49 U.S.C. § 13706 — Liability for payment of rates

submitted 31 years ago by Pub. L. 104-88 to r/title-49-TRANSPORTATION · 301 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law says who must pay shipping charges when goods go to someone other than the shipper. A consignee who's only an agent, not the true owner, can limit its own liability by telling the carrier in writing before delivery.

(a) Liability of Consignee: This section decides who must pay for shipping property that a shipper or consignor sends by motor carrier to a consignee who isn't the shipper or consignor, whenever the carrier operates under this part. If the shipper tells the carrier to deliver to a consignee who is only an agent, without true — "beneficial" — ownership, the consignee is liable only for the rates billed at delivery time, not for any more that turn out to be owed later, but only if the consignee gives the delivering carrier written notice, before delivery, of: (1) its status as agent, without beneficial title; and (2) the name and address of the true owner, if the goods are being reconsigned or redirected somewhere other than the original bill of lading's destination. (b) Liability of Beneficial Owner: When the consignee's liability is limited under (a) to what was billed at delivery, the shipper, consignor, or — if the goods were redirected — the true owner must pay any extra rates owed later, no matter what the bill of lading or shipping contract says. The true owner must pay all the rates if the goods are redirected by an agent but then refused or abandoned at the final destination, as long as the agent gave the carrier notice of the agency and the true owner's name and address in the redirection order. A consignee that gives the carrier wrong information about who the true owner is must pay the extra rates itself.

the actual law source: uscode.house.gov ↗public domain

(a)Liability of Consignee.—

Liability for payment of rates for transportation for a shipment of property by a shipper or consignor to a consignee other than the shipper or consignor, is determined under this section when the transportation is provided by motor carrier under this part. When the shipper or consignor instructs the carrier transporting the property to deliver it to a consignee that is an agent only, not having beneficial title to the property, the consignee is liable for rates billed at the time of delivery for which the consignee is otherwise liable, but not for additional rates that may be found to be due after delivery if the consignee gives written notice to the delivering carrier before delivery of the property—

(1)

of the agency and absence of beneficial title; and

(2)

of the name and address of the beneficial owner of the property if it is reconsigned or diverted to a place other than the place specified in the original bill of lading.

(b)Liability of Beneficial Owner.—

When the consignee is liable only for rates billed at the time of delivery under subsection (a), the shipper or consignor, or, if the property is reconsigned or diverted, the beneficial owner is liable for those additional rates regardless of the bill of the lading or contract under which the property was transported. The beneficial owner is liable for all rates when the property is reconsigned or diverted by an agent but is refused or abandoned at its ultimate destination if the agent gave the carrier in the reconsignment or diversion order a notice of agency and the name and address of the beneficial owner. A consignee giving the carrier erroneous information about the identity of the beneficial owner of the property is liable for the additional rates.

Source credit: (Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 872.)

history & why it existsrecord from the source credit

1995Enacted · Pub. L. 104-88 · 109 Stat. 872

A history note hasn’t been published yet. The record shows enactment by Pub. L. 104-88 on 1995-12-29.

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