Protection of Produce Sellers & Traders
How Does PACA Protect Produce Sellers & Traders?
PACA has two general types of protections –
- Automatic Protections: Some protections are automatically part of any produce transaction unless the parties to the transaction decide to either take these protections out of their deal or modify these protections. So if the buyer and the seller have no documents related to a shipment of produce other than maybe a confirmation of a sale and an invoice, the automatic provisions of PACA “fill in the details” of the sale. There are certain terms that PACA puts into any produce deal unless the two parties record that they do not adopt these terms. These automatic terms are the general trading rules of the US produce industry and apply to all US traders who ship produce across state lines or receive produce from outside the United States.
- PACA Trust Protections