Prohibition Against Procurement Options in Contracts. No contract entered into between a handler and a producer in accordance with the provisions of section 61411 or 62191 of the Code shall provide for an option of the handler to purchase any milk of the producer in excess of the amount which the handler has obligated itself to purchase under the contract, nor shall said contract contain any right of first refusal by the handler to purchase such excess milk no matter whether the right of first refusal is on like terms and conditions as competing purchasers or not. No handler shall require as a condition, whether oral or written, of execution or renewal of a contract, that the producer grant to the handler an option to purchase or any right of first refusal with regard to milk of the producer in excess of the amount the handler has obligated itself to purchase under the contract.

Note: Authority cited: Sections 407 and 61891, Food and Agricultural Code. Reference: Sections 61411 and 62191, Food and Agricultural Code.

History

1. New Article 5 (Section 2050) filed 3-25-66; effective thirtieth day thereafter (Register 65, No. 8).

2. Amendment filed 6-12-79; effective thirtieth day thereafter (Register 79, No. 24).

3. Amendment to section and Reference Note filed 11-26-90; operative 12-26-90 (Register 91, No. 2).

4. Amendment filed 11-26-90; operative 12-26-90 (Register 91, No. 2).