17.93 PARENT COMPANY RESPONSIBILITY FOR CONTRACTS OF SUBSIDIARIES.
Subdivision 1.
Licensing. If a contractor is required to obtain a license to purchase
agricultural commodities, the licensing authority may require the parent company of a licensee
subsidiary to guarantee payment or contract performance as a condition of licensing.
Subd. 2.
Parent company liability. If an agricultural contractor is the subsidiary of another
corporation, partnership, or association, the parent corporation, partnership, or association is liable
to a seller for the amount of any unpaid claim or contract performance claim if the contractor
fails to pay or perform according to the terms of the contract.
History: 1990 c 517 s 4