4:13-26.1 - Deductions from contracts by members with buyers, handlers or processors payable to association; liability for failure to deduct - New Jersey Statutes

4:13-26.1.  Deductions from contracts by members with buyers, handlers or processors payable to association;  liability for failure to deduct
    Where any person, partnership, firm or corporation has voluntarily become a  member of a nonprofit co-operative agricultural marketing association incorporated pursuant to chapter 13 of Title 4 of the Revised Statutes, and when any such member shall contract prior to harvest with any buyer, handler or  processor for the sale of agricultural commodities, such member may authorize  by an appropriate provision in a contract with the association or by a separate  request, any such buyer, handler or processor of agricultural commodities to  make deductions from moneys due such member in such amounts as may be agreed  upon by the member and the association in their agreement and the buyer,  handler or processor shall forward all moneys so deducted to such designated  association on or before the fifteenth of the month following the month in  which payment is made to the member, together with a statement showing the  amount of agricultural commodities delivered by the member to buyer, handler or  processor from which deductions are made.  Buyers, handlers, or processors may,  however, retain 5% of such deductions to cover cost of bookkeeping involved.

    It shall be unlawful for any buyer, handler, or processor to fail or refuse  to make such deductions and forward such payments as prescribed herein and in  the event of such failure or refusal, the buyer, handler or processor shall be  liable to such association in a civil action for a sum equal to the amount of  the deductions, plus interest, costs, and a reasonable counsel fee.

     L.1973, c. 52, s. 1, eff. March 2, 1973.