{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/13.1-329.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/13.1-329.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/13.1-329.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/13.1-329.html"}],"law_id":346596,"edition_id":2,"section_id":346596,"structure_id":49764,"section_number":"13.1-329","catch_line":"Marketing contracts; enforcement; inducing breach; spreading false reports","history":"Code 1950, \u00a7\u00a7 13-278, 13-279; 1956, c. 428.","full_text":"a\n\nAn association and its members may make and execute marketing contracts, requiring the members to sell, for any period of time, not over ten years, all or any specified part of their agricultural products or specified commodities exclusively to or through the association or any facilities to be created by the association. The contract may provide that the association may sell or resell the products delivered by its members, with or without taking title thereto, and pay over to its members the resale price, after deducting all necessary selling overhead, and other costs and expenses, including (a) interest or dividends on its preferred stock, not exceeding eight per centum per annum, (b) reserves for retiring the stock, if any, (c) other proper reserves, and (d) interest or dividends not exceeding eight per centum per annum upon common stock.\n\nb\n\nThe bylaws and the marketing contract may fix, as liquidated damages, specific sums to be paid by the member or stockholder to the association upon the breach by him of any provision of the marketing contract regarding the sale or delivery or withholding of products; and may further provide that the member will pay all costs, premium for bonds, expenses and fees in case any action is brought upon the contract by the association; and any such provision shall be valid and enforceable in the courts of this Commonwealth.\n\nc\n\nIn the event of any such breach or threatened breach of such marketing contract by a member, the association shall be entitled to an injunction to prevent further breach of the contract, and to a decree of specific performance thereof. Pending the adjudication of such an action, and upon filing a verified complaint showing the breach or threatened breach, and upon filing a sufficient bond, the association shall be entitled to a temporary restraining order and preliminary injunction against the member.\n\nd\n\nAny person who knowingly induces any member or stockholder of an association or corporation organized hereunder to breach his marketing contract with the association or corporation shall be liable to the association or corporation for the full amount of damages sustained by it by reason of such breach; and any person who maliciously and knowingly spreads false reports about the finances or management of any such association or corporation shall be liable to the association or corporation aggrieved in a civil suit for the actual damage which it may sustain by reason of such false reports, and also in the penal sum of $500 for each such act, which may be recovered in the same action.\n\ne\n\nAny person, firm or corporation conducting a public tobacco warehouse within this Commonwealth who knowingly solicits or permits any member of any association organized hereunder to breach his marketing contract with the association by selling, offering for sale, or displaying for sale or for auction such member&#8217;s products contrary to the terms of any marketing agreement of which such person or any member of such firm or any active officer or manager of such corporation has knowledge or notice, shall be liable to the association aggrieved in a civil suit in the penal sum of not less than $100 nor more than $500 for each such offense; and such association shall be entitled to an injunction against such person, firm or corporation, to prevent further breaches and a multiplicity of actions thereon. In addition, such person, firm or corporation shall pay to the association a reasonable attorney&#8217;s fee and all costs involved in any such litigation or proceedings at law. Provided, however, that no such action or suit by such an association shall lie unless there has been first served upon such person, firm or corporation after such tobacco has been delivered to the warehouse, and prior to the sale thereof, a notice, in writing, stating that the products of a member of such association are about to be sold, offered for sale or displayed for sale. Such notice may be served by any peace officer or any other person, and the affidavit of the person serving the same shall be prima facie evidence of such service. It shall be the duty of any police officer, sheriff, deputy sheriff, constable or deputy constable of this Commonwealth to serve such notice upon request of any authorized representative of the association, and upon the payment of a fee of fifty cents for each such service.