445.1504a Applicability of act. Sec. 4a. This act shall not apply to a nonprofit organization operated on a cooperative basis by and for independent retailers to which all of the following apply: (a) Control and ownership of each member is substantially equal. (b) Membership is limited to those who use the services furnished by the organization. (c) Transfer of ownership is prohibited or limited. (d) Members receive no return on capital investment. (e) Substantially equal economic benefits pass to the members on the basis of patronage in the organization. (f) Members are not personally liable for obligations of the organization in the absence of a direct undertaking or authorization by the members. (g) The wholesale goods and services of the organization are furnished primarily to the members. (h) No part of the receipts, income, or profit of the organization are paid to any profit-making entity except for arms-length payments for necessary goods and services. (i) Members are not required to purchase goods or services through any profit-making entity. History: Add. 1989, Act 212, Imd. Eff. Nov. 13, 1989
Michigan Legal Code