branding at the shipper's expense. A licensee 

 who violates the law by misbranding is subject 

 to disciplinary action by the USDA which can 

 result in the suspension or revocation of his 

 license. 



Records 



The PACA requires every licensee to pre- 

 pare and maintain records which fully and 

 correctly disclose all transactions involving 

 his business. The regulations specify certain 

 basic records which are required of licensees, 

 depending on the nature of the business. For 

 example, the following specific records must 

 be maintained in addition to general records: 



Growers' agents must prepare in writing 

 a contract or agreement clearly defining 

 the duties and responsibilities of both 

 parties and the extent of the agents' au- 

 thority in distributing the produce. Copies 

 of the contract or agreement must be de- 

 livered to all parties involved. 



Shippers must prepare and maintain records 

 covering the receipt and disposition of all 

 produce handled. 



Brokers must prepare in writing and de- 

 liver promptly to all parties a properly 

 executed confirmation or memorandum of 

 sale setting forth all of the essential details 

 of any contracts they negotiate. 



Market receivers and commission mer- 

 chants must maintain a receiving record 

 showing all of the required information on 

 each shipment received. Also, they must use 

 lot numbers to segregate and identify dif- 

 ferent lots of produce which are being 

 handled on consignment or joint account. 



A good basic system of records is essential 

 to the sound management of any business. 

 Properly prepared contracts and good records 

 serve to minimize disputes. Furthermore, in a 

 dispute, these records can help the injured 

 party prove his claim. 



