N.Y. Cooperative Corporations Law 70 – 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.
Terms Used In N.Y. Cooperative Corporations Law 70
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Temporary restraining order: Prohibits a person from an action that is likely to cause irreparable harm. This differs from an injunction in that it may be granted immediately, without notice to the opposing party, and without a hearing. It is intended to last only until a hearing can be held.
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.