HTML _ RS20378 - The Perishable Agricultural Commodities Act (PACA)
26-Oct-1999; Brenda Branaman; 1 p.

Abstract: The Perishable Agricultural Commodities Act (PACA) of 1930 was enacted in 1930 to promote fair trading practices in the fruit and vegetable industry. Sellers must ship the quantity and quality of produce specified in their contracts, and buyers must accept shipments that meet contract specifications. PACA protections benefit not only growers who are generally sellers , but also a range of parties who are both buyers and sellers, including truckers, packers, processors, wholesalers, brokers, grocery wholesalers, and food service firms. It is generally agreed that fruit and vegetable traders in the produce industry need more protection than traders in other industries because the product is very perishable, and a one or two-day delay in marketing can mean the difference between profit and loss.1 PACA also provides procedures for resolving disputes outside the civil court system, and establishes a trust consisting of a buyer's produce-related assets. If a buyer becomes bankrupt, produce suppliers that have preserved their trust rights can recover money owed to them before trust assets are made available to general creditors. [read report]

Topics: Agriculture, Federal Agencies, International

438 
Start Over