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272.221 Exclusive contracts for agricultural products -- Damages for violation
-- Injunctive relief -- Notice to landlord or tenant.
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An association and its members may make and execute contracts, requiring
the members to obtain specified services exclusively from the association or to
sell, during any designated period of time, all or any specified part of the
members' agricultural products or specified commodities exclusively to or
through the association subject to the right of any member to be released at a
designated period in each year, by giving prescribed notice. Such contracts
may provide that the association may sell or resell the products of its members,
with or without taking title thereto, and 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
dividends on stock, not exceeding eight percent (8%) per annum, and any
other deduction authorized by the bylaws or such marketing contracts.
An association's bylaws or contracts with members may fix, as liquidated
damages, specific sums to be paid by a member to the association if he
breaches any provision of the contract and may provide that the member shall
pay all costs, premiums for bonds, expenses and fees, in case any action is
brought upon the contract by the association. Liquidated damage provisions in
contracts with members shall be enforceable in the courts of this state and
shall not be regarded as penalties.
If a breach or threatened breach of a contract with a member exists, an
association shall be entitled to an injunction to prevent the breach or further
breach of the contract, and to a decree of specific performance thereof.
Pending the adjudication of such an action, and upon filing a verified complaint
showing the breach or threatened breach, and upon filing a sufficient bond, the
association shall be entitled to a temporary restraining order and preliminary
injunction against members.
A landowner, or lessee, of land on which any agricultural products marketed or
to be marketed by an association are being raised or are to be raised, may by
registered letter addressed to an association, ask for information as to whether
his tenant, or landlord as the case may be, is a member of the association, or
has signed a contract with the association, and may request information as to
the terms of such contract. The request shall state the full name and address of
the person inquired about. An association shall, within ten (10) days after
receipt of such a request, furnish the information in writing to the person so
inquiring. If an association fails to furnish the information properly requested, in
any litigation that arises between that association and the person so inquiring,
it shall be presumed, in the absence of evidence to the contrary, that that
person was without notice that the person inquired about was a member of the
association or had signed a contract with the association, or that the person
inquiring knew the terms of the contract.
History: Created 1966 Ky. Acts ch. 208, sec. 17.
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