Chapter 436. To suppress unfair and fraudulent practices in the marketing of perishable agricultural commodities in interstate and foreign commerce
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CHAP. 436.— An Act To suppress unfair and fraudulent practices in the marketing of perishable agricultural commodities in interstate and foreign commerce. June 10, 1930.[[S. 108](/us/bill/71/s/108).][[Public, No. 325](/us/pl/71/325).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*, That when usedPerishable Agricultural Commodities Act, 1930.*Post*, p. 871. in this Act—
(1)The term “person” includes individuals, partnerships, corporations,Terms defined.“Person.” and associations;
(2)The term “Secretary” means the Secretary of Agriculture;“Secretary.”
(3)The term “interstate or foreign commerce” means commerce“Interstate or foreign commerce.” between any State or Territory, or the District of Columbia and any place outside thereof; or between points within the same State or Territory, or the District of Columbia but through any place outside thereof; or within the District of Columbia;
(4)The term “perishable agricultural commodity” means any of“Perishable agricultural commodity.” the following, whether or not frozen or packed in ice: Fresh fruits and fresh vegetables of every kind and character; 532
(5)“Commission merchant,” The term “commission merchant” means any person engaged in the business of receiving in interstate or foreign commerce any perishable agricultural commodity for sale, on commission, or for or on behalf of another;
(6)“Dealer.” The term “dealer” means any person engaged in the business of buying or selling in carloads any perishable agricultural commodityExceptions.Producer selling commodity of own raising. in interstate or foreign commerce, except that
(A)no producer shall be considered as a “dealer ’’ in respect of sales of any such commodity of his own raising; and
(B)no person buying any Purchaser buying solely for retail trade, unless annual purchase of commodity exceeds twenty carloads.such commodity solely for sale at retail shall be considered as a “dealer” in respect of any such commodity in any calendar year until his purchases of such commodity in carloads in such year are Licensing of person, within exceptions, who desires classification as “dealer.”in excess of twenty. Any person not considered as a “dealer” under clauses
(A)and
(B)may elect to secure a license under the provisions of section 3, and in such case and while the license is in effect such person shall be considered as a “dealer”. As used in this “In carloads.”paragraph, the term “in carloads” includes corresponding wholesale or jobbing quantities as defined for any such commodity by the Secretary;
(7)“Broker.” The term “broker” means any person engaged in the business of negotiating sales and purchases of any perishable agricultural commodity in interstate or foreign commerce for or on behalf of the vendor or the purchaser, respectively;
(8)Transaction in inter state or foreign commerce. A transaction in respect of any perishable agricultural commodity shall be considered in interstate or foreign commerce if such commodity is part of that current of commerce usual in the trade in that commodity whereby such commodity and/or the products of such commodity are sent from one State with the expectation that they will end their transit, after purchase, in another, including, in addition to cases within the above general description, all cases where sale is either for shipment to another State, or for processing within the State and the shipment outside the State of the products resulting from such processing. Commodities normally in such current of commerce shall not be considered out of such commerce through resort being had to any means or device intended to remove transactions in respect thereto from the provisions of this Act. **unfair conduct**Unfair conduct. Sec. 2. Unlawful acts. It shall be unlawful in or in connection with any transaction in interstate or foreign commerce—
(1)Fraudulent charge by commission merchant, etc. For any commission merchant or broker to make any fraudulent charge in respect of any perishable agricultural commodity received in interstate or foreign commerce;
(2)Dealer’s breach of contract of purchase, etc., of commodity. For any dealer to reject or fail to deliver in accordance with the terms of the contract without reasonable cause any perishable agricultural commodity bought or sold or contracted to be bought or sold in interstate or foreign commerce by such dealer;
(3)Dumping, etc., of commodity by commission merchant. For any commission merchant to discard, dump, or destroy without reasonable cause any perishable agricultural commodity received by such commission merchant in interstate or foreign commerce;
(4)False statements of market conditions, etc., for commodity, etc. For any commission merchant, dealer, or broker to make, for a fraudulent purpose, any false or misleading statement concerning the condition, quality, quantity, or disposition of, or the condition of the market for, any perishable agricultural commodity which is received in interstate or foreign commerce by such commission merchant, or bought or sold or contracted to be bought or sold in such commerce by such dealer; or the purchase or sale of which in such 533commerce is negotiated by such broker; or to fail or refuse truly and correctly to account promptly in respect of any such transaction in any such commodity to the person with whom such transaction is had;
(5)For any commission merchant, dealer, or broker, for a fraudulentFalse representations of origin of commodity. purpose, to represent by word, act, or deed that any perishable agricultural commodity received in interstate or foreign commerce was produced in a State or in a country other than the State or the country in which such commodity was actually produced;
(6)For any commission merchant, dealer, or broker, for a fraudulentRemoval, etc., of shipping tag, etc., containing inspector’s certificare of quality, etc. purpose, to remove, alter, or tamper with any card, stencil, stamp, tag, or other notice, placed upon any container or railroad car containing any perishable agricultural commodity, if such card, stencil, stamp, tag, or other notice contains a certificate under authority of any Federal or State inspector as to the grade or quality of the commodity contained in such container or railroad car or the State or country in which such commodity was produced. **licenses**Licenses. Sec. 3.
