5Contents of terms of trade

5 Contents of terms of trade

(1) A trader’s terms of trade must comply with this code. (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 growers of produce to the trader; and (c) any requirements the trader has in respect of the quality of produce delivered by growers 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 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 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 produce; and (g) the following in respect of any insurance for horticulture produce that the trader may hold: (i) if the trader has insurance for produce under the trader’s control; (ii) if the trader has insurance, whether the insurance covers fire, theft and accidental damage (other than deterioration of quality or any other inherent losses); (iii) if the trader has insurance, the name of the insurer and the maximum amount of claims covered by the trader’s policy. (3) For a trader who is an agent, the terms of trade must also specify: (a) the basis on which commission and agent’s fees payable by a grower to the agent, in relation to the horticulture produce traded by the agent on the grower’s behalf, are charged (for example, on a percentage basis or a fixed basis); and (b) if payment of any commissions, fees and extra costs is contingent on the sale of a grower’s horticulture produce or any other event; and (c) 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.