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.
Last modified: February 3, 2019