THE 



PERISHABLE 



AGRICULTURAL 



COMMODITIES 



ACT 



The PACA, Fair Trading in the 

 Fruit and Vegetable Industry 



The Perishable Agricultural Commodities Act 

 is designed to encourage fair trading practices 

 in the marketing of fresh or frozen fruits and 

 vegetables in interstate or foreign commerce. 

 Certain unfair and fraudulent practices are pro- 

 hibited. Penalties are provided for violation. 

 The Act also provides for the award of damages 

 against a person who fails to live up to his 

 contract obligations. 



Fruits and vegetables are highly perishable 

 and require rapid harvesting, packing and dis- 

 tribution. As a result, the produce business is 

 fast-moving, and financially hazardous. Persons 

 engaged in this business are especially dependent 

 on the honesty and good faith of those with whom 

 they trade. 



The produce industry realized the importance 

 of a code of fair trading standards and the 

 Perishable Agricultural Commodities Act was 

 passed by Congress in 1930 at the industry's 

 request. It has been amended a number of 

 times to keep it up to date with changing trade 

 practices. The U.S. Department of Agriculture 

 is responsible for administering this Act. 



Licenses Are Key to PACA 

 Enforcement 



Commission merchants, dealers, and brokers 

 handling fresh or frozen fruits or vegetables 

 in interstate or foreign commerce are re- 

 quired to be licensed under this Act. 



