§ 498.19 — Power to compel sales and purchases — liquidated damages

Iowa § 498.19

• Jurisdiction: Iowa
• Title XII: BUSINESS ENTITIES
• Ch. 498: NONPROFIT COOPERATIVE ASSOCIATIONS

Text

1. The association may require members to sell all or a stipulated part of their specifically
enumerated products exclusively through the association or to buy specifically enumerated

supplies exclusively through the association, but in such case, a reasonable period during
each year shall be specified during which any member, by giving notice in prescribed form,
maybereleasedfromsuchobligationthereafter. Whereitisdesiredtoenterintotheexclusive
arrangement provided in this section, the association shall execute a contract with each such
member setting forth what goods or wares are to be handled and upon what terms. In order
toprotectitselfinthenecessaryoutlay, whichitmaymakeforthemaintenanceofitsservices,
the association may stipulate that some regular charge shall be paid by the member for each
unit of goods covered by such contract whether actually handled by the association or not,
and in order to reimburse the association for any loss or damage which it or its members may
sustain through the member’s failure to deliver the member’s products to or to procure the
member’s supplies from the association.
2. Incaseitisdifficultorimpracticabletodeterminetheactualamountofdamagesuffered
by the association or its members through such failure to comply with the terms of such a
contract, the association and the member may agree upon a sum to be paid as liquidated
damages for the breach of the member’s contract, said amount to be stated in the contract.

Legislative History

[C24, 27, 31, 35, 39, §8503; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §498.19]