CUSTOMER TERMS AND CONDITIONS

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By tendering Goods to Hannic, You (Shipper, Customer, or You) agree to be bound by these Terms and Conditions. The parties enter into these Terms and Conditions in accordance with 49 U.S.C. Section 14101(b)(1) and expressly waive any and all rights and remedies that each may have under 49 U.S.C. §§ 13101 through 14914 that are contrary to specific provisions of these Terms and Conditions.

 

1.  Parties

Customer is a Shipper and/or Consignee of certain Goods it wishes to have transported.  Hannic is a transportation broker licensed by the Federal Motor Carrier Safety Administration (FMCSA) in Docket Number MC 211823 to arrange for the transportation of general commodities ("Goods") by motor carriers ("Carriers").  Hannic is not a freight forwarder, common carrier, or contract carrier.

 

2.  Services

Hannic's responsibility is limited to arranging for, but not actually performing, transportation of the Goods. These Terms and Conditions apply to all transportation services arranged by Hannic on Your behalf. 

 

3.  Independent Contractors

The relationship between the Parties is and will remain that of independent contractors and no employer/employee or principal-agent relationship exists or is intended.

 

4.  Compensation

A. Hannic will invoice You for its services based on these Terms and Conditions, Hannic Schedule 100, and negotiated rates and charges.

B. You agree to pay Hannic within 15 calendar days of invoice date without deduction or setoff.  Hannic may assess a service charge of 1 ½% per month (or the highest lawful rate, if less) on any late payments.

C. If You do not pay the invoiced amounts, Hannic may commence a civil action to recover such invoiced amounts within 24 months of delivery or tender of delivery of the shipments involved.

 

5.  Bills of Lading and Other Shipping Documents

Your insertion of Hannic's name on any bill of lading or shipping document will be for Your convenience only and will not change Hannic's status as a broker.  The terms and conditions of any documentation used by Shipper or a Carrier will not supplement, alter, or modify the terms of these Terms and Conditions.

 

6.  Loss, Damage, or Delay of the Goods

A. Hannic is not liable for loss, damage, or delay in connection with the transportation of Goods.  If requested by You and agreed to by Hannic, Hannic may assist You in filing and/or processing claims with Carriers.

B. Carriers are not liable for the following: (1) damage to the Goods to the extent due to packaging, loading, unloading, blocking, bracing or securing of the Goods (unless Carrier has provided loading or unloading services at Your request, in which case such Carrier may be liable for cargo damage caused by such loading or unloading services), (2) inherent vice or defect in the Goods, including rusting of metals, swelling of wood caused by humidity, moisture or condensation, or deterioration of perishable products; (3) an act of God or the public enemy; (4) any act or default of any Shipper, consignee, consignor, or beneficial owner of the Goods; (5) any act taken under authority of law; or (6) any act of war or terrorism.

C. Carrier’s liability for cargo loss, damage, and delay will be the least of the following:

(1)The actual value of the Goods

(2)$10 per pound or

(3)$100,000 per shipment

D. Any claim for cargo loss, damage, or delay must be filed against the responsible Carrier within 9 months of the date of delivery of Goods, or in the case of non-delivery, within 9 months of the date delivery should have been made.  Notice to Hannic does not constitute filing of claim with a Carrier.  Any suit or other legal action to recover for cargo loss, damage, or delay, must be commenced against a Carrier no later than 2 years after declination of the cargo claim by the Carrier.

 

7.  Consequential Damages

Under no circumstances will Hannic or Carrier be liable for consequential, indirect, incidental, or punitive damages of any kind.

 

8.  Your Obligations

A. You are responsible for ensuring that Goods are properly and safely loaded, supported, blocked, braced, and secured.  You will be responsible for expenses arising out of any load shift that occurs during transportation due to improper or insufficient loading, blocking, or bracing.

B. You must provide necessary shipping instructions and properly identify all Goods in the bill of lading or other shipping instructions.  You must not tender any restricted commodities, including but not limited to hazardous materials and waste, oversize or overweight shipments, coiled or rolled products or commodities requiring protection from heat or cold, without properly identifying such shipments and making necessary prior arrangements for transportation.

C. Unless You have requested that Hannic arrange for a Carrier to provide driver count services before dispatch and the Carrier performs such driver count services, You are responsible for properly counting and recording the number of pieces transported and applying a protective seal to the loaded equipment.

D. You are responsible for checking all empty containers or trailers tendered for loading and rejecting any equipment that is not in apparent suitable condition to protect and preserve the Goods during transportation.

