### Question
How is the term negotiated sale defined?


### Answer
The term **negotiated sale** is defined in *7 U.S.C. § 1635a* as the following:

> a cash or spot market sale by a producer of livestock to a packer under which—


(A) the base price for the livestock is determined by seller-buyer interaction and agreement on a day

#### Citation:
  - *7 U.S.C. § 1635a*
  - Heading: **CHAPTER 38-DISTRIBUTION AND MARKETING OF AGRICULTURAL PRODUCTS > SUBCHAPTER II-LIVESTOCK MANDATORY REPORTING > Part A-Purpose; Definitions**

