[Code of Federal Regulations]
[Title 9, Volume 2, Parts 200 to end]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 9CFR201.56]

[Page 17]
 
                  TITLE 9--ANIMALS AND ANIMAL PRODUCTS
 
  CHAPTER II--GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION 
       (PACKERS AND STOCKYARDS PROGRAMS),DEPARTMENT OF AGRICULTURE
 
PART 201--REGULATIONS UNDER THE PACKERS AND STOCKYARDS ACT--Table of Contents
 
Sec. 201.56  Market agencies selling on commission; purchases from consignment.

    (a) Livestock to be sold openly at highest available bid. Every 
market agency engaged in the business of selling livestock on a 
commission or agency basis shall sell the livestock consigned to it 
openly, at the highest available bid, and in such a manner as to best 
promote the interest of each consignor.
    (b) Purchases from consignment. No market agency engaged in the 
business of selling livestock on a commission basis shall purchase 
livestock from consignments, and no such market agency shall permit its 
owners, officers, agents, employees or any firm in which such market 
agency or its owners, officers, agents, or employees have an ownership 
or financial interest to purchase livestock consigned to such market 
agency, without first offering the livestock for sale in an open and 
competitive manner to other available buyers, and then only at a price 
higher than the highest available bid on such livestock.
    (c) Key employees not to purchase livestock out of consignments. No 
market agency engaged in selling livestock on commission shall permit 
its auctioneers, weighmasters, or salesmen to purchase livestock out of 
consignment for any purpose for their own account, either directly or 
indirectly.
    (d) Purchase from consignments; disclosure required. When a market 
agency purchases consigned livestock or sells consigned livestock to any 
owner, officer, agent, employee, or any business in which such market 
agency, owner, officer, agent, or employee has an ownership or financial 
interest, the market agency shall disclose on the account of sale the 
name of the buyer and the nature of the relationship existing between 
the market agency and the buyer.

(Approved by the Office of Management and Budget under control number 
0590-0001.)

(7 U.S.C. 228, 7 U.S.C. 222, and 15 U.S.C. 46)

[49 FR 6084, Feb. 17, 1984, as amended at 49 FR 13003, Apr. 2, 1984; 58 
FR 52886, Oct. 13, 1993]