\n\n","order_by":null,"text":{"0":{"id":1292455,"text":"An association and its members may make and execute marketing contracts, requiring the members to sell, for any period of time, not over ten years, all or any specified part of their agricultural products or specified commodities exclusively to or through the association or any facilities to be created by the association. The contract may provide that the association may sell or resell the products delivered by its members, with or without taking title thereto, and pay over to its members the resale price, after deducting all necessary selling overhead, and other costs and expenses, including (a) interest or dividends on its preferred stock, not exceeding eight per centum per annum, (b) reserves for retiring the stock, if any, (c) other proper reserves, and (d) interest or dividends not exceeding eight per centum per annum upon common stock.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":1292456,"text":"The bylaws and the marketing contract may fix, as liquidated damages, specific sums to be paid by the member or stockholder to the association upon the breach by him of any provision of the marketing contract regarding the sale or delivery or withholding of products; and may further provide that the member will pay all costs, premium for bonds, expenses and fees in case any action is brought upon the contract by the association; and any such provision shall be valid and enforceable in the courts of this Commonwealth.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":1292457,"text":"In the event of any such breach or threatened breach of such marketing contract by a member, the association shall be entitled to an injunction to prevent further breach of the contract, and to a decree of specific performance thereof. Pending the adjudication of such an action, and upon filing a verified complaint showing the breach or threatened breach, and upon filing a sufficient bond, the association shall be entitled to a temporary restraining order and preliminary injunction against the member.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":1292458,"text":"Any person who knowingly induces any member or stockholder of an association or corporation organized hereunder to breach his marketing contract with the association or corporation shall be liable to the association or corporation for the full amount of damages sustained by it by reason of such breach; and any person who maliciously and knowingly spreads false reports about the finances or management of any such association or corporation shall be liable to the association or corporation aggrieved in a civil suit for the actual damage which it may sustain by reason of such false reports, and also in the penal sum of $500 for each such act, which may be recovered in the same action.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"e"},"4":{"id":1292459,"text":"Any person, firm or corporation conducting a public tobacco warehouse within this Commonwealth who knowingly solicits or permits any member of any association organized hereunder to breach his marketing contract with the association by selling, offering for sale, or displaying for sale or for auction such member&#8217;s products contrary to the terms of any marketing agreement of which such person or any member of such firm or any active officer or manager of such corporation has knowledge or notice, shall be liable to the association aggrieved in a civil suit in the penal sum of not less than $100 nor more than $500 for each such offense; and such association shall be entitled to an injunction against such person, firm or corporation, to prevent further breaches and a multiplicity of actions thereon. In addition, such person, firm or corporation shall pay to the association a reasonable attorney&#8217;s fee and all costs involved in any such litigation or proceedings at law. Provided, however, that no such action or suit