[Code of Federal Regulations]
[Title 9, Volume 2]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 9CFR201.99]

[Page 24-25]
 
                  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. 201.99  Purchase of livestock by packers on a carcass grade, carcass
weight, or carcass grade and weight basis.

    (a) Each packer purchasing livestock on a carcass grade, carcass 
weight, or carcass grade and weight basis shall, prior to such purchase, 
make known to the seller, or to his duly authorized

[[Page 25]]

agent, the details of the purchase contract. Such details shall include, 
when applicable, expected date and place of slaughter, carcass price, 
condemnation terms, description of the carcass trim, grading to be used, 
accounting, and any special conditions.
    (b) Each packer purchasing livestock on a carcass grade, carcass 
weight, or carcass grade and weight basis, shall maintain the identity 
of each seller's livestock and the carcasses therefrom and shall, after 
determination of the amount of the purchase price, transmit or deliver 
to the seller, or his duly authorized agent, a true written account of 
such purchase showing the number, weight, and price of the carcasses of 
each grade (identifying the grade) and of the ungraded carcasses, an 
explanation of any condemnations, and any other information affecting 
final accounting. Packers purchasing livestock on such a basis shall 
maintain sufficient records to substantiate the settlement of each 
transaction.
    (c) When livestock are purchased by a packer on a carcass weight or 
carcass grade and weight basis, purchase and settlement therefor shall 
be on the basis of carcass price. This paragraph does not apply to 
purchases of livestock by a packer on a guaranteed yield basis.
    (d) Settlement and final payment for livestock purchased by a packer 
on a carcass weight or carcass grade and weight basis shall be on actual 
hot weights. The hooks, rollers, gambrels or other similar equipment 
used at a packing establishment in connection with the weighing of 
carcasses of the same species of livestock shall be uniform in weight. 
The tare shall include only the weight of such equipment.
    (e) Settlement and final payment for livestock purchased by a packer 
on a USDA carcass grade shall be on an official (final--not preliminary) 
grade. If settlement and final payment are based upon any grades other 
than official USDA grades, such other grades shall be set forth in 
detailed written specifications which shall be made available to the 
seller or his duly authorized agent. For purposes of settlement and 
final payment for livestock purchased on a grade or grade and weight 
basis, carcasses shall be final graded before the close of the second 
business day following the day the livestock are slaughtered.

(Approved by the Office of Management and Budget under control number 
0580-0015)

(Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.); 7 U.S.C. 222 
and 228 and 15 U.S.C. 46)

[33 FR 2762, Feb. 9, 1968, as amended at 33 FR 5401, Apr. 5, 1968; 49 FR 
37375, Sept. 24, 1984; 54 FR 37094, Sept. 7, 1989; 68 FR 75388, Dec. 31, 
2003]

                Poultry--Packers and Live Poultry Dealers