I do see this both ways and have had bad experiences with both L & U; cut crowns, plants the size of a 6" northern grown seedling, plants with almost no root attached, plants labeled with jeweler's tags which fell off so you have no idea what the cv's are, and plants shipped with dirt. Nothing like thinking a heavy box = lots of bonus plants and find you've been gifted with soil. None of the above has anything to do with inspection so it could be a "what gripes you about sellers" thread of it's own.
I thought the purpose of having the regs in place was to prevent the spread of noxiouus weeds, disease and pests, and it's the latter that concerns me, having experienced h. gall midge here, which I believe came from an early cv shipped from an unlicensed seller in WA. If your state requires you to have a license and certification on package, I have wondered why a "reputable" person would not become licensed? But, I sense that the inspection process is some states is not what I thought so my resolution is to buy from only those I trust and have built a relationship with.