(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Biodiversity Heritage Library | Children's Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "Work materials ..."

^3,a;ji/?;s-s-/9. 



BOSTON PUBLIC LIBRARY 



^ 



3 9999 06317 347 8 



NATIONAL RECOVERY ADMINISTRATION 



DIVISION OF REVIEW 



SUMMARY OF ANALYSIS 

OF 

TRADE PRACTICE PROVISIONS IN NRA CODES 

(EXCLUDING I, PRODUCTION CONTROL; II, 

MINIMUM PRICE; III, OPEN PRICE 

FILING; IV, BID FILING; V, 

STANDARDS LABELING) 

Includes : 

(1) List of trade practices found in codes 

(2) Types of restrictions placed on each practice 

(3) Number of times the restriction is cited in 
both codes and supplements. 

July 20, 1935. 



PRELIMINARY DRAFT 

(NOT FOR RELEASE: FOR USE IN DIVISION ONLY) 



CONFIDENTIAL 

MEMORAlIDmi TO SECTIOU HEADS 

SUBJECT: I70RK MATERIALS 110, 2 

SmO.'IARY OF ANALYSIS OF CERTAIN TRADE PRACTICE 
PROVISIONS IN IIRA CODES 

This material is tentative and preliminary. It is not an official 
docunent and is not released for general use. It is distributed to 
Section Heads for appropriate confidential use in connection \iith the 
research \7ork iii their respective fields. 

L, C« Marshall 
Director, Division of Review 
*************************************** 



EXPLAI'TATORY NOTES 

This study includes a summary of an analysis of all trp.de practice 
provisions in the codes uith the exception of provisions relating to (l) pro- 
duction control, (2) minimum price, (3) open price filing, (4) bid filing, 
and (5) standards and labeling. The cddal provisions relating to these 
five subjects have been analyzed and at present are set forth elsewhere 
on charts. 

All approved codes ajid supplements administered by NRA are included in 
this study \-^ith the exception of Number 141, Investment Bankers, Nineteen 
"LP" codes and the PetJroleura Code, Number 10, rrere excluded from the analy- 
sis, since the trade practices therein \7erG not administered by NRA. The 
analysis, thus, comprehends 555 codes and 189 supplements; from the latter 
figure are excluded seven "appendices", three "consolidations" and two "sub~ 
divisions, " 

In addition to a listing of the various types of trade practices cover- 
ed in the codes, there is included tinder each specific practice: (l) the 
different tjrpes of restrictions placed on it, and (2) the number of times 
the restriction is cited in both codes and supplements. In making the 
count, each supplement was regarded as a separate code and so counted. If 
the provision.appeared in one or more than one division of any code, it was 
counted once and only once. 

The classifications and sub~classif ications are preliminary and tenta^ 
tive only, and should not be regarded as definitive. 



8008 -i- 



iroix 



Page 



I. 



PROVISIOITS PRILLAEILY DESIG1>TED TO RESTRICT THE GEAiWIEG OP 
IltDIEECT C01ICE3SI0NS TO INPLUEHCE A SALE .' 



II. 



1. 
2. 
3, 

A 

5, 

5. 
7. 



9. 

10. 
11, 

12» 

13^ 

14. 



Concessions primarily related to time of buyer's pajnnent 

Concessions primarily related to risks of buyer , 

Concessions primarily related to supplying additional 
goods * 

Concessions rendered bu.yer through use of seller's em- 
ployees or property 

Concessions rendered buyer tlirough financial assistance 
or favors, • 

Concessions related to manner and/or time of shipment...... 

Concessions througli payment or diversion of commissions 
or fee s to customer • ? 

Concessions tlirough allowances or payments for value 
rendered by buyer • » 

Concessions tlirough acceptance of competitor's materials 
from buyers 

Concessions tlurough sale of substandard or obsolete goods . 

Concessions granted during performance contrary to pro- 
visions of agreement ^ 

Acceptance of forms of payment in which concessions may 
be concealed. •> 

Types of agreements, offers, invoicing, etc., by means 
of vihich concessions may be concealed • 

Types of agreements, offers, invoicing, etc., primarily 
designed to- prevent the concealing of concessions 



12 

15 

18 
20 



PROVISIONS PRIl'IARILY DESIGITED TO PRESERVE OR HODIFI CHAJTMELS 
OP DISTRIBUTION 

1, Provisions regulating customer classification 

2, Restrictions on granting of trade differentials 

3, Restrictions on granting of quantity discounts 

4, Provisions for the maintenance of resale prices and ad- 

herence to codal provisions by customers 

5, Prohibition of discriminatory practices 

6, Provisions relating to controlled sales representatives... 

7, Miscellaneous provisions designed to preserve or modify 

channels of distribution 



25 
26 

29 

31 

S3 

37 

38 

38 
39 

40 

42 
43 
45 

46 



III. PROVISIOITS PRILLARILY DESIGITED TO PRESERVE OR MODIFY GEOGRAPHI- ' 

CAL EELATIOITSHIPS 47 



8008 



-11- 



Il-IJEX 
(Continued) 

Page 
IV. PROVISIOHS PRILIAEILY DESIGIIED TO PESTPJCT USE OP COivIPETIIOR'S 
DESIC-lIS OR STYLES HID THE liilTATION OP COi/iPETITOR'S IDEIITI- 

PICATIONS , , 50 

1. Designs and styles 50 

2. Identifications 50 

V. PROVISIOHS PRIi;IARILY DESIGNED TO LIMIT USE OP COERCIVE AKD 

PREDACIOUS DEVICES , 51 

1. Coercive device "by mein'bers as sellers 51 

2» Coercive devices "by nem'bers as "b-uyers 52 

3. Predacious devices used against competitors 53 

VI. PROVISIONS PRIlvIAPJLY DESIGNED TO LIMIT DECEPTION AND MISREPRE- 

SEIITATION 55 

1. In relations \Tith customers 55 

2, In relations -nith. others 59 

VII. PROVISIONS OP A SPECIAL NATURE PRIi.LARILY DESIGlffiD TO REGULATE 

BIDDING AND AWARDING PRACTICES 60 

A. Provisions Primarily Designed to Make Original Offer the _ 

Effective or Final Offer 60 

1. Limitations on "bidders. 60 

2, Limitations on auarding authority 60 

B. Provisions Primarily Designed to Eliminate Waste in 

Bidding ?1 

C. Other Bidding Limitations of a Special Nature 61 

VIII. . OTHER TRADE PRACTICE PROVISIONS 62 

1. Provisions primarily designed to preserve or modify pro- 

ductive functions of the industry or trade 62 

2. Restrictions on meml^ers as "buyers 63 

3. Provisions for conservation 64 

4. Restrictions on advertising other than inaccurate 64 

5. Provisions peculiar to transportation or warehousing codes 64 
5, Provisions relating to price differentials "between 

classes of products • • 65 

IX. ENABLING PROVISIONS OTHER THAN "TRADE PRACTICES" IN GENERAL , 66 



8008 -iii- 



-1- 

I . PROVISIOL'S FHIliAHILY SESISHBD TO RESTRICT THE GP-AI^TIl - TG- OF IlIDIHECT C0ITC5S- 
SIOKS TO IHBIjUEITCE A SALE 



1. Concessions primarily related to time of b-gyer's pa:;'inent 

"Discoimts" 

Prohibited 7 

Prohibited if excessive or imreas enable 3 

Prohibited if secret 4 

Prohibited if discrimnatory 8 

Maximtim limit specified 1 

Must be filed in accordance '.rith open price provision 279 

Code Authority v/ith administrative approval to establish 

rules governing 1 

Code Authority to study and recommend to N.R.A. rules 

governing 1 

Members of industry with approval of Code Authority to 

establish rule s governing 2 

"Terms" and "conditions" of sale or payment 

Must be filed, in accordance nith open price provision 362 

Code Authority to establish rules governing 2 

Code Axithority with administrative approval to establish 

rules governing 11 

Code Authority to study and recommend to K.R.A. rules 

governing 2 

Members of industry with Code Authority approva-1 to es- 
tablish rules governing 1 

"Credit practices" 

Code Authority with administrative approval to establish 
rules governing 3 

"Credit terms" 

Prohibited if excessive or 'onreasonable 1 

Prohibited if deceptive or misleading 21 

Must be reported to Code Authority 1 

Code Authority to establish rules governing 2 

Code Authority with administrative approval to establish 

rules governing 10 

Code Authority to studjr and recommend to II. R. A. rules 

governing 1 

Members of industry to establish rules governing 1 



8008 



-2- . 

FROYISIOKS PRIIIAHILY DE SI GISD TO RESTRICT THS aHAKTII IG OP I^DIIffiCT CQH- 
CESSIOHS TO IK^LUEHCE A SALE (Continued) 



1. Concessions primarily related to time of "b-uyer's payment (Continued) 
"Cash disco-ants" 

ProMlDited 15 

Prohioited if excessive or unreasonable 8 

Maximum rs.te specified 227 

Exact rate specified 29 

Other restrictions on 2 

Must be filed in accordance nith open price provision 18 

Code Authority with administrative approval to establish 

rules governing 8 

Members of industry v/ith approval of Code Authority to 

establish rules govei-ning 1 

Periods of free credit 

Maximum limit specified 149 

Length specified 12 

Must be filed in accordance nith open price system 1 

Code Authority with administra.tive approval to establish 

rules governing 3 

Interest rate beyond free credit period 

Must cover cost of financing 1 

Must be charged 5 

Prohibited if unreasonable 1 

Maximum limit specified 1 

Minimum rate specified 20 

Exact rate specified 47 

Code Authority to establish rules governing. . 4 

"Datings" 

Prohibited 19 

Prohibited if discriminatory 1 

Maximum period specified 2 

Detailed terms and conditions specified 3 

Code Authority with administrative approval to establish 

rules governing 2 



8008 



-3- 

I. FROYISIOIIS PRIi.iAHILY PESIGIED TO HESTRIOT THE GIIA1ITIH& OF II-tPIHECT COuCBSSIOITS 
TO IinrLUCl-TCE A SALE (Continued) 

1, Ooncessions primg.rily related to time of Tjuycr's i^ayment (Continued) 

