Failure to respond to emails from your customers who are attempting to change terms or modify the contract could be used as undisputed evidence to prove acceptance of the modified terms as outlined in your customer’s email. This need to respond timely applies from the initial negotiated terms of sale when the contract is consummated, to any final adjustment that may be granted to your customer. Always respond immediately to emails or notifications.

On occasion I receive calls from our shipper members stating that their cooler either accidentally loaded the wrong truck with product intended for a different receiver, or loaded the wrong product on the correct truck. When either scenario happens, the caller will usually ask if the company receiving the wrong product is responsible for paying the FOB price. Unfortunately, the answer is usually no. 

What are my options when a shipment fails to meet contract and the buyer wants to retain the load, but after negotiations is unwilling to renegotiate the original sales contract?

First, consistent with the PACA Regulations, the buyer has a right to keep the product even if there is a documented breach of contract on an FOB transaction. The shipper can only take possession of the shipment with the buyer’s consent.

Shipper members of Western Growers have recently been informed by a retailer of proposed fees that will be assessed for delivering “poor quality” produce. The tiered fees assessed could require suppliers to pay hefty fines. In this case, fines of $500, $1000 $5,000 and more, have been announced to begin July 1, 2015.   

Tom Oliveri

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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.

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