California CodesBusiness and Professions Code - BPCDivision 10 — CannabisChapter 22 — Cannabis Cooperative AssociationsArticle 10 — Marketing ContractsSection 26230.2
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.
Notes
Allows bylaws or marketing contracts to set specific liquidated damages for a member’s or stockholder’s breach involving cannabis-product sale, delivery, or withholding and require payment of litigation costs, bond premiums, expenses, and fees. Such clauses are valid and enforceable in California courts, and liquidated damages under them are not treated as penalties.
Use as reference
Lexinter.net | California Code, Business and Professions Code - BPC § 26230.2 | https://laws.lexinter.net/codes/california/business-and-professions-code/division-10/chapter-22/article-10/section-26230-2