What US Perishable Agricultural Commodities Act (PACA, 7 USC ch 20A): Licensing, Fair Conduct and the Statutory Trust requires
The Perishable Agricultural Commodities Act, 1930 (PACA), codified at 7 U.S.C. Chapter 20A (sections 499a-499t), regulates the marketing of fresh and frozen fruits and vegetables in interstate and foreign commerce and is administered by the USDA Agricultural Marketing Service through its PACA Division. Section 499a defines the regulated terms, including 'commission merchant', 'dealer' and 'broker'. Section 499c requires commission merchants, dealers and brokers to hold a PACA license, and provides that operating without a required license incurs a penalty of not more than $1,000 for each offense and not more than $250 for each day the offense continues. Section 499b sets out the unfair conduct that is unlawful, including using any unfair, unreasonable, discriminatory or deceptive practice in connection with weighing, counting or determining quantity; making, for a fraudulent purpose, any false or misleading statement in connection with a transaction; misrepresenting by word, mark, label or deed the character, kind, grade, quality, quantity, condition, packing or origin of any commodity; and failing or refusing truly and correctly to account and make full payment promptly. Section 499e makes a violator liable to the injured person, and section 499e(c) establishes the PACA statutory trust: perishable agricultural commodities received by a commission merchant, dealer or broker, and all inventories and receivables or proceeds derived from them, are held in trust for the benefit of all unpaid suppliers or sellers until full payment is made, with the seller preserving its trust benefits by giving the prescribed notice. Section 499g provides for reparation orders, section 499i requires accounts and records, and section 499n provides for inspection. Section 499h sets out the grounds for suspension or revocation of a license and authorizes, in lieu of or in addition to suspension, a civil penalty of not more than $2,000 for each violative transaction or each day a violation continues. Penalty figures are subject to inflation adjustment by regulation.
Pillar: Agriculture & Agritech · Authority: US Congress / USDA Agricultural Marketing Service (PACA Division) · Version: 1.0.0 · Last updated:
Primary source: https://www.govinfo.gov/content/pkg/USCODE-2022-title7/html/USCODE-2022-title7-chap20A.htm
SHA-256 integrity: a0bbd15648af7cf8b98005aa52c26f3bcd1175f97933808104eb699cf6613593
Primary Citations — 8 traced to source
- Perishable Agricultural Commodities Act, 7 U.S.C. 499a - short title and definitions.
- Perishable Agricultural Commodities Act, 7 U.S.C. 499b - unfair conduct (deceptive practices, misrepresentation, and failure to account and pay promptly).
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