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Unfair Trading Practices in Contract Farming - Ensuring Commercial Justice and Contract Enforcement

Grgic, Iva (2024) Unfair Trading Practices in Contract Farming - Ensuring Commercial Justice and Contract Enforcement. Doctoral Dissertation, University of Pittsburgh. (Unpublished)

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Abstract

This dissertation examines the issue of unfair trading practices (UTPs) in contract farming, particularly in the context of perishable agricultural commodities such as fresh and frozen fruits and vegetables. Contract farming involves agricultural production contracts (APCs) where farmers agree to produce and deliver specified quantities of products that meet the buyer’s quality, quantity, and timing criteria. In return, buyers commit to purchasing the product at a predetermined price and provide inputs necessary for producing commodities (e.g., financial assistance, technology, fertilizers, and pesticides). The APC creates a dynamic where farmers become economically dependent on buyers, leading to an imbalance of bargaining power. This power disparity allows buyers to impose UTPs that disproportionately disadvantage farmers, undermining the potential benefits of contract farming.
The research begins by examining the UNIDROIT Legal Guide on Contract Farming and the FAO Legislative Study on Enabling Regulatory Frameworks for Contract Farming, providing a foundational understanding of contract farming principles and challenges. Building on this foundation, the dissertation conducts a comparative analysis of the legislative frameworks in the United States and the European Union. The US approach, exemplified by the Perishable Agricultural Commodities Act, emphasizes direct contract enforcement and accessible dispute resolution mechanisms. In contrast, the EU’s Directive 2019/633 on Unfair Trading Practices focuses on regulating buyer behavior and imposing penalties, often without direct recourse for farmers.
Building on the comparative analysis, this dissertation proposes a model designed to address UTPs effectively to ensure compensatory commercial justice and contract enforcement. The Proposed Model suggests comprehensive guidelines on prohibited UTPs, drawing on the strengths of the European framework. It also recommends a multi-tiered dispute resolution mechanism inspired by the effective strategies within the American framework. The Proposed Model focuses on accessible, affordable, expert, and enforceable solutions ensuring that farmers can achieve compensatory commercial justice and contract enforcement after UTPs are imposed. To facilitate practical implementation in practice, the Proposed Model is intended to be adopted by trade associations, providing a flexible and industry-specific framework that can adapt to various legal environments. This approach encourages quicker adoption and allows complementary use alongside existing legislative frameworks, offering robust protection for farmers.


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Details

Item Type: University of Pittsburgh ETD
Status: Unpublished
Creators/Authors:
CreatorsEmailPitt UsernameORCID
Grgic, Ivaivg9@pitt.eduivg90009-0008-4839-1780
ETD Committee:
TitleMemberEmail AddressPitt UsernameORCID
Committee ChairBrand, Ronald
Committee MemberOh, Peter
Committee MemberCamillus, John
Committee MemberGabriel Jr., Henry
Date: 19 August 2024
Date Type: Publication
Defense Date: 14 August 2024
Approval Date: 19 August 2024
Submission Date: 19 August 2024
Access Restriction: 2 year -- Restrict access to University of Pittsburgh for a period of 2 years.
Number of Pages: 231
Institution: University of Pittsburgh
Schools and Programs: School of Law > Law
Degree: SJD - Doctor of Juridical Science
Thesis Type: Doctoral Dissertation
Refereed: Yes
Uncontrolled Keywords: contract farming, unfair trading practices, dispute resolution, arbitration, imbalance of bargaining power, Perishable Agricultural Commodities Act, EU Unfair Trading Practices Directive, Croatia
Date Deposited: 19 Aug 2024 13:53
Last Modified: 19 Aug 2024 13:53
URI: http://d-scholarship.pitt.edu/id/eprint/46945

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