The bylaws or a marketing contract may fix, as liquidated damages, specific sums to be paid by the member or stockholder to the association upon the breach by him or her of any provision of the marketing contract regarding the sale or delivery or withholding of a cannabis product and may provide that the member will pay all costs, premiums for bonds, expenses, and fees, if any action is brought upon the contract by the association. These provisions are valid and enforceable in the courts of this state. The clauses that provide for liquidated damages are enforceable as such and shall not be regarded as penalties.
Cal. Bus. & Prof. Code § 26230.2
Marketing Contracts
Known as the Medicinal and Adult-Use Cannabis Regulation and Safety Act
The act spans §§ 26000 to 26308 (207 sections).
Added by Stats. 2017, Ch. 27, Sec. 107
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.