§ 56189 License Suspension For Unpaid Claims

Food and Agricultural Code·California

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Key Takeaways

•If you own a farm business and don't pay farmers for their products, you can lose your license.
•You can't get a new license for 4 years if you don't pay what you owe.
•This rule applies to businesses that need a license to buy or sell farm products.

Example

A fruit buyer doesn't pay a farmer for their strawberries.

If the buyer is found guilty in court and doesn't pay the farmer, they can't get a license to buy fruits for 4 years.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 56189 License Suspension For Unpaid Claims

Any person who is adjudicated liable for payment of a claim for farm products that arose out of the conduct of a business licensed or requiring a license under this chapter or Chapter 6 (commencing with Section 55401), and who has not made full settlement with all producer-creditors, shall not be licensed by the director as a principal for four years from the date of the adjudication. (Amended by Stats. 1987, Ch. 662, Sec. 14.)

Last verified: January 23, 2026

Key Terms

claim license director if someone settlement adjudication

References

Official text at leginfo.legislature.ca.gov
California Legislature. Food and Agricultural Code. Section 56189.

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Key Takeaways

Example

Key Terms

Related Statutes

References