(c) The 2-year period specified in paragraph (b) of this section shall be extended if necessary to comply with any Federal, State, or local law, or if the stockyard owner, market agency, or dealer is notified in writing by the Administrator that specified records should be retained pending the completion of any investigation or proceeding under the Act. The periods specified herein after which records may be disposed of have been approved by the Office of Management and Budget in accordance with the Federal Report Act of 1942 (56 Stat. 1078; 5 U.S.C., 139 et seq.).

OMB CONTROL No. 0581-0024. (47 FR 746, Jan. 7, 1982)

(7 U.S.C. 181 et seq.; Pub. L. 96-511, 94 Stat. 2812 (44 U.S.C. 3501 et seq.))

[44 FR 45360, Aug. 2, 1979, as amended at 47 FR 746, Jan. 7, 1982]

formation or a person who has a financial interest in the consignment or a statement in writing from the owner thereof authorizing the market agency to furnish such information, any copy of an account of sale or other paper or information which will reveal to such person information relating to the price at which livestock was sold or the amount of the net proceeds thereof remitted to the owner or consignor: Provided, however, That this shall not prevent a market agency from furnishing to any person, hauling livestock for hire, information as to the weight of such livestock in order that such person may have the necessary facts on which to base his hauling charges: And provided further, That this shall not prevent a market agency from giving to recognized market news reporting services such information as may be necessary to enable such reporting services to furnish the public with market news data: And provided further, That this shall not prevent a market agency from giving to any agency of the Government (Federal, State, or local) such information or records as are described herein.

ities, money, meals, or things of value except advertising novelties having a total value not in excess of 50 cents. This regulation shall not preclude loans by a stockyard owner, market agency, or dealer to a trucker or shipper of livestock which are evidenced by an interest-bearing note, properly secured, and having a definite due date.

(b) No stockyard owner shall receive, or knowingly permit any officer, agent, or employee of the stockyard to receive, from any market agency, dealer, packer, or other user of such stockyard, and no market agency, dealer, or packer shall offer, make, or give to any stockyard owner, or to any officer, agent, or employee of a stockyard, any gift, payment, loan, or other consideration, except the established charges for, or in connection with, the furnishing of stockyard services.

(c) No market agency, engaged in selling or buying livestock on a commission basis or otherwise, shall receive, or knowingly permit any owner, officer, agent, or employee of the market agency to receive, from any consignor, principal, dealer, packer, or other user of such market agency services, and no dealer, packer, or market agency shall offer, make, or give to any owner, officer, agent, or employee of a market agency, any gift, payment, loan, or other consideration except the established charges for, or in connection with, the furnishing of market agency services.

(7 U.S.C. 181 et seq.)

[19 FR 4529, July 22, 1954, as amended at 24 FR 3183, Apr. 24, 1959; 44 FR 45361, Aug. 2, 1979]

8 201.55

Purchases and sales to be made on actual weights.

When livestock is bought or sold on a weight basis in transactions subject to the provisions of the Act, settlement therefor shall be on the basis of the weight shown on the scale ticket or correction ticket, as the case may be. Any weight figures shown on accounts of sale, accounts of purchase, invoices, bills, or statements issued in connection with transactions subject to the Act shall be actual weights obtained on scales operated or used by stockyard owners, market agencies,

8 201.57 Livestock sold at auctions; purchases from consignments.

(a) No market agency engaged in selling consigned livestock at auction shall permit its owners, officers, agents, or employees to purchase livestock from consignments for resale for their own speculative accounts, nor shall it permit its owners, officers, agents, or employees to enter into any agreements, relationships, or associations with other parties whereby such owners, officers, agents, or employees shall share, directly or indirectly, in profits realized from resale of livestock purchased out of consignments; nor shall such market agency permit auctioneers or weighmasters, or other employees performing duties of comparable responsibility in connection with the actual conduct of auction sales by the market agency, to purchase livestock out of consignments for any purpose for their own account. This shall not preclude employees of the market agency, whose duties in connection with the selling of livestock by auction do not involve the making of determinations or decisions directly affecting the interests of consignors, from purchasing livestock from consignments for their own accounts for purposes other than speculative resale, provided all such purchases are made by such employees

bidding openly and competitively at auction against other buyers and, on the accounts of sale issued, disclosure is made to the consignors concerned of the relationship of the buyers to the market agency.

