Laws: Cases and Codes : U.S. Code : Title 7 : Section 499a


   
U.S. Code as of: 01/03/05
Section 499a. Short title and definitions

    (a) Short title
      This chapter may be cited as the "Perishable Agricultural
    Commodities Act, 1930".
    (b) Definitions
      For purposes of this chapter:
        (1) The term "person" includes individuals, partnerships,
      corporations, and associations.
        (2) The term "Secretary" means the Secretary of Agriculture.
        (3) The term "interstate or foreign commerce" means commerce
      between any State or Territory, or the District of Columbia and
      any place outside thereof; or between points within the same
      State or Territory, or the District of Columbia but through any
      place outside thereof, or within the District of Columbia.
        (4) The term "perishable agricultural commodity" - 
          (A) Means any of the following, whether or not frozen or
        packed in ice: Fresh fruits and fresh vegetables of every kind
        and character; and
          (B) Includes cherries in brine as defined by the Secretary in
        accordance with trade usages.

        (5) The term "commission merchant" means any person engaged in
      the business of receiving in interstate or foreign commerce any
      perishable agricultural commodity for sale, on commission, or for
      or on behalf of another.
        (6) The term "dealer" means any person engaged in the business
      of buying or selling in wholesale or jobbing quantities, as
      defined by the Secretary, any perishable agricultural commodity
      in interstate or foreign commerce, except that (A) no producer
      shall be considered as a "dealer" in respect to sales of any such
      commodity of his own raising; (B) no person buying any such
      commodity solely for sale at retail shall be considered as a
      "dealer" until the invoice cost of his purchases of perishable
      agricultural commodities in any calendar year are in excess of
      $230,000; and (C) no person buying any commodity other than
      potatoes for canning and/or processing within the State where
      grown shall be considered a "dealer" whether or not the canned or
      processed product is to be shipped in interstate or foreign
      commerce, unless such product is frozen or packed in ice, or
      consists of cherries in brine, within the meaning of paragraph
      (4) of this section. Any person not considered as a "dealer"
      under clauses (A), (B), and (C) may elect to secure a license
      under the provisions of section 499c of this title, and in such
      case and while the license is in effect such person shall be
      considered as a "dealer".
        (7) The term "broker" means any person engaged in the business
      of negotiating sales and purchases of any perishable agricultural
      commodity in interstate or foreign commerce for or on behalf of
      the vendor or the purchaser, respectively, except that no person
      shall be deemed to be a "broker" if such person is an independent
      agent negotiating sales for and on behalf of the vendor and if
      the only sales of such commodities negotiated by such person are
      sales of frozen fruits and vegetables having an invoice value not
      in excess of $230,000 in any calendar year.
        (8) A transaction in respect of any perishable agricultural
      commodity shall be considered in interstate or foreign commerce
      if such commodity is part of that current of commerce usual in
      the trade in that commodity whereby such commodity and/or the
      products of such commodity are sent from one State with the
      expectation that they will end their transit, after purchase, in
      another, including, in addition to cases within the above general
      description, all cases where sale is either for shipment to
      another State, or for processing within the State and the
      shipment outside the State of the products resulting from such
      processing. Commodities normally in such current of commerce
      shall not be considered out of such commerce through resort being
      had to any means or device intended to remove transactions in
      respect thereto from the provisions of this chapter.
        (9) The term "responsibly connected" means affiliated or
      connected with a commission merchant, dealer, or broker as (A)
      partner in a partnership, or (B) officer, director, or holder of
      more than 10 per centum of the outstanding stock of a corporation
      or association. A person shall not be deemed to be responsibly
      connected if the person demonstrates by a preponderance of the
      evidence that the person was not actively involved in the
      activities resulting in a violation of this chapter and that the
      person either was only nominally a partner, officer, director, or
      shareholder of a violating licensee or entity subject to license
      or was not an owner of a violating licensee or entity subject to
      license which was the alter ego of its owners.
        (10) The terms "employ" and "employment" mean any affiliation
      of any person with the business operations of a licensee, with or
      without compensation, including ownership or self-employment.
        (11) The term "retailer" means a person that is a dealer
      engaged in the business of selling any perishable agricultural
      commodity at retail.
        (12) The term "grocery wholesaler" means a person that is a
      dealer primarily engaged in the full-line wholesale distribution
      and resale of grocery and related nonfood items (such as
      perishable agricultural commodities, dry groceries, general
      merchandise, meat, poultry, and seafood, and health and beauty
      care items) to retailers. However, such term does not include a
      person described in the preceding sentence if the person is
      primarily engaged in the wholesale distribution and resale of
      perishable agricultural commodities rather than other grocery and
      related nonfood items.
        (13) The term "collateral fees and expenses" means any
      promotional allowances, rebates, service or materials fees paid
      or provided, directly or indirectly, in connection with the
      distribution or marketing of any perishable agricultural
      commodity.



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