[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: 9CFR203.7]



[Page 51-52]

 

                  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. 203.7  Statement with respect to meat packer sales and purchase contracts.



    (a) The Grain Inspection, Packers and Stockyards Administration 

(Packers and Stockyards Programs) receives numerous complaints 

concerning the failure or refusal of buyers to pay the full purchase 

price for, or to accept delivery of, their purchases of meat and meat 

food products and sellers failing to meet contractual specifications. 

Most such complaints arise out of disputes concerning condition, grade, 

weight, or shipping instructions.

    (b) It is believed that both seller and buyer should take the 

following points into consideration when selling and buying meat and 

meat food products:

    (1) Terms of shipment and time of arrival. Terms and conditions of 

shipment and delivery should be specified in the contract and both 

parties should understand fully all terms and conditions of the 

contract. Any deviation from normal practices, such as a guaranty by the 

shipper as to the date of arrival at destination, or a deviation from 

the normal meaning of terms, should also be fully understood and made a 

part of the contract.

    (2) Quality and condition. (i) A seller has the responsibility of 

making certain that the meat and meat food products shipped are in 

accordance with the terms of the contract specifications.

    (ii) When a buyer believes that the shipment does not meet the terms 

of the contract, he should immediately contact the seller or the 

seller's agent and advise him of the nature of the complaint. This 

affords the seller an opportunity to renegotiate the contract, to 

personally inspect the meat or meat food products, or to have an 

impartial party inspect or examine the meat or meat food products. 

Inspection and examination service of this type is available nationally 

through the USDA meat grading service and locally through various 

impartial persons or agencies.

    (iii) All terms of a transaction should be made clear in the 

contract, whether written or verbal. If there is any chance of 

misunderstanding, a written confirmation should be exchanged between the 

parties. In any case where a contract dispute cannot be settled between 

the parties and either party intends to file a complaint, such complaint 

should be brought to the attention of the nearest Grain Inspection, 

Packers and Stockyards Administration (Packers and Stockyards Programs) 

area office as soon as possible. However, a concerted effort on the part 

of both buyer and seller to negotiate clear and complete contracts will 

greatly reduce misunderstandings which can result in the filing of 

complaints with the Administration.

    (c) If the Grain Inspection, Packers and Stockyards Administration 

(Packers and Stockyards Programs) has reason to believe that any packer 

unjustifiably (1) has refused to pay the contractual price for meat or 

meat food products purchased, (2) has refused to accept a shipment of 

meat or meat food products, or (3) has failed to ship meat or meat food 

products in accordance with the terms of the contract specifications, 

consideration will be given to the issuance of a complaint charging the 

packer with violation of section 202 of the Act. In the formal 

administrative proceeding initiated by any such complaint, the Judicial 

Officer of the Department will determine,



[[Page 52]]



upon the basis of the record in the proceeding, whether the packer has 

violated the Act and should be ordered to cease and desist from 

continuing such violation.



(Secs. 407(a), 4, 42 Stat. 169, 72 Stat. 1750; 7 U.S.C. 228(a). 

Interprets or applies sec. 202, 42 Stat. 161 et seq., as amended; 7 

U.S.C. 192)



[30 FR 14966, Dec. 3, 1965, as amended at 32 FR 7701, May 26, 1967]