498.19 Power to compel sales and purchases — liquidated damages.
1. The association may require members to sell all or a stipulated part of their specifically enumerated products exclusively through the association or to buy specifically enumerated supplies exclusively through the association, but in such case, a reasonable period during each year shall be specified during which any member, by giving notice in prescribed form, may be released from such obligation thereafter. Where it is desired to enter into the exclusive arrangement provided in this section, the association shall execute a contract with each such member setting forth what goods or wares are to be handled and upon what terms. In order to protect itself in the necessary outlay, which it may make for the maintenance of its services, the association may stipulate that some regular charge shall be paid by the member for each unit of goods covered by such contract whether actually handled by the association or not, and in order to reimburse the association for any loss or damage which it or its members may sustain through the member’s failure to deliver the member’s products to or to procure the member’s supplies from the association.
2. In case it is difficult or impracticable to determine the actual amount of damage suffered by the association or its members through such failure to comply with the terms of such a contract, the association and the member may agree upon a sum to be paid as liquidated damages for the breach of the member’s contract, said amount to be stated in the contract.
[C24, 27, 31, 35, 39, §8503; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §498.19]
2021 Acts, ch 76, §150
Code editor directive applied
Structure Iowa Code
Chapter 498 - NONPROFIT COOPERATIVE ASSOCIATIONS
Section 498.2 - Purposes of cooperative — limitation.
Section 498.3 - Terms defined — products of nonmembers.
Section 498.4 - Articles — personal liability.
Section 498.5 - Filing — certificate of incorporation.
Section 498.8 - Board of directors — removals.
Section 498.10 - Admission of members.
Section 498.11 - Membership certificates.
Section 498.12 - Certificates nontransferable — surrender.
Section 498.13 - Automatic cancellation — revocation.
Section 498.14 - Conditions printed on certificates.
Section 498.15 - Combinations of local associations.
Section 498.16 - Powers of central associations.
Section 498.17 - Voting power.
Section 498.18 - Proxies — voting by mail.
Section 498.19 - Power to compel sales and purchases — liquidated damages.
Section 498.20 - Financial power.
Section 498.21 - Personal liability.
Section 498.22 - Cost of service — dues.
Section 498.23 - Reserve and educational funds — patronage dividends.
Section 498.24 - Biennial report — penalty.
Section 498.25 - Exemption from report.
Section 498.26 - List of delinquents.
Section 498.27 - Notice to delinquents.
Section 498.28 - Cancellation.
Section 498.29 - Effect of cancellation.
Section 498.30 - Reinstatement of corporation.
Section 498.31 - Chapter extended to former associations.
Section 498.32 - Use of term “cooperative” — injunction.
Section 498.33 - Use of funds — promotion expenses.
Section 498.34 - Duration of incorporation — renewal.
Section 498.35 - Personal liability.