such practices. Under the provisions of the act, all dealers, commission mer- — 
chants, and brokers who handle fresh or frozen fruits or vegetables which move 
interstate or from foreign countries are required to have a license in order to 
operate. The license fee is $10 per annum. The penalty for operating without 
a license is fixed at nat more than $500 for each such offense plus $25 per day for 
each day the offense continues. 
Some of the practices prohibited under the act are: 
1. Failure to account promptly and correctly and to pay in full for produce 
received on consignment. 
2. Failure to pay promptly the agreed purchase price of produce which com- 
plies with the contract terms. 
3. Rejection without reasonable cause of produce purchased or contracted to 
be handled on consignment. 
4. Making of any false or misleading statement, for a fraudulent purpose, in 
connection wtih any transaction. 
5. Failure to keep an adequate and correct set of records of the receipt and sale 
of produce. 
6. Failure of a seller, without reasonable cause, to deliver produce sold or con- 
tracted to be sold or consigned. 
7. Failure to pay earned brokerage or commission fees, and deficits sustained 
by commission merchants on produce handled on consignment. 
8. Failure without reasonable cause to perform any specification or duty, express 
or implied, arising out of any transaction. 7 
g. Misrepresentation (misbranding), by stamp, stencil, or label, of the kind, 
grade, quality, quantity, or State or country of origin of the commodity. 
10. Removing or changing in any way any card or tag, placed upon any con- 
tainer or railroad car under Federal or State authority, that bears a statement as 
to the grade, quality, or State of origin of the commodity contained therein. 
11. Changing or permitting the changing, without the consent of the inspector, 
of the contents of a load or lot of produce after it has been officially inspected. 
It is true that the PAC Act is regulatory. However, in administering it, the 
Fruit and Vegetable Branch regards it as a service to the fruit and vegetable 
industry. It provides relief against unfair trade practices, and under it the 
Department will furnish assistance to anyone financially interested in a trans- 
action covered by the law, including unlicensed growers or shippers. When one 
of the contractors requests, it will, without charge, promptly communicate with 
the other party to the contract, make such investigations as may be necessary, and 
endeavor to bring about an amicable informal adjustment of disputes. If neces- 
sary, it will take formal action, give each party to a contract a chance to present his 
case fully, and determine the loss or amount of damages to be paid. Ifa violation 
is found to warrant such action, the Department will publish the facts and/or 
suspend or revoke the offender’s license. 
Evidence of the extent of service rendered to the industry from the Washington 
office of the Department and the four branch offices located in New York City, 
Chicago, Los Angeles, and Portland, Oreg., is obtained from the fact that 2,019 
complaints were handled during the fiscal year 1946. Of these complaints, 553 
were personally investigated. By the end of the year, 987 cases were closed, 
leaving 546 cases pending. The astounding fact is that 916 cases were amicably 
settled during the year with settlements amounting to more than a million dollars. 
Seventy-six formal orders were issued, which awarded reparations totaling about 
$89,000. Although the act was not designed as a revenue-producing measure, 
fees received for licenses have exceeded the cost of administration by about 
$40,000 per year since inception of the act. 
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