P.A.C.A. law aims at ensuring fair and transparent trading practices in the areas of buying and selling of fresh and frozen fruits, vegetables and other agricultural food items. The term P.A.C.A. stands for Perishable Agricultural Commodities Act. The act has been brought into practice majorly to take care of the interest of the distributers and vendors. This is to ensure whether the dealers and vendors are getting properly paid or not. This food law also covers the issues in which the customers leave debts to the vendors due to loss in business, bankruptcy and so on. Sometimes the buyers simply refuse to pay money to the vendors. Then the law helps the dealers and vendors to clear the hackle and get the money.
P.A.C.A. has set a certain “rules of the road” in United States. It is now in use for global standards as well. This law is used at large to solve the disputes between buyers and sellers in overseas deals. In United States and in other places as well vendors selling perishable agricultural items, often face litigations and troubles regarding the payment. That is why P.A.C. A. was enacted in 1930. Now, vendors can go to a food lawyer and proceed with the legal procedure that secures their money.
All traders of the produce industry in the United States must register themselves under this P.A.C.A law to protect their rights. The law declares that any kind of unfair or fraudulent activities is not acceptable. The activities include: mislabeling, misrepresentation, rejection of products by the buyer without any proper cause or prior notice, dumping more than 5% of production in a shipment without verification and so on. The P.A.C.A law is strict about the license. Without maintaining proper licensing requirements determined by USDA, the P.A.C.A law will never allow anybody to engage in the produce industry.
