Guar, is that covered by PACA?  Recently we were contacted by a group of growers who had not been paid for shipments of guar beans.  Guar is a desert plant, native of Pakistan and India, the beans from which can be processed to be used as a food additive and as a component in fracking fluid used in petroleum drilling.  While guar powder can be used in food products and guar protein can be used

“This contract is governed by PACA.”  This sentence frequently appears in a product contract.  But what does it really mean?  Frequently the answer is little or nothing.   In Spanish, term for something that sounds good, but means little is the word “caramelo” or caramel in English.  This terms refers to the fact that a caramel candy tastes but quickly dissolves into nothing.  A contract clause that states that the contract is “governed by PACA”

The major part of produce shipped to the United States from Latin America is shipped on consignment.  The US importer receives the produce, sells it and charges the exporter a commission for his services.  In our experience, the handling of produce inventory by produce importers remains among the most common reasons for losses in and claims upon produce consignments. One important issue is that both produce importers and exporters must monitor the handling of inventories

(This post applies only to US produce shippers who have PACA licenses and who include a PACA trust legend on their invoices.) Most US shippers of produce have PACA licenses and protect their rights under the PACA trust by including a legend at the bottom of their invoices.  If a US shipper has both a PACA license and a legend at the bottom of its invoice, then it qualifies for the special protections of the

The DRC and the Statute of Limitations – Don’t Fall for Rope-a-Dope! In 1974 boxer Muhammed Ali fought George Foreman in a match that later became known as the Rumble in the Jungle.  Ali held back during the course of the fight, appeared weak and then came on strong at the end to defeat Foreman after wearing Foreman down with Ali’s delaying tactics.  Ali’s tactic of delay and then coming on strong to defeat Foreman

Temperature and Claims Most traders in produce and agricultural goods know the importance of temperature during transit, especially if the product is delivered F.O.B.  It the cold chain is broken, a receiver may be liable for the price of the load, depending on the degree by which the chain was broken, the moment  and the duration of the break.  For this reason, shippers frequently include one or more recorders in a load to provide a

With the launch of our new website, we are also launching our Produce and Ag Trade Law Blog.  The blog will cover items that are of interest to traders in produce and other agricultural goods to and from the US.   We will also mention cases of note in federal and state courts. Legal notes – Invoicing and PACA Invoices are important and incorrect invoicing can lead to legal problems.  One serious problem arising in invoicing