Perishable Agricultural Commodities Act (PACA)
The attorneys at Sandler, Travis & Rosenberg have extensive knowledge of the Perishable Agricultural Commodities Act (PACA), a federal law that secures the food supply chain and supports the orderly flow of perishable agricultural commodities, and of the United Nations Convention on the International Sale of Goods (CISG), which governs on matters where PACA is silent on cross border sales of goods, including fresh produce. Our clients face various PACA issues and our success requires creative problem-solving that focuses not only on saving our clients money but also on helping them preserve valuable business relationships. ST&R regularly represents clients in all areas of PACA, including:
- Produce marketing agreements
- Payment disputes for delivered produce
- Correcting unfair trade practices: misrepresentations, failure to disclose rebates, bribery and chronic slow payments
- License requirement violations and license suspensions
- Fines and employment restrictions resulting from license violations
- PACA trust enforcement related to insolvent buyers
If you have a PACA claim, there are three ways to handle the dispute: (1) the administrative courts of the U.S. Department of Agriculture, (2) arbitration under the Fruit and Vegetable Dispute Resolution Corporation (known as the DRC) or whatever arbitration mechanism is called for in your contract, or (3) state and federal courts.
Each has its benefits and challenges and we can help you choose the best strategy to fit your needs.