WVC 19 -
CHAPTER 19. AGRICULTURE.
WVC 19 - 3 -
ARTICLE 3. SALE OF FARM PRODUCTS BY COMMISSION MERCHANTS.
WVC 19 - 3 - 1
§19-3-1. License required; application and fee.
A person engaged in the business of a commission merchant in
this state dealing in the sale, purchase, or consignment of
agricultural products shall before carrying on such business
procure a license from the commissioner. Application for such
license shall be made on forms prescribed by the commissioner and
shall be accompanied by a fee of ten dollars. Such license shall
be renewed annually on or before the first day of July.
WVC 19 - 3 - 2
§19-3-2. Applicant to furnish surety bond.
Prior to the issuance of a license for commission merchant,
the applicant shall execute and deliver to the commissioner a
surety bond conditioned as the commissioner may require and
acceptable to him, payable to the state of West Virginia, for the
benefit of consignors who have been wronged or damaged by fraud
or fraudulent practices of the commission merchant and so
adjudged by a court of competent jurisdiction and who shall have
the right of action for damage for compensation against such
WVC 19 - 3 - 3
§19-3-3. Grounds for refusal or revocation of license.
The commissioner may refuse to grant a license or may revoke
a license already granted when he is satisfied that the applicant
or licensee has:
(1) Failed to satisfy a money judgment properly served
(2) Made false, fraudulent or improper charges or returns
for the handling, sale, storage, or other services in connection
with agricultural products;
(3) Failed or refused to render an account of sales or make
prompt settlement thereon;
(4) Knowingly made false or misleading statements as to the
condition, quality, or quantity of agricultural products
received, handled, stored, or held by him for sale;
(5) Made false or misleading statements concerning market
conditions, with the intent to deceive;
(6) Combined or conspired to fix prices either directly or
(7) Purchased for his own account agricultural products
received by him upon consignment without prior notice to the
consignor in writing, or at an agreed price fixed by the
(8) Made fictitious sales or has been guilty of collusion to
defraud the consignor;
(9) Has reconsigned agricultural products without the
written consent of the consignor or without notice to the
consignor that all or part of his shipment has been reconsigned;
(10) Sold consigned goods to another person, exchange,
association, or corporation in which the consignee has a
financial interest without notice in writing to the consignor of
WVC 19 - 3 - 4
§19-3-4. Suit on bond; limitation on recovery.
A person injured by the failure of a commission merchant to
pay over the full amount received on any sale, less commissions
and charges may recover on the bond of the commission merchant
the amount due him by a suit brought in the name of the state of
West Virginia for the use of the injured person. No recovery
shall be had on the bond in excess of the penalty thereof. In
case of multiple claims in excess of the bond, each claimant
shall recover his pro rata share.
WVC 19 - 3 - 5
§19-3-5. Penalty; moneys collected to be deposited in "general
A commission merchant who violates any of the provisions of
this article shall be guilty of a misdemeanor, and upon
conviction shall be fined not more than one hundred dollars for
the first offense, and not less than one hundred dollars nor more
than two hundred dollars for each subsequent offense. Each
transaction engaged in by an unlicensed commission merchant shall
constitute a separate offense.
All moneys collected under this article shall be deposited
with the treasurer of the state of West Virginia and shall be
kept in a separate fund to be designated as the "general
marketing fund" and reappropriated to the department of
agriculture for the administration of this article.
Note: WV Code updated with legislation passed through the 2012 1st Special Session