3-518. Exempt transactions This article shall not prevent: 1. A producer of fruit or vegetables in the state from selling or delivering his products unpacked and unmarked in bulk to a packer in this state for grading, packing or storage. 2. A producer or packer from manufacturing the products into a by-product. 3. A producer from selling the products unpacked or unmarked to a person engaged in the operation of a commercial by-products factory for the purpose of being used in the manufacture of a by-product for resale.
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