The Fruit and Vegetable Dispute Resolution Corporation (DRC) emphasizes the importance of thorough investigation in business dealings. It's essential to avoid unnecessary risks and expenses through careful diligence, which is key to responsible business practices.
When dealing with customers in North America, the DRC advises to check if the customer is a DRC member. Members benefit from the support of the Trading Assistance Staff, who can provide information on the member's good standing, ensuring confidence in business dealings.
If a customer does not reside in North America, the DRC may still hold information as the organization's membership expands into other continents. Member transactions are now covered regardless of location or whether the product entered commerce in North America.
Customers who are not DRC members or do not have an established DRC arbitration agreement could expose themselves to needless risk and expense should challenges arise. The DRC provides resources to help avoid costly and time-consuming disputes.
Requesting and verifying references is also important, as non-existent or unfavourable references can be red flags. Additionally, it is crucial the person reaching out on behalf of a company is a legitimate representative.
Check phone numbers, addresses, personnel, and the EXACT company name. It is important to cross-reference these details with DRC's records, as there could be a red flag here as well.
If a customer or prospect is in the United States, check out "The Perishable Agricultural Commodities Act," also known as PACA. The status of their PACA license can be found here.
It's also important to consider whether the trading partner is affiliated with Blue Book Services. Being listed with a rating means the company is a member or is conducting enough business to appear on "the radar screen." A company listed without a rating does not mean its business status is "OK"; it could mean it is not ratable or the information on file is insufficient to establish a rating.
If further information on a company is needed, credit rating agencies such as EQUIFAX are another resource.
Many disputes could easily have been avoided by checking with the DRC and practicing due diligence before the sale. Everybody "takes a chance" occasionally, but is it worth taking the risk? Consider a DRC membership as a risk mitigation tool as the organization is known as a referee to the industry.
Will you be going to the Global Produce & Floral Show in Atlanta? If so, members of the DRC will be delighted to meet with you in booth C2008.
For more information:
Nicole MacDonald
Fruit and Vegetable Dispute Resolution Corporation
Tel: (+1) 613-234-0982
[email protected]
www.fvdrc.com