Michigan Compiled Laws

Mich. Comp. Laws § 450.109 (2026)

Cooperative corporations; breach of contract; encouragement prohibited; penalty.

✓ current as of July 2026

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MICHIGAN GENERAL CORPORATION STATUTE

Act 327 of 1931

450.109 Cooperative corporations; breach of contract; encouragement prohibited; penalty.

Sec. 109.

Same; persons liable for damage for encouraging breach of contracts and agreements. Any person, firm, or corporation who solicits or persuades or permits or aids or abets, any stockholder and/or member or other person to breach a contract with a cooperative corporation, by accepting or receiving from such stockholder and/or member or other person, products for sale, marketing, manufacturing, or processing for sale, contrary to the terms of any marketing agreement of which said person or any member of said firm or any officer or manager of said corporation has knowledge or notice, shall be liable to the cooperative corporation aggrieved in a civil suit in the penal sum of $500.00 for each such contract; and such cooperative corporation shall be entitled to an injunction against such person, firm, or corporation to prevent further breaches and a multiplicity of actions thereon. In addition, said person, firm, or corporation shall pay to the cooperative a reasonable attorney's fee and all costs involved in any litigation or proceedings at law or chancery.

History: 1931, Act 327, Eff. Sept. 18, 1931 ;-- Am. 1941, Act 327, Eff. Jan. 1942 ;-- CL 1948, 450.109

Compiler's Notes:

The catchline following the act section number was incorporated as part of the section when the act was enacted.

FormerLaw Notes:

See section 12 of Ch. IV of Part II of Act 84 of 1921, being CL 1929, § 10038.

Notes of Decisions

Cited in 1 case, 1991–1991 · leading case: S. Milk Sales, Inc. v. Don Martin, T.C. Jacoby & Co., Inc., & Northshore Milk Producers Ass'n, 924 F.2d 98 (6th Cir. 1991).

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S. Milk Sales, Inc. v. Don Martin, T.C. Jacoby & Co., Inc., & Northshore Milk Producers Ass'n, 924 F.2d 98 (6th Cir. 1991). · cites it 3× “Southern sought equitable relief pursuant to Michigan law, Mich.Comp. Laws § 450.109, and the federal Agricultural Fair Practices Act of 1967 (AFPA), 7 U.”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.