PACA Web Guide

PACA Web Guide was created by McCarron and Diess law firm to allow persons in the produce industry to quickly find answers to the many legal questions that arise under PACA.

PACA sets rules of fair dealing for produce companies that go beyond the normal rules for other businesses due to the perishability of the product. The PACA ensures that produce merchants follow these rules through a system of licensing.

PACA stands for Perishable Agricultural Commodities Act, a federal law regulating produce companies, and the agency that enforces the PACA law and regulations.

PACA and Your Produce Business

For anyone in the produce business, it is essential to be familiar with PACA. This Web Guide provides an easy-to-understand description of the different parts of PACA, and how they work.

The Web Guide is searchable to obtain information about PACA issues that arise in produce transactions. However, PACA issues often need further clarification from a PACA attorney or law firm.

The Web Guide is not legal advice. But it does provide a basic understanding of each area of the PACA law and regulations to provide the best course of action if further legal help is needed.

Comments & Questions

Your comments on the Web Guide are welcome. Send to smccarron@mccarronlaw.com.

How to Use the PACA Web Guide

If you’re in the fruit and vegetable industry, you need to know PACA (The Perishable Agricultural Commodities Act). PACA was enacted to promote fair trade in the produce industry. It protects businesses dealing in fresh and frozen fruits and vegetables by establishing a code of fair business practices, and to set out guidelines for agriculture-related dispute resolution.

Section I: Licensing

Covers licensing, including who needs a license, how to obtain a license, license renewals, and license fees.

Section II: Prohibited Content

Discusses prohibited conduct under PACA, and disciplinary proceedings by the PACA Division when companies are charged with violating PACA.

Section III: The Trust

Describes the PACA Trust with a full explanation of how the trust works to obtain payment.

Section IV: Disputes

Reviews the different methods for resolving disputes in produce cases, such as PACA, the Dispute Resolution Corporation, and the courts.

Section V: Contracts

Explains the unique contract issues in produce transactions, including: the meaning of different sale terms; rules on rejection; failing to deliver; cashing full satisfaction checks; and duties of brokers and growers’ agents.

Section VI: About the Guide’s Author

PACA Web Guide author Stephen P. McCarron is the founding partner of McCarron & Diess, a law firm specializing in legal issues and cases involving the Perishable Agricultural Commodities Act (PACA). He has handled hundreds of PACA cases representing international and domestic produce companies over more than three decades of PACA legal practice.

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