[Code of Federal Regulations]
[Title 9, Volume 2]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 9CFR203.5]

[Page 50-51]
 
                  TITLE 9--ANIMALS AND ANIMAL PRODUCTS
 
  CHAPTER II--GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION 
       (PACKERS AND STOCKYARDS PROGRAMS),DEPARTMENT OF AGRICULTURE
 
PART 203--STATEMENTS OF GENERAL POLICY UNDER THE PACKERS AND STOCKYARDS ACT--Table of Contents
 
Sec. 203.5  Statement with respect to market agencies paying the expenses of livestock buyers.

    It has become a practice in certain areas of the country for market 
agencies, engaged in the business of selling consigned livestock on a 
commission basis, to pay certain of the business or personal expenses 
incurred by buyers attending livestock sales conducted by such market 
agencies, such as, expenses for meals, lodging, travel, entertainment 
and long distance telephone calls. Investigation by the Grain 
Inspection, Packers and Stockyards Administration (Packers and 
Stockyards Programs), discloses that this practice tends to become a 
method of competition between similarly engaged market agencies and 
results in undue and unreasonable cost burdens on such market agencies 
and the livestock producers who sell their livestock through such market 
agencies.
    It is the view of the Grain Inspection, Packers and Stockyards 
Administration (Packers and Stockyards Programs) that it constitutes 
violations of the Packers and Stockyards Act, 1921, as amended (7 U.S.C. 
181 et seq.), for any market agency engaged in the business of selling 
consigned livestock on a commission basis, to pay, directly or 
indirectly, any personal or business expenses of livestock buyers 
attending sales conducted by such market agency. In the future, if any 
market agency engages in such practice, consideration will be given by 
the Grain Inspection, Packers and Stockyards Administration (Packers and 
Stockyards Programs) to the issuance of a complaint charging the market 
agency with violation of the Act. In the formal administrative 
proceeding initiated by any such complaint, the Judicial Officer of the 
Department will determine, after

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full hearing, whether the market agency has violated the Act and should 
be ordered to cease and desist from continuing such violation, and 
whether the registration of such market agency should be suspended for a 
reasonable period of time.

(Secs. 407, 4, 42 Stat. 169, 72 Stat. 1750; 7 U.S.C. 228. Interprets or 
applies secs. 304, 307, 312, 42 Stat. 164, 165, 167; 7 U.S.C. 205, 208, 
213)

[29 FR 311, Jan. 14, 1964; 29 FR 3304, Mar. 12, 1964, as amended at 32 
FR 7700, May 26, 1967]