Border Patrol Practice Exam 2025 - Free Border Patrol Test Questions and Preparation Guide

Contract carriers are liable for cargo damage primarily based on the specifics of their contract with the shipper. Unlike common carriers, which operate under set rates and obligations defined by law, contract carriers negotiate individual agreements that outline their responsibilities and liabilities regarding the transportation of cargo. These agreements can specify various conditions, including limits of liability and the circumstances under which they would be responsible for damages.

The nature of these contracts allows for flexibility and can encompass different terms related to risk management. Therefore, the liability of contract carriers hinges on the precise terms agreed upon in their contracts, making them distinct from the broader regulatory framework that governs common carriers. This nuanced understanding of liability is critical for both shippers and carriers when entering into agreements regarding the transportation of goods.