(a)After the expiration of six months after the approvalProcurement by dealer, etc., compulsory. of this Act no person shall at any time cany on the business of a commission merchant, dealer, or broker without a license valid and effective at such time. Any person who violates any provision ofPenalty for violations, etc. this subdivision shall be liable to a penalty of not more than $500 for each such offense and not more than $25 for each day it continues, which shall accrue to the United States and may be recovered in a civil suit brought by the United States.
(b)Any person desiring any such license shall make applicationApplication for.Regulations and fee. to the Secretary. The Secretary may by regulation prescribe the information to be contained in such application. Upon the filing of the application, and annually thereafter, the applicant shall pay a fee of $10. Sec. 4.
(a)Whenever an applicant has paid the prescribed feeIssue and force of license. the Secretary, except as provided in subdivision
(b)of this section, shall issue to such applicant a license, which shall entitle the licensee to do business as a commission merchant and/or dealer and/or broker unless and until it is suspended or revoked by the Secretary in accordance with the provisions of this Act, but said license shall automatically terminate unless the annual fee is paid within thirty days after notice has been mailed that payment is due.
(b)The Secretary shall refuse to issue a license to an applicantRefusal of license. if after notice and hearing he finds
(1)that the applicant has previouslyIf applicant responsible for unlawful act revoking prior license. been responsible in whole or in part for any violation of the provisions of section 2 for which a license of the applicant, or the license of any partnership, association, or corporation in which the applicant held any office or, in the case of a partnership, had any share or interest, was revoked, or
(2)in case the applicant is a partnership,If applicant a partnership, etc., and any member thereof responsible for unlawful act revoking former license. association, or corporation, that any individual holding any office or, in the case of a partnership, having any interest or share in the applicant, had previously been responsible in whole or in part for any violation of the provisions of section 2 for which the license of such individual, or of any partnership, association, or corporation in which such person held any office, or, in the case of a partnership, had any share or interest, was revoked. Notwithstanding the foregoingWaiver of revocations and issue of license if bond furnished. provisions, the Secretary, in the case of such applicant, may issue a license if the applicant furnishes a bond or other satisfactory assurance that his business will be conducted in accordance with the provisions of this Act, but such license shall not be issued before the expiration of one year from the date of such revocation. 534 **liability to person damaged**Damages. Sec. 5. Dealer, etc., liable for, to person injured by unlawful act.*Ante*, p. 532.
(a)If any commission merchant, dealer, or broker violates any provision of paragraph (1), (2), (3), or
(4)of section 2 he shall be liable to the person or persons injured thereby for the full amount of damages sustained in consequence of such violation.
(b)Liability enforced by appeal to Secretary or judicial proceeding. Such liability may be enforced either
(1)by complaint to the Secretary as hereinafter provided, or
(2)by suit in any court of competent jurisdiction; but this section shall not in any way abridge or alter the remedies now existing at common law or by statute, and the provisions of this Act are in addition to such remedies. **complaint and investigation**Complaint and investigation. Sec. 6. Petition of individual complainant to the Secretary.
