How to Avoid Disputes 



There are two simple things you can do to 

 avoid disputes under the Perishable Agricul- 

 tural Commodities Act. 



First, you should check the financial status 

 and reputation of anyone with whom you plan to 

 do business. A large percentage of the claims 

 filed under PACA involve failure to pay promptly 

 for produce purchased. Bear in mind that a PACA 

 license is not a guarantee of any firm's financial 

 status or dependability. Except under certain 

 conditions, surety bonds are not required of 

 PACA licensees. Remember, also, that USDA can 

 take action only against a person who is licensed 

 or subject to license under the Act. 



Second, when you reach an agreement on 

 contract terms, get them down in writing. It 

 doesn't need to be an elaborate document, but 

 a brief, accurate memorandum sent to the other 

 party to confirm the deal. That way, misunder- 

 standings of prices or terms of the sale can 

 be ironed out right away. And, unless the terms 

 of a sale are fully stated in writing, you may 

 not have the evidence you need to prove your 

 claim in a dispute. 



Ask Your PACA Representative 



One of the most important aspects of admin- 

 istration of the PAC Act is that USDA repre- 

 sentatives are available to counsel growers, 

 shippers, and dealers on the problems they 

 encounter under PACA — advising them on the 

 protection the law affords and how they can use 

 the services of USDA. 



