(b) Notwithstanding subdivision (a), a person engaged in business as a retailer of rice who in good faith handles, labels, or advertises any rice in reliance on the representations of a producer or handler that the rice may be sold as certified, shall not be found to violate this chapter, except under any of the following circumstances:

1. (1) The retailer knew or should have known that the rice could not be sold as certified.
2. (2) The retailer was engaged in producing or handling the rice.
3. (3) The retailer prescribed or specified the manner in which the rice was produced or handled.