Terms of Trade
1. Use of this Document
This Document comprises the Merchant Terms of Trade for the purposes of the Horticulture Code of Conduct contained in the Competition and Consumer (Industry Codes – Horticulture) Regulations 2017 (Cth) (Code).
It sets out the general terms upon which the Merchant will trade with Growers in respect of horticultural produce. Terms not defined in this document have the meaning ascribed to them in the Horticulture Produce Agreement (HPA).
For specific arrangements between the Merchant and Grower only please refer to the HPA. Specific terms may refer to pooling of produce, applicable fees and charges for services provided, reporting and payment processes and dispute resolution mechanisms.
2. Horticulture Produce Agreement Prevails
3. Merchant is a Merchant
4. Requirements for delivery and quality of Produce
Produce supplied to the Merchant must comply with the following requirements:
(a) prior to delivery, the Grower must provide documentation that is suitable to the Merchant that accurately describes the quantity, variety, size, class, description and characteristics of the Produce, including containers;
(b) the Produce must be fit for human consumption and comply with any statutory regulations or applicable laws including laws or regulations relating to food safety, packaging and/or labelling;
(c) the Grower must have complied with the National Measurement Act 1960 (Cth) and National Trade Measurement Regulations 2009 (Cth) as amended from time to time with respect to the Produce;
(d) the Produce must be fit for its purpose; and
(e) the Produce must be packed, presented and comply with the following product specifications including quality and shelf life:
(1) the Produce Specification Requirements that the Merchant has provided to the Grower or otherwise agreed in writing with the Grower in accordance with the HPA (if any); or
(2) if there are no requirements agreed pursuant to 4(e)(1), the FreshSpecs Produce Specifications.
The Grower must not dispatch Produce to the Merchant that does not comply with the requirements in paragraph 4, has not been solicited by the Merchant and where a HPA has not been accepted by the Grower.
5. Circumstances where the Merchant may reject Produce
(a) the Grower does not have all right, title and interest in and to the Produce;
(b) the Grower cannot pass title to the Merchant clear of all encumbrances, claims and other adverse interests;
(c) the Grower is not the grower of the Produce; or
(d) the Produce does not comply with paragraphs 4(a) to 4(e) above
6. Merchant may claim a credit for Produce
7. Requirements where produce is rejected
The Merchant must within 24 hours give notice to the Grower of the decision to reject Produce and give notice of the reasons for such rejection within the set Business Day period set out in the Schedule to the relevant HPA after the day that the Merchant elects to reject the Produce.
Where Produce is rejected, the Merchant is deemed not to have accepted that Produce, the Grower will retain title and risk in the Produce and the Grower is not entitled to the Purchase Price.
8. Purchase Price and Additional Fees
9. Payment of Purchase Price and Additional Fees
For the avoidance of doubt, the Merchant may still elect to charge for the Additional Fees even where the Produce is rejected in accordance with the HPA.
10. Independent Legal Advice
11. Changes to Terms of Trade
12. Grower Acknowledgement
Unless a Grower has entered into a HPA with the Merchant, the Merchant will have no obligations of any kind to the Grower in respect of Produce despatched by the Grower to the Merchant.
13. Insurance (if applicable)
The Merchant holds the following insurances for Produce:
Insurer | Acorn Insurance |
Maximum amount of claims covered by insurance | $20M |
Defined events covered by insurance | Vehicles, Stock, Property, Cash |
If the above table is left blank the Merchant does not hold insurance for Produce required to be disclosed for the purposes of the Code.