»/ Approved Code No. 105 — Supplement No. 9 Registry No. 1404—54 NATIONAL RECOVERY ADMINISTRATION SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE IKET MANUFACTURING INDUSTRY (A Product Group of the Automotive Parts and Equipment Manufacturing Industry) AS APPROVED ON DECEMBER 20, 1934 U.S. Vi£ DO OUR PART ... UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1934 1 == For sale by the Superintendent of Documents, Washington, D. C. Price 5 cents This publication is for sale by the Superintendent of Documents, Government Printing Office, Washington, D. C, and by district offices of the Bureau of Foreign and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga. : 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1S01 Customhouse. Buffalo, N. Y. : Chamber of Commerce Building. Charleston, S. C. : Chamber of Commerce Building. Chicago, 111. : Suite 1706, 201 North Wells Street. Cleveland, Ohio : Chamber of Commerce. 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Approved Code No. 105 — Supplement No. 9 SUPPLEMENTARY CODE OF FAIR COMPETITION FOR THE GASKET MANUFACTURING INDUSTRY As Approved on December 20, 1934 ORDER Approving Supplementary Code of Fair Competition for the Gasket Manufacturing Industry a product group of the automotive parts and equipment manu- facturing industry An application having been duly made pursuant to and in full compliance with the provisions of Title I of the National Industrial Recovery Act, approved June 16, 1933, for approval of a Supple- mentary Code of Fair Competition for the Gasket Manufacturing Industry, a Product Group of the Automotive Parts and Equipment Manufacturing Industry, and hearings having been duly held thereon and the annexed report on said Supplementary Code, con- taining findings with respect thereto, having been made and directed to the President: NOW, THEREFORE, on behalf of the President of the United States, the National Industrial Recovery Board, pursuant to au- thority vested in it by Executive Orders of the President, including Executive Order No. 6859, and otherwise, does hereby incorporate by reference said annexed report and does find that said Supple- mentary Code complies in all respects with the pertinent provisions and will promote the policy and purposes of said Title of said Act ; and does hereby order that said Supplementary Code of Fair Com- petition be and it is hereby approved. National Industrial Recovery Board, By W. A. Harriman, Administrative Officer. Approval recommended : Barton W. Murray, D iv is ion A dminis trot or. Washington, D. C, December 20, 193 J^. 10423S° 1385-54 34 (1) REPORT TO THE PRESIDENT The President, The White Bouse. Sir: This is a report on a Supplementary Code of Fair Competi- tion for the Gasket Manufacturing Industry, a Product Group of the Automotive Parts and Equipment Manufacturing Industry. A pro- posed Code was submitted to the Administrator on April 3, 1934 by the Code Authority Committee of the Automotive Parts and Equipment Manufacturing Industry for the Automotive Gasket Institute, representing approximately 90% of the total volume of sales and 57% of the number of members of the Industry. A Public Hearing on the proposed Code was conducted in Wash- ington on June 26, 1934 in accordance with the provisions of the National Industrial Recovery Act. It was thereafter revised and approved in its present form. This Code is designed primarily to put into legal effect certain Fair Trade Practice Rules which long have been recognized in the Industry, but which have been without binding legal effect. The labor provisions of this Code are those of the Basic Automotive Parts and Equipment Code. The purpose of the Code is stated in Article I and Article II is devoted to definitions. An Administrative Committee is established in Article III con- sisting of the Executive Committee of the Automotive Gasket Insti- tute, but one additional member may be added in the discretion of the National Industrial Recovery Board to represent the non- members of the Institute who comply with the Code. The Admin- istrative Committee will administer the Code under supervision of the National Recovery Administration. Fair Trade Practices, designed to effect fair competition among the members of the Industry, are set forth in Article IV. FINDINGS The Deputy Administrator in his final report to the National Industrial Recovery Board on said Supplementary Code having found as herein set forth and on the basis of all the proceedings in this matter: The National Industrial Recovery Board finds that : (a) Said Supplementary Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act including removal of obstructions to the free flow of interstate and foreign commerce which tend to diminish the amount thereof, and will provide for the general welfare by promoting the organi- zation of industry for the purpose of cooperative action among the trade groups, by inducing and maintaining united action of labor and management under adequate