by such an association shall lie unless there has been first served upon such person, firm or corporation after such tobacco has been delivered to the warehouse, and prior to the sale thereof, a notice, in writing, stating that the products of a member of such association are about to be sold, offered for sale or displayed for sale. Such notice may be served by any peace officer or any other person, and the affidavit of the person serving the same shall be prima facie evidence of such service. It shall be the duty of any police officer, sheriff, deputy sheriff, constable or deputy constable of this Commonwealth to serve such notice upon request of any authorized representative of the association, and upon the payment of a fee of fifty cents for each such service.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d"}},"ancestry":[{"id":49764,"edition_id":2,"name":"Agricultural Cooperative Associations","identifier":"2","label":"article","depth":3,"order_by":2,"parent_id":49762,"metadata":{"child_laws":35,"child_structures":0},"date_created":"2026-08-02 02:14:36","date_modified":"2026-08-02 12:29:05","permalink":{"id":1376585,"object_type":"structure","relational_id":49764,"identifier":"2","token":"13.1\/3\/2","url":"\/13.1\/3\/2\/","edition_id":2,"permalink":0,"preferred":1}},{"id":49762,"edition_id":2,"name":"Cooperative Associations","identifier":"3","label":"chapter","depth":2,"order_by":3,"parent_id":49726,"metadata":{"child_laws":60,"child_structures":3},"date_created":"2026-08-02 02:14:34","date_modified":"2026-08-02 12:29:05","permalink":{"id":1376521,"object_type":"structure","relational_id":49762,"identifier":"3","token":"13.1\/3","url":"\/13.1\/3\/","edition_id":2,"permalink":0,"preferred":1}},{"id":49726,"edition_id":2,"name":"Corporations","identifier":"13.1","label":"title","depth":1,"order_by":44,"parent_id":null,"metadata":{"child_laws":894,"child_structures":104},"date_created":"2026-08-02 02:14:01","date_modified":"2026-08-02 12:29:04","permalink":{"id":1374495,"object_type":"structure","relational_id":49726,"identifier":"13.1","token":"13.1","url":"\/13.1\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":346579,"structure_id":49764,"section_number":"13.1-312","catch_line":"Liberal construction of article","url":"\/13.1-312\/","token":"13.1\/3\/2\/13.1-312","metadata":false},{"id":346580,"structure_id":49764,"section_number":"13.1-313","catch_line":"Definitions","url":"\/13.1-313\/","token":"13.1\/3\/2\/13.1-313","metadata":{"court_decisions":{"0":{"name":"Carson Ray Shenk v. Commonwealth of Virginia","case_number":"1165964","citation":null,"date":"1997-06-03","url":"https:\/\/www.courtlistener.com\/opinion\/1067442\/carson-ray-shenk-v-commonwealth-of-virginia\/","abstract":" .\u202f.\u202f. COURT OF APPEALS OF VIRGINIA .\u202f.\u202f. ","court_html":"<abbr title=\"Court of Appeals\">COA<\/abbr>"},"1":{"name":"Shenk v. Commonwealth","case_number":"No. 1165-96-4","citation":"24 Va. App. 816","date":"1997-06-03","url":"https:\/\/www.courtlistener.com\/opinion\/6932965\/shenk-v-commonwealth\/","abstract":" .\u202f.\u202f. DUFF, Senior Judge. .\u202f.\u202f. ","court_html":"<abbr title=\"Court of Appeals\">COA<\/abbr>"},"2":{"name":"Forst v. Rockingham Poultry Marketing Cooperative, Inc.","case_number":"Record No. 790521","citation":"222 Va. 270","date":"1981-06-12","url":"https:\/\/www.courtlistener.com\/opinion\/6927606\/forst-v-rockingham-poultry-marketing-cooperative-inc\/","abstract":" .\u202f.\u202f. STEPHENSON, J., .\u202f.\u202f. ","court_html":"<abbr title=\"Supreme Court of Virginia\">SCV<\/abbr>"},"3":{"name":"Forst v. ROCKINGHAM POULTRY MARKETING CO-OP.","case_number":"Record No. 790521","citation":"279 S.E.2d 400","date":"1981-06-12","url":"https:\/\/www.courtlistener.com\/opinion\/1395078\/forst-v-rockingham-poultry-marketing-co-op\/","abstract":" .\u202f.\u202f. 279 S.E.2d 400 (1981) .\u202f.\u202f. ","court_html":"<abbr title=\"Supreme Court of Virginia\">SCV<\/abbr>"},"4":{"name":"Trigon Insurance v. United States","case_number":"3:00cv365","citation":"215 F. Supp. 2d 687","date":"2002-08-09","url":"https:\/\/www.courtlistener.com\/opinion\/2503699\/trigon-insurance-v-united-states\/","abstract":" .\u202f.\u202f. 215 F.Supp.2d 687 (2002) .\u202f.