(a)Any person complaining of any violation of any provision of section 2 by any commission merchant, dealer, or broker may, at any time within nine months after the cause of action accrues, apply to the Secretary by petition, which shall briefly state the facts, whereupon, if, in the opinion of the Secretary, the facts therein Copy to dealer, etc.contained warrant such action, a copy of the complaint thus made shall be forwarded by the Secretary to the commission merchant, dealer, or broker, who shall be called upon to satisfy the complaint, or to answer it in writing, within a reasonable time to be prescribed by the Secretary.
(b)Pet it ion of State, etc., agencies claiming violation and requesting investigation. Any officer or agency of any State or Territory having jurisdiction over commission merchants, dealers, or brokers in such State or Territory and any employee of the United States Department of Agriculture or any interested person, may file, in accordance with rules and regulations of the Secretary a complaint of any violation of any provision of section 2 by any commission merchant, dealer, or broker, and may request an investigation of such complaint by the Secretary.
(c)Investigation and service of complaint. If there appear to be, in the opinion of the Secretary, any reasonable grounds for investigating any complaint made under this section, the Secretary shall investigate such complaint and may, if in his opinion the facts warrant such action, have said complaint served by registered mail or otherwise on the person concerned and Hearing.afford such person an opportunity for a hearing thereon before a duly authorized examiner of the Secretary in any place in which the said person is engaged in business.
(d)Action by Secretary. After an opportunity for a hearing on a complaint the Secretary shall determine whether or not the commission merchant, dealer, or broker has violated any provision of section 2.
(e)Complaint by nonresident of United States. In case complaint is made by a nonresident of the United States before any action is taken thereon, that the complainant Bond required.shall be required to furnish a bond of double the amount of the claim, the bond to be conditioned upon the payment of costs, including attorney’s fees of respondents, in case of failure to sustain the case. **reparation order**Reparation order. Sec. 7. After hearing, Secretary to determine damages resulting and issue, therefor.
(a)If after a hearing on a complaint made by any person under section 6 the Secretary determines that the commission merchant, dealer, or broker has violated any provision of paragraph (1), *Ante*, p. 632.(2), (3), or
(4)of section 2, he shall, unless the offender has already made reparation to the person complaining, determine the amount of damage, if any, to which such person is entitled as a result of such violation and shall make an order directing the offender to pay to such person complaining such amount on or before the date fixed in the order. 535
(b)If any commission merchant, dealer, or broker does not complSuit by complainant if order not complied with.y with an order for the payment of money within the time limit in such order, the complainant, or any person for whose benefit such order was made, may within one year of the date of the order file in theVenue of action. district court of the United States for the district in which he resides or in which is located the principal place of business of the commission merchant, dealer, or broker, or in any State court having general jurisdiction of the parties, a petition setting forth briefly the causes for which he claims damages and the order of the Secretary in the premises. Such suit in the district court shall proceedPrima facie evidence of findings of Secretary. in all respects like other civil suits for damages except that the findings and orders of the Secretary shall be prima facie evidence of the facts therein stated, and the petitioner shall not be liable forPetitioner not liable for court costs, excepting for appeal. costs in the district court nor for costs at any subsequent state of the proceedings unless they accrue upon his appeal. If the petitionerAttorney’s fee allowed petitioner. finally prevails, he shall be allowed a reasonable attorney’s fee, to be taxed and collected as a part of the costs of the suit. **suspension and revocation of license**Suspension and revocation of license. Sec. 8. Whenever the Secretary determines, as provided in sectionPenalties for violations of provisions herein. 