- 21 - members, they could not influence MCP’s operations. Petitioners’ argument that they did not have a sufficient level of control under Minnesota law to support the explicit contractual designation of MCP as petitioners’ agent, even if relevant to our analysis, is unsupported by any convincing proof in the record. Finally, petitioners have failed to convince us that Minnesota law invalidates an express contractual agency designation when both the designated agent and the designated principal adhere to the terms of the contract. Petitioners voluntarily entered into multiple UMAs with MCP, which were in effect for 1994 and 1995. Each of those UMAs clearly designated MCP as petitioners’ agent for the marketing and sale of the corn petitioners had acquired and delivered pursuant to the UMAs.15 There is no dispute that petitioners produced corn as required by the UMAs, or that MCP marketed and sold petitioners’ corn and corn products as required by the UMAs, thereby generating the value-added payments. Given these undisputed facts, petitioners’ argument that the contractually based agency designation may be 15Petitioners also argue that, because they designated MCP as their agent for the marketing and sale of corn but not for its processing, no agency relationship was created. This argument makes no sense and we reject it. Petitioners appointed MCP as their agent to market and sell the corn they had acquired and delivered to MCP under the UMAs. Whether MCP was operating as petitioners’ agent in processing the corn does not control our analysis of whether petitioners were in the business of acquiring, marketing, and selling corn and corn products for profit.Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
Last modified: May 25, 2011