are not members of the Association, present in person or by proxy, each member to have one vote. In the event that the non -members fail to elect such non-member, then the Administrator may appoint such non-member form a list of two non-members submitted by the Supplementary Code Authority as at the time constituted. (c) Three members by majority vote of members of the Associa- tion, present in person or by proxy, weighted on the basis of one vote for each member and one additional vote for each $25,000.00 or major fraction thereof of annual sales in the previous calendar year reported to the Supplementary Code Authority; provided, however, that no one member may cast more than 25 percent of total number of votes cast. A vacancy in the membership of the Supplementar}^ Code Au- thority may be filled by a majority vote of the remaining members of the Supplementary Code Authority, provided that such vacancy shall be filled from the class in which it occurs. In addition thereto the Administrator may appoint a member of the Supplementary Code Authority who without vote shall serve without expense to the Industry. The representative who may be ap})ointed by the Administrator shall be given reasonable notice of and may sit at all meetings of the Supplementary Code Authority. Section 2. Each trade association directly or indirectl}^ partici- pating in the selection or activities of the Supplementary Code Au- thority shall (1) impose no inequitable restrictions on admission to membership, and (2) submit to the Administrator true copies of its Articles of Association, By-Laws, Regulations and any amendments when made thereto, together with such other information as to mem- bership, organization and activities as the Administrator may deem necessary to effectuate the purposes of the Act. Section 3. In order that the Suj)plementary Code Authority shall at all times, be truly representative of tlie Industry and in other respects comply with the provisions of the Act, the Administrator may prescribe such Hearings as he may reasonably deem proper; and, thereafter, if he shall find that the Supi^lementary Code Author- ity is not truly representative or does not in other respects comply with tJie i)rovisions of tlie Act, may require the removal of any or all of the members thereof, and may nuike an appropriate modifica- tion or modifications in Ihe method of selection or the Supplementary Code Authorit}'. Section 4. It being found necessary in order to .support tlie ad- ministration of this Supplementary Code and to maintain the stand- ards of fair competition established hereunder and to effectuate the policy of the Act, the Supplementary Code Authority is authorized : (a) To incur such reasonable obligations as are necessary and j)roj)er for the foregoing ]UirjK)ses and to meet sucli obligations out t)f fiiiuls wliicli may be raised as hereinafter ])rovided and which shall be held in trust for tlie purposes of the Supplementary Code; (b) To submit to the Administrator for his approval, subject to such notice and opportunity to be heard as he 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 be contributed by members of the Industry ; (c) After such budget and basis of contribution have been ap- proved by the Administrator, to determine and obtain equitable con- tribution as above set forth by all members of the Industry, and to that end, if necessary, to institute legal proceedings therefor in its own name. Each member of the Industry shall pay his or its equitable con- tribution to the expenses of the maintenance of the Supplementary Code Authority, determined as hereinabove provided, and subject to rules and regulations pertaining thereto issued by the Administrator. Only members of the Industry complying with the Supplementary Code and contributing to the expenses of its administration as here- inabove provided, unless duly exempted from making such contribu- tions, shall be entitled to participate in the selection of members of the Supplementary Code Authority or to receive the benefits of any of its voluntary activities or to make use of any emblem or insignia of the National Recovery Administration. The Supplementary Code Authoritj^ shall neither incur nor pay any obligation substantially in excess of the amount thereof as esti- mated in its approved budget, and shall in no event exceed the total amount contained in the approved budget, except upon approval of the Administrator ; and no subsequent budget shall contain any de- ficiency item for expenditures in excess of prior budget estimates except those which the Administrator shall have so approved. Section 5. Nothing contained in this Supplementary Code shall constitute the members of the Supplementary Code Authority part- ners for any purpose. Nor shall any member of the Supplementary Code Authority be liable in any manner to anyone for any act oi any other member, ofiicer, agent, or employee of the Supplementary Code Authority, nor shall any membe/ of the Supplementary Code Authority, exercising reasonable diligence in the conduct of his duties hereunder, be liable to anyone for any action or omission to act under this Supplementary Code, except for his own willful malfeasance or