\u202f. ","court_html":"District Court, E.D. Virginia"}}}},{"id":346581,"structure_id":49764,"section_number":"13.1-314","catch_line":"Qualification of incorporators","url":"\/13.1-314\/","token":"13.1\/3\/2\/13.1-314","metadata":false},{"id":346582,"structure_id":49764,"section_number":"13.1-315","catch_line":"Purposes","url":"\/13.1-315\/","token":"13.1\/3\/2\/13.1-315","metadata":false},{"id":346583,"structure_id":49764,"section_number":"13.1-316","catch_line":"Articles of incorporation","url":"\/13.1-316\/","token":"13.1\/3\/2\/13.1-316","metadata":false},{"id":346584,"structure_id":49764,"section_number":"13.1-317","catch_line":"Filing and recording articles of incorporation","url":"\/13.1-317\/","token":"13.1\/3\/2\/13.1-317","metadata":false},{"id":346585,"structure_id":49764,"section_number":"13.1-318","catch_line":"Amendments to the articles of incorporation","url":"\/13.1-318\/","token":"13.1\/3\/2\/13.1-318","metadata":false},{"id":346586,"structure_id":49764,"section_number":"13.1-319","catch_line":"Bylaws","url":"\/13.1-319\/","token":"13.1\/3\/2\/13.1-319","metadata":false},{"id":346587,"structure_id":49764,"section_number":"13.1-320","catch_line":"Powers","url":"\/13.1-320\/","token":"13.1\/3\/2\/13.1-320","metadata":false},{"id":346588,"structure_id":49764,"section_number":"13.1-321","catch_line":"Members","url":"\/13.1-321\/","token":"13.1\/3\/2\/13.1-321","metadata":false},{"id":346589,"structure_id":49764,"section_number":"13.1-322","catch_line":"Membership or voting stock certificates; transfers; dividends; nonvoting stock","url":"\/13.1-322\/","token":"13.1\/3\/2\/13.1-322","metadata":false},{"id":346590,"structure_id":49764,"section_number":"13.1-323","catch_line":"General and special meetings; how called","url":"\/13.1-323\/","token":"13.1\/3\/2\/13.1-323","metadata":false},{"id":346591,"structure_id":49764,"section_number":"13.1-324","catch_line":"Directors generally; executive committee","url":"\/13.1-324\/","token":"13.1\/3\/2\/13.1-324","metadata":false},{"id":346592,"structure_id":49764,"section_number":"13.1-325","catch_line":"Removal of director","url":"\/13.1-325\/","token":"13.1\/3\/2\/13.1-325","metadata":false},{"id":346593,"structure_id":49764,"section_number":"13.1-326","catch_line":"Officers generally","url":"\/13.1-326\/","token":"13.1\/3\/2\/13.1-326","metadata":false},{"id":346594,"structure_id":49764,"section_number":"13.1-327","catch_line":"Removal of officer","url":"\/13.1-327\/","token":"13.1\/3\/2\/13.1-327","metadata":false},{"id":346595,"structure_id":49764,"section_number":"13.1-328","catch_line":"Referendum","url":"\/13.1-328\/","token":"13.1\/3\/2\/13.1-328","metadata":false},{"id":346596,"structure_id":49764,"section_number":"13.1-329","catch_line":"Marketing contracts; enforcement; inducing breach; spreading false reports","url":"\/13.1-329\/","token":"13.1\/3\/2\/13.1-329","metadata":false},{"id":346597,"structure_id":49764,"section_number":"13.1-330","catch_line":"Recordation of marketing contracts","url":"\/13.1-330\/","token":"13.1\/3\/2\/13.1-330","metadata":false},{"id":346598,"structure_id":49764,"section_number":"13.1-331","catch_line":"Associations are not in restraint of trade","url":"\/13.1-331\/","token":"13.1\/3\/2\/13.1-331","metadata":false},{"id":346599,"structure_id":49764,"section_number":"13.1-332","catch_line":"Voluntary dissolution","url":"\/13.1-332\/","token":"13.1\/3\/2\/13.1-332","metadata":false},{"id":346601,"structure_id":49764,"section_number":"13.1-333","catch_line":"Repealed","url":"\/13.1-333\/","token":"13.1\/3\/2\/13.1-333","metadata":false},{"id":346600,"structure_id":49764,"section_number":"13.1-333.1","catch_line":"Annual reports","url":"\/13.1-333.1\/","token":"13.1\/3\/2\/13.1-333.1","metadata":false},{"id":346602,"structure_id":49764,"section_number":"13.1-334","catch_line":"Application to existing associations","url":"\/13.1-334\/","token":"13.1\/3\/2\/13.1-334","metadata":false},{"id":346603,"structure_id":49764,"section_number":"13.1-335","catch_line":"Saving clause","url":"\/13.1-335\/","token":"13.1\/3\/2\/13.1-335","metadata":false},{"id":346604,"structure_id":49764,"section_number":"13.1-336","catch_line":"Limitations of the use of the word \"cooperative.