Arkansas Code
Subchapter 1 - General Provisions
§ 2-2-117. Remedies for breach of bylaws or contracts

(a)
(1) The bylaws or the marketing or participation contract of any association existing under this subchapter may fix specific sums as liquidated damages to be paid by the member or stockholder to the association upon the breach or threatened breach by him or her of any provision of the participation agreement or upon the breach or threatened breach by him or her of any provision of the marketing contract regarding the sale or delivery or withholding of products.
(2) These instruments may further provide that the member will pay all costs, premiums for bonds, expenses, and fees in case any action is brought upon the contract by the association.
(3) These provisions shall be valid and enforceable in the courts of this state, and the clauses providing for liquidated damages shall be enforceable as such and shall not be regarded as penalties.

(b)
(1) In the event of any breach or threatened breach of the marketing contract by a member or other person, the association shall be entitled to an injunction to prevent the breach or further breach of the contract and to a decree of specific performance of the contract.
(2)
(A) Pending the adjudication of the action and upon filing a verified complaint showing the breach or threatened breach and upon filing a bond in the sum of one hundred dollars ($100), the association shall be entitled to an injunction against the member or other person.
(B) The judge, in his or her discretion, may increase the bond to five hundred dollars ($500), after a hearing on five (5) days' notice to the parties if justice demands an increase in the amount of the bond.


(c) In any civil action, upon any marketing contract of any member with any association existing under this subchapter, it shall be conclusively presumed that the products produced by any person, firm, or corporation during the period of time covered by the marketing contract, on the land of the member, however and by whomsoever produced, are the products of the member. As such, the products of the member are subject to the marketing contract if the products have been grown or acquired under any contract between the member and the other person, firm, or corporation entered into after the execution of the marketing contract. In such actions, the remedies for nondelivery or breach shall lie and be enforceable against the persons, firms, or corporations.

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