Page:United States Statutes at Large Volume 90 Part 2.djvu/377

 PUBLIC LAW 94^455—OCT. 4, 1976 ^

90 STAT. 1 8 4 5

(3) APPLICATION o r SUBSECTION.—Nothing i n t h i s subsection

shall be so construed as to authorize any contract i n which, or i n the settlement of or in respect to which, any device or arrangement whatever is resorted to, or any agreement is made, for the determination o r adjustment of the price of the g r a d e o r grades tendered other than the basis grade specified in the contract by any "fixed difference" system, or by arbitration, or by any other method not provided for by this section, (h)

SPECIFIC GRADE CONTRACTS.—

(1) CONDITIONS.—Each specific grade cotton futures contract shall comply with each of the following conditions: (A)

CONFORMITY W I T H RULES AND REGULATIONS.—Conform

to the rules and regulations made pursuant to this section. (B) SPECIFICATION OF GRADE, PRICE, DATES OF SALE AND DELIV-

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ERY.—Specify the grade, type, sample, or description of the cotton involved in the contract, the price p e r pound a t which such cotton is contracted to be bought o r sold, the date of the purchase or sale, and the time when shipment o r delivery of such cotton is to be made. (C) PROHIBITION OF DELIVERY OF OTHER T H A N SPECIFIED

GRADE.—Provide that cotton of or within the grade or of the type, or according to the sample or description, specified i n the contract shall be delivered thereunder, and that n o cotton which does not conform to the type, sample, or description, or which is not of or within the g r a d e specified i n the contract shall be tendered o r delivered thereunder. (D) PROVISION FOR SPECIFIC PERFORMANCE.—Provide that

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the delivery of cotton under the contract shall not be effected by means of "setoff" o r " r i n g " settlement, b u t only by the actual transfer of the specified cotton mentioned in the contract. (2) INCORPORATION OF CONDITIONS I N CONTRACT.—The provisions

of paragraph s (1)(A), (C), and (D) shall be deemed fully incorporated into any such contract if there be written or printed thereon, o r on the document or memorandum evidencing the same, at or prior to the time the same is entered into, the words " S u b - Ante, p. 1841. ject to United States Cotton F u t u r e s Act, subsection (h) ". . (3) APPLICATION OF SUBSECTION.—This subsection shall not be

construed to apply to any contract of sale made in compliance with subsection (fj o r (g). (i) L I A B I L I T Y OF P R I N C I P A L FOR ACT S OF A G E N T. — W h e n construing

and enforcing the provisions of this section, the act, omission, o r failure of any official, agent, or other person acting for or employed by any association, partnership, o r corporation within the scope of his employment or office shall, in every case, also be deemed the act, omission, or failure of such association, partnership, or corporation, as well as that of the person. (j) REGULATIONS.—The Secretary is authorized to make such regulations with the force and effect of law as he determines may be necessary to carry out the provisions of this section and the powers vested in him by this section. (k) VIOLATIONS.—Any person who knowingly violates any regulation made m pursuance of this section, shall, upon conviction thereof, be fined not less than $100 n o r more than $500, for each violation thereof, m the discretion of the court, and, in case of natural persons, may, in addition be punished by imprisonment for not less than 30 days nor more than 90 days, for each violation, in the discretion of the

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