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IOWA FARMERS PURCHASING ASS'N, INC. v. HUFF

No. 2-59433.

260 N.W.2d 824 (1977)

IOWA FARMERS PURCHASING ASSOCIATION, INC. and Ronald Carter, Appellees, v. William H. HUFF, III, Commissioner of Insurance of the State of Iowa, and Insurance Department of the State of Iowa, Appellants.

Supreme Court of Iowa.

December 21, 1977.

Attorney(s) appearing for the Case

Richard C. Turner, Atty. Gen., William F. Raisch and John R. Perkins, Asst. Attys. Gen., for appellants.

Virgil Moore, Des Moines, for appellees.

Heard by MOORE, C. J., MASON, RAWLINGS, REYNOLDSON, and HARRIS, JJ.

RAWLINGS, Justice.

Defendants appeal from declaratory judgment holding discount privileges sold by plaintiff corporation to qualifying farmers alone did not come within the ambit of Chapter 503, The Code 1975. We reverse.

Basically essential to an understanding of the instant controversy are two statutory enactments.

First, § 503.4 provides, in relevant part:

"No association contemplated by this chapter shall issue any membership until...

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