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will demand punitive damages in addition to actual damages. And payment of 

 punitive damages is something no business can afford. 



As a manager, make certain your employees communicate freely with you about 

 unusual and/or significant risk items that emerge during their grain purchase 

 transactions with producers and other sellers. 



Also be knowledgeable about the legal requirements of your business. Perhaps 

 it is advisable to conduct periodic seminars and/or meetings with employees to be 

 certain they are aware and apprised of issues pertaining to their areas of responsibil- 

 ity. 



Finally, and most importantly, it is essential to confirm contractual dealings 

 with a written, signed document as soon as possible after the transaction is entered 

 into. 



Conclusion 



The enclosed Sample Grain Purchase Contract and Sample Grain Purchase 

 Confirmation Memorandum represent a good checklist and starting point for a 

 company to use to evaluate its existing contractual documents. Importantly, some 

 state laws may require more detail and different provisions. That's why it is 

 extremely important to contact your company's attorney before revising con- 

 tractual documents. 



The applicability of the NGFA's Trade Rules and Arbitration System to the 

 purchase contract also are business and legal decisions. The goal, however, should 

 be to provide certainty in the contractual rules and a fair, cost-effective system to 

 resolve disputes that may arise. 



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