governmental sanction and super- (2) vision, by eliminating unfair competitive practices, by promoting the fullest possible utilization of the present productive capacity of industries, by avoiding undue restrictions of production, (except as may be temporarily required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing and relieving unemployment, by improving standards of labor, and by otherwise rehabilitating industry. (b) Said Product Group normally employs not more than 50,000 emploj^ees ; and is not classified by the National Industrial Recovery Board as a major industry. (c) The Supplementary Code, as approved, complies in all re- spects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7 and Subsection (b) of Section 10 thereof; and that the applicant Product Group is an industrial Group truly repre- sentative of the aforesaid Industry; and that said Product Group imposes no inequitable restrictions on admission to membership therein. (d) The Supplementary Code is not designed to and will not per- mit monopolies or monopolistic practices. (e) The Supplementary Code is not designed to and will not eliminate or oppress small enterprises and will not operate to dis- criminate against them. (f) Those engaged in other steps of the economic process have not been deprived of the right to be heard prior to approval of said Supplemental Code. For these reasons, therefore, the National Industrial Recovery Board has approved this Supplementary Code. For the National Industrial Recovery Board : W. A. Harriman, Administrative Officer. December 20, 1934. SUPPLEMENTARY CODE OF FAIR COMPETITION FOU THE GASKET MANUFACTURING INDUSTRY A PRODUCT GROUP OF THE AUTOMOTIVE PARTS AND EQUIPMENT MANUFACTURING INDUSTRY Article I — Purpose Pursuant to the provisions of Article II of the Code of Fair Com- petition for the Automotive Parts and Equipment Manufacturing Industry, duly approved by the President on November 8, 1933, the following provisions covering fair trade practices and the adminis- tration thereof are hereby established as the standards of Fair Com- petition for the Gasket Manufacturing Industry, which has been organized into an administrative unit as a Product Group of the Automotive Parts and Equipment Manufacturing Industry, and shall be binding upon every member of said Product Group. Article II — Definitions The term " Product Group " as used herein is defined to mean production and/or manufacture of gaskets used in the manufacture of and in replacement in automobiles, trucks, busses, tractors, in- ternal combustion engines, and such other allied products as are natural affiliates, including industrial and marine engines; except- ing, however, the production and/or manufacture of such articles when produced or manufactured by a manufacturer for use exclu- sively in his own finished product, and provided always that this definition shall not include any products hereinabove described or parts thereof or therefor not designed for and used mainly as auto- motive original equipment, replacement parts and/or accessories and which are included within the scope of the definition of any other industry as defined in any approved Code of Fair Competition. The term " Member " or " Member of the Product Group " as used herein includes, but without limitation, any individual, partner- ship, association, corporation, or other form of enterprise engaged in the production and/or manufacture and/or the sale as a manufac- turer of the products of the Product Group, (hereinafter termed " Products ") either as an employer or on his or its own behalf. The term " Institute " as used herein is defined to mean the Auto- motive Gasket Institute, a trade association at present having its headquarters' office in Detroit, Michigan. The term " Original Equipment Business " as used herein is de- fined to mean the manufacture and/or sale of gaskets by members to the manufacturers of automobiles, trucks, busses, tractors, internal combustion engines and such other allied products as are natural affiliates including industrial and marine engines, regardless of whether used by the purchaser for original installation or sold by the purchaser for replacement in products of his own manufacture. (4) The term " Replacement Business " as used herein is defined to mean the manufacture and/or sale by members of replacement gaskets except as provided in the above definition of " Original Equipment Business." The term " Basic Code " as used herein is defined to mean the Code of Fair Competition for the Automotive Parts and Equipment Manufacturing Industry, as approved by the President on Novem- ber 8, 1933, and as amended. The term " Code Authority " as used herein is defined to mean the Code Authority designated in the Code of Fair Competition for Au- tomotive Parts and Equipment Manufacturing Industry. Article III — Administration (1) (a) The Executive Committee of the Institute is hereby desig- nated the Administrative Committee to assist the Code Authority and