Statutory Exemptions (Selected)

• Pages: 55-72

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STATUTORY EXEMPTIONS (SELECTED)

Capper-Volstead Act 7 U.S.C. §§ 291-92

7 U.S.C. § 291. Authorization of Associations; Powers

Persons engaged in the production of agricultural products as

farmers, planters, ranchmen, dairymen, nut or fruit growers may act

together in associations, corporate or otherwise, with or without capital

stock, in collectively processing, preparing for market, handling, and

marketing in interstate and foreign commerce, such products of persons

so engaged. Such associations may have marketing agencies in common;

and such associations and their members may make the necessary

contracts and agreements to effect such purposes: Provided, however,

That such associations are operated for the mutual benefit of the

members thereof, as such producers, and conform to one or both of the

following requirements:

First. That no member of the association is allowed more than one

vote because of the amount of stock or membership capital he may own

therein, or,

Second. That the association does not pay dividends on stock or

membership capital in excess of 8 per centum per annum.

And in any case to the following:

Third. That the association shall not deal in the products of

nonmembers to an amount greater in value than such as are handled by it

for members.

7 U.S.C. § 292. Monopolizing or Restraining Trade and Unduly

Enhancing Prices Prohibited; Remedy and Procedure

If the Secretary of Agriculture shall have reason to believe that any

such association monopolizes or restrains trade in interstate or foreign

commerce to such an extent that the price of any agricultural product is

56 HANDBOOK OF U.S. ANTITRUST SOURCES

unduly enhanced by reason thereof, he shall serve upon such association

a complaint stating his charge in that respect, to which complaint shall be

attached, or contained therein, a notice of hearing, specifying a day and

place not less than thirty days after the service thereof, requiring the

association to show cause why an order should not be made directing it

to cease and desist from monopolization or restraint of trade. An

association so complained of may at the time and place so fixed show

cause why such order should not be entered. The evidence given on such

a hearing shall be taken under such rules and regulations as the Secretary

of Agriculture may prescribe, reduced to writing, and made a part of the

record therein. If upon such hearing the Secretary of Agriculture shall be

of the opinion that such association monopolizes or restrains trade in

interstate or foreign commerce to such an extent that the price of any

agricultural product is unduly enhanced thereby, he shall issue and cause

to be served upon the association an order reciting the facts found by

him, directing such association to cease and desist from monopolization

or restraint of trade. On the request of such association or if such

association fails or neglects for thirty days to obey such order, the

Secretary of Agriculture shall file in the district court in the judicial

district in which such association has its principal place of business a

certified copy of the order and of all the records in the proceeding,

together with a petition asking that the order be enforced, and shall give

notice to the Attorney General and to said association of such filing.

Such district court shall thereupon have jurisdiction to enter a decree

affirming, modifying, or setting aside said order, or enter such other

decree as the court may deem equitable, and may make rules as to

pleadings and proceedings to be had in considering such order. The place

of trial may, for cause or by consent of parties, be changed as in other

causes.

The facts found by the Secretary of Agriculture and recited or set

forth in said order shall be prima facie evidence of such facts, but either

party may adduce additional evidence. The Department of Justice shall

have charge of the enforcement of such order. After the order is so filed

in such district court and while pending for review therein the court may

issue a temporary writ of injunction forbidding such association from

violating such order or any part thereof. The court may, upon conclusion

of its hearing, enforce its decree by a permanent injunction or other

appropriate remedy. Service of such complaint and of all notices may be

made upon such association by service upon any officer or agent thereof

engaged in carrying on its business, or on any attorney authorized to