TITLE 3

Agriculture

Cooperative Agricultural Associations or Corporations

CHAPTER 85. CORPORATION LAW FOR COOPERATIVE AGRICULTURAL ASSOCIATIONS

Subchapter V. Violations and Penalties


(a) No person shall knowingly induce or attempt to induce any stockholder of an association organized under this chapter to breach his marketing contract with the association, or maliciously and knowingly spread false reports about the finances or management thereof.

(b) Producers of agricultural products or commodities shall have the right to form or become stockholders or patrons in cooperative agricultural associations organized or registered under this chapter, and no person shall directly or indirectly interfere with, restrain or coerce such producers in the exercise of this right.

(c) Buyers of agricultural products or commodities from producers or from such cooperative agricultural association, whose stockholders or patrons sell all or any part of their agricultural products or commodities to or through the association or facilities created by it shall not:

(1) Distribute or circulate any blacklist of stockholders or patrons of the cooperative agricultural association, or advise any person of the membership of any producer in such cooperative agricultural association, for the purpose of preventing the purchase or sale of or payment for agricultural products or commodities produced, sold or offered for sale by the producer so blacklisted or so named;

(2) Dominate or interfere with the formation, existence or administration of any cooperative agricultural association by any means, including but not limited to the following:

a. Participating or assisting in, supervising, controlling or dominating the initiation or creation of any cooperative agricultural association or its business (as distinguished from social or educational activities), meetings or elections, and no certificate of incorporation under this chapter shall issue to any persons or corporation so dominated, nor shall any rights under § 8562 of this title accrue to a corporation so dominated;

b. Making known to such producers the buyer's approval or disapproval of any cooperative agricultural association for the purpose of encouraging or discouraging membership or shareholding therein, becoming a patron, contracting or cooperating therewith;

(3) Encourage or discourage membership or shareholding in any cooperative agricultural association or becoming a patron, contracting or cooperating with the same.

(d) Nothing in this chapter shall preclude a buyer from making an agreement with a cooperative agricultural association (not established, administered or assisted by any action of the buyer) requiring membership or shareholding therein, becoming a patron, contracting or cooperating therewith as a condition of the purchase of a producer's agricultural products or commodities, if such cooperative agricultural association has as its stockholders or patrons a majority of the producers supplying such buyer with the agricultural commodity or products sold to such buyer.

(e) The word "buyer" as used in this section shall not include a buyer which is a cooperative agricultural association of producers.

(f) Nothing in this section shall prevent a cooperative agricultural association (not established, administered or assisted by any action of the buyer) or its officers or agents from bargaining with buyers or prospective buyers of their products with regard to prices therefor, and practices, terms, conditions, rules and regulations pertaining to the industry in which they are engaged.

41 Del. Laws, c. 132, § 17; 3 Del. C. 1953, § 8551.;

Whoever violates this chapter shall be fined not more than $300, or imprisoned for not more than 6 months, or both, and shall be liable to the association aggrieved in a civil action in the penal sum of $100 for each such offense. The association shall be entitled to an injunction against such violator to prevent continuation of such conduct.

41 Del. Laws, c. 132, § 17; 3 Del. C. 1953, § 8552.;