16-1502. Contract termination or cancellation; notification, time periods.

228 words·~1 min read·/ks/chapter-16/16-1502

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Except as provided in subsection (b), if a producer fails to comply with the provisions of a contract that requires a capital investment in excess of $100,000 or more and has a useful life of five years or more, a contractor may not terminate or cancel that contract until:

(1)The contractor has given written notice with all the reasons for the termination or cancellation at least 90 days before termination or cancellation or as provided in subsection (b); and

(2)the producer who receives the notice fails to correct the reasons stated for termination or cancellation in the notice within 60 days of receipt of the notice.

(b)The 90-day notice period and 60-day notice period under subsection (a)(1) and

(2)are waived and the contract may be terminated or canceled immediately if the alleged grounds for termination or cancellation are:

(1)Voluntary abandonment of the contract relationship by the producer;

(2)conviction of the producer of an offense directly related to the business contracted under the contract;

(3)material breach of the contract by the producer;

(4)a failure to care for the swine in accordance with good animal husbandry practices;

(5)the bankruptcy or insolvency of the producer; or

(6)an acceleration of any indebtedness secured by the property on which the swine are being raised.