Without grades and standards, costly inspections are needed because the biological nature and perishability of these commodities make product consistency difficult to specify on an ad hoc basis.

• A. The statement is false.
• B. The statement is true.
• C. The statement is mostly false.
• D. The statement is true only for large shipments.

Answer: (B)

Without grades and standards, there’s no common reference for what quality looks like, so inspectors must assess a lot of quality factors from each batch individually. Biological commodities naturally vary in maturity, size, weight, color, and defect levels, and their condition can worsen quickly because they are perishable. This combination means ad hoc evaluations become time-consuming and inconsistent, raising inspection costs and the risk of disputes about acceptability. Having established grades and standards gives objective, predefined criteria to meet, so inspections can quickly verify conformity, reduce variability in judgments, and lower overall costs. The statement is true, and this isn’t limited to large shipments—the need for standardized criteria and costly inspections arises from biological variability and perishability in general.