§ 54262 Association Product Resale Rules

Food and Agricultural Code·California

AI SummaryVerified

Key Takeaways

•A group can sell things made by its members and keep some money for costs.
•The group can take out money for bills, saving, and a small profit (up to 8% per year).
•The rest of the money from selling goes back to the members.

Example

A group of farmers joins together to sell their vegetables.

The group sells the vegetables and keeps some money for costs like shipping and saving. They can also keep a little extra (up to 8% per year) as profit. The rest of the money goes back to the farmers.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 54262 Association Product Resale Rules

The contract may provide that the association may sell or resell any product that is delivered by its members, with or without taking title to that product, and pay over to its members, the resale price, after deducting all of the following: (a) Necessary selling, overhead, and other costs and expenses. (b) Proper reserves for retiring stock, if any. (c) Dividends not exceeding 8 percent per annum upon stock or membership capital. (Amended by Stats. 1997, Ch. 46, Sec. 2. Effective January 1, 1998.)

Last verified: January 23, 2026

Key Terms

ownership dividend stock contract association membership

References

Official text at leginfo.legislature.ca.gov
California Legislature. Food and Agricultural Code. Section 54262.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References