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7 U.S.C. § 197cArbitration

submitted 105 years ago by Pub. L. 110-234 to r/title-7-AGRICULTURE · 302 words · no verdicts yet

in plain englishAI-generated · not legal advice

Livestock and poultry contracts with an arbitration clause must let the producer or grower opt out before signing. The contract must clearly disclose this right. If a grower declines arbitration, they can still agree to it later if a dispute happens and both sides consent in writing. Blocking a grower's choice here is an unlawful practice.

(a) In general: Any livestock or poultry contract that requires arbitration to resolve disputes arising under the contract must also include a provision letting a producer or grower, before entering the contract, decline to be bound by that arbitration requirement. (b) Disclosure: Any livestock or poultry contract requiring arbitration must clearly disclose the producer's or grower's right, before entering the contract, to decline the requirement to use arbitration to resolve any dispute under the contract. (c) Dispute resolution: A producer or grower who declines arbitration under subsection (b) still has the right to resolve a dispute under the contract if, after the dispute arises, both parties agree in writing to use arbitration. (d) Application: Subsections (a), (b), and (c) apply to any contract entered into, amended, altered, modified, renewed, or extended after the Food, Conservation, and Energy Act of 2008 became law. (e) Unlawful practice: It is unlawful under this chapter for a packer, swine contractor, or live poultry dealer to act in a way that violates this section, including any action meant to, or that has the effect of, limiting a producer's or grower's ability to freely make the choice described in subsection (b). (f) Regulations: The Secretary must issue regulations to carry out this section, and must set criteria the Secretary will use to decide whether a contract's arbitration process gives the grower or producer a real, meaningful chance to fully take part in it.
the actual law source: uscode.house.gov ↗public domain
(a) In general

Any livestock or poultry contract that contains a provision requiring the use of arbitration to resolve any controversy that may arise under the contract shall contain a provision that allows a producer or grower, prior to entering the contract 1 to decline to be bound by the arbitration provision.

(b) Disclosure

Any livestock or poultry contract that contains a provision requiring the use of arbitration shall contain terms that conspicuously disclose the right of the contract producer or grower, prior to entering the contract, to decline the requirement to use arbitration to resolve any controversy that may arise under the livestock or poultry contract.

(c) Dispute resolution

Any contract producer or grower that declines a requirement of arbitration pursuant to subsection (b) has the right,2 to nonetheless seek to resolve any controversy that may arise under the livestock or poultry contract, if, after the controversy arises, both parties consent in writing to use arbitration to settle the controversy.

(d) Application

Subsections (a) 1 (b) and (c) shall apply to any contract entered into, amended, altered, modified, renewed, or extended after the date of the enactment of the Food, Conservation, and Energy Act of 2008.

(e) Unlawful practice

Any action by or on behalf of a packer, swine contractor, or live poultry dealer that violates this section (including any action that has the intent or effect of limiting the ability of a producer or grower to freely make a choice described in subsection (b)) is an unlawful practice under this chapter.

(f) Regulations

The Secretary shall promulgate regulations to—

(1)

carry out this section; and

(2)

establish criteria that the Secretary will consider in determining whether the arbitration process provided in a contract provides a meaningful opportunity for the grower or producer to participate fully in the arbitration process.

Source credit: (Aug. 15, 1921, ch. 64, title II, § 210, as added Pub. L. 110–234, title XI, § 11005, May 22, 2008, 122 Stat. 1357, and Pub. L. 110–246, § 4(a), title XI, § 11005, June 18, 2008, 122 Stat. 1664, 2119.)

history & why it existsrecord from the source credit
  • 1921Enacted · Pub. L. 110-234 · 122 Stat. 1357

A history note hasn’t been published yet. The record shows enactment by Pub. L. 110-234 on 1921-08-15.

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