SKELTON TRUCK LINES
Service Terms and Conditions
(Canada and U.S.A.)

These Service Terms and Conditions (Canada and U.S.A.) (“Agreement”) govern Skelton’s transportation services for customers (“Customer”) without a separate written agreement. Skelton Truck Lines, Inc. (“Creditor” or “Carrier “or “STI”) is licensed in the U.S.A. as contract carrier under MC-948721; DOT-2835780. Skelton Truck Lines, Ltd (“Creditor” or “Carrier” or “STL”), is a licensed in the U.S.A. and in Canada as a motor carrier under MC-185997 DOT-292662. Together, Customer, STI and STL shall be the “Parties”.

Governing Law. For services provided under United States’ law, this agreement shall be governed by the laws of North Carolina, except the North Carolina conflicts of laws principles. . For such services, any dispute or suit arising under this Agreement shall be adjudicated in the state or federal courts of Wake County, North Carolina. For services provided under Canadian Federal or Provincial law, this Agreement shall be governed by the laws of the Province of Ontario, Canada. Without expressly waiving rights and remedies under United States’ and/or Canadian laws, to the extent the terms of this Agreement are inconsistent with such laws, the Parties agree this Agreement shall govern.

General Cargo Liability Terms. Cargo loss or damage liability shall be determined by the location where the loss or damage occurred, regardless of any through bill of lading, rate confirmation sheet, carta de porte, service order, or similar document. Customer fully understands that Carrier will accept higher cargo liability levels at higher quoted rates, but Customer freely chooses this liability level as sufficient for its needs, and agrees these limitations are reasonable under the circumstances, including the cargo’s value, Creditor’s rates, and Customers ability to obtain its own cargo insurance. Unless Customer has provided advance written request to Creditor of its desire to obtain additional insurance (for high value or exempt goods) and the applicable additional charges are paid, Customer warrants that it is fully authorized, by ownership or otherwise, to agree to these limitations, and Customer will defend, indemnify and hold harmless Creditor against any claims (and legal expenses) for greater or other liability asserted by any consignee, subrogee or other claimant regarding such cargo. Creditor and Carrier are shall not be liable for loss or damage to cargo caused by an act of God, a public enemy, a public authority, legal strike, an act or omission of Customer, the inherent vice or nature of the cargo, theft, any other act or situation beyond Carrier’s control.

Cargo Liability in the United States. Cargo liability and claims shall be governed by 49 U.S.C 14706 and 49 C.F.R Part 370. Cargo liability is limited to actual loss or damage of cargo, minus salvage value, not to exceed $100,000 USD per shipment. If Customer gives advance written notice of higher value load before tendering its cargo for shipment by Carrier, Carrier’s cargo liability shall be limited to the declared higher value and will be subject to a 5% excess valuation charges on any amounts in excess of $500,000 USD. In no event shall Creditor be liable to Customer for any special, incidental, punitive, exemplary, or consequential damages that relate to loss, damage, or delay of a shipment.

Cargo Liability in Canada. Cargo liability is limited to actual loss or damage of the cargo, minus salvage value, not to exceed either (a) $2.00 CDN per pound computed on the total weight of the shipment or (b) declared extraordinary value, and will be subject to a 5% excess valuation charges on any amounts in excess of $100,000 CDN. Creditor will not be liable to Customer or owner for consequential damages or indirect losses, including loss of market.

Presenting Claims. Carrier shall not be liable for any claims not presented to it, in writing, within 90 days of the date or loss or incident giving rise to such claim. No suit to recover any claim or demand under these Terms and Conditions may be brought against Carrier unless such suit is filed in a court of competent jurisdiction within 6 months after presentation of such claim.

Refused Shipment – Warehouseman/Storer Liability (U.S.A. and Canada). If Creditor is unable to deliver shipment due to consignee refusal, fault or mistake of Customer or consignee or upon instruction of Customer to hold shipment in transit, Creditors liability shall immediately be that of a warehouseman/storer with a duty to exercise such care and diligence in regard to them as a careful and vigilant owner of similar goods would exercise. Creditor shall be entitled to possessory and non-possessory lien rights and may dispose/sell lading 10 days after providing notice to Customer. Customer shall pay for storage and warehousemen/storer costs minus salvage value. Customer agrees perishable lading will be disposed of at Creditor’s sole discretion.

Payment. Customer agrees to be unconditionally liable for all charges, fees and costs any authorized person incurs on Customer’s account net 15 days from date of Creditor’s invoice, without offset for any disputes or claims, including freight claims, overcharges, duplicate payments, and or disputed invoices. Late charges of1.5% (U.S.A.) and 2% (Canada) compounded monthly shall commence on the 31st day after the date of the Creditor’s invoice, until paid. Customer authorized its bank, any credit reporting agencies, any other financial institutions and any other creditors to release credit and financial information to Creditor and hereby expressly waives any rights to privacy or confidentiality concerning such information as may be provided under any federal, provincial, territorial, state. or statute, regulation, or policy.

Indemnification by Creditor. Creditor shall indemnify, defend and hold Customer and its employees and agents harmless from and against all claims, liabilities, duties, taxes, losses, damages, fines, penalties, payments, costs and expenses (“Claims”) (including, without limitation, costs of defense, settlement, and reasonable attorneys’ fees), including any storage, demurrage, port or terminal charges caused by and resulting from (i) the negligence or intentional misconduct of Creditor or its employees or agents; (ii) Creditor’s employees’ or agents’ violation of applicable laws or regulations; and/or (ii) Creditors debts or obligations regarding wages, salaries, taxes, or benefits of its employees. The foregoing indemnity shall not apply to any Claim caused in whole or in part by the negligent acts or omissions of Customer.

Indemnification by Customer. Customer shall indemnify, defend, and hold Creditor, its affiliated companies, its employees and agents harmless from and against all Claims caused by and resulting from (i) the negligent act or omission or willful misconduct of Customer, its employees or agents; (ii) the inherent vice or nature of the commodities being transported, including but not limited to, any and product liability claims related to such commodities; (iii) the violation of any applicable law or regulation by Customer or its employees or agents; and/or (iv) Customer’s debts or obligations regarding wages, salaries, taxes or benefits of its employees. The foregoing indemnity shall not apply to any Claim caused in whole or in part by the negligent acts or omissions of Creditor.

Governmental Requirements. Customer agrees and acknowledges its responsibility to comply with declaration, marking, and all requirements of the respective U.S. and Canadian Customs Services, the respective regulations of the U.S. Food and Drug Administration and Health Canada, and any other statues, rules, and regulations of any Federal, state, provincial, and/or local authorities applicable to Customer’s goods (collectively the “Requirements”). The “Indemnification by Customer” section of these Terms and Conditions shall govern any violation by Customer of the foregoing Requirements.

Logo/Trademark. Customer shall not use Skelton’s name, logo, trademarks, or trade names whether written or oral, without obtaining Skelton’s prior written consent, which consent may only be given at Skelton’s sole discretion.

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