Chap. 77.—An ACT in relation to the sale of farm produce on commission
defining the terms “farm produce” and “commission merchant,” an
regulating commission merchants and providing for their registratio:
and bonding, and the issuing of a certificate of such registration b
the commissioner of agriculture and immigration; also empowerin
the commissioner of agriculture and immigration, upon complaint, an
in certain cases, to investigate the acts of commission merchants, an
to revoke or refuse certificate of registration and prescribing regula-
tions and offenses under this act, and providing penalties for violations
of such regulations and of this act. (S. B. 17.)

Approved February 29, 1916.

1. Be it enacted by the general assembly of Virginia, That
this law shall be known as the law in relation to the sale of farm
produce on commission.

Section 1. Definitions as used in this act. The term com-
mission merchant shall include every person, firm, exchange, as-
sociation and corporation holding certificate of registration here-
in provided for under this act and authorized to receive, sell or
offer for sale on commission within this State any kind of farm
produce, except where such farm produce is sold for consump-
tion and not for re-sale. This act shall not apply to the sale of
farm produce at public auction by a duly licensed auctioneer, act-
ing as the agent of another to whom such farm produce shall
have been consigned; nor to the sale by sheriffs, constables and
other officers and fiduciaries and court officials; nor shall this
act apply to seeds scld at retail.

The term farm produce shall include all agricultural, horti-
cultural and other products of the soil, live-stock, meats and
meat products, poultry, eggs, dairy products, nuts and honey,
but shall not include timber products, floricultural products, tea
or coffee, peanuts, or cotton when sold under the supervision of
a chartered exchange.

Section 2. Sale of farm produce on commission, certificate
of registration therefor.—On and after the first day of May
nineteen hundred and seventeen no person, firm, exchange,
association or corporation shall receive, sell or offer for sale on
commission within this State, any kind of farm produce without
having first obtained from the commissioner of agriculture and
immigration of the State of Virginia, a certificate of registra-
tion, as hereinafter provided. Every person, firm, exchange, as-
sociation and corporation in this State receiving farm produce
for sale on commission shall annually on or before the first day
of May file an application with satisfactory references with the
commissioner of agriculture and immigration for a certificate
of registration to do a commission business in farm produce.
Such applicant shall maintain an office or place of business in
the State of Virginia and shall state the kind or kinds of farm
produce which the applicant proposes to handle, the full name
of the person, firm, exchange, association or corporation apply-
ing for such certificate of registration, and if the applicant be a
firm, exchange, association or corporation, the full name of each
member of the firm, or the names of the officers of the exchange,
association or corporation, and the name of the local agent of
the exchange or association and the city, town or village and
street number at which the business is to be conducted. Such ap-
plicant shall further satisfy the commissioner of agriculture and
immigration of his.or its character, responsibility and good faith
in seeking to carry on a commission business. The commission-
er of agriculture and immigration shall thereupon issue to such
applicant, on payment of five dollars, and the execution and de-
livery of a bond, a duly registered certificate, entitling the appli-
cant to conduct the business of receiving and selling farm pro-
duce on commission at the place named in the application until
the first day of May next following.

Section 3. Bond.—Befcre any such registered certificate
shall be issued every applicant shall execute and deliver to the
commissioner of agriculture and immigration, a fidelity bond
with satisfactory sureties in the sym of two thousand five hun-
dred dollars, to secure the accurate and full accounting to the
consignor of the monies received by such commission merchant
from the sale of farm produce sold on commissicn. and the com-
missioner of agriculture and immigration may bring an action
in. any court of competent jurisdiction in the countv in which is
situated the place of business of the holder of such registered
certificate against the principal and sureties for the recoveries of
any monies so received and not properlv accounted for.

Section 4. Power of the Commissioner of Agriculture and
Immigration to Investigate.—The commissioner of agriculture
and immigration, or his assistants, have power to investigate,
upon the verified comnvlaint of an interested person. the record of
any person, firm, exchange, corporation or association applving
for or holding a registration certificate. or anv transaction invol-
ving the solicitation, receipt, sale cr attempted sale of farm pro-
duce on a commission basis, the failure to make preper and true
accounts and settlements at prompt and regular intervals. the
making of false statements as to condition, analitv or quantity
of goods received or while in storage. the making of false state-
ments as to market conditions, with intent to deceive. or the fail-
ure to make payment for goods received or other alleged iniu-
rious transactions; and for such purpose. mav examine at the
place of business of the holder of such registered certificate that
portion of the ledgers. books of account. memervtnda or other
documents relating to the transactions involved of any commis-
sion merchant and may take testimony therein under oath.
When a consignor of farm produce fails to obtain satisfactorv
settlements in any transaction within thirtv davs after receipts
of returns on any consignment he shall make written complaint
to the commission merchant. Failing to secure a satisfactory ad-
justment, a certified complaint may be filed within ten days ta
the commissioner of agriculture and immicration. The commis-
sioner of agriculture and immigration shall attempt forthwith to
secure an explanation or adjustment; failing this, within seven
days he shall cause a copy of such complaint, together with a
notice of a time and place for a hearing on such complaint, to be
served personally, or by mail, upon such commission merchant.
Such service shall be made at least seven days before the hear-
ing, which shall be held in the city or county in which is situated
the place of business of the holder of tne registered certificate.
At the time and place appointed for such hearing, the commis-
sioner, or his assistant, shall hear the parties to such complaint,
shall have power to administer an oath, and shall enter in the
office of the commissioner of agriculture and immigration, at
Richmond, a decision either dismissing such complaint or speci-
fying the facts which he deems established on such hearing, and
in case such facts are established as cause him to revoke such
certificate, he shall bring an action on the bond within sixty days
of the filing of such decision.

