All about PACA Law that Your Business has on Your Business?

The Perishable Agricultural Commodities Act (PACA) was first enacted at the request of the fruit and vegetable industry that promotes fair trade in the industry. PACA Law protects businesses dealing in fresh and frozen fruits and vegetables by establishing and enforcing a code of fair business practices and by helping companies resolve business disputes.

What is the Purpose of PACA Litigation?

The Perishable Agricultural Commodities Act (PACA) practices fair trading practices in the marketing of fresh and frozen fruits and vegetables in interstate and foreign commerce. The major objective of the PACA program is ensuring that dealers of fresh and froze fruits and vegetables are benefitted and get paid for and get paid for what they sell and that includes when their customers go out of business, declare bankruptcy, or simply refuse to pay for the fruits and vegetables received.

How Does One File a PACA Litigation Complaint?

If one finds any issue while receiving payment from any buyer or believes that you have suffered damages resulting in unfair trading practices and that you might submit an informal complaint to the PACA Division either through the ePACA Portal or by email, overnight delivery or mail to a Regional Office.

The complaint must be in writing (Download an informal complaint worksheet) and filed within 9 months of the date payment was due or the time that performance under the contract was required. The dispute must involve a contract for fresh or frozen fruits and/or vegetables as defined by the PACA, which occurred in interstate and/or foreign commerce. The party against which you are making a claim must either be licensed by the PACA Division or must be operating a business subject to the licensing provisions of the PACA.

The complaining party must submit documentary evidence to establish that it suffered a monetary loss as a result of an action by the other party that violates the PACA. Evidence may include invoices, contracts, bills of lading, and broker’s memoranda of sale, manifests, accountings, or any other evidence showing the nature of the contract. The complaining party must submit a required $100 filing fee with the claim, before it will be opened.

The PACA Litigation allows the dealer and business persons to get fair trade business allowing proper and fair business means and terms that works.