Question

A trucking company can act as a common carrier—for hire to the general public at published rates. As a common carrier, it is liable for any cargo damage, unless the company can show that it was not negligent. If the company can demonstrate that it was not negligent, then it is not liable for cargo damage. In contrast, a contract carrier (a trucking company hired by a shipper under a specific contract) is only responsible for cargo damage as spelled out in the contract. A Claus Inc. tractor-trailer, acting under common carrier authority, was in a 5- vehicle accident that damaged its cargo. A Nichols Inc. tractor-trailer, acting under contract carrier authority, was involved in the same accident, and its cargo was also damaged.

A) Common carriers are liable for cargo damage, while contract carriers are not.
B) Common carriers are not responsible for cargo damage, while contract carriers are liable.
C) Both common carriers and contract carriers are equally responsible for cargo damage.
D) The liability of both common carriers and contract carriers is determined by the specific cargo contract.

Answer 1

Common carriers are liable for cargo damage, while contract carriers are only responsible as stated in the contract.

Step-by-step explanation:

A trucking company can act as a common carrier or a contract carrier. As a common carrier, the company is liable for any cargo damage, unless it can prove that it was not negligent. On the other hand, a contract carrier is only responsible for cargo damage as specified in the contract. Therefore, in the given scenario, the common carrier, Claus Inc., would be liable for the cargo damage, while the contract carrier, Nichols Inc., would only be accountable if the damage was outlined in its contract.