Marketing peanuts 37 
Inspections are occasionally requested on shelled Virginia-type 
peanuts. As no Federal grades have been formulated for Virginias, 
the certificates covering inspections on them are largely restricted to 
a description of size, maturity, appearance, and percentages of stock 
damaged by mold or weevil injury, of split and broken kernels, 
unshelled peanuts, and foreign material. 
SETTLEMENT OF DISPUTES 
IN VIRGINIA-NORTH CAROLINA SECTION 
When a dispute arises concerning the quality of Virginia-type 
peanuts, the usual method of settlement is to refer it to an arbitration 
committee. The National Peanut Cleaners and Shellers Associa- 
tion formerly provided in its rules that in the event of disagreement 
between buyer and seller in regard to the quality of peanuts delivered 
on contract, on the request of either party samples should be drawn 
in the presence of representatives of the buyer and the seller and 
forwarded to the secretary of the association. The secretary was 
to transmit the samples promptly to the adjustment committee, con- 
sisting of three members, who were to determine whether or not they 
conformed to the standard of the association. The decision of the 
arbitration, or adjustment committee, was final and binding on both 
buyer and seller. If the committee decided that the peanuts were 
below standard in quality, at the request of either party it might 
determine what allowance per pound should be made. 15 
In a decree entered June 15, 1925, however, the Federal court at 
Norfolk enjoined the National Shellers and Cleaners Association 
from settling disputes in this way. The adjustment and arbitration 
of disputes of any character between sellers and purchasers, it stated, 
should be handled by reference to a board of arbitration consisting 
of three members, empowered to promulgate rules of procedure 
and to render final awards. One arbitrator was to be selected by the 
seller, one by the purchaser, and the third, or umpire, was to be 
chosen by the other two. The decision of a majority of the arbi- 
trators was to be binding upon both buyer and seller. Arbitration, 
however, was to be optional with the purchaser. 16 
IN SOUTHEASTERN SECTION 
Spanish peanuts from the Southeast were formerly arbitrated at 
the receiving rather than at the shipping end, through an arbitration 
committee in each of the principal markets consisting of three mem- 
bers and three alternates, all selected from men in that market familiar 
with peanuts. The rules of the Southeastern Peanut Association, 
adopted August 1, 1923, however, changed this in favor of one arbitra- 
tion committee of five members, appointed by the president, to meet at 
Atlanta, Ga., if needed, to decide questions arising in regard to filling 
contracts, disputed weights, and the like. Questions relating to 
grade are referred to the United States food products inspector at the 
receiving point, whose sampling and grading decisions are binding 
upon both buyer and seller. At points where no inspector is available, 
samples are drawn by representatives of both buyer and seller, and 
15 Paraphrased from National Peanut Cleaners and Shellers Association. Conditions of purchase and 
sale [effective December 13, 1921]. 8 pp. Suffolk, Va. 1922. 
16 Paraphrased from United States of America, petitioner v. the ISational Peanut Cleaners and Shellers 
Association et al. U. S. District court, Eastern District of Virginia, final decree (entered June 15, 1925). 
12 pp. 1925. (In Equity, No. 109.) 
