Chap. 447.—-An ACT to amend and re-enact sections 1257, 1260, 1261 and
1262 of the Code of Virginia, as amended, relating to licensing and regu-
lating commission merchants. [S B 341]

Approved March 27, 1930

I. Be it enacted by the general assembly of Virginia, That sections
twelve hundred and fifty-seven, twelve hundred and sixty, twelve hun-
dred and sixty-one, twelve hundred and sixty-two, as amended, be
amended and re-enacted so as to read as follows:

Section 1257. Definitions as used in the following sections of this
chapter.—The term “commission merchant” shall include every person,
firm, exchange, association or corporation who shall receive farm pro-
duce for sale on commission, or contract with the producer thereof for
farm products to be sold by him or it on commission, or accept in trust
from the producer thereof for the purpose of resale, or who shall sell
or offer for sale on commission or shall solicit consignments of any
kind of farm products, or who shall in any way handle for the account
of or as an agent of the producer thereof any kind of farm products;
provided, that any person, firm or corporation shall be deemed to be
an agent of the producer, unless a specific price has been agreed upon
by both parties before shipment.

The term “commission merchant” shall not include any co-operative
corporation or association organized under or that has adopted the pro-
visions of or domesticated in Virginia pursuant to the provisions of
chapter forty-eight of the acts of the general assembly, nineteen hun-
dred and twenty-two, as amended, otherwise known as the cooperative
marketing act, so long as said corporation or association meets the re-
quirements of and operates in accordance with the provisions of the
said act and acts amendatory thereof; nor shall it include any associa-
tion or organization of farmers, including produce exchanges, not in-
corporated under or subject to the provision of the said cooperative
marketing act, organized and maintained by farmers for mutual help in
the marketing of their produce and not for profit; nor any person,
firm, exchange, association or corporation buying vegetables and/or
horticultural farm products for the purpose of reselling the same in
dried, canned or other preserved form; nor shall it include the sale of
farm produce at public auction by a duly licensed auctioneer, acting as
the agent of another to whom such farm produce shall have been con-
signed; nor to the sale by sheriffs, constables and other officers and
fiduciaries and court officials; nor to seed sold at retail.

Section 1260. For the purpose of enforcing the provisions of this
law, the commissioner of agriculture and immigration upon the veri-
fied complaint of any interested party shall, or upon his own motion
may, either personally or through his duly authorized agent or agents
investigate any transaction involving solicitation, receipt, sale or at-
tempted sale of farm products by any person or persons acting or as-
suming to act, or attempting to act, as a commission merchant, failure
of any commission merchant to make proper and true account of
sales and settlement thereof as in this act required; any transaction
wherein produce consigned to a commission merchant is disposed of to
a person, firm or corporation composed substantially of the same per-
sons, as stockholders, members, or otherwise, who compose the com-
mission merchant; the intentional making by any commission merchant
of false statements as to condition and/or quality of any farm products
received or in storage; the intentional making by any commission mer-
chant of false statements as to market conditions; the failure of any
commission merchant to make payment for farm products within the
time required by this law; or to any other injurious transaction arising
out of the sale of farm produce on commission.

When a consignor of farm products to a commission merchant
shall have filed a complaint with the said commission merchant within
ninety days after date of sale, and shall have failed to obtain a satis-
factory settlement thereof within ten days after the filing of the said
complaint, a verified complaint setting forth the above facts may be
fled with the commissioner of agriculture and immigration, who shall
personally or through his duly authorized agent or agents, thereupon
undertake to effect settlement of the matter involved. If the said
commissioner or his agent or agents, within a reasonable time, be
unable to effect settlement to the satisfaction of the parties involved,
he or his agent or agents shall, after giving said parties at least five
days’ notice as to time and place, which shall be in the city or town in
which is situated the place of business of the commission merchant, or
in which the transaction complained of occurred, proceed to hear evi-
dence concerning the matter involved, and thereafter either dismiss the
complaint or enter such order against the commission merchant as the
said commissioner shall deem proper to afford the consignee relief.
Any such order shall be complied with within the time specified therein,
provided, however, such period of time shall not be less than five days.

In furtherance of any such investigation, inspection or hearing the
commissioner of agriculture and immigration, or his duly authorized
agent or agents, shall have full authority to make any and all neces-
sary investigations relative to the said complaint or matter being in-
vestigated, and they shall have at all times free and unimpeded access
to all buildings, yards, warehouses, storage and transportation facilities
in which any farm products are kept, stored, handled or transported.
They shall have full authority to administer oaths and take testimony
thereunder, to issue subpoenas requiring the attendance of witnesses
before him or his agents, together with all books, memoranda, papers,
and other documents, articles or instruments; to compel the disclosure
by such witnesses of all facts known to them relative to the matters
under investigation; and all parties disobeying the orders or subpoenas
of the said commissioner, or his duly authorized agent or agents, shall
be guilty of contempt and shall be certified to any court of competent
jurisdiction for punishment for such contempt. Copies of all records,
inspection certificates, certified reports and all papers on file in the
office of the commissioner of agriculture and immigration shall be
prima facie evidence of the matters contained.

Section 1261. Add a new sub-section as follows: (1) When the
licensee has failed or refused to obey and comply with any order of
the commissioner of agriculture and immigration entered pursuant to
the provisions of section twelve hundred and sixty of the Code, as
amended, within the time specified in said order, or, in case an appeal
is taken from such action of the said commissioner, then within ten
days from the time such order became final.

Section 1262. Any action of the commissioner of agriculture and
immigration or his agent in entering any order pursuant to section
twelve hundred and sixty, or in refusing to grant a license, or in re-
voking a license already granted to such commission merchant or mer-
chants, or refusing to renew a license, shall be subject to the right of
appeal within thirty days after such decision of the commissioner
and/or his agent, to the circuit court of the city of Richmond, which
shall hear and determine the matter de novo so presented to it, and
which shall have power to make such order or orders pending such
proceedings as it may deem proper to preserve the rights of the parties
in interest. |