Once two parties have agreed to do business and the load is shipped there are trading standards that apply. When a sale occurs and delivery is attempted there could be two options for the receiver: accept or reject the load. Accept means the buyer takes control of the load, while reject means the buyer refuses to take delivery or exercise any control over the load. These terms have clear definitions and dictate specific rights and responsibilities for each party. Many actions are taken after the initial decision, but this decision determines who is in control, and what action needs to follow.
When the load arrives at destination and is not rejected there are three possible scenarios to complete the transaction:
- Accept the product and pay as invoiced
- Accept the product and request for a federal inspection if there is an issue with the condition of the product.
- Agree on a new contract (i.e. consignment, repack, replace, credit)
All three of these options leave the buyer in control of the product and responsible for payment in line with the agreement or applicable DRC rules.
When a firm rejects a load with a valid reason they are returning title of the product to the seller. They are in effect saying that it needs to be removed as they do not want it and will not accept it. The responsibility is then on the seller to move the product and mitigate the loss on the product be it a rejection with, or without, reasonable cause.
If a buyer rejects the product without reasonable cause, the seller may not agree and will advise the buyer that they are rejecting without reasonable cause. The seller can notify the buyer of its intention and will then bill for the difference between the original invoice and the resale of the product to a new consignee.
It is important to note that unloading the truck for any purpose other than making the product accessible for an inspection is deemed acceptance and rejection is no longer an option.
It is also important to note that buyers and sellers have a responsibility to mitigate any loss if the other party fails to act. In other words, you cannot just let the product sit and spoil.
For more information please call or email the DRC Help Desk at:
DRC Help Desk | 613-234-0982 | Info@fvdrc.com