Title 15 — Commerce and TradeRelease 119-73
§432 Boards of trade dealing in agricultural products; exclusion of representatives of cooperative associations prohibited
Title 15 › Chapter CHAPTER 12— - DISCRIMINATION AGAINST FARMERS’ COOPERATIVE ASSOCIATIONS BY BOARDS OF TRADE › § 432
Summary
Trading boards that deal in farm products across state lines must let authorized representatives of lawful farmer co-ops (incorporated or not) or groups of such co-ops join and use the board, if the co-op is mostly producers, has adequate financial responsibility, and follows the same lawful rules as other members. A board cannot stop a co-op from giving its real members patronage refunds of money that is more than the co-op’s costs.
Full Legal Text
Title 15, §432
Commerce and Trade — Source: USLM XML via OLRC
No board of trade whose members are engaged in the business of buying or selling agricultural products or receiving the same for sale on consignment in interstate commerce shall exclude from membership in, and all privileges on, such board of trade, any duly authorized representative of any lawfully formed and conducted cooperative association, corporate or otherwise, composed substantially of producers of agricultural products, or any such representative of any organization acting for a group of such associations, if such association or organization has adequate financial responsibility and complies or agrees to comply with such terms and conditions as are or may be imposed lawfully on other members of such board: Provided, That no rule of a board of trade shall forbid or be construed to forbid the return on a patronage basis by such cooperative association or organization to its bona fide members of moneys collected in excess of the expense of conducting the business of such association.
Reference
Citations & Metadata
Citation
15 U.S.C. § 432
Title 15 — Commerce and Trade
Last Updated
Apr 6, 2026
Release point: 119-73