7 U.S.C. § 229b — Right to discuss terms of contract

submitted 24 years ago by Pub. L. 107-171 to r/title-7-AGRICULTURE · 280 words · no verdicts yet

in plain englishAI-generated · not legal advice

Even if a livestock or poultry contract says its terms are confidential, this law lets a producer or processor still discuss the contract's terms with certain people, like a government agency, lawyer, lender, accountant, manager, landlord, or family member. States can still make their own confidentiality rules, but not rules that override this right to discuss. This applies to contracts made or renewed after May 13, 2002.

(a) Definitions. A "producer" is anyone who raises and cares for livestock or poultry for slaughter. A "processor" is anyone in the business of getting livestock or poultry in order to slaughter them. (b) No prohibition of discussion. Even if a production contract or a year-or-longer marketing agreement between a producer and a processor says the contract's information must stay confidential, that confidentiality clause cannot stop either party from discussing the contract's terms with: (1) a federal or state agency; (2) their own legal adviser; (3) their lender; (4) an accountant they hired; (5) one of their executives or managers; (6) their landlord; or (7) a member of their immediate family. (c) Effect on State laws. This right to discuss does not cancel out any state law about confidentiality in these contracts — except that any state law that would make it legal for a contract to block or limit the discussions this section protects does not apply. This section also does not take away any state court's power to hear these cases. (d) Applicability. This section only applies to contracts described in subsection (b) that are entered into, changed, renewed, or extended after May 13, 2002.

the actual law source: uscode.house.gov ↗public domain

(a) Definitions

In this section:

(1) Producer

The term “producer” means any person engaged in the raising and caring for livestock or poultry for slaughter.

(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.

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.

Source credit: (Pub. L. 107–171, title X, § 10503, May 13, 2002, 116 Stat. 510.)

history & why it existsrecord from the source credit

2002Enacted · Pub. L. 107-171 · 116 Stat. 510

A history note hasn’t been published yet. The record shows enactment by Pub. L. 107-171 on 2002-05-13.

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