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Restaurant Failures – What To Do When Your Iron Chef Melts

March 27, 2015
H. Jason Gold , Dylan Trache

The Perishable Agricultural Commodities Act (“PACA”), 7 U.S.C. § 499e(c), is a federal statute originally enacted in 1930 to prevent unfair trading practices in produce.  It requires, among other things, that dealers of “perishable agricultural commodities” (generally, fresh and frozen fruits and vegetables) be licensed by the United States Secretary of Agriculture and the United States Department of Agriculture (“USDA”), and that produce vendors pay, promptly and in full, for any produce purchased in commerce. 

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