In the land of the free, there are many honest and hardworking companies trying to get their piece of the American pie. Unfortunately it seems there are many deceptive companies lurking around to offset the honest businesses. Over the past year, many legitimate businesses had their produce stolen by a company in California State.
A company by the name of JC Produce LLC, of West Sacramento, California was cited by the U.S. Department of Agriculture for neglecting to pay 104 sellers of produce for their goods. The total unpaid produce leeched from the various companies reached $2,349,704. As a result, JC Produce LLC is not permitted to operate within the produce industry until Feb. 7, 2012; that’s when it is allowed to reapply for a PACA license which was revoked. The principals of this questionable company, Susan & James Lennane, must wait till the February 2012 deadline and also are required to obtain a USDA approved surety bond in order to open up shop again; because of their actions, they must meet additional bond requirements which are good for anyone that may do business with them in the future.
The surety bond requirement that the owners of JC Produce LLC must satisfy in order to operate again is absolutely necessary. The bond will be there to guarantee the payment of services or goods, in this case produce. Should they not pay for produce with while a bond is in place, a claim will go out on the bond which the surety company who issued the bond will pay. In turn, once the surety pays the claim, the surety would go back to the owners of JC Produce LLC for reimbursement of the claim; if they can’t pay the claim, the bond will be terminated and they will no longer be able to operate their business legally. The bond acts as a safeguard for the business transactions that take place.
Surety bonds can guarantee anything from a construction project to payment of fruits and vegetables; it just depends on the specific type of surety bond. Bonds exist for the benefit of anyone interested in conducting and participating in genuine business.