Shippers often call me to discuss the results of their timely USDA inspection and for help determining if it meets contract specifications. There are two distinct types of defects listed on the inspection that can help you determine that. When reading a USDA inspection certificate, the inspector will list two types of defects: Quality (or permanent) and Condition.

Bryan Nickerson

Fresh produce shippers are used to dealing with unique retailer demands getting their product to market. One such challenge, first introduced by Walmart U.S. in 2017, is the retail giant’s on-time in-full (OTIF) policy. As the name indicates, this logistics compliance program requires product to arrive at Walmart’s distribution centers on time and in full. Shipments that arrive early, late, short, or not otherwise as specified in the Purchase Order, are all subject to fines. 

Bryan Nickerson

When a buyer is entitled to keep product but is unwilling to renegotiate the original sales price with you on a shipment that has “failed to meet contract specifications at contract destination," how do you determine what the adjusted price should be? What if there is no meeting of the minds on an equitable settlement or adjustment? If you are unable to agree on amending the original contract, the next step is calculating provable damages.

Bryan Nickerson

Whether you are establishing a sale or amending a sales contract, here are some helpful reminders to be aware of when using PAS (Price after Sale) sales terms. Afterall, PAS  (also referred to as open price sale or open sale) does not establish a consignment or an agency relationship. With everything already agreed to but price, it is a straight buy-sale relationship. No detailed account of sales is required, and the buyer must pay the fair market value or a price mutually agreed to between the parties.

Bryan Nickerson

A USDA Inspection Certificate is the primary document that certifies the quality and condition of the produce shipped and will definitively establish either compliance or a breach of contract. The USDA certificate is an unbiased third party governmental official determination of the produce at contract destination and is considered prima facie evidence in a potential PACA proceeding, as well as in civil court.

Bryan Nickerson

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Produce Insights

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