Seasonal datin;g:s 

Detailed terms and conditions specified , , 41 

Prohibited 2 

Approval of Code Authority required. 2 

Code Authority to establish rules governing 1 

Installment sales 

Prohibited 1 

Cost of financing mast be recovered 2 

Detailed terms and conditions specified 20 

Other restrictions on 2 

Written contract required 1 

Code Authority with administrative approval to establish 

rules governing, 1 

Deferred payment 

Detailed terms and conditions specified 39 

Code Authority with administrative approval to establish 

rules governing •• 3 

Down payment (other than installment sales) minimum 

specified. 3 

Anticipation of bills 

Prohibit ed 6 

Exact rate specified 21 

Maximum rate specified 39 

Code Authority with administrative approval to establish 

rale s governing 2 

Sales to delinquent accounts 

Prohibited 3 

Other restrictions on 6 

Members of industry to establish rules governing 1 

Sales not contingent upon buyer's credit standing 

Prohibited 2 

Other restrictions on 1 



8008 



-4- 

I. PRQVISIOIIS PRII.IAEILY DESIGIIED TO RESTRICT THE GRAIITIITG- OF IICDIHECT COITCESSIOHS 
TO IIIHjUEITCE a sale (Continued) 

1. Concessions iprinarily related to time of "buyer's -payment (Continued) 
Payment due vrhen money received from other sources 

Prohitited 1 

Retained -percentages 

Prohibited 1 

liasiimim time or percentage specified 8 



-5- 

I. PROVISIONS PRnvumiLY DESIGIIES TO HESTRICT THE G-IIA1ITI1I& OF niDIEECT COHCESSIOITS 
TO IKFLUEMCE A SALE (Continued ) 

2» Concessions primarily related to risks of buyer 

"G-uarantees" 

Prohitited. 2 

Prohibited if excessive 2 

Prohibited if discriminatory 1 

Prohibited if deceptive 13 

Must be filed in accordance with open price provisions... 3 

Members of industrjr to establish rules governing •••. 2 

Code Authority with administrative approval to establish 

rule s governingc 1 

Price guarantees 

Prohibited 158 

Prohibited if discriminatory 2 

Time limit specified 12 

Prohibited unless seller protected against price decrease 5 

Must be set forth in written agreement 2 

Other restrictions on 17 

Must be filed in accordance with open price provision. . •• 3 

Must be reported to Code Authority 2 

Contracts for deferred delivery not subject to price change 

Prohibited 8 

Prohibited if discriminatoiy 1 

Time limit specified 6 

Must be in writing ...• 2 

Other restrictions on 3 

Must be reported to Code Authority 5 

Price offer not sub.ject to change 

Prohibited. 2 

Time limit specified 10 

Must be set forth in \7ritten agreement 1 

Other restrictions on 2 

Must be filed in accordance with open price system • 1 

Must be reported to Code Authority'- 1 

Advance notification of -price change 

Prohibited 13 



8008 



-6- 

I. PRQVISIOI\rS PRIMARILY DESIGMED TO EESTRICT THE G-RMTIUG OF INDIEECT COHCESSIOKS 
TO IIIPLnEKCE A SALE (Continued ) 

2« Concessions -primarily related to risks of iDuyer (Continued ) 

Delaying acceiotance of order 

Prohibited 1 

"Options" 

Prohibited 8 

Time limit specified. • 3 

Other restrictions on 8 

Agreements indefinite as to time or gug.ntity 

Prohibited 55 

Prohibited if discriminatory 1 

Other restrictions on 7 

Must be reported to Code Authority 2 

Offers without time limit 

Prohibited 6 

Offers not expiring Trithin specified -period of time 

Prohibited 7 

Offers without withdrawal provisions 

Prohibited 2 

Other restrictions on 1 

Guarantees against defective goods 

Excessive allowances prohibited «..> 10 

Prohibited if discriminatory 1 

Limit specified on amoimt of allowance 3 

Time limit specified 50 

Must be set forth in written contract 1 

Other restrictions on 19 

Other restrictions on amount of allowance 2 

Must be filed in accordance with open price system *• 2 

Allowance must be reported to Code Authority 1 

Acceptance of returns must be reported to Code Authoritj'-. 5 



8008 



-7- 

I. PEOVISIONS PRIMARILY DESIGIIED TO HESTRICT TES G-RAMTIMG OF INSIKECT COKCESSIOMS 
TO IICFLUEH C E A Si\ LE (Continued) 

2 . Concessions primarily related to risks of liuyer (Continued ) 

"Product guarantees" 

Prohibited 7 

.Prohibited if excessive or unreasonable 2 

Prohibited if deceptive 2 

Time limit specified 11 

Limit specified on amount of allowance 1 

Must be set forth in a written agreement 2 

Other restrictions on 5 

Must be filed in accordance with open price provision 3 

Must be reported to Code Authority 1 

Code Authority vath administrative approval to establish 

rule s gove rning 4 

"Product guarantees" against other than defective merchandise 
Prohibited 31 

Uniform product gua-Tpntec s-oecifieo. in co.do . 10 

Guarantees in excess of manufacturers' warranty (distributing 
and fabricating codes) 

Prohibited 9 

Maintenance guarantees 

Prohibited 3 

Time limit specified 4 

Ad.justing incorrect shipments 

Prohibited if excessive or xmreasonable • 16 

Time limit specified 21 

Other restrictions on 4 



I. FR0VI5I0CTS PRII1/\EILY DESIGI-TEI) TO E5 S TRICT TIIS GBAiITIl-TG- OF mPIEECT COI^T^ 
CESSIOl^IS TO INJIIEHCZ A SALE (Continued ) 

2, Concessions -primarily related to risks of Ij-iy/er (Continued ) 
" Accepting return of raercha-ndise " 

Prohibi ted 11 

Handling or service charge required 5 

Prohitiited if excessive or unreasonable, 4 

Excessive allonances prohibited 9 

Prohibited if discrininatory 2 

Limit specified on anoimt of allowance 5 

Tine limit specified 19 

Other restrictions on , 9 

Other restrictions on allowances 3 

Approval of Code Authority required 2 

Acceptance of returns Lmst be reported to Code Authority., 4 
Code Authority with administrative approval to establish 

rules governing 2 

Code Authority to study and recommend to IIEA rules gov- 
erning 2 

Accepting return of obsolete, discontinued or "unsalable" merchandise 

Prohibited j* • 9 

Handling or service charge required 1 

Limit on amount of allow?Jice specified 3 

Acceptance of returns must be reported to Code Authority,. 1 
Code Authority with administrative approval to establish 

rules governing 1 

Code Authority to study and recommend to IIEA rules gov- 
erning 1 

Exchanging merchandis e 

Prohibited 4 

Accepting return of other than defective merchand ise 

Prohibited 39 

Excessive allowances prohibited 1 

Handling or service charge required 16 

Maximum limit specified 1 

Limit specified on amount of allow.ance 5 

Time limit specified. 10 

Other restrictions on. 9 

Acceptance of returns must be reported to Code Authority., 1 



8008 



I. PROVISIOITS PRIIIAJIILY DESIGEED TO RESTRICT THE GRAIITIIIG OF IHDIHEGT COITCESSIOITS 
TO IITELUEHCE A SAI E (Continued) 



2. Concessions -priniarily related to risks of "buyer (Continaed) 

Re-Tor chase a;°:reement s . . _ 

Prohibit ed. • • ^ 

"Money-Tjack" agreement s 

liast te filed in accordance uith open price system 1 

Code Authority to study and recommend to N.R.A. rules 

governing, r -^ 

Sales su"b.iect to trial 

Prohibited ^P 

Amount limited ? ^ 

Time limit specified • • ^ 

Other restrictions on. . .: ° 

l.iust he reported to Code Authority 1 

Approval of Code Authority required 1 

Sales on approval 

Prohibited ^ 

Tine limit specified ^ 

Shiipments xTithout order 



Prohihit ed -^^ 

Other restrictions on ■'■ 

Sales on consignment or memorandum 



Prohibited ' -^-^ 

Prohibited except under circumstances defined by Code 

Authority • • ^"^ 

Prohibited except under circumstances defined by Code 

Authority v/ith administrative approval 53 

Prohibited if secret... ••• -'■ 

Prohibit ed if discriminatory • ^ 

Time limit specified "^ 

liust be set forth in vTritten contract 5 

Code Authority to establish rules governing 4 

Code Authority to study ajid recommend to N.R.A, rules 

governing -^ 

Other restrictions on " 



8008 



-10- 

I. FROVISIOIIS FRILIAKILY DESIGNE D TO EESTRICT TIIE C-RAITTIIIG- OF IM)IBECT C0ITCESSI01I5 
TO IIIZLIISITCS A SAL E (Continued) 

2, Concessions primarily related to risks of "buyer (Continaed) 
Storin.':; ffoods with customer 

Frohitited 22 

liast pay reasonable remaneration , 1 

Other restrictions on 1 

Display for direct sale in customer's store 

Code Authority approval required 1 

Renting or leasin^"^ industry products 

Frohitited 6 

Frohibited unless charge made is adequate..,, 4 

Frohihited if discriminatory 1 

Time limit specified 1 

Must he set forth in uritten contract • 3 

Other restrictions on 3 

Must he reported to Code Authority. , 1 

Code Authority vdth administrative approval to estahlish. 

rule s governing 1 

Code Authority to study and recommend to N.R.A. rules 

governing 

Resale guarantees 

Frohihit ed 11 

Agreeing that payment he governed hy sales of secondary -product 
Prohihited ,. 1 

Accepting orders for specific ,1oh before customer secures award 
Prohibited 2 

Guaranteeing accounts due customers 
Prohibited 3 

"Comijensation of customer for business losses" 

Prohibited 1 

Prohibited if discriminatory 1 



8008 



-11- 

I . PROVI SIOITS PRII.IAJIILY DESIG^IED TO RESTRICT THE GHAHTING OF IimiEECT COl'TCES^ 
Slows TO IIIFLUENGE A SALE (Continue d ) 



S, C oncessions -Drimarily related to risks of li-ucyer (Contin-ged ) 
Unilateral agreements (buyer not Tpoimd ) 

Prohi-bited 33 

Other restrictions on 2 

Contracts containing penalty clauses 

Prohibited 1 

Prohibited uJiless provision for bonus 3 

Contracts containing liqiiidated damages clauses 

Prohibited 2 

Contracts not sub.ject to adjustment necessitated by non- 
controllable factors 

Prohibited 3 

Assuming liability for non-rjerformance caused by non- 
co ntrollable factors 

Prohibited 15 

Assuming liability for damage to buyer's drairings or 
equipment caused by non-controllable factors 

