§ 7121. Cooperative contracts generally.
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§ 7121. Cooperative contracts generally.
(a)General rule.-- A contract between a cooperative corporation and any member, whether contained in the bylaws or a separate writing, may require the member to:
(1)Sell, market or deliver to or through the corporation or any facilities furnished by it, all or any specified part of products produced or to be produced either by the member or under the control of the member.
(2)Authorize the corporation or any facilities furnished by it to act for the member in any manner with respect to all or any specified part of products produced or to be produced either by the member or under the control of the member.
(3)Buy or procure from or through the corporation or any facilities furnished by it, all or any specified part of goods or services to be bought or procured by the member.
(4)Authorize the corporation or any facilities furnished by it to act for the member in any manner in the procurement of goods or the procurement or performance of services.
(b)Damages for breach.-- A contract authorized by subsection
(a)may fix and require liquidated damages to be paid by the member to the cooperative corporation in the event of breach of the contract by the member. Liquidated damages may be a percentage of the value or a specific amount per unit of the products, goods or services involved in or the subject of the breach, or a specific sum.
(c)Collective action.-- Two or more cooperative corporations may contract and act in association, corporate or otherwise, to perform collectively any of their powers, purposes or contracts.
(d)Definition.-- A contract described in subsection
(a)is referred to in this subchapter as a "cooperative contract," and, unless the context otherwise requires, the term means the original cooperative contract and any amendments.
15c7121v
Cross References. Section 7121 is referred to in section 7123 of this title.
15c7122s