(b) Notwithstanding subdivision (a), a person engaged in business as a handler, distributor, or retailer of food who in good faith sells, offers for sale, labels, or advertises any product in reliance on the representations of a producer, processor, or other distributor that the product may be sold as organic, shall not be found to violate this act unless the handler, distributor, or retailer either:

1. (1) Knew or should have known that the product could not be sold as organic.
2. (2) Was engaged in producing or processing the product.
3. (3) Prescribed or specified the manner in which the product was produced or processed.