Prohibited 1 

Assuming liability for errors in plans or specifications 
furnished or approved by buyer 

Prohibited 3 

Assrijning liability for consequential damages 

Prohibited 13 

Assuming liability for patent infringement 

Prohibited 3 

Failure to give advanc e notice of discontinued lines 

Prohibited 1 



1)08 



-12- 

I. PROVISIONS FRII.IAJIILY I)SSI Cr::ED T O E.EGTRICT TI-B GRAITTIHG 01 ICTIRECT COKCES- 
SIOITS TO IKjTjUEI-JCE A SaLS (Continued) 



3, Concessions ■orimarily related to supplying: additional goods 

"Any gratuities" 

ProhilDited 68 

Prohitited if excessive 2 

Prohibited if discrininatory 1 

Must "be filed in accordance with open price provision 2 

Free deals 

Prohihited 83 

Prohroited if excessive 1 

Policy memorandun No , 316 2 

Premiujns 

Prohibited ^^ 

ProhilDited unless cost is recovered H 

Prohihited if excessive 3 

Prohiliited if secret 2 

Prohioited if discriminatorj' 4 

Prohihited if deceptive 52 

liaximuLi limit specified 1 

Other restrictions on 5 

Policy memorajiduin Ko , 316 S 

Must be filed in accordance with open price system 3 

Sales of other or additional .s:oods at reduced prices 

Prohibited » 25" 

Combination sales 

Prohibited 19 

Prohibited unless total price equals sum of unit prices,.., 12 

Other restrictions on ''' 

Code Authority to study and recommend to K.R.A, rules 

governing 1 

Combination offers 

\ 

Prohibited 26 

Prohibited, unless total price equals sum of unit prices.... 2 

Other restrictions on 3 



8008 



-13- 
I . PROVISIONS P-RTMABTT,Y -nERTrrW^D TO RE STRICT THE GRANTIH& OF Iin)IRECT COIICES- 
SIOHS TO Il^LUEITCE A SALE (Continxied) 



3. Concessions -Drimarily related to supplying additional goods (Cont'd) 

Coupons 

ProhilDited ^ 

Prohibited unless cost is recovered 2 

Other restrict ions on ^ 

Samples 

Prohitiited ^ 

Prohiliited unless adequat3 charge is made 17 

Prohibited if excessive 3 

Prohibited if deceptive ^ 

Maximum limit specified -^_ 

Time limit specified ^'^ 

Other restrictions on "^^ 

Must "be filed in accordance with open price provisions.... 1 

Script hooks 

Prohibited 

Prizes 

Prohibited 21 

Prohibited unless cost is recovered 4 

Prohibited if discriminatory 5 

Prohibited if deceptive ^^ 

Other restrictions on ° 

Policy memorandum No. 315 ^ 

Must be filed in accordance with open price system 1 

Sales promotion awards 

Prohibited if discriminatory 1 

Maximum limit specified 

Other restrictions on ; ^ 

Containers 

Prohibited unless adequate charge made 2 

Other restrictions on ^ 

Special containers 

Prohibited unless adequate charge made 14 



8008 



-14- 



I. FROVISIOWS FRILIAHILY DESIGNED TO BESTRICT TIIE GMiraixTG OF IKDIEECT CON- 
CE3SI0MS TO IHFLUENCS A SALE (Contin-O-Gd ) 

3. Co ncessions pr im arily related to supplying additional goods (Cont'd) 
La"bels 

ProhiTsited tuiless adeqiis,te charge made 1 

Special la"bel s 

ProhilDited imless adeqiiate charge made 9 

Special equipment 

Prohihited 5 

Prohihited unless adequate charge made 12 

Other restrictions on 3 

Accessories 

Prohibited unless adeqij^te charge made 3 

Must he filed in accordance with open price system 1 

Certain advertising material 

Prohihited unless adequate charge made 1 

Maximum limit specified 1 

Other restrictions on 1 

Display materials 

Prohibited 5 

Prohibited unless adequate charge made 4 

Prohibited if excessive 1 

Maximtim limit specified 1 

Other restrictions on 2 

Code Authority to establish rules governing 1 

Printed matter (other than advertising material) 

Prohibited 1 

Prohibited unless adequate charge made 4 

Prohibited if discriminatory 1 

Other restrictions on 1 



8008 



-15- 

FROVISIOWS PRIMARILY DESIGKBD TO BESTRICT THE GRAlITItlG OF IITOIBECT COIT- 
CESSIOMS TO IIIFLUENCE A SALE (Continued) 



4. Concessions rendered buyer throu.j^h use of seller's employees or 
pro'perty 

"Any unusual service" 

Prohibited 25 

ProhilDited unless adequate charge made 35 

Prohihited if unreasonable 1 

Prohibited if secret 2 

Mast he set forth in v/ritten agreement 2 

Must he filed in accordaiice with open price provision. ... 4 

Providing sales help 

Prohibited 8 

Prohibited unless adequate charge made 1 

Prohibited if excessive 1 

Prohibited if secret 2 

Prohibited if discriminatory 1 

Prohibited unless represented as employees of manu- 
facturer 1 

Time limit specified 2 

Other restrictions on 2 

Demonstrating 

Prohibited 9 

Other restrictions on 5 

Estimating 

Prohibited unless adeq^uate charge made 2 

Other restrictions on 2 

Furnishing draTirings 

Prohibited 2 

Prohibited unless adequate cliarge made 8 

Prohibited if excessive 1 

Approval of Code Autliority required with administrative 

approval 13 

Furnishing plans and specifications 

Prohibited unless adequate charge made 7 

Other restrictions on 2 

Approval of Code Authority required 1 



8008 



-16- 

I. PROVISIOilS PRIIviAEILY DESIGNED TO PJ:STRICT THE &RiU-ITn:& OF INDIRECT CON- 
CESSIONS TO ItlFLUEHCE A SALE (Continued) 

4. Concessions rendered "buyer through use of seller's employees 
Tpro-oerty (Continued) 

Furnishing surveys and formulae 

Prohitited unless adequate charge made 4 

Installation and erection 

Prohihited 2 

Prohibited unless adequate charge made 16 

Other restrictions on 3 

Must he filed in accordance with open price provision. 1 

Code Authority to establish rules governing 1 

Code Authority to study and recommend to Administrator 

rules governing 1 

Inspections 

Prohibited unless adequate charge made 4 

Furnishing unusual -processing services s-pecif ied in codes 

Prohibited 1 

Prohibited unless adequate charge made 5 

Prohibited if discriminatory 1 

Stam-pings or markings 

Prohibited 1 

Prohibited ujiless adequate charge made 8 

Other restrictions on 2 

Repair and maintenance 

Prohibited unless adequate charge made 14 

Prohibited if discriminatory 1 

Time limit specified 4 

Other restrictions on 5 

Reconditioning 

Prohibited unless adequate charge made 11 



8008 



-17- 

I, FROVISIO'JS FRILiAHILY DESIGimTD TO RESTRICT THE GRAIITIITa OF IITOIRECT CONCESSIONS 
TO IKFLUENCE A SALE (Continued) 

4, Concessions rendered T3u?,''er throuifrh use of seller's eiroloyees or 
•property ( C ont i nue d) 

Engineering services 

Prohibited unless adequate charge made, 6 

Approval of Code Authority required 1 

Code Authority with administrative E,pproval to establish 
rules governing 1 

"Handling" 

Prohibited unless adequate charge made 8 

Crating or pp.ck'ing 

Prohibited unless adequate charge made 6 

Repacking 

Prohibited 1 

Delivery service by seller^ s trucks 

Prohibited unless adequate charge made 5 

Prohibited if excessive 1 

Warehousing" and storage 

Prohibited 2 

Prohibited unless adequate charge made 11 

Prohibited if excessive 1 

Time limit specified 2 

Other restrictions on 2 

Must be filed in accordance with open price provision 1 

Lending of equipnent 

Prohibited 3 

Prohibited unless adequate charge made 5 

Time limit specified 2 

Other restrictions on 1 

Permitting retention of trade-in equipment 

Prohibited 4 



8008 



I . PROVISIOI'IS PRItoiARILY DESIGMD TO RESTRICT THE GRMT Il'IG OF IITOIRECT CQIICESSIQKS 
TO IMFLUEHCE A SAIxB (Continued) 

5. Concessions rendered buyer through financial assistance or favors 

Favors 

Prohibited 1 

Prohibited if secret 1 

Entertainment 

Prohibited if excessive or lavish 17 

patronizing publications in which buyer is interested 

Prohibited 15 

Prohibited if unreasonable , 1 

Maximum limit specified. . . ^ 2 

Other restrictions on 3 

Participating in "Grout) Showing " 

Prohibited 5 

Other restrictions on 1 

Approval of Code Authority required 1 

Gifts 

Prohibited 6©- 

Prohibited if excessive 1 

Prohibited if secret 3 

Prohibited if discriminatory 4 

Prohibited if deceptive or misleading 50 

Mejcimum limit specified 1 

Other restrictions on 3 

Policy memora,ndum No. 316. 2 

Must be filed in accordance with open price provision. .... , 1 
Code Authority with administrative approval to establish 

rules governing 2 

Gifts to organizations (in which buyer is interested) 

Prohibited 4 

Other restrictions on 1 

Approval of Code Authority required 1 

Paying buyer's personal expenses 

Prohibited 4 

Prohibited if discriminatory 1 



-19- 

I. PROYISIOl'IS PRIllARILY DESI GIIE D TO KESTRICT TILE G-HAITTIITG OF IITDIBECT CONCESSIONS 
TO II-IFLUENCE A SALE (Continued) 

5, Concessions rendered "buyer through financial assistance or favors 
(Continued) 

Paying permit or inspection fees of buyer 

Prohibited 4 

Paying customer' s insurance 

Prohibited 4 

Prohibited if discriminatory 1 

Must Tee set forth in written agreement 1 

paying customer's advertising expenses for products other than 
member''- s 

Prohibited 2 

Prohibited if discriminatory 1 

Assuming reversed telephone or telegraph charges 

Prohibited 14 

Assisting customer to obtain used products for trade-ins 

Prohibited 1 

Assisting customer to find purchaser for used products 

Prohibited 1 

Other restrictions on 1 

Subsidizing or financing buyer 

Prohibited 26 

Prohibited if secret 8 

Must be set forth in written agreement 1 

Employing customers, employees, relatives, associates 

Prohibited 4 

Other restrictions on 1 

Purchase of buyer's capital stock 

Prohibited 1 

Must be filed in accordance with open price provision... • 2 

Financing payments due customer 

Prohibited \inless adequate charge made 1 

8008 



-20- 

I. PIIOVISIOMS PRIMARILY BESIG-IIED TO IGSTRICT THE GUMTIUG OF lEDISECT COIICSSSIONS 
TO Il^TZLUEKCE A SALE (Continued) 

6. Concessions related to maaner and/or time of shipment 

Split shipments 

Other . restrictions on , 6 

Shipments smaller than specified minimum 

Prohitited 4 

Handling or service charge required 8 

Other restrictions on 5 

Tolerance in time of shipment 

Limit specified 3 

Deferred delivery 

Prohihited 12 

Time limit specified 51 

Must he set forth in written agreement 5 

Other restrictions on 10 

Must be reported to Code Authority 2 



-21- 

I. FROVISIOIIS ERILIARILY DESIG-ItED TO REST RI CT TUB GRAIITIKG 0? imiBECT COIICESSIOITS 
TO IITZLUEITGE A SAXE (Continued) 



7. Concessions through payment or diversion of commissions or fees, 
to customer 

payment of commissions or fees "by members to "bTiyers 

Prohibited 16 

Prohibited if excessive 1 

Prohibit ed if secret r • ••• 3. 

