(a) For purposes of this act, a cooperative corporation or association of producers shall be deemed to be a producer and not a dealer with respect to the milk of its producer members or of its producer patrons under specific nonmember marketing agreements, or of other qualified (Capper-Volstead) cooperatives under agreement with such cooperative provided that written documentation concerning such transactions is on file with and approved by the Milk Marketing Board,¹ together with a written waiver signed by the seller cooperative of any claim against the board or purchaser cooperative under this act. All members of the seller cooperative shall be notified by mail of such waiver. A cooperative corporation or association of producers shall be deemed to be a dealer with respect to milk purchased or received from producers other than those specified above.

(b) It shall be unlawful for a milk dealer or handler to purchase, acquire or receive on consignment or otherwise milk from producers unless the milk dealer or handler shall be in good standing with regard to requirements of this act. The Milk Marketing Board, at its discretion, may require licensed dealers or handlers to purchase, acquire or receive milk from producers on a cash-on-delivery basis.

(c) Pursuant to the purposes of this act, any member of the board or any designated employee thereof shall have the power, at all reasonable hours, to inspect, photograph, photostat, mark or stamp for identification, audit and copy all books, papers, records or documents of all licensees for the purpose of ascertaining facts to enable the board to administer this act. The information obtained shall be for the confidential use of the board and the various administrative departments, boards and commissions of the State government, and shall not be disclosed to any person except as may be required in the enforcement of the law or by order of the court. Failure to comply with such rights of inspection as noted above may result in revocation of the license of the dealer or handler at which time no producer shall legally ship milk to the dealer or handler.