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Understanding the Controlled Carrier Act: Definition and Implications
Definition & Meaning
The Controlled Carrier Act, enacted in 1978, is a federal law that empowers the Federal Maritime Commission (FMC) to regulate the rates set by controlled carriers. Controlled carriers are shipping companies that are owned or controlled by a government, which can create an unfair competitive advantage over privately owned companies. This law is outlined in section 9 of the Shipping Act and aims to maintain fair competition in the maritime industry.
Table of content
Legal Use & context
The Controlled Carrier Act is primarily used in maritime law. It ensures that government-owned shipping companies do not set their rates so low that they undermine private competitors. Legal professionals may encounter this act when dealing with cases related to shipping rates, international trade, or competition law. Users can manage some related legal matters themselves by utilizing templates from US Legal Forms, which provide guidance on compliance with maritime regulations.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A government-owned shipping line sets its rates significantly lower than those of private competitors. The FMC intervenes to investigate whether this practice violates the Controlled Carrier Act.
Example 2: A private shipping company files a complaint with the FMC, alleging that a controlled carrier is engaging in predatory pricing. The FMC reviews the rates to determine if they are unfairly low. (hypothetical example)
Relevant laws & statutes
The Controlled Carrier Act is primarily referenced in the Shipping Act, specifically in section 9. Additionally, the definition of controlled carriers is provided in 46 USCS § 40102.
Comparison with related terms
Term
Definition
Key Differences
Controlled Carrier
A shipping company owned or controlled by a government.
Focuses on government ownership and its implications for competition.
Common Carrier
A business that transports goods or people for a fee.
Can be privately owned and does not necessarily have government control.
Common misunderstandings
What to do if this term applies to you
If you are involved in shipping and suspect unfair competition from a controlled carrier, you can file a complaint with the Federal Maritime Commission. Additionally, consider using US Legal Forms to access templates that can help you navigate the regulatory landscape. If the situation is complex, consulting a legal professional is advisable.
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