§ 70. Marketing contract.
277 words·~1 min read·
/ny/cooperative-corporations/miscellaneous-provisions/70·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 70. Marketing contract. 1. The certificate of incorporation or the
by-laws may obligate the members to sell all or any part of their
specified commodities exclusively to or through the corporation or any
facilities created by it, during any designated period of time, subject
to the right of any member to be released at a designated period in each
year, by giving a prescribed notice.
2. The certificate or by-laws or the marketing contract may fix
specific sums to be paid by the member, or contracting non-member, as
liquidated damages upon a breach of the marketing obligation, which sums
shall not be regarded as penalties; and may further provide that such
member pay all the costs, premiums for bonds, expenses and fees in case
the corporation recovers judgment therefor.
3. In the event of a breach or threatened breach by a member, or
contracting non-member, of such marketing obligation, the corporation
shall be entitled to an injunction to prevent any further breach and to
a decree of specific performance; and, upon filing of a verified
complaint showing such breach and of a bond approved by the court, the
corporation shall be entitled to a temporary restraining order.
4. The marketing contract may provide that the corporation may sell or
resell the products delivered by its members, with or without taking
title thereto; and may pay over to its members the resale-price, or the
pool price in case of pooling of sales, after deducting all necessary
selling, overhead and other costs and expenses, including interest or
distribution on stock, not exceeding six per centum per annum, and any
other deductions authorized by the by-laws or marketing contract.