Motor Carrier Act: A Comprehensive Overview of Its Legal Definition

Definition & Meaning

The Motor Carrier Act is a federal law that was enacted in 1980 to deregulate the trucking industry in the United States. This legislation aimed to reduce government oversight by easing various regulations that were previously enforced by the Interstate Commerce Commission (ICC). The Act specifically targeted three main areas: price controls, entry controls, and collective vendor price setting. By doing so, it allowed for greater competition and flexibility within the trucking sector, which is essential for commerce and transportation across the country.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A new trucking company can enter the market without needing to obtain a certificate from the ICC, allowing for increased competition and potentially lower shipping costs for consumers.

Example 2: A freight company can set its own prices based on market demand rather than adhering to government-imposed price ceilings (hypothetical example).

Comparison with related terms

Term Definition Difference
Motor Carrier Act A federal law deregulating the trucking industry. Focuses specifically on the trucking sector.
Interstate Commerce Act A law regulating railroads and later expanded to trucking. Broader scope, includes multiple forms of transportation.
Federal Motor Carrier Safety Administration (FMCSA) A federal agency overseeing motor carrier safety regulations. Focuses on safety rather than deregulation.

What to do if this term applies to you

If you are involved in the trucking industry or plan to start a trucking business, familiarize yourself with the Motor Carrier Act and its implications. Consider using US Legal Forms to access templates for necessary compliance documents. If your situation is complex, consulting a legal professional may be beneficial to ensure compliance with all applicable regulations.

Quick facts

Year Enacted 1980
Primary Focus Deregulation of the trucking industry
Key Areas Affected Price controls, entry controls, collective pricing

Key takeaways

Frequently asked questions

The purpose of the Motor Carrier Act is to deregulate the trucking industry, allowing for increased competition and flexibility in pricing and entry into the market.