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7 U.S.C. § 499b — Unfair conduct
Federal law — U.S. Code and appendices · legal_authorities
It shall be unlawful in or in connection with any transaction in interstate or foreign commerce:
(1) For any commission merchant, dealer, or broker to engage in or use any unfair, unreasonable, discriminatory, or deceptive practice in connection with the weighing, counting, or in any way determining the quantity of any perishable agricultural commodity received, bought, sold, shipped, or handled in interstate or foreign commerce.
(2) For any dealer to reject or fail to deliver in accordance with the terms of the contract without reasonable cause any perishable agricultural commodity bought or sold or contracted to be bought, sold, or consigned in interstate or foreign commerce by such dealer.
(3) For any commission merchant to discard, dump, or destroy without reasonable cause, any perishable agricultural commodity received by such commission merchant in interstate or foreign commerce.
(4) For any commission merchant, dealer, or broker to make, for a fraudulent purpose, any false or misleading statement in connection with any transaction involving any perishable agricultural commodity which is received in interstate or foreign commerce by such commission merchant, or bought or sold, or contracted to be bought, sold, or consigned, in such commerce by such dealer, or the purchase or sale of which in such commerce is negotiated by such broker; or to fail or refuse truly and correctly to account and make full payment promptly in respect of any transaction in any such commodity to the person with whom such transaction is had; or to fail, without reasonable cause, to perform any specification or duty, express or implied, arising out of any undertaking in connection with any such transaction; or to fail to maintain the trust as required under [section 499e(c) of this title
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Source file: Laws/federal/codes/united-states-code/title-7/section-499b-unfair-conduct--86e24fbf46.md
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Source location: Title 7, Chapter 20A, § 499b; chapter-20a-perishable-agricultural-commodities.md
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It shall be unlawful in or in connection with any transaction in interstate or foreign commerce:
(1) For any commission merchant, dealer, or broker to engage in or use any unfair, unreasonable, discriminatory, or deceptive practice in connection with the weighing, counting, or in any way determining the quantity of any perishable agricultural commodity received, bought, sold, shipped, or handled in interstate or foreign commerce.
(2) For any dealer to reject or fail to deliver in accordance with the terms of the contract without reasonable cause any perishable agricultural commodity bought or sold or contracted to be bought, sold, or consigned in interstate or foreign commerce by such dealer.
(3) For any commission merchant to discard, dump, or destroy without reasonable cause, any perishable agricultural commodity received by such commission merchant in interstate or foreign commerce.
(4) For any commission merchant, dealer, or broker to make, for a fraudulent purpose, any false or misleading statement in connection with any transaction involving any perishable agricultural commodity which is received in interstate or foreign commerce by such commission merchant, or bought or sold, or contracted to be bought, sold, or consigned, in such commerce by such dealer, or the purchase or sale of which in such commerce is negotiated by such broker; or to fail or refuse truly and correctly to account and make full payment promptly in respect of any transaction in any such commodity to the person with whom such transaction is had; or to fail, without reasonable cause, to perform any specification or duty, express or implied, arising out of any undertaking in connection with any such transaction; or to fail to maintain the trust as required under [section 499e(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499e/c&num=0&edition=prelim). However, this paragraph shall not be considered to make the good faith offer, solicitation, payment, or receipt of collateral fees and expenses, in and of itself, unlawful under this chapter.
(5) For any commission merchant, dealer, or broker to misrepresent by word, act, mark, stencil, label, statement, or deed, the character, kind, grade, quality, quantity, size, pack, weight, condition, degree of maturity, or State, country, or region of origin of any perishable agricultural commodity received, shipped, sold, or offered to be sold in interstate or foreign commerce. However, any commission merchant, dealer, or broker who has violated—
(A) any provision of this paragraph may, with the consent of the Secretary, admit the violation or violations; or
(B) any provision of this paragraph relating to a misrepresentation by mark, stencil, or label shall be permitted by the Secretary to admit the violation or violations if such violation or violations are not repeated or flagrant;
and pay, in the case of a violation under either clause (A) or (B) of this paragraph, a monetary penalty not to exceed $2,000 in lieu of a formal proceeding for the suspension or revocation of license, any payment so made to be deposited into the Treasury of the United States as miscellaneous receipts. A person other than the first licensee handling misbranded perishable agricultural commodities shall not be held liable for a violation of this paragraph by reason of the conduct of another if the person did not have knowledge of the violation or lacked the ability to correct the violation.
