Understanding Truly and Correctly to Account in Agricultural Marketing Service

Definition & Meaning

The phrase "truly and correctly to account" refers to the obligation of a consignee, who is responsible for selling produce on behalf of a consignor, to provide an accurate and detailed financial report. This report must be delivered within ten days after the final sale of the produce and should include:

  • A true and itemized statement of gross sales.
  • All selling charges and other expenses incurred.
  • A statement of net proceeds or any deficit.
  • Full payment of the net proceeds to the consignor.
  • An explanation of any unsold produce.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Example 1: A farmer consigns a shipment of apples to a grocery store. After the sale, the grocery store must provide the farmer with a detailed statement of sales, expenses, and the net amount due within ten days.

Example 2: A produce distributor sells a batch of tomatoes on behalf of a local farmer. The distributor must account for all sales and provide a full report to the farmer, including any unsold tomatoes and their disposition. (hypothetical example)

State-by-state differences

Examples of state differences (not exhaustive):

State Key Differences
California Specific regulations on produce sales and reporting timelines.
Florida Additional requirements for organic produce accounting.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Differences
Consignment Agreement where goods are sent to a third party for sale. Focuses on the transfer of goods, while "truly and correctly to account" emphasizes the reporting and payment process.
Accountability The obligation to report and justify actions or decisions. More general; "truly and correctly to account" is specific to financial reporting in consignment sales.

What to do if this term applies to you

If you are a consignor or consignee, ensure you understand your obligations under your consignment agreement. Keep thorough records of all sales, expenses, and communications. If you need assistance, consider using US Legal Forms for ready-to-use templates to help you manage your documentation. For complex situations, consulting a legal professional may be necessary.

Quick facts

  • Reporting deadline: 10 days after final sale
  • Required elements: Itemized sales, expenses, net proceeds
  • Common legal area: Agricultural marketing
  • Potential penalties: Legal disputes for non-compliance

Key takeaways

Frequently asked questions

The consignee may face legal disputes or penalties for non-compliance with the agreement.