Keijer Law, a law firm of PACA attorneys that work on cases regarding the Perishable Agricultural Commodities Act (PACA) trust litigation, regulates the trading (sale and purchase) of perishable items like fruits and vegetables. Generally, it is essential to be licensed under PACA for a person who deals in the trading of fresh or frozen fruits and vegetables in a quantity more than 2,000 pounds. The chief firms fitting into the category are processors, truckers, wholesalers, grocery wholesalers, and food service firms. APACA license is also obligatory for dealers whose invoice exceeds $230,000 in a calendar year.
The Perishable Agriculture Commodities Act (PACA) was brought into enactment by Congress in 1930 and revised, thereafter, in 1984. The Act aims at protecting sellers of consumable agricultural commodities by subjecting a dealer, merchant, or broker of these commodities to a trust on the trading of consumable products, and also the food obtained from that produce thereby benefiting all unpaid suppliers. Thus, when a retailer of consumable activities has not paid its due, they are liable for civil action.
At Keijer Law, our PACA Attorneys aim to put a stop to any unfair and fraudulent demeanor in the trading of consumable agricultural commodities. The chief agency that administers and regulatesPACA Attorneys is the Agricultural Marketing Service. PACA laws also apply to restaurants that purchase perishable agricultural products for preparing meals. Their purchase of agricultural produce (consumable) makes them the dealer off perishable agricultural products thereby making them liable to the violation of PACA trust laws.
Any dealer violating the rules of PACA laws is legally responsible, to the person(s) affected, for whole damage occurring as a result of the violation. It does not matter whether the dealer is a grocery store owner, a restaurant, or a fresh-food market. As per the agricultural law, a PACA license provides attestation for you being a reliable and serious business dealer who can be trusted to keep up with the terms and conditions of the contract. The 'fair trading practices' of PACAinclude congregating with the contract specifications, making fair payments for all contracts, and sustaining trust assets.
Any person operating a business knowingly, dealing in perishable agricultural product, without the PACA license is liable to pay a penalty of $1,200 per violation and further $350 for every day that the violation continues. Any individual who is a qualified seller of the perishable produce holds the right to promptly congeal the bank accounts of the buyers in anticipation of the confirmation of PACA qualification from a court and until the due payment is paid in full.
The PACA creditor holds the first right to be paid off in case the produce buyer has declared bankruptcy. PACA, therefore, also helps with obtaining payments from the personal assets of the buyer, if he has proved to be insufficient to comply with their obligations. It is essential to follow the rules and regulations of PACA if you want to stay protected and avail the benefits of PACAtrust laws. Moreover, it is also essential to consult with the counsel on the due payments before the account receivables are late. At Keijer Law, our PACA Attorneys put forward an important and strong protection against fraudulent activities in the fruit and vegetable industry. Knowing the laws is important for all parties involved; call Keijer Law for a consultation or legal advice on agricultural trust laws.
*The information in this article is not intended as legal advice. Please contact Keijer Law for a legal consultation on PACA trust laws.