the National Industrial Recovery Board in the administration of the fair trade practice provisions hereinafter set forth and the provisions of the Basic Code, to which these fair trade practices are a supplement. One additional member may, in the discretion of the National Industrial Recover} 7 Board, be added to represent the non- members of the Institute who comply with this supplementary Code, such additional member to be selected by such non-members of the Institute by a fair method approved by the National Industrial Recovery Board. (b) In addition to the membership as above provided, there may be one additional member, without vote, to be appointed by the Na- tional Industrial Recovery Board, to serve without expense to the Product Group for such term as the National Industrial Recovery Board may specify. (2) (a) It being found necessary, in order to support the admin- istration of this Supplementary Code and to maintain the standards of fair competition established hereunder and to effectuate the policy of the Act, the Administrative Committee is authorized : (1) To incur such reasonable obligations as are necessary and proper for the foregoing purposes and to meet such obligations out of funds which may be raised as hereinafter provided and which shall be held in trust for the purposes of this Supplementary Code; (2) To submit to the National Industrial Recovery Board for its approval, subject to such notice and opportunity to be heard as it may deem necessary, (a) an itemized budget of its estimated ex- penses for the foregoing purposes, and (b) an equitable basis upon which the funds necessary to support such budget shall be con- tributed by members of the Product Group ; (3) After such budget and basis of contribution have been ap- proved by the National Industrial Recovery Board, to determine and obtain equitable contribution as above set forth by all members of the Product Group, and to that end, if necessary, to institute legal proceedings therefor in its own name. (b) Each member of the Product Group shall pay his or its equitable contribution to the expenses of the maintenance of the Administrative Committee, determined as hereinabove provided, and subject to rules and regulations pertaining thereto issued by the Na- tional Industrial Recovery Board. Only members of the Product Group complying with this Supplementary Code and contributing to the expenses of its administration as hereinabove provided, (unless duly exempted from making such contribution), shall be entitled to participate in the selection of members of the Administrative Com- mittee or to receive the benefits of any of its voluntary activities or to make use of any emblem or insignia of the National Recovery Administration. (c) The Administrative Committee shall neither incur nor pay any obligation substantially in excess of the amount thereof as estimated in its approved budget, and shall in no event exceed the total amount contained in the approved budget, except upon approval of the Na- tional Industrial Recovery Board; and no subsequent budget shall contain any deficiency item for expenditures in excess of prior budget estimates except those which the National Industrial Recovery Board shall have so approved. (3) (a) The Administrative Committee shall, subject to the ap- proval of the Code Authority and the National Industrial Recovery Board, have the power to adopt by-laws and rules and regulations for its procedure and to obtain from members, directly or through an impartial agency, such information and reports as are required for the administration and enforcement of this Supplementary Code ; to cooperate with the National Industrial Recovery Board under such rules and regulations as may be prescribed by it in regulating the use of any N. R. A. insignia, and in hearing and adjusting com- plaints; to initiate, consider and recommend to the Code Authority for transmittal to the National Industrial Recovery Board further fair trade practice provisions to govern the members of this Product Group. (b) If the National Industrial Recovery Board shall determine that any action of the Code Authority and/or the Administrative Committee or any agency thereof may be unfair or unjust or con- trary to the public interest, the National Industrial Recovery Board may require that such action be suspended to afford an opportunity for investigation of the merits of such action and further considera- tion by such Code Authority and/or the Administrative Committee or agency pending final action which shall not be effective unless the National Industrial Recovery Board approves or unless it shall fail to disapprove after 30 days' notice to it of intention to proceed with such action in its original or modified form. (c) Each trade or industrial association directly or indirectly par- ticipating in the selection or activities of the Administrative Com- mittee shall (1) impose no inequitable restrictions on membership, and (2) submit to the National Industrial