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^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  DESIGISD  TO  RESTRICT  THS  aHAKTIIIG  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  IICFLUEHCE  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  E5STRICT  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  merchandise 

Prohibited 4 

Accepting  return  of  other  than  defective  merchandise 

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  SAIE     (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  DESIGNED  TO  EESTRICT   TIIE  C-RAITTIIIG-  OF   IM)IBECT   C0ITCESSI01I5 
TO   IIIZLIISITCS  A  SALE  (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 .  PROVISIOITS  PRII.IAJIILY  DESIG^IED  TO  RESTRICT  THE  GHAHTING  OF  IimiEECT  COl'TCES^ 
Slows  TO  IIIFLUENGE  A  SALE   (Continued ) 


S,   Concessions  -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- 
controllable  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  advance  notice  of  discontinued  lines 

Prohibited 1 


1)08 


-12- 

I.      PROVISIONS  FRII.IAJIILY  I)SSICr::ED  TO  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  RESTRICT  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.   Concessions  primarily  related  to  supplying  additional  goods  (Cont'd) 
La"bels 

ProhiTsited  tuiless  adeqiis,te   charge  made 1 

Special  la"bels 

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  DESIGIIED  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  RESTRICT  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  (Continued) 

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.IAHILY  DESIGIGD  TO  HESTHICT  THE  GBAIOTILTG  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^STRICT  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  products 

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.RILY  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.   FROVISIOHS  PRItlAEILY  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  THE  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 .   PROVISIONS  PRILIAHILY  BESiriZll  TO  R5GTRICT  THE  G2i\KTIIJa  0?   IiroiR]r.CT  COHCES«- 
SIOHS  TO  IHZLUEHCE  A  SALE:  (Continued) 


11 .   Concessions  granted  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  settlement  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 .' ^ 

Accepting  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  shipnent 

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   (Continuedl 

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  SALE   (Continued) 

14.  Types  of  a^eements,  offers,  invoicing,  etc.,  primarily  designed  to 
prevent  the  concealing  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 

Uniform  order  form 

Form  contained  in  code *   1 

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

Uniform  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  invoice  form 

Code  Authority  to  establish  subject  to  disapproval  of  IIEA   1 

Standard  leasing  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 .  PROVISIONS  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  classes 

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  differentials  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  discounts 

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) 


Restrictions  on  grant 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"  discounts 

ProhiTDited S 

Prohihited  if  discrirain&.tory 1 

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


-42- 

II.  PROVISIOITS  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 

Discrimination  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,      PROVISIONS  FRIMAEILY  DESIGHED  TO  PRESERVE  OR  HODIFY  CHMNELS  OF  DISSERI- 
BUTIOE (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 

Discrimination  between  member's  affiliates  and  other  buyers 

Prices  -  prohibited, ,  2 

Discrimination  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:.IAIlILY  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-     FEOYISIOHS  PSII.IAEILY  PESIGICED  TO  F?.ESERV^  OR  HOPIFY  CHAI'IIIELS  OF  DISTPJ- 
BUTIOII  (Continued) 

7,     I.Ilscellaneous  -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 


0 


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  PRIMARILY  PaSIGl^D  TO  PPlESERVE   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  trademarks 

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*  fRQVISIOHS  FRDjIAIIILY  DESIG^IED  TO  LIMIT  USE  OF  COERCIVE  Al^  PEEPACIOUS 
DEVICES 

1»  Coercive  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 

Failure  t o . offer  new  product  to  exclusive  customers 

Prohibited, 1 

Fe.ilure  to  permit  adequate  inspection  by  customer 

Prohibited 1 


-52- 

7.      PROVISIOI'iS  FRILIARILY  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  "bxr/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)  MISREPRESEHTATIOH 

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 
AM)  AYJARDI'NG  PRACTICES 

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-#