6, that any commission merchant, dealer, or broker has violated any of the provisions of section 2, he may publish the facts and circumstances of such violation and/or, by order, suspend the license of such offender for a period not to exceed ninety days, except that, if the violation is a flagrant or repeated violation of such provisions, the Secretary may, by order, revoke the license of the offender. **accounts and records**Accounts and records. Sec. 9. Every commission merchant, dealer, and broker shall keepDealers, etc., to keep, of transactions. such accounts, records, and memoranda as fully and correctly disclose all transactions involved in his business, including the true ownership of such business by stockholding or otherwise. If suchPenalties for non-compliance. accounts, records, and memoranda are not so kept, the Secretary may publish the facts and circumstances and/or, by order, suspend the license of the offender for a period not to exceed ninety days. **effective date and finality of order**Effective date and finality of order. Sec. 10. Any order of the Secretary under this Act other than anAs prescribed in the order. order for the payment of money shall take effect within such reasonable time, not less than ten days, as is prescribed in the order, and shall continue in force until his further order, or for a specified period of time, accordingly as it is prescribed in the order, unless such order is suspended, modified, or set aside by the Secretary or is suspended, modified, or set aside by a court of competent jurisdiction. Any such order of the Secretary, if regularly made, shallFinal, subject to court decision. be final, unless before the date prescribed for its taking effect application is made to a court of competent jurisdiction by the commission merchant, dealer, or broker against whom such order is directed to have such order set aside or its enforcement, operation, or execution suspended or restrained. **injunctions**Injunctions. Sec. 11. For the purposes of this Act the provisions of all lawsLaws relating to, of orders of Interstate Commerce Commission made applicable. relating to the suspending or restraining of the enforcement, operation, or execution, or the setting aside in whole or in part, of the orders of the Interstate Commerce Commission are made applicable to orders of the Secretary under this Act and to any person subject to the provisions of this Act. 536 **general provisions**General provisions. Sec. 12. Violations subject to civil penalties may be reported to Attorney General. The Secretary may report any violation of this Act for which a civil penalty is provided to the Attorney General of the United States, who shall cause appropriate proceedings to be commenced and prosecuted in the proper courts of the United States Court costs, etc.without delay. The costs and expenses of such proceedings shall be paid out of the appropriation for the expenses of the courts of the United States. Sec. 13. Inspection of dealers, etc., accounts, etc., while investigating complaints.
(a)In the investigation of complaints under this Act, the Secretary or his duly authorized agents shall have the right to inspect such accounts, records, and memoranda of any commission merchant, dealer, or broker as may be material for the determinationPenalties for refusal to permit. of any such complaint. If any such commission merchant, dealer, or broker refuses to permit such inspection, the Secretary may publish the facts and circumstances and/or, by order, suspend the license of the offender until permission to make such inspection is given.
(b)Hearings, issue of subpoenas, etc. The Secretary, or any officer or employee designated by him for such purpose, may hold hearings, sign and issue subpœnas, administer oaths, examine witnesses, receive evidence, and require by subpœna the attendance and testimony of witnesses and the production of such accounts, records, and memoranda as may be material for the determination of any complaint under this Act.
(c)Court order to compel attendance. In case of disobedience to a subpœna, the Secretary or any of his examiners may invoke the aid of any court of the United States in requiring the attendance and testimony of witnesses and the production of accounts, records, and memoranda. Any district Failure, a contempt of court.court of the United States within the jurisdiction of which any hearing is carried on may, in case of contumacy or refusal to obey a subpœna issued to any person, issue an order requiring the person to appear before the Secretary or his examiner or to produce accounts, records, and memoranda if so ordered, or to give evidence touching any matter pertinent to any complaint; and any failure to obey such order of the court shall be punished by the court as a contempt thereof.
(d)Depositions authorized. The Secretary may order testimony to be taken by deposition in any proceeding or investigation or incident to any complaint pending under this Act at any stage thereof. Such depositions may be taken before any person designated by the Secretary and having power to administer oaths. Such testimony shall be reduced to writing by the person taking the deposition or under his direction and shall then be subscribed by the deponent. Any person may be compelled to appear and depose and to produce accounts, records, and memoranda in the same manner as witnesses may be compelled to appear and testify and produce accounts, records, and memoranda before the Secretary or any of his examiners.
(e)Witness fees. Witnesses summoned before the Secretary or any officer or employee designated by him shall be paid the same fees and mileage that are paid witnesses in the courts of the United States, and witnesses whose depositions are taken and the persons taking the same shall severally be entitled to the same fees as are paid for like service in the courts of the United States.