Recovery Board true copies of its articles of association, by-laws, regulations, and any amendments when made thereto, together with such other informa- tion as to membership, organization, and activities as the National Industrial Recovery Board may deem necessary to effectuate the purposes of the Act. (d) In order that the Administrative Committee shall at all times be truly representative of the Product Group, and in other respects comply with the provisions of the Act, the National Industrial Recovery Board may prescribe such hearings as it may deem proper ; and, thereafter, if it shall find that the Administrative Committee is not truly representative, or does not in other respects comply with the provisions of the Act, may require an appropriate modification in the method of selection of the Administrative Committee. (4) All members of this Product Group shall be bound by the provisions of the Basic Code. For this purpose, all provisions, in- cluding specifically the wage, hour and labor provisions, of the Basic Code are hereby declared to be a part of this Supplementary Code. In case of any conflict between the provisions of this Supplementary Code and the provisions of the Basic Code, the provisions of the latter shall govern. As required by Section 7 (a) of Title I of the National Industrial Recovery Act, it is hereby provided: (1) That employees shall have the right to organize and bargain, collectively through representatives of their own choosing, and shall be free from the interference, restraint, or coercion of employers of labor, or their agents, in the designation of such representatives or in self -organization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection; (2) that no employee and no one seeking employment shall be required as a condition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of his own choosing; and (3) that employers shall comply with the maximum hours of labor, minimum rates of pay and other conditions of employment, approved or prescribed by the President. (5) The Administrative Committee shall cause to be formulated methods of cost finding and accounting capable of use by all members of the Product Group, and shall submit such methods to the National Industrial Recovery Board for review. If approved by the National Industrial Recovery Board, full information concerning such methods shall be made available to all members of the Product Group. Thereafter, each member of the Product Group shall utilize such methods to the extent found practicable. Nothing herein con- tained shall be construed to permit the Administrative Committee, any agent thereof, or any member of the Product Group to suggest uniform additions, percentages or differentials or other uniform items of cost which are designed to bring about arbitrary uniformity of costs or prices. (6) The Administrative Committee shall be empowered to obtain from members of the industry such information and reports as are re- quired for the administration of the Code. In addition to informa- tion required to be submitted to the Code Authority, members of the industry subject to this Code shall furnish such statistical informa- tion as the National Industrial Recovery Board may deem necessary for the purposes recited in Section 3 (a) of the Act to such Federal and State agencies as it may designate ; provided that nothing in this Code shall relieve any member of the industry of any existing obliga- tions to furnish reports to any Government agency. No individual report shall be disclosed to any other member of the industry or any other party except to such other Governmental agencies as may be directed by the National Industrial Recovery Board. Article IV — Trade Practices In addition to the provisions of Section C of Article VI of the Basic Code, the following described acts shall constitute unfair prac- tices and acts of unfair competition: 8 (1) Costs and price cutting. — (a) Wilfully destructive price cut- ting is an unfair method of competition and is forbidden. Any member of the Product Group or of any other industry or the cus- tomers of either may at any time complain to the Administrative Committee than any filed and/or offered price constitutes unfair competition as destructive price cutting, imperiling small enterprises or tending toward monopoly or the impairment of code wages and working conditions. The Administrative Committee shall within 5 days afford an opportunity to the member filing and/or offering the price to answer such complaint and shall within 14 days make a ruling or adjustment thereon. If such ruling is not concurred in by either party to the complaint, all papers shall be referred to the Research and Planning Division of NRA which shall render a report and recommendation thereon to the National Industrial Recovery Board. (b) When no declared emergency exists as to any given product, there is to be no fixed minimum basis for prices. It is intended that sound cost estimating methods should be