Prohibited if discriminatory 1 

Must be filed in accordance nith open price provision. .... 9 

Pa?/Tnent of commissions or fees by members to other than bona, 
fide or controlled sales representa.tives 

Prohibited 12 

llajcimum limit specified 2 

Payment of commissions or fees by members to purchasing agents 
cornipensatcd by buyers 

Prohibited. ..- 20 

Prohibited if secret - 1 

Other restrictions on 1 

Payments of commissions or fees by agents of. members to buyers 

Prohibited 10 

Splitting of commissions or fees by agents of members vrith 
agents of bu>yers nithout buyer's laiowledge 

Prohibited 1 

Splitting of commissions or fees by members or their agents 
TO-th buyers or their agents 

Prohibited 60 

Payment of brokerage to other than bona fide brokers 

Prohibited 17 



8008 



I. FROYISIOITS PHIIIARILY DESIGIIED TO KESTRICT THE &RAITTIMG OF IlElIEBCT COIICESSIQITS 
TO IliZLL-ElICE A SALE (Continued) 



8 , Concessions through allouances or payments for value rendered "by; 
"buyer 

"A13-ovrsjices" ^ 

Prohi'bited 9 

Prohi'bited if excessivo or unreasonable 5 

Prohibited if secret 9 

Prohi'bited if discriminatory 8 

Prohibited if nisrepresentative 1 

Ifast be set forth in written agreement 3 

Other restrictions on 3 

Iviast be filed in accordance irith open price provision.,.. 96 

Ifast be reported to Code Authority , 2 

Trade-in allowances 

Prohibited 2V 

Prohibited if excessive or unreasonable , 9 

Prohibited if discriminatory 6 

I.Iaxiraom limit specified 6 

llust be set forth in written agreement 1 

Other restrictions on B 

liast be filed in accordance with open price provision,... 5 

Irast be reported to Code Authority 5 

Code Authority with administrative approval to estab- 
lish rales governing 8 

Code Authority to study and recommend to Administrator 

rules governing 1 

Members of indtistry with administrative approval to 

establish rales governing 1 

Advertising allowajices 

Prohibited 44 

Prohibited if excessive or unreasonable, 34 

Proliibited if secret , 9 

Prohibited if discriminatory * 33 

Prohibited if misrepresentative 13 

llajcinara limit specified, , 11 

Liust be set forth in written agreement , 31 

Other restrictions on , 34 

Ijiist be filed in accordance with open price provision,,,, 3 

Must be reported to Code Authority 6 

Must be reported to Code Authority for dissemination 

or availability to members 2 

Policy memorandum, llo . 326 2 

Approval of Code Authority required 1 



-23- 

I . PROVISIONS PaillMlILY DSSIC-HSD TO ISSTHICT THE GPJU^IHG OF IlIDIHECT COHCESSIOMS 
TO IHiljUENCE A SALS (Continued) 



Concessions through allowances or pa^naents for value rendered Tjy 
"buyer (Continue d) 

Catalogue allowances 

Prohibited ^ 

ProhilDited if secret 1 

Prohibited if discriminatory 1 

Distribution service allowances 

Prohibited ^ 

Prohibited if excessive or unreasonable 7 

Prohibited if secret 1 

Prohibited if discriminatory "7 

Prohibited if misrepresentative 1 

liast be set forth in written agreement 8 

Other restrictions on 2 

Must be reported to Code Authority 1 

Container allowances 

Prohibited "^ 

Prohibited if excessive or unreasonable 13 

Limit specified *^ 

Prohibited on containers smaller than specified size 1 

Must be filed in accordance with open price provision 1 

Installation allowance 

Prohibited ^ 

Allowance for further processing 

Prohibited -^ 

Maintenance or repair allowance 

Prohibited if excessive or unreasonable 1 

Rental allowances for spa.ce hired 

Prohibited ^ 

Prohibited if excessive or unreasonable 2 

Prohibited if discriminatory 2 



8008 



-24- 

FROVISIONS PRIi.IAH ILY DESIGIGD TO HEST HICT T HE GBA IOT ILTG OF IltDIRECT COU - 
CESSIOIS TO lEFLUUHCS A SALE (Continued) 



Concessions through alloTiances or payment for value rendered Tpy 
"buyer (Continued) 

Allowance on su-nplies furnished hy purchaser for production of 
product ordered 

Prohibited if misrepresentative 1 

Other restrictions on 1 

Cartage allouances when buyer receives goods at factory 

Prohibited 4 

Prohibited if excessive or ■'onreasonable 1 

Limit specified 1 

Other restrictions on 2 

Must be filed in accordance with open price provision 1 

"Allowance for g.ny special service" 

Prohibited 1 

Label Allowances 

Prohibited if excessive 1 

Maximum limit specified 1 

Must be filed in accordance with open price provision 1 

Purchasing from buyer 

Prohibited 9 

Prohibited if excessive or unreasonable 9 

Prohibited if misrepresentative 1 

Other restrictions on 3 

Renting from buyer 

Prohibited 4 



3008 






PROVISIONS PEIl.IASILY DESIGI\EIi TO FJ^STRIC T THE GHAInITIKG OF IITOIHECT COH- 
CESSIOiTS TO I INFLUENCE A SALE (Continued) 



9 . Concessions through acce-ptance of competitor's ma-terials from "buyers 
Exchange of oun for competitor's product s 

Prohibited 29 

Purchase of competitor's products from customer 

Prohihited 24 

Prohibited if price p3,id is excessive 1 



8008 



-26- 

I. PROVISIONS PRIiymiLY DESIGKED TO RSSTRICT THE GRAlITIilG OF IITOIRECT GOIT- 
CESSIOnS TO IlIFLTrElIGE A SALS (Continued) 

10, Concessions thro^ogh sale of su'cstandrrd or o"bsolete fflods 
Sale of seconds 

prohibited '^ 

Prohibited if nisleading or deceptive 5 

Maximiim limit specified 5 

Other restrictions on 5 

I.iust be reported to Code Authority 3 

Approval of Code Authority required 1 

Code Authority subject to Administrative review to es- 
tablish rules governing 1 

Code Authority uith adninistrative approval to establish 

rules governing 5 

Code Authority to study and recomnend to IT.R.A, rules 

governing ^ 

Sale of used fflods 

Prohibited if nisleading or deceptive 8 

Prohibited -unless value given in trade-in recovered 1 

Prohibited e::cept d.iring specified periods 1 

Prohibited unless segregated from ne\7 products • 1 

Must ba reported to Code Authority for dissemination 

or availability to nenbers 3 

Sale of damaged goods 

Prohibited 1 

Prohibited if misleading or deceptive 3 

Maximum limit specified 2 

Other restrictions on 3 

Must be reported to Code Authority 3 

Code Authority '-ith administrative approval to establish 

rules governing 2 

Sale of rebuilt or overhauled goods 

Prohibi ted • 2 

Prohibited if nisleading or deceptive 5 

Must be reported to Code Authority for dissemination 

or availability to members 1 

Sale of demonstrators 

Prohibited • 2 

Prohibited if misleading or deceptive 2 

Prohibited except after specified period of time 2 

i.iust be reported to Code Authority 3 



8008 



-27- 

I. PROVISIONS PPJI.iA.R IL Y DESI&KED TO BESTRICT THE GmiTTIIJCr OF IITOIEECT COU- 
CESSIOIIS TO IIJFLUSKCE A SALE (Continued) 

10. Concessions through sale of su"bstandard or obsolete .Toods (Continued) 
Sale of obsolete goods 

Prohibited. 1 

Prohibited if misleading or deceptive 3 

Other restrictions on 5 

Must be reported to Code Authority 1 

Must be reported to Code Authority for dissemination to 

members ^ 

Approval of Code Authority reqniired 3 

Code Authority to establish rules governing 3 

Code Authority to study and recommend to ISIA. rules 

governing 1 

Sale of Surplus stock 

Maximum limit specified 2 

Prohibited except during specified periods 2 

Other restrictions on 1 

Approval of Code Authority required 1 

Must be reported to Code Authority 2 

Code Authority witJi administrative approval to estab- 
lish rules governing 4 

Code Authority subject to administrative review to es- 
tablish rules governing 3 

Code Authority to studj'' and recommend to NRA rules 

governing 2 

Sale of discontinued lines 

Prohibited 1 

Prohibited if misleadin,:: or deceptive 3 

Maximum limit specified 5 

Prohibited except during specified periods 1 

Must be set forth in -written contract 1 

Other restrictions on 4 

Must be reported to Code Authority 3 

Must be reported to Code Authority for dissemination to 

members 2 

Approval of Code Authority required 4 

Code Authority uith administrative approval to estab- 
lish rules governing 3 

Code Authority subject to administrative revieir to 

establish rules governing. 3 



8008 



«d . *-« 



-23- 

I. FROVI SI OHS PRItlAE IL Y DESIGIIED TO RESTRICT THE GRAI'ITIKa OF ItlDIRECT CON- 
CESSIOHS TO IIIELUSNCE A SALE (Continued) 

10 . Concessions throu<g:h sale of substandard or obsolete goods (Continued ) 
Sale of "returns" 

