[Code of Federal Regulations]

[Title 9, Volume 2]

[Revised as of January 1, 2006]

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



[[Page 51]]



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 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]