What remedies are available if a buyer fails to pay or live up to the terms of the contract?
The PACA statute establishes a contract dispute forum through the PACA branch. Produce traders who suffer damages resulting from a PACA statute violation can file an informal reparation complaint before the PACA branch. The informal complaint requires a $60 filing fee and must be filed within nine months of the contract violation. Many complaints are settled informally with the PACA branch mediating a resolution between the parties. If a settlement is not reached, a formal complaint may be filed for a $300 filing fee. The formal complaint is handled as an administrative procedure before the Secretary of Agriculture. Based on the evidence, the Secretary will issue a decision and may award monetary damages, plus interest. If the award is not paid within 30 days, the PACA branch automatically suspends the party’s PACA license until the award is paid. This result is of grave consequences to an operating produce company because it terminates their ability to operate legally. However, if the
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- When negotiating the terms of contract, can we negotiate for 3 years and then have company come back and pay again?
- What remedies are available if a buyer fails to pay or live up to the terms of the contract?
