7 U.S.C. § 229b: Right to discuss terms of…

Summary

Stops a contract from forbidding a livestock or poultry producer or processor from talking about contract terms with certain people. Producer = someone who raises animals for slaughter. Processor = someone who gets animals to be slaughtered. The allowed people include government agencies, a legal adviser, a lender, an accountant, a company manager or executive, a landlord, or an immediate family member. It does not cancel state laws about contract confidentiality, except it overrides any state rule that would let a contract bar these allowed talks. State courts keep their power. Applies to contracts made, changed, renewed, or extended after May 13, 2002.

Title 7, §229b

Agriculture, Source: USLM XML via OLRC

(a)Definitions

In this section: (1) Producer

(2)Processor

The term “processor” means any person engaged in the business of obtaining livestock or poultry for the purpose of slaughtering the livestock or poultry.

(b)No prohibition of discussion

Notwithstanding a provision in any contract between a producer and a processor for the production of livestock or poultry, or in any marketing agreement between a producer and a processor for the sale of livestock or poultry for a term of 1 year or more, that provides that information contained in the contract is confidential, a party to the contract shall not be prohibited from discussing any terms or details of the contract with—

(1)a Federal or State agency;

(2)a legal adviser to the party;

(3)a lender to the party;

(4)an accountant hired by the party;

(5)an executive or manager of the party;

(6)a landlord of the party; or

(7)a member of the immediate family of the party.

(c)Effect on State laws

Subsection (b) does not—

(1)preempt any State law that addresses confidentiality provisions in contracts for the sale or production of livestock or poultry, except any provision of State law that makes lawful a contract provision that prohibits a party from, or limits a party in, engaging in discussion that subsection (b) requires to be permitted; or

(2)deprive any State court of jurisdiction under any such State law.

(d)Applicability

This section applies to each contract described in subsection (b) that is entered into, amended, renewed, or extended after May 13, 2002.

Editorial Notes

Codification Section was enacted as part of the Farm Security and Rural Investment Act of 2002, and not as part of the Packers and Stockyards Act, 1921, which comprises this chapter.

§229b Right to Discuss Terms of Contract

Summary

Title 7, §229b

Notes & Related Subsidiaries

Editorial Notes

Citations & Metadata