Section 10
Disposal of produce to or through a Farmers’ Organization
of Farmers' Organization Act 1973
A Farmers’ Organization which has as one of its objects the disposal of any produce of its members or member-units, may provide in its rules or may otherwise contract with its members or member-units—
(a)
that every such member or member-unit who or which produces any such article shall dispose of the whole or any specified amount, proportion or description thereof to or through the Farmers’ Organization; and
14 Laws of Malaysia ACT 109
(b)
that any member or member-unit who or which is proved or adjudged, in such manner as may be prescribed by the regulations made hereunder, to be guilty of a breach of the rules or contract shall pay to the Farmers’ Organization as liquidated damages a sum ascertained or assessed in such manner as may be prescribed by the aforesaid regulations.
(2)
No contract entered into under the provisions of this section shall be contested in any court on the ground only that it constitutes a contract in restraint of trade.