7 U.S.C. § 228b — Prompt payment for purchase of livestock

Page 352 TITLE 7—AGRICULTURE § 228b Editorial Notes CODIFICATION A prior section 228a, act Sept. 21, 1944, ch. 412, title I, § 101(c), 58 Stat. 734, which related to inspections of livestock, hides, animal products, etc., was transferred to section 396 of this title. PRIOR PROVISIONS A prior section 408 of act Aug. 15, 1921, was renum- bered section 417 and is classified to section 229c of this title. AMENDMENTS 1987—Pub. L. 100–173 inserted ‘‘or live poultry, or has failed to pay any poultry grower what is due on ac- count of poultry obtained under a poultry growing ar- rangement,’’ after ‘‘unmanufactured form,’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1987 AMENDMENT Amendment by Pub. L. 100–173 effective 90 days after Nov. 23, 1987, see section 12 of Pub. L. 100–173, set out as a note under section 182 of this title. § 228b. Prompt payment for purchase of livestock (a) Full amount of purchase price required; methods of payment Each packer, market agency, or dealer pur- chasing livestock shall, before the close of the next business day following the purchase of live- stock and transfer of possession thereof, deliver to the seller or his duly authorized representa- tive the full amount of the purchase price: Pro- vided, That each packer, market agency, or deal- er purchasing livestock for slaughter shall, be- fore the close of the next business day following purchase of livestock and transfer of possession thereof, actually deliver at the point of transfer of possession to the seller or his duly authorized representative a check or shall transfer funds for the full amount of the purchase price to the account of the seller by wire, electronic funds transfer, or any other expeditious method deter- mined appropriate by the Secretary for the full amount of the purchase price; or, in the case of a purchase on a carcass or ‘‘grade and yield’’ basis, the purchaser shall make payment by check at the point of transfer of possession or shall transfer funds for the full amount of the purchase price to the account of the seller by wire, electronic funds transfer, or any other ex- peditious method determined appropriate by the Secretary for the full amount of the purchase price not later than the close of the first busi- ness day following determination of the pur- chase price: Provided further, That if the seller or his duly authorized representative is not present to receive payment at the point of transfer of possession, as herein provided, the packer, mar- ket agency or dealer shall transfer funds for the full amount of the purchase price by wire, elec- tronic funds transfer, or any other expeditious method determined appropriate by the Sec- retary or place a check in the United States mail for the full amount of the purchase price, properly addressed to the seller, within the time limits specified in this subsection, such action being deemed compliance with the requirement for prompt payment. (b) Waiver of prompt payment by written agree- ment; disclosure requirements Notwithstanding the provisions of subsection (a) of this section and subject to such terms and conditions as the Secretary may prescribe, the parties to the purchase and sale of livestock may expressly agree in writing, before such pur- chase or sale, to effect payment in a manner other than that required in subsection (a). Any such agreement shall be disclosed in the records of any market agency or dealer selling the live- stock, and in the purchaser’s records and on the accounts or other documents issued by the pur- chaser relating to the transaction. (c) Delay in payment or attempt to delay deemed unfair practice Any delay or attempt to delay by a market agency, dealer, or packer purchasing livestock, the collection of funds as herein provided, or otherwise for the purpose of or resulting in ex- tending the normal period of payment for such livestock shall be considered an ‘‘unfair prac- tice’’ in violation of this chapter. Nothing in this section shall be deemed to limit the mean- ing of the term ‘‘unfair practice’’ as used in this chapter. (Aug. 15, 1921, ch. 64, title IV, § 409, as added Pub. L. 94–410, § 7, Sept. 13, 1976, 90 Stat. 1250; amend- ed Pub. L. 114–237, § 3, Oct. 7, 2016, 130 Stat. 970.) Editorial Notes AMENDMENTS 2016—Subsec. (a). Pub. L. 114–237, § 3, substituted ‘‘shall transfer funds for the full amount of the pur- chase price to the account of the seller by wire, elec- tronic funds transfer, or any other expeditious method determined appropriate by the Secretary’’ for ‘‘shall wire transfer funds to the seller’s account’’ in two places in first proviso and ‘‘or dealer shall transfer funds for the full amount of the purchase price by wire, electronic funds transfer, or any other expeditious method determined appropriate by the Secretary’’ for ‘‘or dealer shall wire transfer funds’’ in second proviso. § 228b–1. Final date for making payment to cash seller or poultry grower (a) Delivery of full amount due Each live poultry dealer obtaining live poultry by purchase in a cash sale shall, before the close of the next business day following the purchase of poultry, and each live poultry dealer obtain- ing live poultry under a poultry growing ar- rangement shall, before the close of the fif- teenth day following the week in which the poultry is slaughtered, deliver, to the cash seller or poultry grower from whom such live poultry dealer obtains the poultry, the full amount due to such cash seller or poultry grower on account of such poultry. (b) Delay or attempt to delay collection of funds as ‘‘unfair practice’’ Any delay or attempt to delay, by a live poul- try dealer which is a party to any such trans- action, the collection of funds as herein pro- vided, or otherwise for the purpose of or result- ing in extending the normal period of payment for poultry obtained by poultry growing ar- rangement or purchased in a cash sale, shall be