Section 5. Granting and Revoking Gertificates.—The com-
missioner of agriculture and immigration may decline to grant
a certificate, may revoke certificate already granted where he is
satisfied of the existence of the following causes or any of them:

One. Where a money judgment has been entered against
such commission merchant and upon which execution has been
returned unsatisfied.

Two. Where false or improper charges have been imposed
for handling or for services: rendered.

Three. Where there has been a failure to account promptly
and rroverly or where settlements have been made with intent
to defraud, where there has been a failure to comply with any
of the provisions or requirements of this act.

Four. Where there have been any false or misleading state-
ments as to condition, quality or quantity of gocds received or
held for sale cn commission when the same might be known
on reasonable inspection.

Five. Where there have been false or misleading statement
or statements as to market conditions with intent to deceive.

Six. Where there has been combination or combinations to
fix prices.

Seven. Where the commission merchant directly or indi-
rectly purchases the goods for his own account without prior au-
thoritv in writing therefor from the ccnsignor.

Eight. When the certificate in this act shall have been re-
voked in accord*nce with the provisions of this act, the commis-
sioner of agriculture and immigration shall publish in a daily
paper to be selected by him in the city of Richmond, Virginia,
once a week for two successive weeks, the fact of such revoca:-
tion and the caus? therefor; and also in the next bulletin issuec
by the commissioner of agriculture.

Saotion 6. The action of the commissioner of acriculture
and immigration in refusing to grant a registered certificate, 01
in revoking a certificate granted under this act, shall be subject
to the richt of anp?al to any person interested within thirtv days
after sneh decision to the circuit court of the city of Richmonc
which sha]l hear and determine de novo the matter so presentec
to it. making such orders pending such proceedings as it maj
deem proper to preserve the rights of the parties in interest.
Section 7. Report of Sale to Consignor.—Every commission
merchant shall, upon the receipt of farm produce and as he
handles and disposes of the same, make a record thereof ; speci-
fying the name and address of the consignor, the date of receipt,
the kind and the quantity of such produce, the amount of goods
sold, the selling price thereof and the items of expense connected
therewith, and this record, together with payment in settlement
for said shipment, shall be mailed to the consignor within five
days after the sale of such consignment shall have been complet-
ed, unless otherwise agreed upon in writing between the parties,
names and addresses of purchasers shall be furnished by the
consignee to consignor, when demanded in case of complaints.

Section 8. Offences.—Any person, firm, exchange, associa-
tion or corporation who shall receive or offer to receive, sell or
offer to sell on commission, within the State, any kind of farm
produce without a registered certificate, except as in this chapter
permitted, or any person, who, being a commission merchant in
farm produce shall (a) impose false or improper charges for
handling. or for services in connection with farm produce, or
(b) fail to account for such farm produce promptly and proper-
ly and to make settlement therefor, or shall make false or mis-
leading statement or statements, as to market conditions with in-
tent to deceive, or (d) enter into any combination or combina-
tion to fix prices, or (e) directly or indirectly purchases for his
or its own account, goods received by him or it upon consign-
ment without prior authority in writing therefor from the con-
signor, or (f) any such person handling, shipping, or selling
farm produce who shall make false statements as to grade, con-
dition, markings, quality or quantity of goods shipped, or packed
in any manner, shall be guilty of a misdemeanor and shall be
subject to a fine of not less than twenty-five dollars, or to exceed
five hundred dollars, in the discretion of the court; or jury try-
ing the case.

Section 9. Any law now existing requiring the licensing and
the payment of a fee by commission merchant before doing bus-
iness in the State of Virginia shall remain in force, the require-
ments of the act being in addition thereto.

Section 10. The board of agriculture and immigration of
this State shall adopt all needful rules and regulations providing
for the collection of all fees, forfeitures and fines hereunder anc
shall require the same to be deposited in the treasury of the
State, except where otherwise prescribed by law and to be draw
therefrom so far as may be necessary to pay the expenses of car:
rying out the provisions of this act upon warrants on the audito!
of public accounts, issued by the commissioner of agriculture
and countersigned by the president of the said board, provide
the said commissioner of agriculture, under the directions of th
said board, shall keep an itemized account of all such receipt
and expenditures.