7 U.S.C. § 671: Arbitration of disputes…

Summary

The Secretary of Agriculture can help settle fights about the sale of milk and milk products when a cooperative made up of producers asks in writing. The cooperative must really be owned or run by producers and must handle or sell milk in interstate or foreign commerce. The Secretary may mediate and, if everyone agrees and the action would support the goals of the Agricultural Adjustment Act, must arbitrate. The decision can only cover topics that the Act could regulate for milk orders. Meetings will follow rules set by the Secretary. Any agreement or award must be approved by the Secretary and cannot allow illegal trade practices or unfair competition. Approved meetings and awards are not treated as breaking U.S. antitrust laws.

Title 7, §671

Agriculture, Source: USLM XML via OLRC

(a)Application

The Secretary of Agriculture, or such officer or employee of the Department of Agriculture as may be designated by him, upon written application of any cooperative association, incorporated or otherwise, which is in good faith owned or controlled by producers or organizations thereof, of milk or its products, and which is bona fide engaged in collective processing or preparing for market or handling or marketing (in the current of interstate or foreign commerce, as defined by section 610(j) of this title), milk or its products, may mediate and, with the consent of all parties, shall arbitrate if the Secretary has reason to believe that the declared policy of the Agricultural Adjustment Act [7 U.S.C. 601 et seq.], as amended, would be effectuated thereby, bona fide disputes, between such associations and the purchasers or handlers or processors or distributors of milk or its products, as to terms and conditions of the sale of milk or its products. The power to arbitrate under this section shall apply only to such subjects of the term or condition in dispute as could be regulated under the provisions of the Agricultural Adjustment Act, as amended, relating to orders for milk and its products.

(b)Conduct of meetings

Meetings held pursuant to this section shall be conducted subject to such rules and regulations as the Secretary may prescribe.

(c)Approval of award

No award or agreement resulting from any such arbitration or mediation shall be effective unless and until approved by the Secretary of Agriculture, or such officer or employee of the Department of Agriculture as may be designated by him, and shall not be approved if it permits any unlawful trade practice or any unfair method of competition.

(d)Exemption from antitrust laws

No meeting so held and no award or agreement so approved shall be deemed to be in violation of any of the antitrust laws of the United States.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Agricultural Adjustment Act, referred to in subsec. (a), is title I of act May 12, 1933, ch. 25, 48 Stat. 31, as amended, which is classified generally to chapter 26 (§ 601 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 601 of this title and Tables.

§671 Arbitration of Disputes Concerning Milk