Distributor purchasing from producer-distributor: When bond not required; notice to Director; record of purchases; reports

1. No bond is required of any distributor who purchases fluid milk, fluid cream or any fresh dairy product from a distributor who processes fluid milk, fluid cream or any fresh dairy product, if: (a) The buyer at the time of obtaining possession or control of each delivery pays for the delivered product in full in lawful money; and (b) The fluid milk, fluid cream or fresh dairy product is purchased in packages ready for human consumption and not in bulk. 2. Any distributor, before purchasing fluid milk, fluid cream or any fresh dairy product on the terms stated in subsection 1, shall notify the Director of the intention to make the purchases, stating from whom and the anticipated average daily quantity of the purchases. The distributor shall also: (a) Keep a record of the purchases, showing the date and the amount of each purchase and the name of the seller; and (b) Make such other and further reports to the Director as the Director may from time to time require.