Common use of Minimum Quality Standards Clause in Contracts

Minimum Quality Standards. All cattle delivered by the Producer to the Cooperative shall meet the minimum quality standards of the industry for cattle to be processed. Cattle of substandard quality, as determined by the Cooperative, shall be either: (1) rejected and returned to the Producer with all costs relating to the rejection and return charged to the Producer; or (2) accepted and handled or disposed in a manner customary in the industry with any necessary costs charged to the Producer. If, in the sole opinion of the Cooperative, the Producer continually fails to deliver cattle that meet minimum quality standards, the Cooperative may terminate this Agreement and the Producer's membership in the Cooperative.