E. If You request that Hannic arrange for equipment to be dropped at a location for Your convenience and left unattended by Carrier, You and Your consignors or consignees will not lose, damage, or misuse the equipment and You will pay for loss or damage to the equipment occurring during or as a result of such custody, control, possession or use of the equipment.

 

9.  Hazardous Materials

You must provide Hannic with advance notice of the proposed shipment of any hazardous material, as defined in 49 U.S.C. §5101, et seq. ("Hazardous Material") and provide a copy of the Material Safety Data Sheet for that Hazardous Material.  Shipper will indemnify, defend and hold harmless Carriers and  Hannic, their officers, employees, agents and insurers, against all claims, liabilities, losses, fines, legal fees and other expenses arising out of contact with, exposure to, or release of any Hazardous Material, including without limitation fines or expenses relating to the removal r treatment of that Hazardous Material or any other remedial action pertaining to that Hazardous Material under the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §9601, e seq. as amended ("CERCLA"), The Resource Conservation and Recovery Act, 42 U.S.C. §6901, et seq, as amended ("RCRA") or any comparable state law.

 

10.  Indemnification

You must defend, indemnify and hold Hannic, Hannic's employees and agents, and Carriers harmless against any losses caused by or resulting from (i) Your or Your employees' or agents' negligence or intentional misconduct, (ii) Your breach of these Terms and Conditions, or (iii) Your or Your employees' or agents' violation of applicable laws or regulations.  You shall also indemnify Hannic from any attempts to recover from Hannic by Your insurance carrier or any other party in regards to claims for loss, damage, or delay to Goods.  The obligation to defend includes payment of all reasonable costs of defense, including attorney fees, as they accrue.

 

11.  Information Systems  

Any management information system or computer hardware or software used or supplied by Hannic in connection with the Services is and will remain Hannic's exclusive property.  All management information systems and related computer software and documentation used or supplied by Hannic are proprietary to Hannic, and You will treat all such systems as confidential and not copy, use, or disclose them to third parties without Hannic's prior written consent, except as required by law.

 

12.  Jurisdiction and Venue  

A. These Terms and Conditions are governed by and construed in accordance with the applicable federal laws of the United States, or, alternatively, and depending on jurisdiction, the laws of the State of Illinois.

B. The parties agree to jurisdiction and venue in a United States Federal District Court located in Illinois, or if federal jurisdiction is not available, then in a State Court located in Cook County, Illinois.

 

13.  Force Majeure 

If performance by one Party is affected by any condition beyond the reasonable control of such Party, the performance of obligations under the Terms and Conditions (other than Your obligation to pay for Services performed) affected by such condition will be suspended during the continuance of such condition.  The Carriers engaged by Hannic will be permitted an extension period equal to the period of suspension in order to complete shipments adversely affected by the suspension.  Neither Party will incur any liability for damages resulting from such suspensions.

 

14.  Notice 

Any notices and other communications required or permitted under the Terms and Conditions must be in writing and be (1) delivered personally, (2) sent by facsimile or e-mail transmission if confirmed by notice sent by one of the other notice methods permitted in this paragraph, (3) sent by nationally recognized overnight courier guaranteeing next business day delivery, or (4) mailed by registered or certified mail (return receipt requested), postage prepaid, to Hannic at the following addresses (or at such other addresses as are specified by like notice):

Hannic Inc.

PO Box 445

Plainfield, IL 60544

           

All such notices and other communications will be deemed to have been given and received (1) in the case of personal delivery, on the date of such delivery, (2) in the case of facsimile or e-mail transmission that is confirmed by notice sent on the same day by one of the other methods permitted, on the date of transmission if sent on a business day (or if sent on other than a business day, on the next business day after the date sent), (3) in the case of delivery by nationally recognized overnight courier, on the business day following dispatch if sent by guaranteed next day delivery, or (4) in the case of mailing, on the third business day following such mailing.

 

15.  Confidentiality

A. As part of the business relationship between You and Hannic, either Party may be in or come into possession of information or data that constitutes trade secrets, know-how, confidential information, marketing plans, pricing, or anything else otherwise considered proprietary or secret by the other (“Confidential Information”).  In consideration of the receipt of such Confidential Information and potential business, each Party agrees to protect and maintain such Confidential Information in the utmost confidence, to use such Confidential Information solely in connection with their business relationship, and, to take all measures reasonably necessary to protect the Confidential Information.

You agree that Hannic's costs for services is confidential and need not be disclosed to You.  You specifically waive any rights You may have under 49 CFR § 371.3.

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