We are approaching our analysis of the final sections of DRC Trading Standards. Section 19 includes 25 definitions, some of which have already been addressed in previous sections of DRC Trading Standards. Therefore, we will concentrate on those that have not been previously mentioned and have a bigger impact on your day to day operations. This article will focus on the definitions of “acts of acceptance” and “account promptly”. Two follow-up articles pertaining to Section 19 will be included in the December and January Solutions Blog and will cover: “full payment promptly”, “reasonable time”, “reject without reasonable cause”, “suitable shipping condition” and “truly and correctly account”.
There are certain actions that a buyer/receiver could perform that automatically indicate that they have accepted a load and will prevent them from properly rejecting a load. These include:
- Diverting a load without prior agreement with the seller/shipper. The shipper/seller should know the destination of the product and/or any other delivery stops the carrier is making prior to delivering the load to its destination. This includes, cross docking a load.
- Unloading product from the truck except for the purpose of getting an inspection performed on the load.
- Failure to provide timely and proper notice of a rejection, provided that an act of acceptance has not taken place and properly documenting the breach of contract or damages associated with the quality or condition of the product.
- In the case of a consignment transaction, any act by the consignee which is inconsistent with the consignor’s ownership it is considered an act of acceptance only if ratified by the consignor.
Unless specifically agreed to by the parties, submitting a true and prompt account of sales or liquidation report means:
- In connection with a consignment or joint account transactions, within 10 days after the date of final sale with respect to each shipment, or within 20 days from the date the goods are accepted at destination, whichever comes first
- Provided, that whenever a grower’s agent or shipper distributes individual lots of produce for or on behalf of others, accounting to the principal shall be made within 30 days after receipt of the shipment from the principal for sale or within 5 days after the date the agent receives payment for the goods, whichever comes first.
- Whenever a grower’s agent or shipper harvests, packs, or distributes entire crops or multiple lots therefrom, for or on behalf of others, an accounting of the initial shipment shall be rendered within 30 days after receipt of the goods for sale.
- Accountings for subsequent shipments shall be made at 10-day intervals from the date of the accounting for the initial shipment and a final accounting for the season shall be made to each principal within 30 days from the date the agent receives the last shipment for the season from that principal. Provided further, that whenever the marketing agreement between a principal and an agent includes a provision for storage of goods prior to sale, the agent shall render accountings of inventory and expenses incurred to date at 30-day intervals from the date the goods are received by the agent until sales from storage begin.