California Food and Agricultural Code

§ 56280

FAC § 56280Div. 20 · Ch. 7 · Art. 7

Statute text

(a)A commission merchant shall notify each consignor with whom he or she does business of this section. The notice shall be given in writing prior to the shipping season of the particular farm product.

(b)No charge shall be made against a consignor’s account for a downward price adjustment or a reduction in quantity of farm products delivered due to a breach of contract, unless the commission merchant has, in his or her files, a federal-state inspection certificate, issued pursuant to the United States Agricultural Marketing Act of 1946, (7 U.S.C. 1621, et seq.), indicating the type and the extent of the substandard condition of the lot involved in the breach of contract, thereby supporting the amount charged against the consignor’s account. The commission merchant need not obtain a federal-state inspection certificate unless the lot involved is of a substandard condition.

(c)Notwithstanding Section 56281, this section does not preclude a consignor from agreeing to a downward price adjustment or a reduction in the quantity of farm products delivered and waiving the right to inspection when the agreement was made prior to the shipping season of the particular farm product and was in writing.

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Legislative history

Amended by Stats. 1990, Ch. 1081, Sec. 4.