Section 409 of the Packers and Stockyards Act regulates that meatpackers pay promptly for livestock that they purchase.
It requires that any meatpacker or dealer buying livestock to pay up in full to the seller before the end of the next business day.
[1] 409(b) states that the purchaser is exempt from this requirement if the parties have other payment agreements in writing.
Rubashkin at times paid as much as 11 days late[3] causing a loss of $3,800.51 of potential interest.
Federal Judge Linda R. Reade added 4 years[3] in prison for this violation alone.