(b) No market agency engaged in selling livestock at auction shall weigh livestock from its consignments to a dealer account it maintains except when necessary to protect the legitimate interests of consignors and then only after having complied with the requirements of § 201.59. Whenever consigned livestock is offered for sale at auction and is bought by the market agency, or by any person in whose business the market agency has a financial interest, the name of the buyer shall be publicly announced by the market agency at the conclusion of the transaction with respect to such livestock and the accounts of sales furnished the consignors concerned shall disclose the information required by §201.47. The provisions of this section shall not preclude bona fide owners or consignors of livestock from exercising such rights as are conferred on them by the laws of the State in which the auction market is located relating to sales of livestock at auction.

[19 FR 4530, July 22, 1954]

§ 201.58 Sales to be made openly and in a manner to promote interests of consignors and not conditioned on sales of other consignments.

Every market agency engaged in the business of selling livestock on a commission or agency basis shall sell the livestock consigned to it openly, at the highest available bid, and in such manner as to best promote the interests of the consignors. The market agency shall sell each consignment of livestock on its merits, and shall not make the sale of one consignment of livestock conditional on the sale of another and different consignment of livestock: Provided, That this shall not prohibit the sale in graded lots of livestock belonging to different consignors who have consented thereto. In such cases, settlement shall be on the basis of the weight shown on the scale ticket issued at the time the consignor's livestock is weighed.

(7 U.S.C. 181 et seq.)

[32 FR 13255, Sept. 20, 1967, as amended at 44 FR 45361, Aug. 2, 1979]

§ 201.59 Taking consignments into own account, accounting; resales.

If a person registered to operate both as a market agency and dealer, takes to his own account livestock consigned to him for sale on a commission or agency basis, he shall do so only after he has offered such livestock for sale on the open market in the customary manner, and then such livestock shall be taken into his account only at a price higher than the highest available bid. In such event the market agency, in accounting to the owner or consignor of the livestock, shall show on the account of sale as the purchaser of the livestock the full, true, and correct name of the market agency. In the event a market agency takes to its account livestock belonging to one owner and resells such livestock in one lot on the same day at a price higher than that remitted to the owner, such additional price shall be remitted to the owner in a separate accounting.

(a) Consignments on commission; officer, agent, or employee of consignee not to purchase from. No market agency, except as provided in § 201.57, shall sell any consigned livestock to any owner, officer, agent, or employee of the market agency for his own account, or enter, or permit any such owner, officer, agent, or employee, to enter, into any agreement, relationship, or association with anyone whereby such market agency, or any owner, officer, agent, or employee thereof, shares in the profits realized from the resale of livestock purchased from a consignment to such market agency: Provided, That the provisions of this paragraph shall not be construed to prohibit any market agency from selling consigned livestock to its wholly-owned subsidiary if such trans

action is handled in compliance with the provisions of § 201.47.

(b) Sale of livestock belonging to a market agency or its officers or employees. No market agency shall sell livestock belonging to it or to its owners, officers, agents, or employees, or sell livestock in which it or its owners, officers, agents, or employees have an ownership interest, in such manner as to prejudice the interests of consignors who have consigned livestock to the market agency for sale for their accounts.

(7 U.S.C. 181 et seq.)

[19 FR 4530, July 22, 1954, as amended at 44 FR 45361, Aug. 2, 1979]

§ 201.61 Market agencies engaged in selling or purchasing livestock on commission.

(a) Market agencies engaged in selling livestock on commission not to clear or finance dealers. No market agency registered to sell livestock on commission shall on and after September 1, 1954, enter into any new arrangements to clear, finance, or furnish bookkeeping or similar services to independently operated and separately registered dealers nor shall such a market agency enter into any agreement, relationship, or association with dealers or other buyers which might have a tendency to lessen the loyalty of the market agency to its consignors or impair the quality of the market agency's selling services. On and after September 1, 1956, no market agency registered to sell livestock on commission shall clear, finance, or furnish bookkeeping or similar services to an independently operated and separately registered dealer. This shall not preclude a market agency registered to sell and to buy livestock on a commission basis from purchasing livestock on order for buyers, provided such orders are handled in accordance with the requirements of §§ 201.56 and 201.62.

(b) Market agencies engaged in purchasing livestock on commission not to purchase livestock from clearees to fill orders. No market agency registered to buy livestock on commission shall, in filling orders, purchase livestock from dealers whose operations it clears, nor shall it enter into any

agreement, relationship, or association with dealers or others which will impair the quality of the buying services furnished its principals.

[19 FR 4530, July 22, 1954]

§ 201.62 Using consigned livestock to fill orders.