\"","url":"\/13.1-336\/","token":"13.1\/3\/2\/13.1-336","metadata":false},{"id":346605,"structure_id":49764,"section_number":"13.1-337","catch_line":"Foreign associations","url":"\/13.1-337\/","token":"13.1\/3\/2\/13.1-337","metadata":false},{"id":346606,"structure_id":49764,"section_number":"13.1-338","catch_line":"Purchasing business of other associations, persons, firms or corporations; stock issued","url":"\/13.1-338\/","token":"13.1\/3\/2\/13.1-338","metadata":false},{"id":346607,"structure_id":49764,"section_number":"13.1-339","catch_line":"Merger or consolidation","url":"\/13.1-339\/","token":"13.1\/3\/2\/13.1-339","metadata":false},{"id":346608,"structure_id":49764,"section_number":"13.1-340","catch_line":"Sale, mortgage or other disposition of assets","url":"\/13.1-340\/","token":"13.1\/3\/2\/13.1-340","metadata":false},{"id":346609,"structure_id":49764,"section_number":"13.1-341","catch_line":"Taxes","url":"\/13.1-341\/","token":"13.1\/3\/2\/13.1-341","metadata":false},{"id":346610,"structure_id":49764,"section_number":"13.1-342","catch_line":"Reserved","url":"\/13.1-342\/","token":"13.1\/3\/2\/13.1-342","metadata":false},{"id":346611,"structure_id":49764,"section_number":"13.1-343","catch_line":"Application of general corporation laws","url":"\/13.1-343\/","token":"13.1\/3\/2\/13.1-343","metadata":false},{"id":346612,"structure_id":49764,"section_number":"13.1-344","catch_line":"Existing associations continued","url":"\/13.1-344\/","token":"13.1\/3\/2\/13.1-344","metadata":false},{"id":346613,"structure_id":49764,"section_number":"13.1-345","catch_line":"Verification no longer required; signing instrument containing misstatement as perjury","url":"\/13.1-345\/","token":"13.1\/3\/2\/13.1-345","metadata":false}],"previous_section":{"id":346595,"structure_id":49764,"section_number":"13.1-328","catch_line":"Referendum","url":"\/13.1-328\/","token":"13.1\/3\/2\/13.1-328","metadata":false},"next_section":{"id":346597,"structure_id":49764,"section_number":"13.1-330","catch_line":"Recordation of marketing contracts","url":"\/13.1-330\/","token":"13.1\/3\/2\/13.1-330","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/13.1-329\/","history_text":"<p>The record of this law\u2019s original creation isn\u2019t available online. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 1956, chapter 428.<\/p>","references":false,"refers_to":false,"permalink":{"id":1376655,"object_type":"law","relational_id":346596,"identifier":"13.1-329","token":"13.1\/3\/2\/13.1-329","url":"\/13.1-329\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/13.1-329\/","token":"13.1\/3\/2\/13.1-329","dublin_core":{"Title":"Marketing contracts; enforcement; inducing breach; spreading false reports","Type":"Text","Format":"text\/html","Identifier":"\u00a7 13.1-329","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"a\"><p><span class=\"prefix-number\">a.<\/span> An association and its members may make and execute marketing <span class=\"dictionary\">contracts<\/span>, requiring the members to sell, for any period of time, not over ten years, all or any specified part of their agricultural products or specified commodities exclusively to or through the association or any facilities to be created by the association. The <span class=\"dictionary\">contract<\/span> may provide that the association may sell or resell the products delivered by its members, with or without taking title thereto, and pay over to its members the resale price, after deducting all necessary selling overhead, and other costs and expenses, including (a) interest or dividends on its preferred stock, not exceeding eight per centum per annum, (b) reserves for retiring the stock, if any, (c) other proper reserves, and (d) interest or dividends not exceeding eight per centum per annum upon common stock. <a id=\"paragraph-1292455\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/13.1-329\/#a\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"b\"><p><span class=\"prefix-number\">b.<\/span> The bylaws and the marketing <span class=\"dictionary\">contract<\/span> may fix, as liquidated <span class=\"dictionary\">damages<\/span>, specific sums to be paid by the member or stockholder to the association upon the breach by him of any provision of the marketing <span class=\"dictionary\">contract<\/span> regarding the sale or delivery or withholding of products; and may further provide that the member will pay all costs, premium for <span class=\"dictionary\">bonds<\/span>, expenses and fees in case any action is brought upon the <span class=\"dictionary\">contract<\/span> by the association; and any such provision shall be valid and enforceable in the <span class=\"dictionary\">courts<\/span> of this Commonwealth. <a id=\"paragraph-1292456\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/13.1-329\/#b\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"c\"><p><span class=\"prefix-number\">c.