There needs to be timely notification in order to have an effective rejection by your customer, the receiver.  While, you as the shipper, may have an obligation to take back the shipment, keep in mind that if it is later determined the rejection was wrongful, your customer could be held liable for the original contract price and incidental expenses, less any resale proceeds received by you.

So is timely notification an important component in achieving an effective rejection?

Ken Gilliland

The answer is yes and no.  Yes, you retain Trust rights providing that your invoice reflects payment terms as PACA Prompt or Net 10 Days. This protection allowing for printed language on the invoice is extended to licensees of the PACA.  All other non-licensees are required to submit a written statement to preserve Trust rights. 

No, if your invoice provides any terms beyond the 10 days, and you do not have a signed agreement for those extended payment terms.

Ken Gilliland

Sometimes, what we view as a routine sales transaction, or at least appears to be a rather basic sale, can end up getting complicated when you hit an interpretation snag at contract destination.  This can especially be true when the sales contract may be more than a simple straight load involving a standard commodity sold under an FOB no-grade contract.  However, whether a straight forward sale or one involving several commodities, sizes, varieties, it is important to make sure both you and your buyer are clear on the terms of the contract, including description of the produce items and als

Ken Gilliland


Produce Insights

Stay up to date with best practices for selling and shipping fresh produce with our insider blog. Produce Insights offers expert guidance on all things related to PACA, product arrival issues, product guarantees, collections on slow pay, disputed contracts and so much more.

Members have relied on information from Western Growers when they’re in a pinch – trusting in our team's vast experience working with the produce industry, the DRC, CDFA, USDA and PACA to save them millions of dollars over the years.

Produce Price Index

Think farmers are making most of the money from your grocery bill? Think again. Use the Produce Price Index (PPI) to find out the difference between how much you spend on fruits and vegetables and how much actually goes back to the farmer.

Subscribe to Produce Insights

Subscribe to Produce Insights

Fill out the following form to get updates to the Produce Insights blog.