TeachMeFinance.com - explain Perishable Agricultural Commodities Act (PACA) of 1930
Perishable Agricultural Commodities Act (PACA) of 1930 The term 'Perishable Agricultural Commodities Act (PACA) of 1930 ' as it applies to the area of agriculture can be defined as ' P.L. 71-325 (June 10, 1930), as amended, regulates the buying and selling of fresh and frozen fruits and vegetables to prevent unfair trading practices and to assure that sellers will be paid promptly. Both produce sellers and buyers must pay fees for a license in order to do business, and these license fees are the source of funding for a trust program that resolves disputes and protects sellers from non-payment when buyers become bankrupt. Amendments to the Act in 1995 (P.L. 104-48) include a 3-year phase out of the annual license fees for retailers and grocery wholesaler-dealers to be replaced by one-time fee'.
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