§ 70 — Marketing contract

New York § 70

• Jurisdiction: New York
• Law CCO: Cooperative Corporations
• Art. 5: Miscellaneous Provisions

Text

§ 70. Marketing contract. 1. The certificate of incorporation or the\nby-laws may obligate the members to sell all or any part of their\nspecified commodities exclusively to or through the corporation or any\nfacilities created by it, during any designated period of time, subject\nto the right of any member to be released at a designated period in each\nyear, by giving a prescribed notice.\n 2. The certificate or by-laws or the marketing contract may fix\nspecific sums to be paid by the member, or contracting non-member, as\nliquidated damages upon a breach of the marketing obligation, which sums\nshall not be regarded as penalties; and may further provide that such\nmember pay all the costs, premiums for bonds, expenses and fees in case\nthe corporation recovers judgment therefor.\n 3. In the event of a breach or threatened breach by a member, or\ncontracting non-member, of such marketing obligation, the corporation\nshall be entitled to an injunction to prevent any further breach and to\na decree of specific performance; and, upon filing of a verified\ncomplaint showing such breach and of a bond approved by the court, the\ncorporation shall be entitled to a temporary restraining order.\n 4. The marketing contract may provide that the corporation may sell or\nresell the products delivered by its members, with or without taking\ntitle thereto; and may pay over to its members the resale-price, or the\npool price in case of pooling of sales, after deducting all necessary\nselling, overhead and other costs and expenses, including interest or\ndistribution on stock, not exceeding six per centum per annum, and any\nother deductions authorized by the by-laws or marketing contract.\n