(6) For any commission merchant, dealer, or broker, for a fraudulent purpose, to remove, alter, or tamper with any card, stencil, stamp, tag, or other notice placed upon any container or railroad car containing any perishable agricultural commodity, if such card, stencil, stamp, tag, or other notice contains a certificate or statement under authority of any Federal or State inspector or in compliance with any Federal or State law or regulation as to the grade or quality of the commodity contained in such container or railroad car or the State or country in which such commodity was produced.
(7) For any commission merchant, dealer or broker, without the consent of an inspector, to make, cause, or permit to be made any change by way of substitution or otherwise in the contents of a load or lot of any perishable agricultural commodity after it has been officially inspected for grading and certification, but this shall not prohibit re-sorting and discarding inferior produce.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority to do business; termination; renewal** Whenever an applicant has paid the prescribed fee the Secretary, except as provided elsewhere in this chapter, shall issue to such applicant a license, which shall entitle the licensee to do business as a commission merchant and/or dealer and/or broker unless and until it is suspended or revoked by the Secretary in accordance with the provisions of this chapter, or is automatically suspended under [section 499g(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499g/d&num=0&edition=prelim), but said license shall automatically terminate on the anniversary date of the license at the end of the annual or multiyear period covered by the license fee unless the licensee submits the required renewal application and pays the applicable renewal fee (if such fee is required): Provided, That notice of the necessity of renewing the license and of paying the renewal fee (if such fee is required) shall be mailed at least thirty days before the anniversary date: Provided, further, That if the renewal fee (if required) is not paid by the anniversary date the licensee may obtain a renewal of that license at any time within thirty days by paying the fee provided in [section 499c(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499c/b&num=0&edition=prelim), plus $50, which shall be deposited in the Perishable Agricultural Commodities Act fund provided for by [section 499c(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499c/b&num=0&edition=prelim): And provided further, That the license of any licensee shall terminate upon said licensee, or in case the licensee is a partnership, any partner, being dischar
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 499d
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Amount of damages** If any commission merchant, dealer, or broker violates any provision of [section 499b of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499b&num=0&edition=prelim) he shall be liable to the person or persons injured thereby for the full amount of damages (including any handling fee paid by the injured person or persons under [section 499f(a)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499f/a/2&num=0&edition=prelim)) sustained in consequence of such violation.
**(b) Remedies** Such liability may be enforced either (1) by complaint to the Secretary as hereinafter provided, or (2) by suit in any court of competent jurisdiction; but this section shall not in any way abridge or alter the remedies now existing at common law or by statute, and the provisions of this chapter are in addition to such remedies.
**(c) Trust on commodities and sales proceeds for benefit of unpaid suppliers, sellers, or agents; preservation of trust; jurisdiction of courts**
(1) It is hereby found that a burden on commerce in perishable agricultural commodities is caused by financing arrangements under which commission merchants, dealers, or brokers, who have not made payment for perishable agricultural commodities purchased, contracted to be purchased, or otherwise handled by them on behalf of another person, encumber or give lenders a security interest in, such commodities, or on inventories of food or other products derived from such commodities, and any receivables or proceeds from the sale of such commodities or products, and that such arrangements are contrary to the public interest. This subsection is intended to remedy such burden on commerce in perishable agricultural commodit
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 499e
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Reparation complaints**
(1) **Petition; process** — Any person complaining of any violation of any provision of [section 499b of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499b&num=0&edition=prelim) by any commission merchant, dealer, or broker may, at any time within nine months after the cause of action accrues, apply to the Secretary by petition, which shall briefly state the facts, whereupon, if, in the opinion of the Secretary, the facts therein contained warrant such action, a copy of the complaint thus made shall be forwarded by the Secretary to the commission merchant, dealer, or broker, who shall be called upon to satisfy the complaint, or to answer it in writing, within a reasonable time to be prescribed by the Secretary.
