The following are some basic responsibilities for market agencies buying on commission, dealers, and clearing agencies. Please refer to the Packers and Stockyards Act, 1921, as Amended and Supplemented, and the Regulations issued there under, for a complete list of legal responsibilities.

Registration. Every person operating or desiring to operate as a market agency, clearing agency, or dealer shall apply for registration under the Act. To file for registration you would need to complete form P&SP-1000 - Application for Registration.

Bonds. Every market agency, clearing agency, and dealer shall execute and maintain a reasonable bond, as a measure of protection for livestock sellers. The size of the bond is based on the volume of business, generally an average of two days business with a minimum of $10,000 bond. Market Agencies Buying on Commission and/or Dealers will need to file a clause 2 bond or bond equivalent. Clearing Agencies will need to file a clause 3 bond or bond equivalent.

Prompt Payment. Each market agency, clearing agency, or dealer, purchasing livestock shall, before the close of the next business day following the purchase of livestock and transfer of possession thereof, deliver to the seller the full amount of the purchase price. The parties to a transaction may agree in writing prior to the transaction to effect payment in a manner other than previously described.

Scales. All livestock scales subject to P&SP must be tested for accuracy by a competent agency at least each six months. The certification form must be filed with the regional P&SP office. Any scale known to be inaccurate may not be used.

Weighing. Only competent, trained weighmasters should weigh livestock. All weighmasters must read and sign an Acknowledgment Form certifying that they have read the Instructions for Weighing Livestock or Poultry. The weighmaster should ensure that the scale will provide accurate weights prior to weighing. The weighmaster should keep the scale balanced at zero at all times; check the zero balance every 15 minutes or 15 drafts, and after every draft of more that half the scale capacity; record the time of zero balance check; and weigh each draft of livestock to the nearest scale division. The weighmaster should favor neither the buyer nor the seller; print a scale ticket only while livestock is on scale and scale has settled; complete the scale ticket; allow persons having a legitimate interest in a draft of livestock to observe the weighing; and reweigh a draft of livestock immediately if requested.

Unfair Practices. It shall be unlawful for any market agency, clearing agency, or dealer to engage in or use any unfair, unjustly discriminatory, or deceptive practice or device.

Records. Every market agency, clearing agency, and dealer shall keep such accounts, records, and memoranda as fully and correctly disclose all transactions involved in his/her business, including the true ownership of such business. The records must by maintained for two full years, or longer if instructed by the Administrator.

Annual Reports. Every market agency, clearing agency, and dealer shall file an annual report with P&SP. Market Agencies Buying on Commission or Dealers with bonds in the amount of $10,000, will file form P&SP-3310. A Market Agency Buying on Commission or Dealer with bond in excess of $10,000 will need to file form P&SP-3300 on a yearly basis, and, if also operating as a clearing agency both form P&SP-3300 and form P&SP-3200.

Inspection of Business Records and Facilities. Each market agency, clearing agency, and dealer, upon proper request, shall permit authorized representatives of the Secretary of Agriculture to enter its place of business during normal business hours and to examine records pertaining to its business subject to the Act.

Last updated 12/22/05