11Contents of terms of trade

11 Contents of terms of trade

(1) A trader’s terms of trade must comply with this code.

Civil penalty: 300 penalty units.

(2) A trader’s terms of trade must specify: (a) if the trader is prepared to trade as an agent or a merchant, or both; and (b) any requirements the trader has in respect of the delivery by a grower of horticulture produce to the trader; and (c) any requirements the trader has in respect of the quality of horticulture produce delivered by a grower to the trader; and (d) any circumstances in which the trader may reject horticulture produce delivered by a grower, including the period, after receiving the produce, during which the trader must notify the grower of the rejection of the produce and the consequences of the rejection; and (e) if the trader is trading as an agent—the period within which the agent will pay to a grower the proceeds of a sale of the grower’s horticulture produce by the agent; and (f) if the trader is trading as a merchant—the period within which the merchant will pay a grower for the purchase of the grower’s horticulture produce; and (g) if the trader has insurance for horticulture produce under the trader’s control: (i) the name of the insurer; and (ii) the maximum amount of insurance cover provided by the trader’s insurance policy in respect of claims that may be made; and (iii) whether the insurance covers fire, theft and accidental damage (other than deterioration of quality or any other inherent losses). (3) For a trader who is an agent, the trader’s terms of trade must also specify: (a) the basis on which any commissions, fees and extra costs, payable in relation to horticulture produce traded by the agent on a grower’s behalf, will be charged (for example, on a percentage basis or a fixed basis); and (b) whether the payment of any commissions, fees and extra costs is contingent on the sale of a grower’s horticulture produce or any other event or kind of event; and (c) if payment of any commissions, fees and extra costs is contingent on an event or a kind of event—the details of the event or the kind of event; and (d) if the agent is prepared to pursue payment for bad debts of the grower and, if so, the terms applying to the pursuing of the payment. (4) A trader’s terms of trade may include such other matters, not inconsistent with this code, that the trader considers appropriate.