Marketing Contracts

Utah Code tit. 16, ch. 16-16, pt. 16-16-P7

in effect

Utah Code § 16-16-701 Authority.

16-16-701. Authority. In this part, "marketing contract" means a contract between a limited cooperative association and another person, that need not be a patron member: (1) requiring the other person to sell, or deliver for sale or marketing on the person's behalf, a specified part of the person's products, commodities, or goods exclusively to or through the association or any facilities furnished by the association; or (2) authorizing the association to act for the person in any manner with respect to the products, commodities, or goods. Enacted by Chapter 363, 2008 General Session

Utah Code § 16-16-702 Marketing contracts.

16-16-702. Marketing contracts. (1) If a marketing contract provides for the sale of products, commodities, or goods to a limited cooperative association, the sale transfers title to the association upon delivery or at any other specific time expressly provided by the contract. (2) A marketing contract may: (a) authorize a limited cooperative association to create an enforceable security interest in the products, commodities, or goods delivered; and (b) allow the association to sell the products, commodities, or goods delivered and pay the sales price on a pooled or other basis after deducting selling costs, processing costs, overhead, expenses, and other charges. (3) Some or all of the provisions of a marketing contract between a patron member and a limited cooperative association may be contained in the organic rules. Enacted by Chapter 363, 2008 General Session

Utah Code § 16-16-703 Duration of marketing contract.

16-16-703. Duration of marketing contract. The initial duration of a marketing contract may not exceed 10 years, but the contract may be self-renewing for additional periods not exceeding five years each. Unless the contract provides for another manner or time for termination, either party may terminate the contract by giving notice in a record at least 90 days before the end of the current term. Enacted by Chapter 363, 2008 General Session

Utah Code § 16-16-704 Remedies for breach of contract.

16-16-704. Remedies for breach of contract. (1) Damages to be paid to a limited cooperative association for breach or anticipatory repudiation of a marketing contract may be liquidated, but only at an amount or under a formula that is reasonable in light of the actual or anticipated harm caused by the breach or repudiation. A provision that so provides is not a penalty. (2) Upon a breach of a marketing contract, whether by anticipatory repudiation or otherwise, a limited cooperative association may seek: (a) an injunction to prevent further breach; and (b) specific performance. (3) The remedies in this section are in addition to any other remedies available to an association under law other than this chapter. Enacted by Chapter 363, 2008 General Session

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title16/Chapter16/16-16-P7.html?v=C16-16-P7_1800010118000101Fetched: 10/26/2026