Massachusetts General Laws
Chapter 157 - Co-Operative Corporations
Section 16 - Marketing Contracts Between Corporation and Members

Section 16. Any such corporation may enter into marketing contracts with its members by which the members shall agree to sell, for any period of time not exceeding ten years, all or any specified part of their products or of certain specified products exclusively to or through the corporation or any agency designated by it. If such contract provides for a sale to the corporation, title to the products covered thereby shall pass to the corporation absolutely, except for recorded liens, upon delivery or at any other time specified in said contract, if expressly so agreed therein. Any such contract may, however, provide for sale by the corporation of the products of its members with or without acquisition of title to such products by the corporation and may further provide that the corporation shall pay over to the members the resale price after deducting all necessary expenses including any allowances, contributions or deductions authorized by its by-laws or by the contract itself. Such contract shall not be construed as a violation of any provision of sections one to seven, inclusive, of chapter ninety-three, unless it results in an undue enhancement of the price of the product to which the contract applies, nor shall any corporation organized under section ten be liable to prosecution for any action reasonable and proper in the exercise of the rights and powers conferred by sections ten to eighteen, inclusive.

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