<\/span> In the event of any such breach or threatened breach of such marketing <span class=\"dictionary\">contract<\/span> by a member, the association shall be entitled to an <span class=\"dictionary\">injunction<\/span> to prevent further breach of the <span class=\"dictionary\">contract<\/span>, and to a <span class=\"dictionary\">decree<\/span> of specific performance thereof. Pending the adjudication of such an action, and upon filing a verified complaint showing the breach or threatened breach, and upon filing a sufficient <span class=\"dictionary\">bond<\/span>, the association shall be entitled to a <span class=\"dictionary\">temporary restraining order<\/span> and preliminary <span class=\"dictionary\">injunction<\/span> against the member. <a id=\"paragraph-1292457\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/13.1-329\/#c\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"d\"><p><span class=\"prefix-number\">d.<\/span> Any person who knowingly induces any member or stockholder of an association or corporation organized hereunder to breach his marketing <span class=\"dictionary\">contract<\/span> with the association or corporation shall be liable to the association or corporation for the full amount of <span class=\"dictionary\">damages<\/span> sustained by it by reason of such breach; and any person who maliciously and knowingly spreads false reports about the finances or management of any such association or corporation shall be liable to the association or corporation aggrieved in a civil suit for the actual damage which it may <span class=\"dictionary\">sustain<\/span> by reason of such false reports, and also in the penal sum of $500 for each such act, which may be recovered in the same action. <a id=\"paragraph-1292458\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/13.1-329\/#d\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"e\"><p><span class=\"prefix-number\">e.<\/span> Any person, firm or corporation conducting a public tobacco warehouse within this Commonwealth who knowingly solicits or permits any member of any association organized hereunder to breach his marketing <span class=\"dictionary\">contract<\/span> with the association by selling, offering for sale, or displaying for sale or for auction such member&#8217;s products contrary to the terms of any marketing agreement of which such person or any member of such firm or any active officer or manager of such corporation has knowledge or notice, shall be liable to the association aggrieved in a civil suit in the penal sum of not less than $100 nor more than $500 for each such <span class=\"dictionary\">offense<\/span>; and such association shall be entitled to an <span class=\"dictionary\">injunction<\/span> against such person, firm or corporation, to prevent further breaches and a multiplicity of actions thereon. In addition, such person, firm or corporation shall pay to the association a reasonable attorney&#8217;s fee and all costs involved in any such <span class=\"dictionary\">litigation<\/span> or proceedings at <span class=\"dictionary\">law<\/span>. Provided, however, that no such action or suit by such an association shall lie unless there has been first served upon such person, firm or corporation after such tobacco has been delivered to the warehouse, and prior to the sale thereof, a notice, in writing, stating that the products of a member of such association are about to be sold, offered for sale or displayed for sale. Such notice may be served by any <span class=\"dictionary\">peace officer<\/span> or any other person, and the <span class=\"dictionary\">affidavit<\/span> of the person serving the same shall be prima facie <span class=\"dictionary\">evidence<\/span> of such service. It shall be the duty of any police officer, sheriff, deputy sheriff, constable or deputy constable of this Commonwealth to serve such notice upon request of any authorized representative of the association, and upon the payment of a fee of fifty cents for each such service. <a id=\"paragraph-1292459\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/13.1-329\/#e\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nMARKETING CONTRACTS; ENFORCEMENT; INDUCING BREACH; SPREADING FALSE REPORTS (\u00a7\n13.1-329)\n\na. An association and its members may make and execute marketing contracts,\nrequiring the members to sell, for any period of