Whether the act of issuing promissory notes by the association established under the Small and Medium Enterprise Cooperatives Act falls within the scope of its business capacity.

A cooperative established under the Small and Medium Enterprise Cooperatives Act may carry out the business of production, sale, purchase, etc. as stipulated in Article 31 (1) 1 of the said Act, and therefore, advance payment of purchase funds or issuance of promissory notes for them shall belong to the scope of its business capacity.

Article 31(1) of the Small and Medium Enterprise Cooperatives Act, Article 34 of the Civil Act

Supreme Court Decision 62Da775 Decided January 17, 1963

Plaintiff

[Defendant-Appellant] Korea Communications Industry Cooperatives (Attorney Na-ho, Counsel for defendant-appellant)

Seoul Central District Court Decision 79Na487, 488 delivered on March 19, 1980

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The defendant's attorney's grounds of appeal are examined.

According to the reasoning of the judgment below, the court below recognized that the defendant association issued the bill of this case to the non-party Hansung Telecommunication Co., Ltd., a member of the association and delivered the bill of this case to the non-party Hansung Telecommunication Co., Ltd., for the purpose of paying the price for the goods manufactured by the non-party company and supplied to the defendant association, and it is not for the convenience of the non-party company's self-financial services. However, the court below

In addition, since the defendant cooperative established under the Small and Medium Enterprise Cooperatives Act can carry out its business such as production, sale, and purchase as stipulated in Article 31 (1) 1 of the same Act, the decision of the court below to the effect that advance payment of purchase funds incidental thereto or issuance of promissory notes for this purpose belongs to the scope of its business ability, it is just and there is no error of law by misunderstanding the legal principles as to the business ability of the defendant cooperative, such as theory of lawsuit

Therefore, the appeal is dismissed and all costs of appeal are assessed against the defendant who has lost. It is so decided as per Disposition by the assent of all participating Justices.

Justices Ahn Byung-soo (Presiding Justice)