Changes in Horse Trade Laws and Legislation - Earle Mack -Jess Jackson
In an effort to make the trading of horses more transparent, Earle Mack and Jess Jackson (owners, breeders, and businessman with political ties) are backing legislation that will establish a mandate for the establishment of basic laws to protect both buyers and sellers in the practice of horse trading.
Earle Mack, a New York resident, real estate investor and former Ambassador to Finland, has introduced horse trading transparency laws in Florida while Jess Jackson, a California Vintner with the support of Kentucky State House Representative Denver Butler, is fighting to instigate similar legislation in Kentucky.
Because horse trading is a multimillion dollar industry with the possibility of millions being spent on one transaction, the practice is fraught with deception and unfairness. Currently, no written bill of sale is required in the selling of horses, and sellers are also not required to disclose documentation of a horse's medical condition, prior ownership, or physical condition. In this sense, the business of horse trade has been likened to the gimmicks employed by used car salesmen who lie and cheat unsuspecting customers in attempt to make a quick buck on a poor performing vehicle, only the result of horse trading is even more costly than that of automobiles, with "hidden fees" on a single horse reaching tens or hundreds of thousands of dollars and long term losses costing millions.
Earle I. Mack's bill was signed into law in June 2007. It requires the Florida State Department of Agriculture to develop governing rules to ensure that sellers disclose known medical conditions and prior ownership of horses for sale in addition to banning dual agency in horse trading. Meanwhile, after suffering staggering losses in multiple deceptive horse deals with his advisors (who allegedly conspired with dual agents to gouge prices), Jess Jackson is putting the pressure on the newly configured Sales Integrity Task Force to address similar issues of horse trading in Kentucky
Traditional methods for horse trading have come under contention recently. Many deals involving horses are conducted on a verbal agreement and a handshake, and the owners and buyers often depend on "bloodstock" traders to assist them in choosing horses the same way home buyers depend on real estate agents. Like real estate, problems arise when agents services sellers at the same time as buyers. Such traders are known as "dual agents" and have the luxury of inflating prices between buyer and seller in order to rack up the price and provide for themselves (and sometimes other "consultants") hefty commission packages. These deceptive "kickbacks" can run up to $50,000 or more in straight commissions, not to mention the price of the horse, which can figure in the hundreds of thousands and be inflated to boot.
Horse laws have been in existence for centuries, a famous local one being the law that prohibits the selling of a horse after dark. However, where people in the past might rely on lighting to cloak flaws in horse flesh, techniques today can make an ailing horse look like a champion in broad daylight. Such techniques can include giving a "rowdy" horse a tranquilizer to make the horse appear calm and bidable, or even the use of paint and sprays to dress up a horse's appearance before an auction. Earle Mack's legislation in Florida bans such deception, and also requires that horse sellers disclose medical conditions in horses as well as information regarding previous ownership prior to sales.
The new legislation proposed by Earle Mack and Jess Jackson hopes to grant power to an authoritative governing body with some clout in the horse world to implement the following practices:
- Discloser of known medical condition of horses for sale
- Discloser of the identity of prior owner and sellers of horses
- A ban on dual agents to decrease kickbacks and price gouging
- A ban the superficial alteration of a horses physical condition before sale, including the use of tranquilizers to "calm" the horse during inspection
- Mandated written bills of sale documenting the terms of the trade
In introducing such legislation, Earle Mack and Jess Jackson are making a firm statement about the necessity of fair trade practices in business and the consequences of violating trust. In a perfect world, regulations would not be needed to enforce integrity, but given the willingness of some individuals to betray for personal gain, or even the gain of likeminded confederates, addressing the issue democratically is the only viable option.
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