Cancel OK

Price Adjustments

Dispute Over Whether Multiple Transactions Were Settled For Less Than The Original Invoice Price.
Produce Pointers

This same trading principle is recognized by PACA regulation and the DRC’s Trading Standards, i.e., throughout North America.

Please note that even if your sales manager did not have actual authority to settle these transactions (e.g., you previously told him he did not have authority to settle these transactions), he had apparent authority to do so by virtue of his position within your company, unless you previously informed the buyer that he did not have this authority. It is sometimes said that an employee may have the power to bind its employer, even when he or she doesn’t have the right to do so.

Now, of course, a sales manager would not usually have apparent authority to sign a ten-year lease for office space on behalf of its employer, but here we are talking about settling up produce transactions, which is generally within the scope of a salesperson’s job responsibilities.

Your questions? Yes, send them in. Legal answers? No, industry knowledgeable answers. If you have questions or would like further information, email


Doug Nelson is vice president of the Special Services department at Blue Book Services. Nelson previously worked as an investigator for the U.S. Department of Agriculture and as an attorney specializing in commercial litigation.