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Understanding the Receiving Market Commission Merchant: A Guide by Agricultural Marketing Service
Definition & Meaning
A receiving market commission merchant is an individual or entity that operates in a designated receiving market and is involved in the business of accepting agricultural produce for sale on behalf of another party. This role typically involves handling the logistics of receiving, selling, and sometimes storing produce, all while earning a commission for their services. The concept is rooted in the regulations governing the marketing of perishable agricultural commodities, ensuring that transactions are conducted fairly and transparently.
Table of content
Legal Use & context
This term is primarily used in agricultural law, particularly in the context of the Perishable Agricultural Commodities Act (PACA). It is relevant for individuals and businesses involved in the marketing and sale of agricultural products. Users may need to complete specific forms or follow procedures to ensure compliance with PACA regulations, which can be facilitated through legal templates available from US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A farmer hires a receiving market commission merchant to sell their fresh fruits at a local farmers' market. The merchant receives the produce, sells it to consumers, and takes a percentage of the sales as their commission.
Example 2: A grocery store chain contracts a receiving market commission merchant to handle the procurement of vegetables from various local farms. The merchant receives the produce, sells it to the grocery store, and earns a commission based on the total sales. (hypothetical example)
Relevant laws & statutes
The primary statute governing receiving market commission merchants is the Perishable Agricultural Commodities Act (PACA). This act establishes standards for fair trading practices in the marketing of perishable agricultural products, ensuring that commission merchants operate within legal frameworks.
State-by-state differences
State
Key Differences
California
Strict regulations on commission rates and market practices.
Florida
Additional licensing requirements for commission merchants.
Texas
Less stringent oversight compared to other states.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Commission Merchant
A person who sells goods on behalf of others, earning a commission.
May not be limited to agricultural products.
Broker
An intermediary who facilitates transactions between buyers and sellers.
Typically does not take possession of goods.
Common misunderstandings
What to do if this term applies to you
If you are involved in the agricultural market as a producer or seller, and this term applies to your situation, consider the following steps:
Understand your rights and obligations under the Perishable Agricultural Commodities Act.
Consult with legal professionals or use US Legal Forms to access templates for necessary contracts and agreements.
Ensure compliance with state-specific regulations regarding commission merchants.
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