RESPONSIBILITIES HANDLING A REJECTION
Receiver responsibilities • Effective (prompt & clear) vs Ineffective rejection • must inform shipper within a “reasonable time” 8 -10hrs a. The load arrived with problems b. An inspection has been requested c. Intends to reject depending on inspection results • Not counting non-workdays or holidays
Frequently Cited Sections of the PACA Regulations
46.2(bb) Reject without reasonable cause means in connection with purchases, consignments, or joint account transactions:
• Refusing or failing without legal justification to accept produce within a reasonable time.
• Advising the seller, shipper, or his agent that produce, complying with contract, will not be accepted.
• Indicating an intention not to accept produce through an act or failure to act inconsistent with the contract; or
• Any rejection following an act of acceptance.
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