A Trucking Company Can Act as a Common Carrier-For Hire

Multiple Choice

A trucking company can act as a common carrier-for hire to the general public at published rates. As a common carrier, it is liable for any cargo damage, unless the company can show that it was not negligent. If the company can demonstrate that it was not negligent, then it is not liable for cargo damage. In contrast, a contract carrier (a trucking company hired by a shipper under a specific contract) is only responsible for cargo damage as spelled out in the contract. A Claus Inc. tractortrailer, acting under common carrier authority, was in a 5-vehicle accident that damaged its cargo. A Nichols Inc. tractor-trailer, acting under contract carrier authority, was involved in the same accident, and its cargo was also damaged.

A) If Claus Inc. is liable, then it can show that it was not negligent
B) If Claus Inc. cannot show that it was not negligent, then it is not liable
C) If Claus Inc. can show that it was not negligent, then it is not liable
D) If Nichols Inc. is liable, then it cannot show that it is negligent
E) If Nichols Inc. can show that it is not negligent, then it is not liable