used and that con- sideration should be given to costs in the determination of pricing policies. — ^ v. .» «v (c) When an emergency exists as to any given product sale below the stated minimum price of such product, in violation of the pro- visions of paragraphs (d) and (e) hereof, is forbidden. (d) If the National Industrial Recovery Board, after investiga- tion shall at any time find both (1) that an emergency has arisen within the Product Group adversely affecting small enterprises or wages or labor conditions, or tending toward monopoly or other acute conditions which tend to defeat the purposes of the Act; and (2) that the determination of the stated minimum price for a speci- fied product of the Product Group for a limited period is necessary to mitigate the conditions constituting such emergency and to effectuate the purposes of the Act, the Administrative Committee may cause an impartial agency to investigate costs and to recom- mend to the National Industrial Recovery Board a determination of the stated minimum price of the product affected by the emer- gency and thereupon the National Industrial Recovery Board may proceed to determine such stated minimum price. (e) When the National Industrial Recovery Board shall have de- termined such stated minimum price for a specified product for a stated period, which price shall be reasonably calculated to mitigate the conditions of such emergency and to effectuate the purposes of the National Industrial Recovery Act, it shall publish such price. Thereafter, during such stated period, no member of the Product Group shall sell such specified products at a net realized price be- low said stated minimum price and any such sale shall be deemed destructive price cutting. From time to time, the Administrative Committee may recommend review or reconsideration or the Na- tional Industrial Recovery Board may cause any determination hereunder to be reviewed or reconsidered and appropriate action taken. (2) Inducing Breach of Contract. — Wilfully and maliciously in- ducing or attempting to induce the breach of existing contracts be- tween competitors and their customers by any means or device what- 9 soever or interfering with or obstructing the performance of any such contractual obligations or service, with the purpose and effect of hampering, injuring, or embarrassing competitors. (3) Commercial Briber//. — To give, permit to be given, or directly offer to give, anything of value for the purpose of influencing or rewarding the action of any employee, agent, or representative of another in relation to the business of the employer of such employee, the principal of such agent or the represented party, without the knowledge of such employer, principal or party. Commercial brib- ery provisions shall not be construed to prohibit free and general distribution of articles commonly used for advertising except so far as such articles are actually used for commercial bribery as hereinabove defined. (4) Branding. — To brand falsely or fail to brand with member's name, trade-mark, and/or number, group products sold in the original equipment or replacement business except that failure to brand shall not apply to non-metallic packing and/or gaskets, or gaskets the nature or small size of which makes branding mechani- cally impossible or unduly costly. (5) iTToUatioit of Trade-Marks. —To imitate or copy a competitor's trade-mark, marking or trade name, with the purpose or effect of misleading or deceiving any purchaser or prospective purchaser. (6) Inaccurate Advertising. — To publish advertising (whether printed, radio, display, or of any other nature), which is misleading or inaccurate in any material particular, or in any material way to misrepresent any product, including but without limitation its use, trade-mark, grade, quality, quantity, origin, size, substance, charac- ter, nature, finish, material content, or preparation) or credit terms, values, policies, services, or the nature or form of the business conducted. (7) Substitution. — To furnish articles more or less expensive, of bettnr or inferior quality, or of larger or smaller size, than specined, without clearly indicating the nature of the substitution. (8) Description of. Product. — To make any sale or contract of sale of any product under any description which does not fully describe such product in terms customarily used in the industry. (9) Price Guaranty. — To sell or offer to sell to a purchaser or prospective purchaser Group Products under any form of guaranty against advance or decline in price of said product except as pro- vided in Article IV, Paragraph (10), "Contracts for Future Delivery." (10) Contracts for Future Delivery. — In the original equipment business to make contracts or accept orders for a period of delivery longer than six months. (11) Defective Material. — To allow credit for any defective arti- cle until the fact of such defect shall have been established by an authorized representative of the selling