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“Governed by PACA”

Filled under PACA Law, PACA Trust Rights on June 5, 2014 - no comments .

“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”