time, not over ten years, all\nor any specified part of their agricultural products or specified commodities\nexclusively to or through the association or any facilities to be created by the\nassociation. The contract may provide that the association may sell or resell\nthe products delivered by its members, with or without taking title thereto, and\npay over to its members the resale price, after deducting all necessary selling\noverhead, and other costs and expenses, including (a) interest or dividends on\nits preferred stock, not exceeding eight per centum per annum, (b) reserves for\nretiring the stock, if any, (c) other proper reserves, and (d) interest or\ndividends not exceeding eight per centum per annum upon common stock.\n\nb. The bylaws and the marketing contract may fix, as liquidated damages,\nspecific sums to be paid by the member or stockholder to the association upon\nthe breach by him of any provision of the marketing contract regarding the sale\nor delivery or withholding of products; and may further provide that the member\nwill pay all costs, premium for bonds, expenses and fees in case any action is\nbrought upon the contract by the association; and any such provision shall be\nvalid and enforceable in the courts of this Commonwealth.\n\nc. In the event of any such breach or threatened breach of such marketing\ncontract by a member, the association shall be entitled to an injunction to\nprevent further breach of the contract, and to a decree of specific performance\nthereof. Pending the adjudication of such an action, and upon filing a verified\ncomplaint showing the breach or threatened breach, and upon filing a sufficient\nbond, the association shall be entitled to a temporary restraining order and\npreliminary injunction against the member.\n\nd. Any person who knowingly induces any member or stockholder of an association\nor corporation organized hereunder to breach his marketing contract with the\nassociation or corporation shall be liable to the association or corporation for\nthe full amount of damages sustained by it by reason of such breach; and any\nperson who maliciously and knowingly spreads false reports about the finances or\nmanagement of any such association or corporation shall be liable to the\nassociation or corporation aggrieved in a civil suit for the actual damage which\nit may sustain by reason of such false reports, and also in the penal sum of\n$500 for each such act, which may be recovered in the same action.\n\ne. Any person, firm or corporation conducting a public tobacco warehouse within\nthis Commonwealth who knowingly solicits or permits any member of any\nassociation organized hereunder to breach his marketing contract with the\nassociation by selling, offering for sale, or displaying for sale or for auction\nsuch member&#8217;s products contrary to the terms of any marketing agreement of\nwhich such person or any member of such firm or any active officer or manager of\nsuch corporation has knowledge or notice, shall be liable to the association\naggrieved in a civil suit in the penal sum of not less than $100 nor more than\n$500 for each such offense; and such association shall be entitled to an\ninjunction against such person, firm or corporation, to prevent further breaches\nand a multiplicity of actions thereon. In addition, such person, firm or\ncorporation shall pay to the association a reasonable attorney&#8217;s fee and\nall costs involved in any such litigation or proceedings at law. Provided,\nhowever, that no such action or suit by such an association shall lie unless\nthere has been first served upon such person, firm or corporation after such\ntobacco has been delivered to the warehouse, and prior to the sale thereof, a\nnotice, in writing, stating that the products of a member of such association\nare about to be sold, offered for sale or displayed for sale. Such notice may be\nserved by any peace officer or any other person, and the affidavit of the person\nserving the same shall be prima facie evidence of such service. It shall be the\nduty of any police officer, sheriff, deputy sheriff, constable or deputy\nconstable of this Commonwealth to serve such notice upon request of any\nauthorized representative of the association, and upon the payment of a fee of\nfifty cents for each such service.\n\nHISTORY: Code 1950, \u00a7\u00a7 13-278, 13-279; 1956, c. 428.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}