The Broker Carrier Agreement serves as the fundamental contract governing the relationship between freight brokers and motor carriers in the United States. This document is essential when establishing a formal business relationship for the movement of freight, ensuring compliance with FMCSA regulations and federal transportation laws. The agreement covers critical aspects such as service expectations, insurance requirements, payment terms, and liability allocation, while incorporating necessary protections for both parties. It's particularly important given the complex regulatory environment of interstate commerce and the need for clear operational guidelines in the transportation industry.
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1. Parties: Identification of broker and carrier, including MC numbers and legal details
2. Background: Context of the agreement and basic relationship structure
3. Definitions: Key terms used throughout the agreement
4. Scope of Services: Detailed description of transportation services to be provided
5. Carrier Responsibilities: Obligations regarding equipment, personnel, and compliance
6. Compensation and Payment Terms: Rate structure, payment timing, and dispute procedures
7. Insurance Requirements: Required coverage types and minimum limits
8. Indemnification: Mutual protection and liability allocation
9. Term and Termination: Duration and conditions for ending the agreement
1. Non-Compete Clause: Restrictions on working with competitors - use when protecting established customer relationships
2. Technology Integration: Requirements for using specific software or systems - use when broker requires specific tracking or management systems
3. Fuel Surcharge Program: Terms for fuel cost adjustments - use when implementing variable pricing based on fuel costs
1. Rate Schedule: Detailed pricing structure and lanes
2. Insurance Certificates: Copies of required insurance documentation
3. Operating Authorities: Copies of licenses and permits
4. Safety Protocol: Detailed safety requirements and procedures
5. Equipment Standards: Specifications for acceptable equipment
Relevant legal definitions
Clauses
Relevant Industries
Relevant Teams
Relevant Roles
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