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Terms Used In Vermont Statutes Title 11 Sec. 702

  • Contract: A legal written agreement that becomes binding when signed.
  • Member: means a person that is admitted as a patron member or investor member or both in a mutual benefit enterprise. See
  • Mutual benefit enterprise: means an enterprise organized under this title. See
  • Organic rules: means the articles of organization and bylaws of a mutual benefit enterprise. See

§ 702. Marketing contracts

(a) If a marketing contract provides for the sale of products, commodities, or goods to a mutual benefit enterprise, the sale transfers title to the enterprise upon delivery or at any other specific time expressly provided by the contract.

(b) A marketing contract may:

(1) authorize a mutual benefit enterprise to create an enforceable security interest in the products, commodities, or goods delivered; and

(2) allow the enterprise 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.

(c) Some or all of the provisions of a marketing contract between a patron member and a mutual benefit enterprise may be contained in the organic rules. (Added 2011, No. 84 (Adj. Sess.), § 1, eff. April 20, 2012.)