ON BUTTERMAKING 65 



PENALTIES 



43. When an inspection of butter sold for spot 

 delivery shows the goods not to be of the class and 

 grade sold, the seller shall pay a penalty equal to 

 5 per cent of the amount of the contract, and the 

 fee for inspection. If the official quotation for the 

 day exceeds the contract price, the seller shall also 

 pay to the buyer in the same way the difference be- 

 tween the contract price and the average official 

 quotation. 



44. If butter purchased for future delivery be 

 not delivered as per contract, the buyer shall 

 promptly notify the superintendent in writing. At 

 the next regular meeting of the exchange, an an- 

 nouncement of the same shall be made by the 

 superintendent, who shall buy in the goods for ac- 

 count of the seller, provided it can be done under 

 the call at current rates. If, however, the price 

 demanded seems to him unreasonable, he shall not 

 make the purchase, but shall refer the matter to 

 the butter committee, who shall determine the dif- 

 ference between the contract price and the actual 

 market value on the date on which delivery should 

 have been made, and this amount, together with a 

 penalty equal to 5 per cent of the amount of the con- 

 tract, shall be paid by the seller. 



45. If butter, sold for future delivery, be not re- 

 ceived when properly tendered, the seller shall 

 promptly notify the superintendent in writing. At 

 the next regular meeting of the exchange, an an- 

 nouncement of the same shall be made by the 

 superintendent, who shall sell out the goods, under 

 the call, for account of the buyer, and if the price 