non-feasance. Section 6. The Supplementary Code Authority shall also from time to time furnish to the Basic Code Authority, desigiiated in said Basic Code, such information as may be required to be fur- nished under terms of said Basic Code. Section T. The Supplementary Code Authority shall have all the powers and duties which shall be necessary and proper to enable it to fully administer this Supplementary Code and to effectuate its purpose. Without limitatien to the foregoing or any other powers or duties provided for in this Supplementary Code, the Supplementary Code Authority shall have the following further powers and duties: (a) To adopt by-laws and rules and regulations for, and keep records of its procedure and for the administration of the Supple- mentary Code. 8 (b) To obtain from members of the Industry such information and reports as are required for tlie administration of the Supple- mentary Code. In addition to information required to be sub- mitted to the Supplementary Code Authority, members of the Indus- try subject to this Supplementary Code shall furnish such statistical information as the Administrator may deem necessary for the pur- poses recited in Section 3 (a) of the Act to such Federal and State aj^encies as he may desif^ate; provided that nothint; in this Sup- plementary Code shall relieve any member of the Industry of any existing obligations to furnish reports to any Government agency. No individual report shall be disclosed to any other member of the Industry or any other party except to such other Governmental agencies as may be directed by the Administrator. (c) To use such trade associations and other agencies as it deems ])roper for the carrying out of any of its activities provided for lierein, provided that nothing herein shall relieve the Supplementary (^ode Authority of its duties or responsibilities under this Supple- mentary Code and that such trade associations and agencies shall at all times be subject to and comply with the provisions hereof. (d) To make recommendations to the Administrator for the coordination of the Administration of this Supplementary Code with such other codes, if any, as may be related to or affect the members of the Industry. (e) To recommend to the Administrator further fair trade prac- tice provisions to govern members of the Industry in their relations with each other or wnth other industries and to recommend to the Administrator measures for industrial planning, including stabiliza- tion of employment. (f) To set up definitions for the various clas.ses of customers within this industry, subject to the approval of the Administratoi-; provided, however, there shall be no classification of individual customers by the Supplementary Code Authority. (g) 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 Industry for the purpose of formulating fair trade practices to govern the relationships between employers under this Code and under such other codes, to tlie end that such fair trade practices may be proposed to the Administrator as amendments to this Code and such other Codes. (h) To provide appropriate facilities for arbitration of differences between members of the Industry, and subject to the approval of the Administrator, to i)rescribe rules of ])r()cedure and rules to effect compliance with awards and determinations. (i) If the Administrator believes that any action of the Supple- mentary Code Authority or any agency thereof is unfair or unjust or contrary to the public interest, the Administrator may require that such action be sus])ended to afford an opportunity for inves- tigation of the merits of such action. Further action by such Sup- ])!ementary Code Authority or agency regarding the uiatter com- ])lained of may be taken if approved by the Administrator, but shall not be taken if disapproved by the Administrator witliin thirty days of notice to him of intention to proceed with such action. Section 8. To the extent permitted by the Act and pursuant to such rules and regulations as the Administrator may prescribe, any and all information furnished to the Supplementary Code Authority by any members of this Industry pursuant to the provisions of this Supplementary Code shall be subject to verification by an impar- tial agent agreed upon by this Supplementary Code Authority and the member of the Industry in question, or failing such agreement, appointed by the Administrator, which impartial agent may check so much of the pertinent books, accounts and records of such mem- ber of the Industry as may be required to verify the accuracy of the information so furnished. Section 9. Subject to such rules and regulations as the Adminis- trator may prescribe, the Supplementary Code Authority shall have the power to investigate all complaints of alleged violations of this Supplementary Code filed with it by one member of the Industry against another member of the Industry. Section 10. Every employer shall provide for the safety and health of employees during the hours and at the places of their employment. Standards for safety and health shall be submitted by the Code Authority to the Administrator within three (3) months after the effective date of the Supplementary