member and the article shall have been destroyed or returned to such member; or to allow credit for charges for labor or consequential damage in connection with defective material. (12) Returned Merchandise. — (a) To accept or give credit for returned merchandise not in salable condition. (b) To accept or give credit for returned merchandise in good condition at a price greater than the purchase price less a fair and 10 reasonable rehandling charge plus a reasonable charge for obsoles- cence which charges shall be individually filed with the Administra- tive Committee. In every case the purchaser shall pay the return transportation charges. The foregoing shall not apply to merchan- dise shipped through error, defective material, or certain specified items that a member may ask all of his customers to return. (13) Replacing Competitors Stock. — To agree to liquidate, pur- chase, or accept another member's products from any buyer. (14) Catalog Expense. — To pay for space in a catalog issued by a customer or to supply at less than cost of paper and printing, quantities of catalog sheets and/or price lists intended for binding in a customer's catalog or for distribution in quantity to customer's trade. The foregoing does not preclude supplying, without charge, a reasonable quantity of catalog sheets and/or price lists for sales- men's binders, counter use, or office reference. (15) Advertising Allowances. — To purchase ^f contribute to the advertising of a customer in newspapers, magazines, programs, the customer's own house organ, or other publications unless such purchase of space or contribution is a part of a general advertising program adopted by the member and is available to all of his customers. (16) Display Equipment. — To supply to a eustqj er store equip- ment such as large cabinets, display boards, racks and shelving or parts thereof, other than racks for sheet packing, except in accord- ance with the provisions of Section (20) hereof. (17) Consignments. — To place group products on consignment or under the " Floating Credit " or " Ledger Balance " plan. (18) Warehousing. — To fail to comply with the following pro- visions covering sales from warehouses in the replacement business. (a) Members shall not sell from warehouses to customers who do not carry a representative stock of the member's products. (b) Members shall not carry a warehouse stock with any cus- tomer or in premises owned or controlled in whole or in part by any customer provided that nothing herein shall prohibit the warehous- ing of stocks in any established public warehouse whether or not a customer has an interest therein. . (c) Members shall totally own warehouse stocks which must not in any sense be consigned. (d) Members operating warehouses shall conduct their own sales through their own representatives, do their own billing and make their own collections. (19) Classification of Customers. — The Code Authority shall cause to be formulated and keep current a classification of all types of customers of the industry. Such classification shall be subject to the disapproval of the National Industrial Recovery Board and shall contain: (a) A complete list of all of the classes of customers of the industry, including a class to cover every known type of cus- tomer; and (b) definitions or descriptions of the several classes in terms of functions performed, or in other appropriate terms such as purchasers of defined quantities. After submission to the National Industrial Recovery Board, if there is no disapproval or request for suspension of action within twenty (20) days, full information concerning the classification shall be made available to all members of the industry. No one 11 shall by intimidation, coercion, or other undue influence cause or attempt to cause the inclusion of any customers in or the exclusion of any customer from any class of customers, or the exclusion of any class of customers from the classification, or the use of uniform or stipulated prices, discount, or differentials and each member of the industry may at all times classify his own customers in accord- ance with his own judgment. (20) Open Price Filing — Replacement Business. — (a) Each mem- ber of the Product Group shall file with a confidential and disinter- ested agent of the Administrative Committee or, if none, then with such an agent designated by the National Industrial Recovery Board, identified lists of all of his prices, discounts, rebates, allow- ances, and all other terms or conditions of sale for Replacement Business as herein defined, hereinafter in this Section (20) referred to as " price + ^ms ", which lists shall completely and accurately con- form to and it^ t'ffee individual pricing practices of said mem- ber. Such lists shall contain the price terms for air such standard products of the Product Group as are sold or offered for sale by said member and for such non-standard products of said members as shall be designated by the Administrative Committee. Said