Mont. Admin. R. 32.24.490 - REJECTION OF MILK AND TERMINATION OF PRODUCER SALES AGREEMENTS
(1) A distributor
may reject milk provided by a producer because of inferior quality or
noncompliance with the lawful rules of duly constituted health or sanitation
agencies. In all cases the rejection of the milk must be supported by a
statement to the producer setting forth the reason(s) for which the milk was
rejected. A distributor must provide a copy of the statement to the
department.
(2) Except for
persistent repetition of the cases set forth in (1), no producer's contract or
purchasing agreement, whether express or implied, may be terminated by a
distributor except for cause after notice and hearing by the board in
accordance with the rules and procedures prescribed by the Montana
Administrative Procedure Act.
(3)
No producer may terminate a contract or selling agreement with any distributor
except by giving at least 30 days written notice to the distributor and to the
board of the producer's intention to terminate. However, nothing in this rule
prevents a distributor and a producer from providing by written contract or
agreement for a different period of notice. Termination does not preempt a
distributor's obligation to pay the producer in full by the 15th day of the
month following the month of such termination.
Notes
AUTH: 81-23-104, MCA; IMP: 81-23-103, 81-23-402, MCA
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