Other restrictions on 1 

Wilful manufacture of substandard T)roducts 

Prohibit ed 3 

Sales of scrat) 

Other restrictions on 1 

Sales of "chaff" 

Prohibited 1 

Sale of "culled" goods 

Other restrictions on 2 



8008 



-29- 

I . PROVISIONS Pail.iAP.ILY DSSTTirES TO R^S'THICT T HE GPANTIMG 07 IlIDIZECT COII- 
CESSIoilS TO INKjUEITCE a sals (Continued ) 



11 . Concessions granted diiring -perforinance contrar'/ to 'provisions of 
g^reement 

He"bates 

Prohiliited 91 

ProhilDited if excessive or unreasonable 3 

Prohibited if secret 454 

Prohibited if discrininatory: 24 

Prohibited if misrepresentative 1 

Must be set forth in uritten agreement 6 

other restrictions on 2 

Must be filed in accordance \7ith open price provision. 51 

Must be reported to Code Authority 2 

Code Authority to study and reconmend to Administrator 

rules governing 1 

DeTjart'ure from credit terns of contract 

Prohibited 20 

Prohibited if discrininatory 22 

Settlement of old accounts at less than full value 

Prohibited 4 

Approval of Code Authority required, subject to revieu 

or disapproval of Administrator 1 

Permitting im"oro-oer deductions when buyer remits 

Prohibited 10 

Permitting buyer's cancellation or re'oixdiation 

Prohibited 33 

Prohibited lonless reimbursed for expense incurred 16 

Other restrictions on 8 

Must be reported to Code Authority 2 

Code Authority with administrative approval to establish 

rules governing 1 

Substitution of higher q\iality or greater quantity of goods 

Prohibited 53 

Prohibited unless adequate charge made 4 

Prohibited if discriminatory 1 

Limit specified 1 



_ _ . • -30- 

I . PROVI SIONS PRILIAHILY BESi riZll T O R5GTRICT THE G2i\KTIIJa 0? IiroiR]r.CT COHCES«- 
SIOHS TO IHZLUEHCE A SALE: (C ontinued ) 



11 . Conc essions g ranted during performance contrary to -provisions of 
agreement (Continued) 

Substitution of net; contract at lower price 

Prohitited 6 

Receipting bills 'before -nayment 

Prohibited 2 

"Extending or exceeding contract" 

Prohibited 22 

Other restrictions on , 2 

Code Authority to study and recomnend to Administrator 
rules governing. , .....,.,, 1 

"Collatera.1 agreeir-.ent not to enforce part of contract '^ 
Prohibited 9 

Departure from delivery date of contract 

Prohibited 1 

Retroactive settlem en t or adjustments 

Prohibited 5 

Prohibited if discriminating , 2 



8008 



-31- 



I. FROYISIOITS FRII.IARILY DESIGIIED TO BESgRICT TIIB GRAIITIITG OP imiHEGT C01TCSSSI017S 
TO IliMjimiCE A SALE (Continued) 



12, Acce-ptance of forms of payment in uhich concessions may "be concealed 
Accepting secoritics 

Prohibit ed ...» 2 

ProhiTsited if at more than market value 12 

Other restrictions on • '^ 

Hust "be reported to Code Authority, 1 

Acceptin^^ "buyer's capital stock 

Prohitit ed 5 

Irast "be filed in accordance uith open price provision...,, 1 

Accept ing goods from "buyer 

Prohi"bited • • 2 

Other restrictions on 1 

Aocetiting: "real or personal property" _ . . 

Prohi'bitcd if at more than market valiie 4 

A,OceptiniS; negotiable instruments 

Time limit specif i od • • 1 

Other restrictions on. 2 

Accepting other than "laxTfal money " . _ 

Prohibited 5 

Accepting -credit transferred from one buyer to another 

Prohibited ". 2 

felling for customer account and accepting proceeds for cre^\t % 

Prohibit ed .' ^ 

A ccepting form of payment other than specified in code 

Prohibited • • • ^ 

Prohibited if at more than market value 3 



8008 



-32— 



I. PROVISIOITS PRIIIAHILY DESIGITED TO RESTRICT THB GRAItTIITG OF IISIHECT COIICESSIOITS 
TO IITZLUEITCE A SALE (Continued) 



12, Acce-ptance of forns of pa^nnent in Trhich concessions nay Toe Conqeal^ed 
(Continued) 

Accept inj'^ renta.l -paynents as -part payment on purchases 

Limit specified , 1 

Code Authority to establish rules governing ,.. 2 

' Accepting deposit made to another manufacturer 

ProhiT3ited 1 

Assignments (of receiva"bles, etc. ) 

liust De reported to Code Authority. 1 



-33- 

I . PHOVISIOriS PRIi^I/vRILY DESIOiSD TO RESTRICT THE GrE..\IiTII;G OF IIIDIRSCT CO^rCESSIOlTS 
TO IIIFLUEICE A S.^JJ: (Continued) 



13. Types of agyeements. offers. invoicin^T. etc.. "by neans of which 
concessions may he concealed 

Oral agreements 

Prohihited 31 

Limited as to ajnoiint involved and period of time 1 

Oral offers 

Prohihited .15 

Oral appraisals 

Prohihited 1 

Oral orders 

Prohibited 3 

False hilling 

Prohihited 380 

False orders 

Prohihited 15 

False receipts 

Prohihited 11 

False agreements 

Prohihited 32 

False offers 

Prohihited 139 

Delayed hilling 

Prohihited 23 

MaxinioH period specified 4 

Other restrictions on 2 

Code Authority to establish rules governing 1 



-34r- 

I. FROVISIOIIS FB.ILIAEILY DESIGIIED TO KESTRICT TEE GRAirTIIIG OF IIIDIRECT COIvTCESSIOITS 
TO IKFLUEHGE A S-'JiB (Continued) 

13. Types of agreements, offers, invoicing:, otc., Ijy neans of which 
concessions may Tje concealed ( C o nt inue d) 

Misdated invoices 

Prohihited 112 

Misdated contracts 

Prohibited 35 

Misdated orders 

Prohihited 8 

Misdated offers 

Prohibited 17 

Misdated receipts 

Prohibited 10 

Invoices omitting: terns of sale 

Prohibited 25 

Invoices omitting: date of shipnent 

Prohibited 15 

Invoices omitting specif ico.tions 

Prohibited 23 

Invoices onitting other specified detail 

Prohibited 19 

Agreements omitting terns of sale 

Prohibited 25 

Agreements onitting: date of shipnent 

Prohibited 18 



-35- 

I. PROVISIQMS FRB/IARILY DESI&ia]D TO RESTRICT THE GRMTIW& OF IIIDIIIECT COI-ICESSIOKS 
TO INELUEInTCE A SALE (Continued) 

13. Ti^'Tjes of agreenents. offers, invoicing, etc.. "by neans of which 
concessions nay he concealed (Continued) 

Agreenents onitting specifications 

Prohibited 38 

Prohihited without provision .for supply specifications 

within specified period 1 

Seller nay supply specif ica-tions after specified tine... 1 

Agreenents omitting other specified detail 

Prohihited 25 

Offers onitting terms of sa.le 

Prohihited 10 

Offers onitting date of shipment 

Prohihited 4 

Offers onitting specif ications 

Prohihited 9 

Offers onitting other specified detail 

Prohihited 17 

Orders omitting terns of sale 

Prohihited 10 

Orders onitting date of shipnen t 

Prohihited 12 

Orders omitting specif ica,tions 

Prohibited 11 

Orders onitting other specified detail 

Prohibited 12 

Split billing 

Prohibited 3 



8008 



-36- 

I. P20VISI0I\"S PRILIAIIILY PaSiailED TO RESTRICT THE GRMITING OF INDIRECT COUCESSICNS 
TO Il'gLUENCE A SALE (Continued l 

13 . T'/Des of agreenents, offers, invoicinis:. etc.. Tjy means of which 
concessions mar be concealed (Continued) 

Lunp s"un offers 

Prohihited 83 

Other restrictions on 6 

Unitenized hilling; 

Prohib ited 10 

Orders not s-qb.ject to nember's acceptance 

Prohibited 6 

Auction sales 

Rules governing specified in code 1 



-37- 

I . PROVISIOHS PRIMABILY DESiaHSD TO EESTP.ICT THE G-RAlTTINCr OF IKDIBECT COU~ 
CESSIOHS TO IKFLI3EECE A SAL E (Continued) 

14. Types of a^ ee ments, offers, inv oic ing, etc., primarily designed to 
prevent the conceal in g of concessions 

Uniform contract forn 

Porra prescribed • . 5 

Code recommends use of specified form 2 

Code Authority to establish 4 

Code Authority to establish vrith administrative approval. 40 
Code Authority to study and recommend to IIEIA. rules 

governing 2 

liembers of industry to establish 3 

U niform order form 

Form contained in code * 1 

Code Authority to establish with administrative approval. 4 
Members of industry to establish 1 

U niform bid or quotation forn 

Code Authority to establish. . 1 

Code Authority to establish nith administrative approval. 10 

Members of industry to establish 1 

Recommended by code 1 

Standard invoic e form 

Code Authority to establish subject to disapproval of IIEA 1 

Standard le as ing form 

Industry association form incorporated by reference 1 

Code Authority to establish vrith administrative approval. 1 

Form of contract 

Must be approved by Code Authority subject to review 
of IffiA 1 

Must be filed in accordance with open price provision.... 1 



8008. 



