Free TruckDisp Cargo Claims and Carrier Liability Questions and Answers — Questions and Answers
Question 1: Under the Carmack Amendment, what is the standard for a shipper to establish a prima facie case for a cargo claim against a carrier?
- The shipper must prove the carrier was negligent during transit.
- The goods were tendered to the carrier in good condition, arrived in damaged condition, and the amount of damages is specified. (Correct answer)
- The shipper must provide video evidence of the damage occurring.
- The carrier signed the Bill of Lading and the driver failed a post-trip inspection.
Correct answer: The goods were tendered to the carrier in good condition, arrived in damaged condition, and the amount of damages is specified.
To establish a basic (prima facie) case, the claimant only needs to prove three things: the goods were in good condition when given to the carrier, they were damaged upon arrival, and the monetary value of the damage. The burden of proof then shifts to the carrier to prove they were not at fault.
Question 2: A shipment of produce is rejected due to spoilage. The carrier can prove the delay was caused by an unforecasted DOT-mandated road closure and that their reefer unit functioned perfectly. Which defense might the carrier use against the claim?
- Act of God
- Act of a Public Authority (Correct answer)
- Inherent Vice of the Goods
- Act or Default of the Shipper
Correct answer: Act of a Public Authority
An 'Act of a Public Authority' is one of the five legal defenses a carrier has against a cargo claim. A mandatory road closure by a government entity like the Department of Transportation falls directly under this defense, as it's an event beyond the carrier's control.
Question 3: What is the standard time limit for a claimant to file a cargo claim in writing against a carrier for a damaged shipment?
- 30 days from delivery
- 90 days from delivery
- 9 months from delivery (Correct answer)
- 2 years from delivery
Correct answer: 9 months from delivery
Federal regulations, largely governed by the Carmack Amendment, stipulate that a claimant has a minimum of 9 months from the date of delivery to file a formal written claim with the carrier. The carrier's Bill of Lading cannot legally shorten this period.
Question 4: A driver picks up a load with a 'Shipper Load and Count' (SLC) notation on the Bill of Lading. At delivery, the receiver reports 10 cases missing. What is the carrier's liability?
- The carrier is fully liable for the shortage because they accepted the load.
- The carrier is not liable if the trailer seal was intact from origin to destination. (Correct answer)
- The carrier is only 50% liable for the shortage.
- The carrier's liability is limited to $100 per case.
Correct answer: The carrier is not liable if the trailer seal was intact from origin to destination.
The 'Shipper Load and Count' notation means the shipper, not the driver, was responsible for loading the cargo and verifying the piece count. If the carrier can prove the seal they received at the shipper remained unbroken until delivery, it provides strong evidence that they were not responsible for the shortage.
Question 5: A shipment is damaged, and the Bill of Lading does not specify a 'released value.' How is the value of the damaged goods typically determined?
- The retail price of the goods at the destination.
- The wholesale market value of the goods at the destination at the time delivery was intended. (Correct answer)
- The shipper's original manufacturing cost.
- The average of the manufacturing cost and the retail price.
Correct answer: The wholesale market value of the goods at the destination at the time delivery was intended.
Unless a different liability limit (released value) is agreed upon, the carrier is liable for the full actual loss. This is generally interpreted as the wholesale market value of the goods at the intended destination, as this represents what the owner would have received if the goods had been delivered intact.
Question 6: What is the purpose of a 'salvage allowance' in a cargo claim settlement?
- It is a fee paid to the carrier for attempting to save the cargo.
- It is a discount given to the shipper for filing the claim quickly.
- It is the value of the damaged goods that can still be sold, which is deducted from the total claim amount. (Correct answer)
- It is an extra payment to the receiver for the inconvenience of dealing with damaged freight.
Correct answer: It is the value of the damaged goods that can still be sold, which is deducted from the total claim amount.
All parties have a duty to mitigate damages. If damaged goods still have some value (salvage value), that value is subtracted from the total loss. The carrier has the right to take possession of the salvage or credit the claimant for its value in the final settlement.
Free TruckDisp Cargo Claims and Carrier Liability Questions and Answers
Under the Carmack Amendment, what is the standard for a shipper to establish a prima facie case for a cargo claim against a carrier?