The Fruit and Vegetable Dispute Resolution Corporation (DRC) recommends that its members encourage their trading partners to join the DRC—ensuring direct jurisdiction in a dispute. DRC recognizes that some companies may choose not to join, particularly those based outside North America, where trade standards and mechanisms such as DRC and PACA are less familiar or widely used.

However, non-members can still access DRC’s dispute resolution services by including a DRC arbitration clause in their contract or marketing agreement.

How it works 

A DRC arbitration clause allows either party to initiate DRC proceedings in the event of a breach of contract or a dispute. Before formal arbitration begins, both parties can access an informal mediation process at no additional cost. If mediation does not resolve the issue, arbitration can proceed according to DRC’s Dispute Resolution Rules.

Sample DRC arbitration clause

“Any dispute, controversy or claim arising out of or relating to this contract, or the breach thereof, shall be submitted to and finally settled by arbitration administered by the Fruit and Vegetable Dispute Resolution Corporation in accordance with its published rules and procedures. Judgment on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.”

What if you don’t use written contracts?

DRC understands that many produce transactions are conducted without formal written contracts. To address this, DRC offers its members a simple, one-page model contract that includes the arbitration clause. The model contract features only the most common terms and conditions, making it quick and easy to complete.

The reason why only common terms and conditions are used in the model contract is because DRC Trade Standards establish the rights and responsibilities to protect both buyers and sellers by default.

Incorporating the arbitration clause into your agreements provides an additional layer of protection and clarity in your transactions.

Contact the Trading Assistance team for more information about DRC’s arbitration clause and how to implement it in your agreements.

Source:   Dispute Resolution Corporation May 12, 2025 newsletter