What is the correct way to wear a flag patch on an American Legion uniform?

By resolution, the flag patch, when placed on an American Legion uniform, may be placed at the shoulder of either sleeve as long as the blue field is forward. Additionally, no emblem, name or patch shall be worn above the flag patch on the same sleeve. The decision as to the sleeve on which the patch is to be worn is left to the judgment of the individual, post or color guard involved. This proviso pertains only to the uniform of The American Legion. (NEC Resolution 38, May 1986)

The provisions of the Flag Code do not specify how the flag patch is to be worn, any other organizations may apply the flag patch as they deem appropriate. This includes members of the military, fire, police, or patriotic organizations.