4-11.1 Potato Production Contracts
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<![CDATA[CHAPTER 4-11.1POTATO PRODUCTION CONTRACTS4-11.1-01. Definitions. In this chapter, unless the context or subject matter otherwiserequires:1."Buyer" means a person, group of persons, organization, or entity that in the<br>ordinary course of business buys potatoes or potato byproducts grown in this state<br>or who contracts with a potato producer to grow potatoes in this state.2."Potatoes" means potatoes or potato byproducts produced for use in or as food,<br>seed, feed, or other byproducts of the farm for the same or similar use.3."Producer" means a person that produces or causes to be produced potatoes by<br>contracting with a buyer or processor to provide management, labor, machinery,<br>facilities, or any production input for the production of potatoes.4-11.1-02. Unfair acts and practices prohibited. A buyer may not engage in any of thefollowing acts or practices, defined as unfair acts or practices in connection with a potato<br>production contract or purchase involving potatoes:1.Use of coercion, intimidation, the threat of retaliation or the threat of contract<br>termination, cancellation, or nonrenewal to impose, demand, compel, or dictate<br>terms, payment or manner of payment, or the signing of a contract by a potato<br>producer.2.Use of coercion, intimidation, the threat of retaliation, or the threat of contract<br>termination, cancellation, or nonrenewal in order to require a producer to make<br>capital improvements such as buildings or equipment.3.To interfere, restrain, or coerce a producer in the exercise of the right to join, form, or<br>assist a producer bargaining cooperative or association.4.To refuse to deal with a producer because of the exercise of the right to join and<br>belong to a producer bargaining cooperative or association.5.To refuse to provide to the producer, upon request, the statistical information and the<br>data used to determine compensation paid to the producer for settlement.6.To refuse to allow a producer or the producer's designated representative to<br>observe, by actual observation at the time of weighing, the weights and measures<br>used to determine the producer's compensation at settlement.7.To use the performance of any other producer to determine the settlement of a<br>producer.8.To refuse to bargain with an established producer bargaining cooperative or<br>association formed for the purpose of negotiating contracts and agreements.4-11.1-03. Civil liability for damages from violation. A person who engages in anunfair act or practice as defined in this chapter is liable to a producer for all damages caused to<br>the producer by the unfair act or practice.4-11.1-04. Good faith - Damages for violation - Penalty. There is an implied promiseof good faith, as defined in section 41-01-09, by all parties to a potato production contract. In an<br>action to recover damages, if the court or a jury finds that there has been a violation of this<br>provision, in addition to other damages authorized by law, attorney's fees and court costs may be<br>awarded.Page No. 14-11.1-05.Recapture of capital investment required by a potato productioncontract.1.A contractor may not terminate or cancel a contract that requires a producer to make<br>a capital investment in buildings or equipment that cost one hundred thousand<br>dollars or more and have a useful life of five or more years until:a.The producer has been given written notice of the intention to terminate or<br>cancel the contract at least one hundred eighty days before the effective date of<br>the termination or cancellation, or as provided in subsection 3; andb.The producer has been reimbursed for damages incurred by an investment in<br>buildings or equipment that was made for the purpose of meeting minimum<br>requirements of the contract.2.Except as provided in subsection 3, if a producer fails to comply with the provisions<br>of a contract that requires a capital investment subject to subsection 1, a contractor<br>may not terminate or cancel that contract until:a.The contractor has given written notice with all the reasons for the termination<br>or cancellation at least ninety days before termination or cancellation, or as<br>provided in subsection 3; andb.The recipient of the notice fails to correct the reasons stated for termination or<br>cancellation in the notice within sixty days of receipt of the notice.3.The one hundred eighty-day notice period under subsection 1, and the ninety-day<br>notice period and the sixty-day notice period under subsection 2, are waived and the<br>contract may be canceled or terminated immediately if the alleged grounds for<br>termination or cancellation are:a.Voluntary abandonment of the contract relationship by the producer; orb.Conviction of the producer of an offense directly related to the business<br>conducted under the contract.Page No. 2Document Outlinechapter 4-11.1 potato production contracts]]>