### Question
Can you define what negotiated purchase means?


### Answer
**Negotiated purchase** is defined as the following in *7 U.S.C. § 1635a*:

> a cash or spot market purchase by a packer of livestock from a producer 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**