Whenever a market agency uses livestock consigned to it for sale to fill, in whole or in part, an order which it has received from a buyer, the market agency shall be presumed with respect to such livestock to be acting solely as the agent of the consignor and shall advise the consignor in its account of sale of such use and shall collect for its services only the selling commission provided in its tariff: Provided, That to offset expenses incurred by market agencies in soliciting bids on consigned livestock from off-the-market buyers, the market agencies at a stockyard may provide in their tariffs for assessing such buyers a uniform expense charge not to exceed one-half of the selling commission charges in effect at the market.

(Secs. 305, 306, 307(a), 312(a), 42 Stat. 164, 165, 167; 7 U.S.C. 206-208, 213(a)) [36 FR 7841, Apr. 27, 1971]

8 201.63 Consignments; when not to be solicited or intercepted.

No packer, market agency, or dealer shall solicit or intercept consignments of livestock at or on stockyard premises or after such livestock has been billed or consigned to a packer, market agency, or dealer and is in course of transportation for delivery to the consignee.

(7 U.S.C. 181 et seq.)

[24 FR 3183, Apr. 24, 1959, as amended at 44 FR 45361, Aug. 2, 1979]

8 201.64 Consignments; guaranties not to be given.

No market agency engaged in the business of selling livestock on a commission basis shall guaranty the price at which consigned livestock will be sold.

(7 U.S.C. 181 et seq.)

[28 FR 13742, Dec. 17, 1963, as amended at 44 FR 45361, Aug. 2, 1979]

8 201.65 Restrictions on employment of salesmen on split commission basis.

No market agency engaged in selling livestock on a commission basis for the accounts of consignors shall employ a livestock salesman under an agreement or arrangement whereby such salesman is to assume the responsibility of selling a species or class of livestock received by the market agency from all consignors but whose compensation is to be based on a split of only those commission charges assessed consignors considered to be "followers" of the particular salesman. This shall not preclude a market agency handling a small volume of livestock of a certain species from employing a salesman to sell such species under an agreement or arrangement whereby the compensation for such salesman's services is to be based on a split of the commissions realized by the market agency from all consignors whose livestock the salesman is to sell; nor shall it preclude a market agency from making incentive payments, or bonus payments to salesmen based on the over-all operating results of the market agency.

[19 FR 4531, July 22, 1954]

§ 201.66 Market agencies not to employ persons engaged in buying livestock. (a) No market agency shall employ or permit any packer, or any person employed by a packer to buy livestock for purposes of slaughter, to perform any service or duty in connection with the furnishing by such market agency of its services.

(b) No market agency shall employ or permit any person engaged in buying livestock as a dealer or market agency, or any employee of any such person, to perform any service or duty in connection with the furnishing by such market agency of its services: Provided, That this paragraph shall not prohibit a market agency engaged in selling consigned livestock from employing any individual who does not engage in any dealer or market agency transactions at the stockyard where he is employed and who is not otherwise employed by a dealer or market agency engaged in selling or buying livestock at said stockyard.

(Secs. 307, 312, 42 Stat. 161 et seq., as amended; 7 U.S.C. 208, 213) [30 FR 14839, Dec. 1, 1965]

8 201.67 Packers or dealers not to own or finance selling agencies.

No packer subject to the act, or independently operated and separately registered dealer, shall have an ownership interest in, finance, or participate in the management or operation of a market agency selling livestock on a commission basis; nor shall such a market agency permit such a packer, or independently operated and separately registered dealer, to have an ownership interest in, finance, or participate in the management or operation of such market agency.

[19 FR 4531, July 22, 1954, as amended at 24 FR 3183, Apr. 24, 1959]

§201.68 Packers not to own or finance

dealers or buying agencies; dealers and buying agencies not to own or finance packers.

(a) No packer, officer, agent, or employee of a packer, or person who owns a substantial interest in a packer, shall independently, or in combination with others, or through any corporate or other device, operate as a market agency purchasing livestock on a commission basis, or as a dealer, or have an ownership interest in, finance, or participate in the management or operation of any such market agency or dealer; nor shall any market agency purchasing livestock on a commission basis or any dealer permit a packer, or officer, agent, or employee of a packer, or person who owns a substantial interest in a packer, independently or in combination with others, or through any corporate or other device, to have any ownership interest in, finance, or participate in the management or operation of such market agency or dealer: Provided, however, That the provisions of this section shall not affect the statement of general policy set forth in § 203.6 of this chapter concerning purchases of livestock by packers for purposes of export, and shall not prohibit a packer or buyer employed by a packer from purchasing livestock for purposes of slaughter by such packer.