Which act provided codes of "fair competition" and to fix wages and hours in industries subscribing to such codes, later held unconstitutional by the US Supreme Court in 1935?

Which act provided codes of "fair competition" and to fix wages and hours in industries subscribing to such codes, later held unconstitutional by the US Supreme Court in 1935?

• A. New Deal Economic Recovery Act
• B. Fair Labor Standards Act
• C. National Industrial Recovery Act
• D. Social Security Act

Answer: (C)

The question is about the law that created industry-wide codes of fair competition and set wage and hour standards for those who followed the codes during the early New Deal period. That was the National Industrial Recovery Act, which established the National Recovery Administration to draft and enforce these codes. It aimed to stabilize prices, wages, and working hours across industries, but in 1935 the Supreme Court ruled it unconstitutional, striking down the broad power it gave to regulate industry and to compel compliance with codes, especially when activities were intrastate rather than interstate. The later Fair Labor Standards Act did address minimum wages and overtime, but it did so in a different framework after the NIRA was nullified. The Social Security Act is about old-age and unemployment insurance, not codes of fair competition.

The question is about the law that created industry-wide codes of fair competition and set wage and hour standards for those who followed the codes during the early New Deal period. That was the National Industrial Recovery Act, which established the National Recovery Administration to draft and enforce these codes. It aimed to stabilize prices, wages, and working hours across industries, but in 1935 the Supreme Court ruled it unconstitutional, striking down the broad power it gave to regulate industry and to compel compliance with codes, especially when activities were intrastate rather than interstate. The later Fair Labor Standards Act did address minimum wages and overtime, but it did so in a different framework after the NIRA was nullified. The Social Security Act is about old-age and unemployment insurance, not codes of fair competition.