[Code of Federal Regulations]
[Title 7, Volume 2]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR46.31]

[Page 273-274]
 
                          TITLE 7--AGRICULTURE
 
                        DEPARTMENT OF AGRICULTURE
 
PART 46_REGULATIONS (OTHER THAN RULES OF PRACTICE) UNDER THE 
PERISHABLE AGRICULTURAL COMMODITIES ACT, 1930--Table of Contents
 
Sec. 46.31  Duties of shippers.

    (a) General. The responsibilities of shippers vary with their 
contracts with growers to purchase produce or to handle produce on joint 
account. Similarly, their responsibilities to their customers depend 
upon their contracts to sell, consign or joint account produce with 
dealers on terminal markets. Shippers shall pay promptly for produce 
purchased and any deficits incurred on consigned shipments. They shall 
fully comply with their obligations in connection with joint account 
transactions. A shipper who fails to perform any express or implied duty 
is in violation of the Act and may be held liable for any damages 
resulting therefrom. The shipper shall prepare and maintain records 
which fully and correctly disclose the details of his transactions.
    (b) Receiving records. Each shipper shall prepare and maintain a 
record of all produce handled including his own production. This record 
shall be in the form of a book (preferably a bound book), with numbered 
pages or comparable business records. This receiving record shall show 
for each lot the date received, whether purchased or received on joint 
account, the quantity, quality, and kind of produce, the purchase price 
or joint account cost, and the name and address of the supplier. 
Shippers shall issue receipts to growers and others for all produce 
received.
    (c) Disposition records. When a shipper purchases produce from 
growers or others, his records shall also show the disposition of the 
produce, whether sold or consigned, date of shipment, car number, or if 
shipped by truck, the license number, name and address of the carrier, 
name and address of the buyer, commission merchant or auction, and other 
pertinent details of the transaction, such as the terms of sale, selling 
price, and date of payment.
    (d) Joint accounts with growers. When a shipper enters into a joint 
account transaction with growers or others, the agreement between the 
parties should

[[Page 274]]

be reduced to a written contract clearly defining the duties and 
responsibilities of both parties and the extent of the shipper's 
authority in distributing the produce. The shipper shall prepare and 
maintain records to show in detail the actual expenses incurred for the 
services he furnishes, such as harvesting, grading, packing and selling 
the produce (unless a fixed charge is agreed upon by the parties to 
cover the cost of these services), methods of distribution and proceeds 
received for the produce. If a shipper is at the same time handling 
similar produce not involved in the joint account transaction, a lot 
number or other positive means of identification shall be assigned to 
each lot of produce received in order to segregate and identify the 
various lots of produce. If a shipper consigns all or part of the 
produce or employs the services of brokers or terminal market auctions, 
his records shall show the results of these transactions, including the 
expenses involved and the names and addresses of the commission 
merchants, brokers, and the auctions. The shipper shall render a 
detailed and accurate accounting and pay promptly the net proceeds due 
the joint partner, in accordance with Sec. 46.2(y), (z), and (aa). The 
accounting shall disclose the status of all claims collected or filed 
with the carriers.
    (e) Joint accounts with receivers. When a shipper enters into a 
joint account agreement with a terminal market dealer, the agreement 
should be reduced to writing clearly defining the terms of the 
agreement. The shipper's records shall show the expenses which may be 
properly charged in accordance with the joint agreement, purchase price 
or joint account cost of the produce, and cost of harvesting, packing, 
grading, or other expenses. His records shall show the quantity and 
quality of the produce packed and shipped, the dates and methods of 
shipment, and all other pertinent details of his operation. At the 
conclusion of the transaction, a detailed and accurate accounting shall 
be furnished promptly to the joint partner, in accordance with Sec. 
46.2(z). If a deficit results, the shipper shall pay promptly his share 
of the deficit.