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What Does Responsibly Connected Mean in the Agricultural Marketing Service?
Definition & Meaning
The term "responsibly connected" refers to individuals or entities that have a significant ownership or managerial role in a business, particularly in the context of agricultural marketing. Specifically, it includes anyone who is an individual owner, partner in a partnership, member or manager of a limited liability company, officer or director of a corporation, or holds more than a ten percent ownership stake in any of these entities. This definition is crucial for understanding eligibility and compliance under various regulations, especially those concerning the marketing of perishable agricultural commodities.
Table of content
Legal Use & context
This term is primarily used in the context of agricultural law and regulations, particularly under the Perishable Agricultural Commodities Act (PACA). It is relevant in legal practices involving business ownership, compliance with agricultural marketing standards, and eligibility for licenses or permits. Users may encounter this term when filling out forms related to agricultural marketing or when seeking to understand their responsibilities and rights in business operations.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A person who owns fifteen percent of a corporation that sells agricultural products is considered responsibly connected. This means they must adhere to specific regulations under PACA.
Example 2: A partner in a farming partnership who manages day-to-day operations is also classified as responsibly connected and must comply with relevant agricultural marketing standards.
Relevant laws & statutes
The key statute related to "responsibly connected" is the Perishable Agricultural Commodities Act (PACA), which governs the marketing of perishable agricultural commodities and outlines the responsibilities of those involved in such businesses.
Comparison with related terms
Term
Definition
Key Differences
Affiliated
Having a connection or relationship with a business.
Broader than "responsibly connected," which specifies ownership stakes.
Owner
Someone who holds legal title to a business or property.
All responsibly connected individuals are owners, but not all owners are necessarily "responsibly connected" under PACA.
Common misunderstandings
What to do if this term applies to you
If you believe you are "responsibly connected" to an agricultural business, it is essential to understand your rights and responsibilities under PACA. Consider consulting with a legal professional who specializes in agricultural law to ensure compliance. Additionally, you can explore US Legal Forms for templates and resources to assist you in managing your business obligations effectively.
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