-33- 

1 1 . PROVISION S PRIMARILY DESIGIIE.I) TO FRESEHVE OH MODIFY CIIAMELS OF DISTRIBUTION 

1 • Provisions regulating customer classification 

List of customer classes sst forth in code 

Specifically related to trade differentials 14 

Not specifically related to trade differentials 20 

Definition of customer class es 

Set forth in code - specifically related to trade 
differentials 44 

Set forth in code - not specifically related to trade 
differentials 13 

Must te filed in accordance with open price provision.... 6 
Code Authority, with administrative approval, to 

establish definitions 20 

Code Authority subject to NRA review to establish 

definitions 3 

Classification of s-pecific customers 

Code Authority to classify 5 

Policy memorandiom No . 267 3 

Submission of classified list of customers 

Must be filed in accordance \7ith open price provision.... 9 

Must be reported to Code Authority 6 

Must be reported to Code Authority for classification.... 3 

Sales to other than certain specified classes of customers 

Prohibited 9 

Sales to certain specified classes of customers 

Prohibited 4 

Code Authority to study and recommend to NRA rules 
governing 1 



-39- 

II. PROVISIOHS PRII'AAJIILY DESIGI-gP TO FHESERVE OR LIODIFY CHilUIIELS OF DISTRI- 
BUTION (Continued) 

2, Restrictions on granting of trade differentials 

Trade differentials 

Prohibited 3 

prohibited if discriminatorjr 2 

Specified in code 2 

Haxim-um limit specified 6 

Must be adequ£',te as betireen specified classes 1 

Code Authority may review and modify 4 

Must be reported to Code Authority , 3 

Code Authority to determine with administrative approval. 30 
Code Authority to study and recommend to IIRA rules 

governing , 2 

Extension of trade differentials to parties not entitled thereto 

Prohibited 44 

Code Authority subject to administrative review to 

establish roles governing. ,, 1 

.Trade differen t ials to buyers' pools 

Prohibited 3 



8008 



-40- 



II. PROVISIO'JS PEILiAHILY DESIGEBIl TO PF3]SERVE OR MODIFY CHAMm-ELS OF DISTEI- 
BUTIOH (Continued) 

3 . Restrictions on granting of quantity discounts 
Quantity discount s 

ProhilDited 2 

Prohibited if excessive 8 

ProhilDited if discriminatory 3 

Prohibited if retroactive 2 

Prohibited if based on purchase of more than one product. 1 

Maximum linit specified 7 

Time limit specified 1 

Must be set forth in written agreement 2 

Other restrictions on 13 

Approval of Code Authority required 1 

Code Authority to prescribe amount 2 

Code Authority may reviei?; and modify 2 

Must be filed in accordance uith open price provision. ... 31 

Must be reported to Code Authority 1 

Qp^intities on which discoiJ-nts may be granted 

Set forth in code 4 

Qroantity discounts bg.sed on more than one shipment 

Prohibited 13 

Prohibited if discriminatory 5 

Prohibited if misleading or deceptive 1 

Time limit specified 1 

Must be set forth in written agreement 3 

Other restrictions on 3 

Code Authority to study and recommend to IIRA rules 
governing 1 

Quantity discounts on pooled orders 

Prohibited 18 

Other restrictions on 1 

Must be filed in accordance with open price provision. ... 1 

Qioantity discounts on less than bona fide order or shipment 

Prohibited 17 

Prohibited if discriminatory 1 



8008 



-41- 



1 1 . PROVISIQ-JS TRlVARin DBSIC-TZD TO PIGSEPJZ 05 ilODIFf CHAKISLS 0? SISTHI- 
3UTI0E (Continued) 



R estrictions on g rant in.^ of cxuvitity disco '.mo r: ( Contir.ued) 
Pool car sales "belon L.G.L. prices 

Proliibited 3 

Other restrictions on .' 1 

Code Authority to establish rules governing 1 

"Voluue" discoun ts 

ProhiTDited S 

Prohihited if discrirain&.tory 1 

Code Authority '.'ith adriiiii strati ve approval to estab- 
lish rates, 3 



-42- 

II. PR OVISIOITS PRIIAAEILY DESIGNED TO PRESER'',rE OR iiODIFY CHAInTNELS OF SISTRI- 
EUTIOH (Continued) 

4, Provisions for the maintenance of resale prices and adherence to 
codal provisions ay customers 

Adherence to member's -oublished prices 

Sales to customers not adhering - prohibited 5 

Contracts requiring adherence by customers - mandatory 7 

Contracts requiring adherence by customers - permitted.,.,. 2 
Sales by customers at other than manufacturer' s published 

prices - prohibited (distribution codes) 5 

Sales to agents, brokers, or other controlled sales 

repressntatives not adhering to - prohibited 7 

Contracts requiring adherence by agents, brokers, or 

other controlled sales representatives - mandatory • 4 

Contracts requiring adherence by agents, brokers, or 

other controlled sales representatives - permitted •• 1 

Adherence to codal price provisions 

Sales to customers not adliering - prohibited..,. 3 

Sales to agents, brokers, or other controlled sales 
representatives not adhering - prohioited ,.** 14 

Adherence to trade practice provisions of code 

Contracts requiring adherence by custoraex's - mandatory,,,,, 9 

Contracts requiring adherence by customers - permitted 1 

Sales to agents, brokers, or other controlled sales 

representatives not adhering - prohibited.. • 27 

Contracts requiring adherence by agents, brokers, or 

other controlled sales representatives - mandatory 6 

Adlierence to all provisions of code 

Sales to customers not adhering - prohibited, 31 

Contracts requiring adlierence by customers - mandatory,,,,, 2 
Sales to agents, brokers, or other controlled sales 

representatives not adhering - prohibited , 13 

Contracts requiring adlierence by agents, brokers or 

other controlled sales representatives - mandatory 1 

Adherence to certain specified terms of seller's code 

iiandatory • 2 

Contracts vrith agents, brokers, or other controlled sales 
representatives requirin,": them to file prices 

Iiandatory 5 

Permitted 1 



8008 



-42- 

II. PEOVISIOITS FRIIvIARILY DESIGIIED gp PRESEa\^ OR MODIFY CHMIffiLS OF DISTRI- 
BUTIOI (Continued) 



5, Prohibition of discriminatory practices 

Discriminat i on Ijetneen any buyers 

Prices - prohibited 11 

prices and terras - prohibited 8 

prohibited if secret 1 

Terms - prohibited if secret 2 

Services - prohibited, ...o 2 

prohibited if secret,,,. .,. ,.,, ' 2 

Privileges - prohibited. 1 

Services and privileges - prohibited 19 

prohibited if secret 10 

Discrimination betr;een buyers of same class 

Prices - prohibited •• 43 

Prices and terms - prohibited 18 

prohibited if secret. • 2 

Terms - prohibited • 5 

Services - prohibited 1 

Privileges - prohibited. 2 

Services and privileges - prohibited..... .• 71 

prohibited if secret , 170 

Discrimination between buyers of sgjne quantity 

Prices - prohibited • 40 

Prices and terms - prohibited 10 

Terms - prohibited. 1 

Services and privileges - prohibited,... » 5 

prohibited if secret 2 

Privileges - prohibited •. 1 

Discrimination betxreen buyers of same quality or grade 

Prices - prohibited..,.. •• 30 

Prices and terms - prohibited, 6 

^ Terms - prohibited,. 1 

Services and 2-)rivileges - prohibited, 5 

prohibited if secret 1 

Privileges - prohibited,., • 1 

Discrimina.tion betxTeen buyers in same territory 

Prices - prohibitedc • 27 

Prices and terms - prohibited *• 10 

Terms - prohibited, 1 

Services and privileges - prohibited B 

Privileges - prohibited.... ., 1 

8008 



-44- 



II, PROVISION S FRIMAEILY DESIGHED TO PRESERVE OR HODIFY CHMNELS OF DISSERI- 
BUTIO E (Continued) ~ ' ~~ 



5» PvohllDition of discriminatory -practices (Continued) 

Discrimination between localities and sections 

Prices - prohibited,,.,, , , X 

Prices and terms - prohibited,,,,,,, , ,,, i 

Discrimination bet\7een buyers of "like style of goods" 

Prices - prohibited 6 

Discrimination between biyyers "for whor. selling cost is same" 

Prices - prohibited ,,,, 4 

Prices and terms - prohibited, ...,...,. 1 

Services and privileges - prohibited , 1 

Discrimination between buyers "similarly situated" 

Prices, terms and privileges - prohibited 1 

Discriminat ion between member's affiliates and other buyers 

Prices - prohibited, , 2 

Discrimina tion between buyers "under like terms and conditions" 

Prices - prohibited , 47 

Prices - prohibited if secret 2 

Prices and terms - prohibited, , ,, 4 

Terms - prohibited, , ,,, 2 

Services - prohibited. , , , 2 

prohibited if secret 1 

Services and privileges - prohibited, 99 

prohibited if secret 98 

Privileges - prohibited 4 



-45- 

1 1 . PROVISIGIJS FRi:.IAI l ILY DESIGESD TO F2ES5IIVE OR ilCDIFY CHA.IMBLS OF DISgRI- 
BUTIOII (Continued) 

6. Provisions relating; to controlled, sales representatives 

List of. agents, lirokers. or other controlled sales representa.tives 

Must "be reported to Code Authority 9 

Must he reported to Code Authority for dissemination 

to other memhers 2 

Definition of a.g:ents, brokers , or other controlled sales repre- 
sentatives 

Set forth in code ' 19 

Contracts "betv/een members and agents, hrokers. or other controlled 
sales representatives 

Required "by code ^ 

Must he approved hy Code Authority 2 

Code Authority with adiiiini strati ve approval to establish 

rules governing 3 

Must be reported to Code Atithoritjr 2 

Sales through a.-ents, brokers or other controlled sales representa- 
tives 

Limit specified 1 

Other restrictions on 5 

Code Authority subject to review of LHA to establish 

rules governing 1 

Dealing \7ith other than member's bona fide agents or other con- 
trolled sales representatives 

Prohibited 4 

Prohibited if secret 1 

Other restrictions on 1 

Commissions or fees to controlled sales representatives 

Prohibited 2 

Prohibited if excessive or unreasonable 4 

ExSoCt rate prescribed 1 

Maximum limit specified 5 

Must be set forth in written agreement 1 

Other restrictions on 2 

Must be filed in accordance with open price provision 4 

Members of industry with aiproval of Code Authority to 

establish maximum limit 1 

Activities of agents 

Other restrictions on 2 

8008 



-46- 

TT- FEOYI SIOHS PSII.IAEILY PESIGICED TO F?.ESERV^ OR HOPIFY CHAI'IIIELS OF DISTPJ- 
BUTIOII (Continued) 

7, I.Il scellaneous -provisions desif^ned to preserve or modify channels 
of distribution 

lTun"ber of .sales outlets 

Ila^xinan limit specif i ed 1 

Selling directly in competition with retailer or other trade factor 

ProhiMted 31 

Other restrictions on 1 

Approval of Code Authority required 1 

Sales for export to "buyers not under contract not to resell iiithin 
United States 

Prohibited. 4 

PernittinF-; diversion of product "b:/- customer for uncontemplated uses 

Prohibited 1 

Ifast be set forth in written agreement, 1 

Asggming transportation costs of customer reships to other gastoners , 
Prohibit ed 2 

Sirect from factor;/- to customer shipments (distribution codes) 

