Trade Practices, Credit Ratings, and Regulation of Trading (Perishable Agricultural Commodities Act)

Abstract

The nature of fresh fruit and vegetable marketing is such that over the years trade practices and special types of businesses have evolved to support the system. These include private firms that supply fresh fruit and vegetable marketers with information on the products and services and on the financial worth and business character of companies with which they do business. Legislation and government regulations designed specifically for this industry have also been developed to prevent unfair trade practices, arbitrate disputes, and punish offenders. Procedures to protect sellers against bad debts in the event that buyers delay or default on payment are also provided. Marketers must still be aware of the special challenges they face in buying and selling produce and take precautions to deal with them.