(a) General rule.--A contract between a cooperative corporation and any member, whether contained in the bylaws or a separate writing, may require the member to:
(1) Sell, market or deliver to or through the corporation or any facilities furnished by it, all or any specified part of products produced or to be produced either by the member or under the control of the member.
(2) Authorize the corporation or any facilities furnished by it to act for the member in any manner with respect to all or any specified part of products produced or to be produced either by the member or under the control of the member.
(3) Buy or procure from or through the corporation or any facilities furnished by it, all or any specified part of goods or services to be bought or procured by the member.
(4) Authorize the corporation or any facilities furnished by it to act for the member in any manner in the procurement of goods or the procurement or performance of services.
(b) Damages for breach.--A contract authorized by subsection (a) may fix and require liquidated damages to be paid by the member to the cooperative corporation in the event of breach of the contract by the member. Liquidated damages may be a percentage of the value or a specific amount per unit of the products, goods or services involved in or the subject of the breach, or a specific sum.
(c) Collective action.--Two or more cooperative corporations may contract and act in association, corporate or otherwise, to perform collectively any of their powers, purposes or contracts.
(d) Definition.--A contract described in subsection (a) is referred to in this subchapter as a "cooperative contract," and, unless the context otherwise requires, the term means the original cooperative contract and any amendments.
Cross References. Section 7121 is referred to in section 7123 of this title.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Title 15 - CORPORATIONS AND UNINCORPORATED ASSOCIATIONS
Chapter 71 - Cooperative Corporations Generally
Section 7101 - Short title of subpart
Section 7102 - Cooperative corporations generally
Section 7103 - Use of term "cooperative" in corporate name
Section 7104 - Election of an existing business corporation to become a cooperative corporation
Section 7105 - Termination of status as a cooperative corporation for profit
Section 7106 - Election of an existing nonprofit corporation to become a cooperative corporation
Section 7107 - Termination of nonprofit cooperative corporation status
Section 7121 - Cooperative contracts generally
Section 7122 - Notice of cooperative contracts
Section 7123 - Filing procedures
Section 7124 - Relief against breach or threatened breach of contract; penalty for interference
Section 7125 - Action for civil penalty for inducing breach or spreading false reports