Produce Pointers

Also, PACA says that once the (receiving company) splits up the order, they now own the product. Please advise. ANSWEREven though these peppers were sold as part of a...

By Doug Nelson
March 13, 2025
1 minute read

Also, PACA says that once the (receiving company) splits up the order, they now own the product. Please advise.

ANSWER
Even though these peppers were sold as part of a single order, they are clearly distinguishable lots which would each be required, separately, to meet contract specifications, i.e. make good arrival at the contract destination in Georgia. So, you cannot rely on a good lot of peppers to save a bad one—each will be judged independently. And while it is true that your customer accepted this shipment of peppers (the reds and the yellows) when it unloaded the reds at its warehouse, thereby losing the right to reject, this does not mean your customer is without recourse. After accepting produce, if the buyer can establish a breach of the sales agreement, it may properly claim damages it can show resulted from the breach.

Your questions? Yes, send them in. Legal answers? No, industry knowledgeable answers. If you have questions or would like further information, email tradingassist@bluebookservices.com.

Doug Nelson is vice president of the Special Services department at Blue Book Services. Nelson previously worked as an investigator for the U.S. Department of Agriculture and as an attorney specializing in commercial litigation.

nn-cta-image (1)

News you need.

Join Blue Book today!

Get access to all the news and analysis you need to make the right decision --- delivered to your inbox.

Subscribe
MEMBERSHIP BENEFITS

It’s not what you know,
it’s who you know.
Luckily, you know us

Membership
symbol Got a tip for us?
Here is how to submit

What to read next

USDA restricts PACA violators in California and Florida

USDA restricts PACA violators in California and Florida

WASHINGTON, May 9, 2022 – The U.S. Department of Agriculture (USDA) has imposed sanctions on four produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). These sanctions include suspending the businesses’ PACA licenses and barring […]

USDA restricts five PACA violators

USDA restricts five PACA violators

WASHINGTON, April 22, 2022 – The U.S. Department of Agriculture (USDA) has imposed sanctions on five produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). These sanctions include suspending the businesses’ PACA licenses and barring […]

USDA restricts PACA violators in Florida and Texas

USDA restricts PACA violators in Florida and Texas

WASHINGTON, April 22, 2022 – The U.S. Department of Agriculture (USDA) has imposed sanctions on two produce businesses for failing to meet contractual obligations to the sellers of produce they purchased and failing to pay reparation awards issued under the Perishable Agricultural Commodities Act (PACA). These sanctions include suspending the businesses’ PACA licenses and barring […]

Hazel Tech to host Grape Quality Summit

The virtual event, held on May 6, 2022, will take a deep dive into the table grape industry during the North American table grape season  CHICAGO, IL – Hazel Technologies Inc., BB #:302595 a USDA-funded company developing innovations to extend the shelf life of produce and reduce food waste is hosting the Grape Quality Summit the first […]

USDA lifts PACA reparation sanctions on Florida firm

USDA lifts PACA reparation sanctions on Florida firm

WASHINGTON, April 4, 2022 – The U.S. Department of Agriculture (USDA) announced that Natura Fresh LLC BB #:348926 satisfied a $3,168 reparation order issued under the Perishable Agricultural Commodities Act (PACA) involving unpaid produce transactions. The Miami, Fla., company can continue operating in the produce industry upon applying for and being issued a PACA license. […]

USDA lifts PACA reparation sanctions on NY business

USDA lifts PACA reparation sanctions on NY business

WASHINGTON, April 4, 2022 – The U.S. Department of Agriculture (USDA) announced that Carioto Produce, Inc. BB #:117242, satisfied a reparation order in the amount of $11,510 issued under the Perishable Agricultural Commodities Act (PACA) involving unpaid produce transactions. The Green Island, N.Y., company can continue operating in the produce industry upon applying for and […]

Subscribe to our newsletter

© 2025 Blue Book Services. All Rights Reserved