2006 New York Code - Marketing Contract.

 
    §  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.