price terms shall in the first instance be filed within 15 days after the date of approval of th±^ provision. Price terms and revised price terms shall become effective immediately upon receipt thereof by said agent. Immediately upon receipt thereof, said agent shall by telegraph or other equally prompt means notify said member of the time of such receipt. Such lists and revisions, together with the effective time thereof, shall upon receipt be immediately and simultaneously dis- tributed to all members engaged in Replacement Business and to all of their customers who have applied therefor and have offered to defray the cost actually incurred by the Administrative Committee in the preparation and distribution thereof and be available for in- spection by any of their customers at the office of such ag°nt. Said lists or revisions or any part thereof shall not be made available to any person until released to all members engaged in Replacement Business and their customers, as aforesaid; provided, that prices filed in the first instance shall not be released until the expiration" of the aforesaid 15 day period after the approval of this Supplementary Code. The Administrative Committee shall maintain a permanent file of all price terms as herein provided, and shall not destroy any part of such records except upon written consent of the National Industrial Recovery Board. Upon request the Administrative Com- mittee shall furnish to the National Industrial Recovery Board or any duly designated agent of the National Industrial Recovery Board copies of any such lists or revisions of price terms. (b) When any member of the Product Group has filed any revi- sion, such member shall not file a higher price within forty-eight (48) hours. (c) No member of the Product Group shall sell or offer to sell any products of the Product Group for which price terms have been filed pursuant to the provisions of this Section (20) , except in accord- ance with such price terms. (d) No member of the Product Group shall enter into any agree- ment, understanding, combination or conspiracy to fix or maintain 12 price terms nor cause or attempt to cause any member of the Product Group to change his price terms by the use of intimidation, coercion, or any other influence inconsistent with the maintenance of the free and open market which it is the purpose of this Section (20) to create. (21) Terms of Payment. — In the replacement business to extend a cash discount more favorable than 2% 10th proximo. (22) Export Business. — Except as may be subsequently set forth in an export provision supplementary to the Basic Code of the Auto- motive Parts and Equipment Manufacturing Industry or to this Supplementary Code, the Provisions of this Supplementary Code with regard to prices, discounts, allowances and terms are not to apply to direct export sales or to articles in the course of export, i. e., sales destined ultimately for export. " Export Trade " shall be as defined in the Export Trade Act adopted April 10, 1918. Article V — General (1) No provision of this Supplementary Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress, or discriminate against small enterprises. (2) Such of the provisions of this Supplementary Code as are not required to be included herein by the Act may, with the approval of the National Industrial Recovery Board, be modified or eliminated on the proposal by the Product Group or any member thereof if it appear that the public needs are not being served thereby and as changes in circumstances or experience may indicate. (3) It is contemplated that from time to time supplementary provisions to this Supplementary Code or modifications thereof will, after approval by the Product Group, be submitted by the Adminis- trative Committee through the Code Authority for their approval to prevent unfair competition in price and other unfair and destruc- tive competitive practices and to effectuate the purposes of the Act. Upon approval by the National Industrial Recovery Board after such notice and hearing as it may prescribe, such supplementary provisions or modifications shall become binding as a part of this Supple- mentary Code. (4) As required by Section 10 (b) of Title I of the Act, this Sup- plementary Code and all of the provisions thereof are expressly made subject to the right of the President from time to time to cancel or modify any order, approval, license, rule, or regulation issued under said Act. (5) By assenting to this Supplementary Code no member of this Product Group shall be held to have waived any of his constitutional rights. (6) Violation by any member of this Product Group of any pro- vision of this Supplementary Code is an act of unfair competition, and the offender shall be subject to the penalties imposed by the Act. (7) The " Effective Date " of this Supplementary Code shall be the 10th day after it shall have been approved. Approved Code No. 105 — Supplement No. 9. Registry No. 1404-54. O UNIVERSITY OF FLORIDA