Both sellers and buyers of perishable agricultural commodities need to be careful to comply with PACA's rules and regulations. Directors and officers of buyers of perishable agricultural commodities subject to PACA must be aware of their fiduciary duties in order to avoid potential individual liability. Finally, parties need to be aware of the defenses to alleged PACA trust claims. PACA trust claims are not automatic and sellers may lose the benefits under a PACA trust if they take or fail to take certain actions.
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In the alert we cover the following:
What is the Perishable Agricultural Commodities Act?
How are growers, producers, sellers, and/or suppliers protected under PACA?
Priority and extent of PACA liens
PACA notice provisions
Waiver of PACA protections
Treatment of PACA trust assets in bankruptcy