Commercial Transactions
Overview
Modern agriculture is dominated by complex commercial transactions that are often highly regulated and involve legal issues unique to agriculture. These transactions are primarily governed by state law, which is subject to the vagaries of each state's legislature and subsequent judicial interpretation. Agricultural transactions cover many areas of commercial law including the sale of goods, leasing, contract law, secured transactions, and commodity futures trading. In order to provide the business community with some certainty in transactions and to facilitate complex transactions that may cross state boundaries, most jurisdictions have adopted the Uniform Commercial Code (UCC), with only minor variations between different states, to govern the majority of commercial transactions. This overview focuses primarily on agricultural commercial transactions relating to the sale and leasing of goods associated with agriculture. Agricultural production contracts are often viewed as contracts for personal services.
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Note: Recently added resources are posted at the top of the applicable sections.
Major Statutes
Uniform Commercial Code
Commodity Exchange Act, 7 U.S.C. §§ 1-27f
Regulations
Commodity Futures Trading Commission Regulations (CFTC), 17 C.F.R. §§ 1-190
Federal Register Rules Open for Comment
Center published Federal Register Digest
Case Law
Case Summaries from the National AgLaw Reporter
Grams v. Milk Products, Inc. (2005) (economic loss doctrine)
Advanta USA, Inc. v. Farmers Fertilizer Company, Inc. (2006) (application of UCC and written contract)
In re Clayson (2006) (perfection of lien; preferential payment)
In re Gehl (2005) (intent to defraud; willful and malicious conduct)
Ana Distribution, Inc. v. CMA-CGM (America) Inc. (2004) (bill of lading)
Duxbury v. Spex Feeds, Inc. (2004) ("sale" under UCC)
Duxbury v. Spex Feeds, Inc. (2004) (products liability claim)
Duxbury v. Spex Feeds, Inc. (2004) (negligence per se)
Baldwin v. Castro County Feeders (2004) (arbitration clause)
Farm Credit Midsouth, PCA v. Farm Fresh Catfish Co. (2004) (federal farm products rule)
Green Valley Seed, Inc. v. Plenge (2004) (conversion action)
Asa-Brandt, Inc. v. ADM Investors Services, Inc. (2003) (fiduciary duty)
Morgan v. United States (2003) (contract dispute against federal government)
Dakota Pork Indus. v. City of Huron (2003) (sale of water under UCC)
Shields Pork Plus, Inc. v. Swiss Valley Ag Service (2003) (hog contract dispute)
Southern States Cooperative, Inc. v. I.S.P. Co., Inc. (2002) (state law claim against feed retailer)
Forrest v. Northland Gas Co. (2002) (insurance policy dispute)
Southern States Cooperative, Inc. v. I.S.P. Co., Inc. (2002) (state law claims against feed retailer)
Administrative Law Decisions
CFTC Opinions and Adjudicatory Orders
CFTC Enforcement Orders and Complaints
CFTC Letters
Center Research Publications
2005 Commercial Law Update (Meyer, 2006)
Hedge to Arrive Contracts: Futures or Forwards (Gokhalé, 2005)
Commercial Laws in the United States Relating to Bailments (Kershen, 2004)
Congressional Research Service Reports
CRS Subject(s):
Finance and Credit
Reference Resources
Other Federal Resources
Commodity Futures Trading Commission
Additional Resources
Commercial Law: An Overview (Cornell Legal Information Institute)
A Short Course Introducing Commodity Markets and Futures Trading
