Food and Agricultural Code - FAC
DIVISION 20. PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS [54001 - 57700]
( Division 20 enacted by Stats. 1967, Ch. 15. ) CHAPTER 1. Nonprofit Cooperative Associations [54001 - 54294]
( Chapter 1 enacted by Stats. 1967, Ch. 15. ) ARTICLE 10. Marketing Contracts [54261 - 54266]
( Article 10 enacted by Stats. 1967, Ch. 15. ) 54264.
The bylaws or the marketing contract may fix, as liquidated damages, specific sums to be paid by the member or stockholder to the association upon the breach by him of any provision of the marketing contract regarding the sale or delivery or withholding of any product and may provide that the member will pay all costs, premiums for bonds, expenses, and fees, if any action is brought upon the contract by the association. Such provisions are valid and enforceable in the courts of this state. The clauses which provide for liquidated damages are enforceable as such and shall not be regarded as penalties.
(Enacted by Stats. 1967, Ch. 15.)