Zia Onion Sales satisfies $8,457 reparation order under USDA’s PACA, clearing the path for continued industry involvement.
Jack Humphreys, operating as Zia Onion Sales in Desoto, Texas, has fulfilled a reparation order amounting to $8,457 under the Perishable Agricultural Commodities Act (PACA), the U.S. Department of Agriculture (USDA) announced.
The payment resolves a dispute over unpaid produce transactions, enabling the business to move forward within the produce industry.
PACA provides a platform to address disputes related to the buying and selling of fresh and frozen fruits and vegetables. The resolution process may result in a reparation order, requiring parties failing to meet contractual obligations to compensate the aggrieved party.
According to USDA’s guidelines, businesses or individuals who do not comply with these orders may face sanctions, including license suspension or employment restrictions.
As stated in the USDA report, Jack Humphreys was the sole proprietor of Zia Onion Sales. With the reparation order now satisfied, Humphreys is permitted to seek employment with or establish affiliations with other PACA licensees. Furthermore, the company may apply for a PACA license to continue operations within the industry.
Under PACA, USDA imposes employment and operational restrictions on individuals linked to businesses that fail to fulfill reparation awards.
These restrictions extend to sole proprietors, partners, managers, officers, and major stakeholders. However, once all reparation obligations are met, USDA removes these restrictions, provided there are no additional unpaid awards.
Unlicensed companies that fully resolve their financial obligations under PACA are required to obtain a license if they wish to continue operating in the industry. This ensures compliance with PACA regulations, promoting fair practices in produce transactions.