(f)Attendance, etc., compulsory. No person shall be excused from attending, testifying, answering any lawful inquiry, or deposing, or from producing any documentary evidence, before the Secretary or any officer or employee designated by him, in obedience to the subpœna of the Secretary or any such officer or employee, in any cause or proceeding, based upon or growing out of any alleged violation of this Act, or upon the Criminal immunity.taking of any deposition herein provided for, upon the ground or 537for the reason that the testimony or evidence, documentary or otherwise, required of him may tend to incriminate him or subject him to a penalty or forfeiture. But no natural person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter, or thing, concerning which he is compelled under oath so to testify, or produce evidence, documentary or otherwise, before the Secretary or any officer or employee designated by him, in obedience to the subpoena of the Secretary, or any such officer or*Proviso*.Perjury excepted. employee, or upon the taking of any such deposition, or in any such cause or proceeding: *Provided,* That no person so testifying shall be exempt from prosecution and punishment for perjury committed in so testifying. Sec. 14. The Secretary is hereby authorized, independently andAuthority to employ inspectors to certify condition of commodities received for shipment without regard to complaint.*Ante*, p. 418. in cooperation with other branches of the Government, State, or municipal agencies, and/or any person, whether operating in one or more jurisdictions, to employ and/or license inspectors to inspect and certify, without regard to the filing of a complaint under this Act, to any interested person the class, quality, and/or condition of any*Post*, p. 1268. lot of any perishable agricultural commodity when offered for interstate or foreign shipment or when received at places where the Secretary shall find it practicable to provide such service, under such rules and regulations as he may prescribe, including the payment ofFees and expenses for service.*Provisos.*Disposition of fees, collected by licensed inspector. such fees and expenses as will be reasonable and as nearly as may be to cover the cost for the service rendered: *Provided,* That fees for inspections made by a licensed inspector, less the percentage thereof which he is allowed by the terms of his contract of employment with the Secretary as compensation for his services, shall be deposited into the Treasury of the United States as miscellaneous receipts;By other inspectors. and fees for inspections made by an inspector acting under a cooperative agreement with a State, municipality, or other person shall be disposed of in accordance with the terms of such agreement: *ProvidedTravel, etc., expenses of inspectors, to be paid by applicant for inspection. further,* That expenses for travel and subsistence incurred by inspectors shall be paid by the applicant for inspection to the disbursing clerk of the United States Department of Agriculture to be credited to the appropriation for carrying out the purposes of this Act: *And provided further,* That certificates issued by such inspectors Legal effect of certificate.shall be received in all courts of the United States as prima facie evidence of the truth of the statements therein contained. Sec. 15. The Secretary may make such rules, regulations, andSecretary of Agriculture to carry out provisions of Act. orders as may be necessary to carry out the provisions of this Act, and may cooperate with any department or agency of the Government,Cooperation with de partments, State, etc. any State, Territory, District, or possession, or department, agency, or political subdivision thereof, or any person; and shall haveAppointment, etc., of officers. the power to appoint, remove, and fix the compensation of such officers and employees not in conflict with existing law, and make such expendituresContingent expenses. for rent outside the District of Columbia, printing, binding, telegrams, telephones, law books, books of reference, publications, furniture, stationery, office equipment, travel, and other supplies and expenses, including reporting services, as shall be necessary to the administration of this Act in the District of Columbia and elsewhere, and as may be appropriated for by Congress; and there is hereby Sums necessary, authorized to be appropriated.authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for such purpose. This Act shall not abrogate nor nullify any other statute,Similar statutes not abrogated, unless repugnant hereto. whether State or Federal, dealing with the same subjects as this Act; but it is intended that all such statutes shall remain in full force and effect except in so far only as they are inconsistent herewith or repugnant hereto. 538 Sec. 16. Act of agent, within scope of employment, construed as that of principal. In construing and enforcing the provisions of this Act, the act, omission, or failure of any agent, officer, or other person acting for or employed by any commission merchant, dealer, or broker, within the scope of his employment or office, shall in every case be deemed the act, omission, or failure of such commission merchant, dealer, or broker as that of such agent, officer, or other person. **separability**Separability. Sec. 17. Invalidity of any provision, etc., not to affect remainder of Act. If any provision of this Act or the application thereof to any person or circumstances is held invalid, the validity of the remainder of the Act and of the application of such provision to other persons and circumstances shall not be affected thereby. **short title**Short title. Sec. 18. This Act may be cited as the “Perishable Agricultural Commodities Act, 1930.” Approved, June 10, 1930.