Code. Article V — Cost Finding Section 1. The Supplementary Code Authority shall cause to be formulated methods of cost finding and accounting capable of use by all members of the Industry, and shall submit such methods to the Administrator for review. If approved by the Administrator, full information concerning such methods shall be made available to ail members of the Industry. Thereafter, each member of the Industry shall utilize such methods to the extent found practicable. Nothing herein contained shall be construed to permit the Supplementary Code Authority, any agent thereof, or any member of the Industry to suggest uniform addition, percentages or differentials or other uniform items of cost vrhich are designed to bring about arbitrary uniformity of costs or prices. Article VI — Costs and Price Cr^rTiNO Section 1. The standards of fai'r competition for the Industry with reference to pricing practices are declared to be as follows : (a) Wilfully destructive price cutting is an unfair method of com- petition and is forbidden. Any member of the Industry or of any other Industry or the customers of either may at any time complain to the Supplementary Code Authority that an}' filed price constitutes unfair competition as destructive price cutting, imperiling small en- terprise or tending toward monopoly or the impairment of code Ts^ages and working conditions. The Supplementary Code Authority shall within 5 days afford an opportunity to the member filing the price to answer such complaint and shall within 14 days make a ruling or adjustment thereon. If such ruling is not concurred in by either party to the complaint, all ])apers shall be referred to the JResearch and Planning Division of N.R.A. Avhich shall render a report and recommendation thereon to the Administrator. (b) Wlien no declared emergency exists as to amy given product, there is to be no fixed minimum basis for prices. It is intended 10 that sound cost estimating methods should be used and that consider- ation should be given to costs in the determination of pricing policies. (c) When an emergency exists as to any given product, sale below the stated minimum price of such product, in violation of Section 2 hereof, is forbidden. Section 2. Emergerbcy Provmorh<^. — (a) If the Administrator, after investigation shall at any time find both (1) that an emergency has arisen within the Industry adversely affecting small enterprises or wages or labor conditions, or tending toward monopoly or other acute conditions which tend to defeat the purposes of the Act; and (2) that the determination of the stated minimum price for a speci- fied product within the Industry for a limited period is necessary to mitigate the conditions constituting such emergency and to effectu- ate the purposes of the Act, the Supplementary Code Authority may cause an impartial agency to investigate costs and to recommend to the Administrator a determination of the stated minimum price of the product affected by the emergency and thereupon the Admin- istrator may proceed to determine such stated minimum price. (b) When tlie Administrator shall have determined such stated minimum price for a specified product for a stated period, which price shall be reasonably calculated to mitigate the conditions of such emergency and to effectuate the purposes of the National Industrial Recovery Act, he shall publish such price. Thereafter, during such stated period, no member of the Industry shall sell such specified products at a net realized price below said stated minimum price and any such sale shall be deemed destructive price cutting. From time to time, the Supplementary Code Authority may recommend review or reconsideration or the Administrator may cause any de- terminations hereunder to be reviewed or reconsidered and appro- priate action taken. Article VII — Open Price Filing Section 1. Each member of the Industry shall file with a con- fidential and disinterested agent of the Supplementary Code Au- thority or, if none, then with such an agent designated by the Ad- ministrator, identified lists of all of his prices, discounts, rebates, al- lowances, and all other terms or conditions of sale, hereinafter in this article referred to as " price terms "', which lists shall com- pletely and accurately conform to and represent the individual pric- ing practices of said member. Such lists shall contain the price terms for all such standard products of the Industry as are .sold or offered for sale by said member and for such non-standard products of said member as shall be designated by the Supplementary Code Authority. Said price terms shall in the first instance be filed within twenty (20) days aft<^r the date of api)roval of this provision. Price terms and revised price terms shall become effective immediately upon receipt thereof by said agent. Immediately upon receipt thereof, said agent shall by telegraph or other equally prompt means notify said member of the time of sucli receipt. Sucli lists and re- visions, together with the effective time thereof, shall ujiou receipt be immediately and simultaneously distributed to all meivibers of the Industry and to all of their customers who have applied therefor 11 and have