Understanding Common or Contract Carrier: Definitions and Regulations
Definition & meaning
A common or contract carrier is a type of transportation service that holds the necessary legal authority to operate. Specifically, it refers to a carrier that has obtained a certificate of convenience and necessity, a permit for contract carriage by motor vehicle, or any other valid operating authority as defined under federal or state regulations. This designation allows the carrier to transport goods or passengers for hire.
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The term "common or contract carrier" is primarily used in transportation law. It is relevant in various legal contexts, including commercial transportation, regulatory compliance, and liability issues. Understanding this term is crucial for businesses involved in shipping goods or providing transportation services. Users can benefit from legal templates available through US Legal Forms to help navigate the requirements and obligations associated with operating as a common or contract carrier.
Key Legal Elements
Real-World Examples
Here are a couple of examples of abatement:
Example 1: A trucking company that holds a valid certificate from the Department of Transportation (DOT) to transport goods across state lines is considered a common carrier.
Example 2: A shuttle service that operates under a contract with a local business to transport employees is classified as a contract carrier. (hypothetical example)
Relevant Laws & Statutes
Key statutes include:
49 U.S.C. § 13102 - Definitions related to transportation.
49 U.S.C. § 13901 - Requirements for common carriers.
State-by-State Differences
State
Common Carrier Regulations
Contract Carrier Regulations
California
Strict licensing requirements for common carriers.
Requires contracts to be filed with the Public Utilities Commission.
Texas
Less stringent regulations; some exemptions apply.
Contracts must be clear and adhere to state guidelines.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with Related Terms
Term
Definition
Common Carrier
Offers transportation services to the public under regulatory authority.
Contract Carrier
Provides transportation services under a contract with specific clients.
Private Carrier
Transports goods for its own business purposes, not for hire.
Common Misunderstandings
What to Do If This Term Applies to You
If you are considering operating as a common or contract carrier, ensure you understand the licensing requirements in your state. It may be beneficial to consult with a legal professional to navigate the regulatory landscape. Additionally, explore the legal form templates available through US Legal Forms to assist you in preparing the necessary documentation.
Quick Facts
Typical fees for permits can vary by state.
Jurisdiction typically includes both state and federal regulations.
Possible penalties for non-compliance can include fines and revocation of operating authority.
Key Takeaways
FAQs
A common carrier serves the general public, while a contract carrier provides services under specific agreements with clients.
Yes, you typically need a certificate of convenience and necessity, along with compliance with state and federal regulations.
No, operating without the appropriate permit can result in legal penalties and fines.
