[Code of Federal Regulations]

[Title 9, Volume 2]

[Revised as of January 1, 2007]

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 

0580-0015)



(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; 68 FR 75388, Dec. 31, 2003]