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 In Article IV, Section 6 there is a provision which contemplates
the establishment of classified wage scales for the industry. Since
the establishment of classified wage scales under codes is contrary to
to Administration policy, it would seem wise to eliminate this provi-
tion.

 In the trade practices, Article VIII, Paragraph 3, the paragraph
prohibiting the use of misleading advertising or selling methods also
prohibits the use of misleading credit terms. The application of this
provision is not clear, and it would seem that credit terms should be
dealt with in other sections of the Code.

 Paragraph 8 prohibits the payment of all rebates and other forms
of allowance. While there is no objection to the prohibition of secret
rebates, it seems that the clause as written might restrict many legit-
imate and established trade practices.

 Paragraph 12. Recent developments have brought the uniform dis-
count clause of trade practices under criticism, and it is suggested
that unless the proposed clause conforms closely with the well-establish-
ed practice of the industry, it might contribute further cause for such
criticism.

 Paragraph 14. This paragraph prohibits all forms of return of
merchandise after seven days and severely restricts returns within
that period. It is questioned whether so stringent a provision as to
the return of merchandise would be equitable under all conditions.

 Prepared by___________
 Project Supervisor













 ead and Approved by _______
 Unit Chief






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