offered to defray the cost actually incurred by the Supple- mentary Code Authority in the preparation and distribution there- of and be available for inspection by any of their customers at the office of such agent. Said lists or revisions or any part thereof shall not be made available to any person until released to all members of the Industry and their customers, as aforesaid ; provided, that prices filed in the first instance shall not be released until the expiration of the aforesaid twenty (20) day period after the approval of this Code. The Supplementary Code Authority shall maintain a per- manent file of all price terms filed as herein provided, and shall not destroy any part of such records except upon written consent of the Administrator. Upon request the Supplementary Code Au- thority shall furnish to the Administrator or any duly designated agent of the Administrator copies of any such lists or revisions of price terms. Section 2. When any member of the Industry has filed any re- vision, such member shall not file a higher price within forty-eiglit (48) hours. Section 3. No member of the Industry shall sell or offer to sell any products of the Industry, for which price terms have been filed pur- suant to the provisions of this article, except in accordance with such price terms. Section 4. No member of the Industry shall enter into any agree- ment, understanding, combination or conspiracy to fix or maintain price terms, nor cause or attempt to cause any member of the In- dustry to change his price terms by the use of intimidation, coercion, or any other influence inconsistent with the maintenance of the free and open market wdiich it is the purpose of this Article to create. Article VIII — Unfair Trade Practices In addition to the Unfair Trade Practices covered by Article V (excepting Sections A, B, C, E, F, and G) of the Basic Code as though herein repeated and set forth at length, and for all purposes of this Supplementary Code the following described acts shall con- stitute unfair practices. Any member of the Industry who shall directly or indirectly through any officer, employee, agent or repre- sentative use or employ any of such unfair practices shall be guilty of a violation of this Supplementary Code. KuLE 1. Inaccurate Advertising. — No member of the Industry shall i^ublish advertising (whether printed, radio, display or of any other nature), which is misleading or false in any material par- ticular, nor shall any member in any way misrepresent any goods (inducting but without limitation its use, trade mark, grade, quality, quantity, origin, size, substance, character, nature, finish, material, content or preparation) or credit terms, values, policies, services or the nature or form of the business conducted. Rule 2. False Billing, — No member of the Industry shall know- ingly withhold from or insert in any quotation or invoice any state- ment that makes it inaccurate in any material particular. Rule 3. Inaccurate Labeling.— ^o member of the Industry shall brand or mark or pack any goods in any manner which is intended to or does deceive or mislead purchasers with respect to the brand, 12 grade, quality, quantity, origin, size, substance, character, nature, finish, material, content or preparation of such goods. Rule 4. Defamation. — No member of the Industry shall defame a competitor by falsely imputing to him dishonorable conduct, in- ability to perform contracts, questionable credit standing, or by other false representation, or by falsely disparaging the grade or quality of his goods. Rule 5. Threats of Law Suits. — No member of the Industry shall publish or circulate unjustified or unwarranted threats of legal pro- ceedings which tend to or have the effect of harassing competitors or intimidating their customers. Rule 6. Rehates. — No member of the Industry shall secretly offer or make any payment or allowance of rebate, refund, commission, credit, unearned discount, or excess allowance, whether in the form of money or otherwise, nor shall a member of the Industry secretly offer or extend to any customer any special service or privilege not extended to all customers of the same class, for the purpose of in- fluencing a sale. Rule 7. Belling on Consigninent. — No member of the Industry shall ship goods on consignment except under circumstances to be defined by the Supplementary Code Authority and approved by the Administrator, where peculiar circumstances of the Industry require the practice. Rule 8. C ommercial Bribery. — No member .of the Industry shall give, i^ermit to be given or directly offer to give, anything of value for the puriDose of influencing or rewarding the action of any em- ployee, 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- cipal or party. This ]5rovision shall not be construed to prohibit free and general distribution of articles commonly used for adver- tising except so far as such articles are actually used for commercial bribery as hereinabove defined. Rule 9. Interference with Another^ Contracts. — No member of the Industry shall wilfully induce or attempt to induce the breach of a contract between a competitor and his customer or soui'cc of supply, nor shall any such member