Prohibited unless compensating charge is made « 1 

Other restrictions on 3 

Sales for resale of special brands or unbranded merchandise 

Restrictions on 1 

Concessions to induce exclusive -purchase 

Prohibit ed 3 

List of contractors _ 

Llust be reported to Code Authority 6 



8008 







C 



-47- 

TTI. PROVISIOITS PHIIiARILY DEGIGI^ED TO PRESERVE OR L'ODIFY GEOGRAPHICAL 
HELATIOIISHIPS 



E.?.sing -Qoint system 

Detailed rules prescribed in code 3 

Code Authority, suloject to administrative review?, to 
establish 1 

Sales in other zones Ijelon lo\7est filed price in those zones 

Prohibited 3 

May not "be more than txientj percent beloTT 1 

Sales outside of seller's o\7n zone 

Code Authorit;;- with adjninistrative approval to establish 
rules governing 1 

Sales by outsiders in enfranchised territory 

Prohibited 3 

Equalization of frei>'::ht rates 

Permitted by code 10 

Must be filed in accordance iTith open price provision 2 

Dunroinp: 

Prohibited 23 

¥arehouse sales (rather than from factory ) 

Prohibited 1 

Prohibited unless adequate additional char;;e made 4 

Other restrictions on 5 

Code Authority to study and recommend to IIRA rules 

governing 1 

P. 0. B. origin basis of selling: 

Reouired by code 86 

Permitted by code 11 

?. 0. 5. destination basis of sellin,q: 

Required by code 1 

Permitted by code 2 

Other restrictions on 1 



8008 



( 



-48- 

III. PSOYISIOHS PRIlvLAKILY DESIGNED TO PRESERVE OR LiODIFY CxSOGRAPHICAL 
RELiJIOHSHIPS (Continued) 



Delivered basis of selling 

Prohibited , 2 

Required by code , 5 

permitted by code ,, 6 

Omitting freight chariges in com-puting delivered price 

Prohibited 31 

Pre-pa'/ment of freight charges 

Prohibited, , , , 14 

Prohibited unless cost recovered 6 

Prohibited if secret. 3 

Prohibited if discriminatory 6 

Haxiraam limit specified,... , 2 

I.iiniimim specified 1 

Other restrictions on ,,, 1 

Permitted by code 7 

Must be filed in accordance with open price system 3 

Freight allowances 

Prohibited , , , 33 

Prohibited if excessive,.,,,,.,... 7 

Prohibited if discriminatory , 3 

Maximum limit specified , 5 

Minimum specified, , 3 

Other restrictions on, ,, 6 

Must be filed in accordance with open price provision 12 

Code Authority to establish rules governing ...,,., 1 

Code Authority with administrative approval to establish 

rule s governing ., 3 

Code Authority to study and recommend to IffiA rules 

governing 1 

Members of industry with approval of Code Authority to 

establish rules governing ,, 1 

Freight or transportation terms 

Must be filed in accordance with open price provision 26 

Code Authority with administrative approval to estab- 
lish rules governing , 2 

Code Authority to stud^'- and recommend to NRA rules 

governing 3 



8008 



-49- 

III. PROVISIOITS PRIMAR I LY PaSIGl^D TO PP lESERVE OR MODI FT G50GRAPHICAI 
RELATIONSHIPS (Continued) 



Freight or transportation clmr^'es 

ProhilDited if secret 1 

Mininvun charge specified 1 

Must be filed in accordance with open price provision 7 

Code Authority, subject to WA review, to establish rules 

governing 1 

Diversion of shi-jnent frog ori£;inal destination 

Prohibited 3 

Seeking frei;'?:ht rate reduction from I,G.C . 

Ifust be reported to Code Authority * 1 



8008 



-50- 
IV. PROVISIOIIS PP.IILABILY DESIGI'TED TO RESTRICT USE OF COltPETITOR' S DESIGNS 
OR STYLES MD THE IMITATION OF COMPETITOR'S ISEUTIEICATIOIIS 

!• Designs and styles 

Design or style i^iracy 

Prohibited ^ 45 

Prohibited if deceptive or misrepresentative 1 

Prohibited without creator's consent.. 12 

Prohibited if registered rrith Code Authority , 9 

Prohibited if registered with bureau other than Code 

Authority , 9 

Prohibited during specified period after creation 17 

Prohibited if sold below creator's published price,.... 2 

Other restrictions on , 2 

Code Authority, with administrative approval, to establish 

rules governing, ,.,, o 6 

Code Authority to study and recommend to NRA rules 

governing , 5 

Registration of designs and styles 

Required by code 2 

Permitted by code, 4 

Code Authority to establish rules governing, 10 

Piracy of ideas, sketches, and drawings 

Prohibited , 5 

2, Identifications 

Imitation of trademark s 

Prohibited 176 

Prohibited if deceptive or misleading.... 2 

Imitation of comr>etitor' s identifications other than trade- 
marks (specified in code) 

« 
Prohibited ,, 142 

Prohibited if deceptive or misleading,.,, ,,... 2 

Registration of identifying marks 

Required by code 9 



» I ' ^ 



-51- 

T* fRQV ISIOHS FRDjIAIIILY DESIG^IED TO LIMIT USE OF COERCIVE Al^ PEEPACIOUS 
DEVICES 

1» Coerc ive device by memlpers as sellers 

"Coercion" 

Prohibited • • • ^ 

Tyiiiig: contracts 

Prohibited • • 113 

Other restrictions on....... • ...•• 2 

Threats of litigation 

Prohibited 231 

Collusion with competitors in pre-paration of bids 

Prohibited • •. 25 

Threats of repudiation of contract 

Prohibited. 11 

Other restrictions on, • 3 

Disclaimers (of legal responsibility) 

Prohibited 1 

Shipments without buyer's order or consent 

Prohibited • 2 

I Sales contingent upon certain conditions (other than tying 

contracts ) 

Prohibited 5 

I.iust be set forth in written agreement 3 

Concessions contingent upon purchaser's agreement not to 
deal with competitor 

Prohibited 1 

Urging a substitute product 

Prohibited B 

Failur e t o . of fer new product to exclusive customers 

Prohibited, 1 

Fe.ilure to permit adequate inspection by customer 

Prohibited 1 



-52- 

7. PROVISIOI'iS FRILIARIL Y DESIGITED TO LIIIIT USE OF COERCIVB AM) EBEDACIQUS 
DEVICES (continued) 



2, Coercive devices "by memTjers as "biy.'-ers 

Deferring payment for -products purchased 

Prohi"bited 1 

Ma:::inum period specified 8 

Repudiation of "bx r/ ing agreement 

Prohiliited 11 

Failure to furnish uritten aclcnonledgement of 'oujchase 

Prohibited 8 

Payment in other than money or equivalent 

Prohihited. 8 

Prohibited if esicessive or unreasonable 1 

Deferring "pricing" of products purchased 

Mazimum period specified 1 



8008 



-53- 
V. FROVISIOHS PRIMARILY DESIG-KES TO LIHIT USE OF COERCIVE AND FSEDACIOUS DEVICES 
3, Predacious devices used against competitors 
Violence or threats of violence 

Prohibited. ''' 

Intimidation or threats of intimidation 

Prohibited 8 

Espionage of corrroetitor 

Prohibited 144 

Enticement of competitor's employees 

Prohibited • "^3 

Blacklisting 

Prohibited • ^3 

Collusion with av7arding authority 

Prohibited 23 

Connivance to have all bids re.iected 

Prohibited 9 

Collusion with architect or builder 

Prohibited • 3 

Espionage of competitor' s imopened bids 

Prohibited 3 

Interference with contracts or contractual relations 

Prohibited 431 

Coercion to force revision of filed prices 

Prohibited 75 

Coercion to force change in customer classification 

Prohibited 1 



8008 



-54- 

V. PROVISIONS PRIMARILY DESIGHED TO LIMIT USE OF QOEECIVE AND PEEDACIOUS DEVICES 

3, fredacious devices i^ed against competitors (Continued) 

Malicious interference with or refusal to sell customers "b-uying 
from competitor 

prohibited 1 

Tampering with competitc;>-r's -property 

Prohibited 7 

Prohihited until after specified time. ...«».. 1 

Other restrictionB on. ..» 1 

Reten^iion or us^ of competitor's identified contaj.ner 

Prohibited 7 

Other re strictions on • . . . 1 

Acceptance of orders or goods designated for competitor 

Prohibited 2 

Use of competitor's , services or equipment 

Prohibited • . 8 

Collusion to witliho ] Ld instruments of production from certain 
producers 

Prohibited. 1 

Purchases in excess of requirements to hinder competitors 

Prohibited 3 

Use of competitor's designs and specifications 

Prohibited ......».*. 5 

Substit-u,tion of other for competitor's products in repair of 
competitor's prod-yict 

Prohibited unless competitor gives consent. .«.•♦• ♦. »•• 2 



8008 



-55- 

VI. PHOVISIOITS PRBilAJlILY DESI&IIED TO LIMIT DECEPTION MP MISPEFBESE'TTAITIOII 

1« In relations with customers 

"Mi srep re sent at ion" 

Prohi'bited 19 

Misrepresentation of -prices 

Prohilsited • . 12 

Misrepresentation of -products, services, policies, values . 
credit terms and form of "business 

Prohi'bited 228 

Misrepresentation of products, services, policies, values and 
.credit terms 

Prohibited 107 

Ivlisrepresentation of products 

Prohibited 142 

Misrepresentation of services 

Prohi'bited 14 

Misrepresentation of marketing conditions 

Prohi'bited « 5 

Misrepresentation of credit terns 

' ' ' . .1 . — — »— . . — .1.1 .1 t 

Prohi'bited 1 

Misrepresentation of form of "business 

Prohi'bited 7 

Misrepresentation of origin 

Prohi'bited 3 

Misrepresentation of affiliations 

Prohi'bited 5 



\ 



8008 



-55- 

VI. PHOVISIOIIS PaiLLARILY DESIGIIEJ TO LILilT DECEPTION MB LIISREPHESEHTATIOiJ 

1. In relations Trith castoiners (Continued) 
Inacco-rate advertisiniS; 

Prohroited ^-'80 

Lotteries 

Prohibited 64 

Permitting "broadcasting of, prohibited 1 

Deceptive display of goods 

Prohibited 2 

Deceptive labeling, "brejiding, marking, or packing 

^ Prohibited 414 

P Code Authority to study and reconiiend to ERA rules 

governing • 1 

Defamation of or inaccurate reference to competitor 

Prohibited 530 

Representing competitor's sales or installations as ovm 

Prohibited 2 

Selling from competitor's samples or advertising material 

Prohibited 5 

Reuoval of manufacturer's label 

Prohibited 12 

Inaccurate or persistent underselling claims 

Prohibited 17 

"Deceptive selling methods" 