(2) **Filing and handling fees** — A person submitting a petition to the Secretary under paragraph (1) shall include a filing fee of $60 per petition. If the Secretary determines under paragraph (1) that the facts contained in the petition warrant further action, the person or persons submitting the petition shall submit to the Secretary a handling fee of $300. The Secretary may not forward a copy of the complaint to the commission merchant, dealer, or broker involved until after the Secretary receives the required handling fee. The Secretary shall deposit fees submitted under this paragraph into the Perishable Agricultural Commodities Act Fund provided for by [section 499c(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499c/b&num=0&edition=prelim). The Secretary may alter the fees specified in this paragraph by rulemaking under [section 553 of title 5](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section553&num=0&edition=p
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 499f
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Determination by Secretary of Agriculture of amount of damages; order for payment** If after a hearing on a complaint made by any person under [section 499f of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499f&num=0&edition=prelim), or without hearing as provided in subsections (c) and (d) of [section 499f of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499f&num=0&edition=prelim), or upon failure of the party complained against to answer a complaint duly served within the time prescribed, or to appear at a hearing after being duly notified, the Secretary determines that the commission merchant, dealer, or broker has violated any provision of [section 499b of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499b&num=0&edition=prelim), he shall, unless the offender has already made reparation to the person complaining, determine the amount of damage, if any, to which such person is entitled as a result of such violation and shall make an order directing the offender to pay to such person complaining such amount on or before the date fixed in the order. The Secretary shall order any commission merchant, dealer, or broker who is the losing party to pay the prevailing party, as reparation or additional reparation, reasonable fees and expenses incurred in connection with any such hearing. If, after the respondent has filed his answer to the complaint, it appears therein that the respondent has admitted liability for a portion of the amount claimed in the complaint as damages, the Secretary under such rules and regulations as he shall prescribe, unless the respondent has already made reparation to the person complaining, may issue an order directing t
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 499g
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Authority of Secretary** Whenever (1) the Secretary determines, as provided in [section 499f of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499f&num=0&edition=prelim), that any commission merchant, dealer, or broker has violated any of the provisions of [section 499b of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499b&num=0&edition=prelim), or (2) any commission merchant, dealer, or broker has been found guilty in a Federal court of having violated [section 499n(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499n/b&num=0&edition=prelim), the Secretary may publish the facts and circumstances of such violation and/or, by order, suspend the license of such offender for a period not to exceed ninety days, except that, if the violation is flagrant or repeated, the Secretary may, by order, revoke the license of the offender.
**(b) Unlawful employment of certain persons; restrictions; bond assuring compliance; approval of employment without bond; change in amount of bond; payment of increased amount; penalties** Except with the approval of the Secretary, no licensee shall employ any person, or any person who is or has been responsibly connected with any person—
(1) whose license has been revoked or is currently suspended by order of the Secretary;
(2) who has been found after notice and opportunity for hearing to have committed any flagrant or repeated violation of [section 499b of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title7-section499b&num=0&edition=prelim), but this provision shall not apply to any case in which the license of the person found to have committed such violation was suspended and the sus
Source: Supplied U.S. Code snapshot — release unconfirmed · 7 U.S.C. § 499h
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Federal law — U.S. Code and appendices · legal_authorities
Page 417
TITLE 7—AGRICULTURE
§ 499b
‘‘(B) a review of the availability of crop insurance
or disaster assistance for fruit and vegetable pro-
ducers;
‘‘(C) a review of scientific and technological ad-
vances in the areas of genetics, biotechnology, inte-
grated pest management, post harvest protection,
and other scientific developments related to the
production and marketing of fruits and vegetables;
‘‘(D) an examination of the availability of safe
and effective chemicals for use in the production of
fruits and vegetables, and an evaluation of the
value of national uniformity to both consumers and
producers;
‘‘(E) a review of the requirements and cost of la-
beling fruits and vegetables in the industry, and the
benefits that would result from the labeling of such
products; and
‘‘(F) a review of Federal educational programs
that teach the importance of fruits and vegetables
to a proper diet.
‘‘(b) REPORT.—Not later than 18 months after the date
of enactment of this title [Nov. 28, 1990], the Secretary
of Agriculture shall prepare and submit, to the Com-
mittee on Agriculture of the House of Representatives
and the Committee on Agriculture, Nutrition, and For-
estry of the Senate, a report containing the results of
the study described in subsection (a). Such report shall
include—
‘‘(1) the recommendations of the Secretary con-
cerning the manner in which producers of domestic
fruit and vegetable commodities that are not receiv-
ing assistance under the programs that provide mar-
ket enhancement assistance (such as the export en-
hancement program under subtitle B of title XI of the
Food Security Act of 1985 (7 U.S.C. 1736p et seq.) to
producers of domestic fruit and vegetable commod-
ities, could participate in such programs; and
‘‘(2) the recomme
Source: Supplied 2024 U.S. Code historical extraction · 7 U.S.C. § 499b
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