The legal implications of produce law.
The law that is concerned with frozen as well as fresh produce and their international and interstate trade is generally known as the PACA law. The full form of this abbreviation is Perishable Agricultural Commodities Act, and is applicable for every individual who is involved with dealings with merchant or consignee, receiver, buyer, or anybody who is related to the buying and selling business of fresh or frozen produces like herbs and fresh roots, fruits and fresh vegetables, in the United States, or place between the US. Unlike other product trade which falls under the state law usually, this is a federal law, and if you are in this business then you will have to adhere to the set rules of the law. Under this particular law, a careful review is compulsory prior to all produce contracts getting signed.
Like the terms and conditions dealing with the fresh or frozen produce, when it comes to the delivery part, it can be possible that the dealers or the parties concerned in the business might not see eye to eye on several matters. It is the Produce law which provides the missing links, when such kind of disagreements or rather, agreements, take place between the partied involved. There can be a situation where the deal might be vague, and where there is not invoice or documents that can support the terms and conditions. This law supplies the automatic terms applicable in such cases which is universally acceptable and applicable to such transactions involving produce. Therefore the law acts as an argument solver when the situation of incongruity gets out of control between the two dealers. The law is found in chapter 7, under the United States Code, section 499, and adheres to the set rules of United States District law.
To gain the license under the produce law, there are certain parameters which one has to fulfill, and not everyone is eligible for having it, or can fulfill the required parameters. USDA issues this license and the same is provided to the US traders dealing with fresh or frozen produce. If someone wants to be in legal business of produce trade it is mandatory to possess the license which is related to the produce law. It is applicable to all, be it an individual or an entity, within the Unites States. This law and the license, therefore, encompass all the retailers, producers, farmers and wholesalers, and even those farmers with separate sales companies.
For any US based merchant also, it is mandatory to have a PACA license under the produce law, who receives more than one ton of produce at wholesale in a particular day that was developed either in another state or in a foreign country. To carry on their business during a year any retailers who receive more than $230,000 in produce which was developed outside of their particular area or home state, should also have a PACA license to carry on their business. Even cruise liners should also have the license. PACA is not applicable for those farmers who sell only their own produce and does not sell produce for others. But still as it provides the protection of the PACA trust, it is sensible to have a PACA license and any person having the license can assert for protection.