Under what condition are eggs in the shell exempt from grading and sizing standards during transport?

Eggs in the shell are exempt from grading and sizing standards during transport primarily when they come from a location with inadequate grading facilities. This exemption acknowledges that certain geographic areas may lack the resources or infrastructure necessary for proper grading and sizing. As a result, producers in these regions may find it impractical to adhere to the established standards, thus allowing them to transport eggs without the burden of compliance.

The other options do not align with the specific conditions set by regulatory agencies for the exemption. For instance, transporting eggs overnight or selling them at farmer's markets may involve different criteria related to local regulations, but these do not specifically address the limitation of grading facilities. Similarly, packing eggs in bulk does not automatically exempt them from grading standards unless there is a relevant context, such as the grading facilities being inadequate.