Administrative Code

Virginia Administrative Code
11/27/2021

Chapter 380. Rules and Regulations for the Enforcement of the Virginia Dealers in Agricultural Products Law

2VAC5-380-10. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Buyer or shipper" means a dealer who purchases any agricultural product from a producer, and who takes possession at the buyer's or the producer's place of business at an agreed price without conditions or contingencies.

"Conditional buyer" means a dealer who purchases any agricultural product from a producer by quoting a fixed net price or fixed gross price less handling charges. The purchase is conditioned upon the arrival of the product at the first point of delivery in the grade specified at the time of purchase. (Grade shall include size, quality, and soundness.)

"Department" means the Virginia Department of Agriculture and Consumer Services.

"Grower's agent or broker" means a dealer who negotiates the sale of agricultural produce on behalf of the producer according to the terms of an agreement between the parties. Written agreements are recommended but not required.

"Handling for the account of" means a dealer who accepts agricultural products from a producer to be sold directly to a specific and identified purchaser, exclusive of intermediate dealers, agents or brokers, for which the dealer charges a fixed percentage commission on gross returns, or a fixed fee per unit of product, with or without additional charges such as grading, packing, etc.

"Virginia Agricultural Products Dealers Licensing and Bonding Law" means Article 3 (§ 3.2-4738 et seq.) of Chapter 47 of Title 3.2 of the Code of Virginia.

Statutory Authority

§ 3.2-109 of the Code of Virginia.

Historical Notes

Derived from VR115-04-08 § 1, eff. May 28, 1986; amended, Virginia Register Volume 25, Issue 11, eff. March 4, 2009; Errata, 25:13 VA.R. 2566 March 2, 2009.

2VAC5-380-20. License to operate as a dealer.

Every person who applies for a license to operate as a dealer under the Virginia Agricultural Products Dealers Licensing and Bonding Law shall declare, at the time of applying for a license, the conditions as defined in 2VAC5-380-10 under which he intends to operate, and the license issued shall be limited to the conditions declared. All such licenses shall be conspicuously posted in the dealers place of business.

Statutory Authority

§ 3.2-109 of the Code of Virginia.

Historical Notes

Derived from VR115-04-08 § 2, eff. May 28, 1986.

2VAC5-380-30. Notification of rejected produce.

If any lot of produce is rejected, the conditional buyer shall notify the producer as soon as possible, either by telephone or in person. This notification must be made within 96 hours of the time the produce was shipped from the producer's or conditional buyer's place of business. The conditional buyer and the producer shall establish new conditions for handling the produce in question. Under such conditions, the conditional buyer shall assume the status of either "Handling for the account of" or "Grower agent or broker," as decided by the producer and the dealer. All verbal communication concerning the rejection and new conditions for handling shall be confirmed in writing, by the dealer to the producer, within 48 hours. All such rejection shall be confirmed by an official USDA inspection at the point of rejection, unless confirmation is waived by the producer in writing.

Statutory Authority

§ 3.2-109 of the Code of Virginia.

Historical Notes

Derived from VR115-04-08 § 3, eff. May 28, 1986.

2VAC5-380-40. Receipt of acceptance.

Every dealer shall give a written receipt to the producer for each lot of produce received or accepted. Such receipt may be either a delivery receipt or an invoice which specifies the conditions under which the produce is handled (see 2VAC5-380-10). Such receipt shall be made within 72 hours of the time the produce is received or accepted by the dealer, his employee, his agent, or the buyer, whichever comes first.

Statutory Authority

§ 3.2-109 of the Code of Virginia.

Historical Notes

Derived from VR115-04-08 § 4, eff. May 28, 1986.

2VAC5-380-50. Failure to comply.

Any producer aggrieved by the failure of a dealer to comply with 2VAC5-380-30 and 2VAC5-380-40 shall file a complaint with the department within five days after discovery of the failure.

Statutory Authority

§ 3.2-109 of the Code of Virginia.

Historical Notes

Derived from VR115-04-08 § 5, eff. May 28, 1986.

2VAC5-380-60. Filing of contracts.

Copies of all contracts made pursuant to § 3.2-4745 of the Code of Virginia shall be filed with the Office of Product Regulation, Virginia Department of Agriculture and Consumer Services, P.O. Box 1163, Richmond, Virginia 23209.

Statutory Authority

§ 3.2-109 of the Code of Virginia.

Historical Notes

Derived from VR115-04-08 § 6, eff. May 28, 1986; amended, Virginia Register Volume 25, Issue 11, eff. March 4, 2009.

FORMS (2VAC5-380).

Application for Agricultural Products Dealer.

Bond, As Dealer in Agricultural Products in Virginia.

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