interfere with or obstruct the performance of such contractual duties or services. Rule 10. Coercion. — No member of the Industry shall require that the purchase or lease of any goods be a pre-requisite to the purchase or lease of any other goods. Rule 11. Substitut4on. — No memlier of the Industry sliall furnish articles more or less expensive, of better or inferior quality, or of sizes larger or smaller, than specified without making the proper adjustments in t]ie quoted price and clearly indicating the nature of the substitution. Rule 12. Lump Sum Bids. — No member of the Industry shall sell or offer to sell two or more commodities, one of which is a product of this Industry, without clearly stating the unit price of eacli such commodity. Rule 13. Lump Sum Contracts. — No member of the Industry shall sell or offer to sell except on the price schedules showing each itejji 13 separately, and items shall not be lumped for bidding or sale in any manner other than provided in such price schedules filed by him and in effect at the time. EuLE 14. Default in Contracts. — No member of the Industry shall fail, for the purpose of evading price schedules or securing a cus- tomer's favor, to enforce the provisions of all contracts. Rule 15. Re/ports of Defaults and CanceHations.- — -No member of the Industry shall fail to report to the Supplementary Code Author- ity any or all defaults on contracts, or cancellation thereof, giving the attending circumstances and the action actually taken by such member of the Industry with respect to such default and/or cancel- lations. Rule IC. Goods Returned or PurcliAised from Custo'irier. — No mem- ber of the Industry shall accept, in lieu of other value, or othervvdse pay or extend credit to his customer for the return of, used parts and/or products of obsolete design, except at his filed price for scrap metal. Rule 17. Purchases fronn Customers. — No member of the Indus- try shall, for the purpose of influencing a sale, purchase products from customers or consumers of the products of this Industry, at prices higher than the published prices of the Industry from which these products are obtained. Rule 18. Ter?ns and Conditions of Contracts. — No member of the Industry shall fail to adopt and maintain uniform contract terms and conditions to be established by the Supplementary Code Author- ity and approved by the Administrator. Rule 19. Credit Tei^ns. — No member of the Industry shall fail to adopt and maintain such uniform credit terms as are established by the Supplementary Code Authority and approved by the ildminis- trator. Such credit terms shall appear on all quotations, contracts, invoices, acceptances of orders and price lists or discount sheets. Rule 20. Freight Alloioances. — No member of the Industry shall fail to adopt and maintain a uniform practice as regards freight al- lowances, such uniform practices to be filed with the Supplementary Code Authority. The conditions of freight allowances shall appear on all c{Uotations, contracts, invoices, acceptances of orders, and price lists or discount sheets. Rule 21. Definitions of Customers. — No member of the Industry shall fail to comply with the definitions for various classes of cus- tomers set up by the Supplementary Code Authority and approved by the Administrator as in Article IV, Section 7, sub-section (f) herein provided. Quotations, prices, discounts, credit terms, allow- ances, or other conditions of sale shall be made on the basis of such definitions and deviations therefrom shall constitute unfair methods of competition and a violation of this Supplementary Code. Article IX — Monopolies No provisions of this Supplementary Code shall be so applied as to permit monopolies or monopolistic practices or to eliminate, op- press or discriminate against small enterprises. UNIVERSITY OF FLORIDA 14 Article X — Modifications 3 1262 08853 8326 Section 1. As provided in Section 10 (b) of the Act, the President may from time to time cancel or modify any order, approval, license, rule or regulation issued under said Act. Section 2. This Supplementary Code, except as to provisions re- quired by the Act, may be modified or amended on the basis of experi- ence or changes in circumstances, such modifications or amendments to be based upon application by the Supplementary Code Authority or other representative group within this Industry to the Admin- istrator, and such notice and hearing as he shall specify and to be- come effective and be a part of tliis Supplementary Code on approval by the President of the United States. Article XI — Price Increases Whereas the policy of the Act to increase real purchasing power will be made more difficult of consummation if prices of goods and services increase as rapidly as wages, it is recognized that price in- creases except such as may be required to meet individual costs should be delayed, and when made, such increases should as far as possible be limited to actual additional increases in the seller's costs. Article XII — Effectiv'e Date This Supplementary Code shall become effective at 12 : 01 o'clock A.M. on the tenth day after its approval. Approved Cod;^ N>'. 84 — Suiiplemt-nt No. 51. Registry No. 132S-15. o