10-2016. Marketing contract; remedies for
breach
A. The association and its members may make and execute marketing contracts
requiring the members to sell, for any period of time not over ten years, all or any
specified part of their agricultural products, or specified commodities, exclusively to
or through the association or its facilities.
B. The membership contract may provide for membership for a longer period than ten
years but not exceeding thirty years, if the contract provides opportunity to the members
for withdrawal at least once each year.
C. The contract may provide that the association may sell the products of its
members, with or without taking title thereto, and pay to its members the average sale
price based on grade and quantity, after deducting all necessary selling, overhead and
other costs and expenses.
D. When provided in the by-laws, the marketing contract may fix, as liquidated
damages, specific sums to be paid by the members to the association upon the breach by
him of any provision of the marketing contract regarding the sale or delivery or
withholding of products, and that the member will pay all costs, premiums for bonds,
expenses and fees if an action is brought upon the contract by the association, and such
provision shall be valid and enforceable in the courts.
E. In event of a breach, or threatened breach, of the marketing contract by a
member, the association may apply for an injunction to prevent the further breach of the
contract, and to enforce specific performance thereof.
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