PART I
INTERPRETATION

Failed lot defined

1   In this Order, "a failed lot" means those eggs comprising a lot which fails to meet the requirements before the eggs in that lot may be graded as Canada A (hereinafter referred to as "Canada A") following an inspection pursuant to subsection l(2.1) of Schedule 1 to the Egg Regulations, being C.R.C., c. 284, made under the Canada Agricultural Products Standards Act.

PART II
REPORTING FAILED LOTS AND PROHIBITIONS

Reporting failed lots

2   A grading station shall report to this Board full particulars with respect to each failed lot handled by it.

Grading as Canada A prohibited

3   Except with the permission of the Board, no person shall request the grading of eggs from a failed lot as Canada A and no person shall grade an egg from a failed lot as Canada A.

Marketing as Canada A prohibited

4   Except with the permission of the Board, no egg from a failed lot may be marketed as an egg graded Canada A.

General prohibitions

5   Except with the permission of, and in the manner directed by the Board;

(a) no person shall sort, pack, store, or transport eggs from a failed lot, and

(b) no person shall otherwise market eggs from a failed lot.

PART III
MARKETING FOLLOWING FAILED LOT

Subsequent marketing directed to a specified grading station

6   Except as otherwise directed by this Board, a person who has marketed eggs from a failed lot shall deliver all eggs which that person subsequently wishes to market to the grading station specified by the Board, and shall not otherwise deliver or market eggs.

PART IV
COMPULSORY SALE TO THE BOARD

Sale of subsequent failed lots to the board

7   Except as otherwise directed by the Board, no person shall market an egg from a failed lot if that person has marketed eggs from a failed lot within the previous 84 days, except to sell such eggs to the Board.

Sale of eggs after three failed lots

8   Except as otherwise directed by the Board, no person shall market an egg if that person has marketed eggs from a failed lot on three occasions within the previous 84 days, except to sell such eggs to the Board.

Prices to be paid

9   Notwithstanding the provisions of an Price Order issued by this Board, the price at which eggs shall be sold to the Board shall be:

(a) with respect to eggs from a failed lot sold pursuant to the provisions of section 7 hereof, based upon the average price received by that producer for graded eggs sold by that producer to a grading station for the two immediately preceding sales of graded eggs by that producer to a grading station, as calculated by the Board;

(b) with respect to eggs sold pursuant to the provisions of section 8 hereof, based upon the average price paid to the Board for ungraded eggs sold by the Board to a processor during that calendar week,

provided however that in the event the Board determines that any such eggs are unfit for human consumption, the price payable for such eggs shall be nil.

PART V
REPEAL

Repeal

10   Manitoba Regulation 159/86 is repealed.