Prohibited 57 

Deceptive offers 

Prohibited 7 



8008 



-57- 

VI. PROVISIOIIS PRIUAIIILY DESIGIED TO LIMIT DECEPTION AICT) MISREPRESEHTATIO H 

1. In relations with, customers (Continued) 

Deceptive billing 

Prohibited 2 

Deceptive promise of delivery 

Prohibited 5 

Deceptive appraisals 

Prohibited. 2 

I Resale price ta^s 

Prohibited if deceptive 3 

Limit specified 1 

False measures 

Prohibited 19 

Substitution of lower qiiality ^oods 

Prohibi ted 31 

Ship-pinis: or performing; at vsjiance from contract or 
representation 

Prohibited 67 

Other restrictions 8 

Transfer of assets to avoid performance of contract 

Prohibited 1 

Commercial bribery 

Prohibited 518 

Acting both as a^ent and undisclosed principal 

Prohibited 1 

Biddinis; without adequate capital to perform 

Prohibi ted 2 



8008 



-58- 
VI. PaOVISIONS PRIlJiAaiLY DESIG-NED TO LILIIT SECEPTIOU Al'ID I.ilSREFRESEMTATIOH 

1. In relations nith customers (Continued) 

ChanjScin^ specif ica.tions in comoutini?; offer 

Prohibited ^ . , 1 

Prohibited if secret 1 

Bids on other than requirements of plans or specifications 

Prohibited 6 

Underestimating quantities or aaking inadequate specifications 

Prohibited 10 

Pake, fictitious, or "blind bids 

Prohibited 9 

Failure to disclose suhcontractors u'oon request of av/arding 
authority 

Prohibited 22 

Failure to furnish awarder evidence of bidder's financial standing 
Prohibited. 1 

Uniform price offer 

Prohibited 3 

Failure to post insurance information 

Prohibited 2 



8008 



-59- 

VI. PROVISIOITS PPJLL^JIILY I>ESirrI\fEIl TO LII.IIT DECEFTIOiT AITD i.IISIUSPRESENTATIOIT 

2. In relations TTJth others 

InaccTirate representations to prospective sales representatives 

Prohibited 2 

Inaccurate re'oresentations to parties from '.±LOm member bioys 

Prohibited 3 

Concealed relationship uith selling agency (other than company 
OTfned stores ) 

Prohibited 4 

Acceptinis: rebate or commission undisclosed to principr.l 

Prohibi ted 1 

Offer of sale unauthorized by ormer 

Prohibited 1 

Establishing deceptive or misleading; conditions of bidding 

Prohibited 3 

Sales to customers who misrepresent or inaccurately advertise 

Prohibited 2 

Failure to inform subcontractor if lien rights iraived 

Prohibited 2 

Acceptance by av7a.rding authority of possibly erroneous bid 
without proof by bidder 

Prohibited 22 

Inviting of bids from unreliable bidders by awarding authority 
Prohibited 22 

Furnishing of inadequate specifications 'by awarding authority 

Prohibited ■ 22 

Erealcing up combination package prepared by manufacturer for 
advertising purposes 

Prohibited 1 

8008 



-60- 

VII. PROVISIOITS OF A SPECIAL MTTIRE PRIltAJlILY DESIGNED TO EEGULATE BISPIITG 
A M) AYJARDI'NG PRACTIC ES 

A. Provisions Primarily Desi.°:ned to Mnice Original Offer the Effective 
or final offer 

1. Limitations on 'hidders 

Bid -oeddling: or m?kin.;: alternative offers (unless specifi- 
cations changed or all bids re.jected ) 

Prohibited 63 

Submitting hid for first time after closing date 

Prohibited ^ 

Submitting; alternates unless competitors have same -privilege 
Prohibited 2 

Subcontractors' bids to contractor -.Tithin specified time 
before closing date 

Reauired by code 22 

Withdrawal of bid 

Prohibited during specified period after closing date.. 1 

Par t ies permitted to bid after re.jection of bids or 
revision of specifications 

Restrictions on. 2 

2 . Limitations on awarding authority 

Bid shopping prohibited 27 

Accepting bids after closing date - prohibited 22 

Award at other than bidder's original price - 

prohib it ed • 22 

Accepting rebates not included in original bid 

- prohibited. 22 

^ejecting bids and calling for new bids - 

restrictions on 22 

Failure to designate specific closing date - 

prohibited 22 

Considering alternate proposals - prohibited 

if discriminatory 22 

Revealing competitor's bid to any bidder - 

prohibited "^^ 

Delaying award or rejection of all bids beyond 

specified period - prohibited 2t. 



8008 



-61- 

til. provisions of a special hatubs priliafaly desigiied to regulate biddiit& 
aijD awarding practices 



B , Provisions Primarily Desip:necl to Eliminate Waste in Bidding 

Inviting unnecessary numlDer of bids - Prohibited 22 

Accepting uninvited bids - prohibited 22 

Code Authority to establish estimrting bureau 5 

C. Other Bidding Limitations of a S-pecial Nature 

Malcing deposit for specifications viithout provision for 

return - prohibited 3 

Extending time for acceptance of bid - prohibited 1 

Submitting bids prior to announcement of plans or 

specifications - prohibited 3 

Bids other than at orice announced by awarder - prohibited... 2 

Accepting financing from general contractor - prohibited 1 

Collusion vrith bidders by awarding authority - prohibited,.., 22 



-62- 
VIII. OTHER TRADE PEACTICE FROVISIOIIS 

1, Provisions Primarily Desiiscned to Preserve or Modify Frod-gctive 
Functions of the Industry or Trade 

Sales of unfinished products 

Prohibited 4 

Contract in,^ out of TTork 

Prohibited 2 

Other restrictions on « ''' 

Code Authority, T7ith administrative approval, to extahlish 

rules governing 1 

Working on materials furnished "by others 

Prohibited, • • 5 

Other restrictions on 5 

Permitting performance of industry function "by non-member 

Prohibited. 2 

Sharing with processor compensation received for industi7/ function 
Prohib i te d ^ 

Les,sing productive equipment to non-members 

Prohib i te d 2 

Restrictions on sale of product 1 

Renting or leasing space or equipment to shop norhers 

Prohibited "^ 

Other restrictions on 1 

Subletting contracts to another member 

Restrictions on ■'- 

Code Authority to studjr and recommend to IIRA rules 
governing ■'• 

Supplying trade secrets to non-indtistry producers 

Prohibited '^ 

Buying prison-made goods 

Prohibited ^ 

Other restrictions on 28 



8008 



-63- 
VIII. OTHER TRADE PBACTICE PHOVISIOITS 

1, Provisions Primarily Designed to Preserve or Llodify Productive 

Functions of the Industry or Trade (Continued) 

Processing prispn-nade goods 

Restrictions on , .» 2 

Selling prison-raade goods 

prohitited 2 

Other restrictions on 30 

2, Restrictions on mem"bers as Tj-uyers 

Accepting certain concessions from sellers 

Prohibited « 3 

Prohibited if secret 1 

Must be set forth in r/ritten agreement, 2 

Subsidizing parties from Trhom ciaterials are purchased 

Prohibited • • 1 

Absorbing transporta-tion costs on goods purchased 

prohibited , 2 

Buying contracts v/ith price unspecified 

Prohibited 1 

Accepting deliver;^^ of purchase before season opens 

Prohibited 1 

Subsidizing agents from whom nember buys 

Must be reported to Code Authority for dissemination 
or availability to members 1 

Giving rebates to subcontractors 

Prohibited , 1 

"Incomplete" purchase contracts 

Prohibited 1 



-64- 
VIII. OTHEE TRADE PRACTICE FRQVISIOITS 

2, Restrictions on mem"bers as buyers (Continued) 

Buying offers ^ithQut time lirait 

Prohibited * • ^ 

Registration qf agents from whom members "buy 

Code Authority, with administrative approval, to establish 
rules governing* •••• ^ 

E-uying illegally pryduced goods 

Prohibited »•♦ * •• 2 

Buying from code violators 

Prohibited ' 

3, Provisions for conservation 

Conservation measures 

Code contains detailed rules • • 3 

Code Authority to study and recommend to MBA 12 

4, Re.strictions on advertising; other than inaccurate 

Advertising other than inaccurate 

Restrictions on.».. • •• 5 

Comparative demonstration' or di3"olay of own and competitor's -products 

Prohibited 2 

5, Provisions peculiar to trans-portation or warehousing codes 

Accepting products not in good condition 

Prohibited. • 1 

Other restrictions on • 1 

Contracting to give service for period of time 

Prohibited. 1 



8008 



-65- 

VIII. OTHSE TRADE PRACTICE PROVISIONS 

6, Provisions relating to iprice differentials "between classes of -products 

Price differentials "between classes of products 

Code Authority to determine •• 5 

Set forth in code 1 

Industry association differentials incorporated "by 

reference ...» 1 

Ifust reflect differences in cost ■••• 9 



8008 



-56- 

IX. EHi3LIH& PHOVISIONS OTHER THM FOE "TBADE PRACTICES" U GEMRAL 
"Llerchandising -plans" 

Code Authority, with administrative approval, to estahlish 
rales governing 

Code Authority to study and recommend to ICRA rules govern- 



ing • : p 

Industry to establish rules governing ^^ 

"Methods of quoting" 

Code Authority, with administrative approval, to estahlish 
rules governing 

Code Authority to study and recommend to WRA rules governing 2 

"Methods of distrihution" 

Code Authority, with administrative approval, to establish 
rules governing ■'■ 

Code Authority to study and recommend to IJEA rules governing 2 

."Methods of marketing" 

Code Authority to recommend to KRA rules governing 5 

."Methods of advertising" 

Code Authority, with administrative approval, to establish 
rule s governing 

."; Mpthods of bidding" 

Code Authority to establish rules governing 2 

Code Authority to study and recommend to NRA rules governing 1 

"Methods of delivery" 

Code Authority, with administrative approval, to establish 
rules governing -^ 

Code Authority to study and recommend to HRA rules governing. 1 

"Methods of lourchasing" 

Code Authority to study and recommend to NRA rules governing. 1 



8008-#