ABF Freight System, Inc. - General Policies

ABF General Policies

Cargo Loss and Damage Claims - ABF will assume liability for cargo loss and damage claims under the laws applicable to common carriage in effect on the date of the shipment and the terms and conditions of the Uniform Straight Bill of Lading (ABF International Bill of Lading, the applicable Canadian Bill of Lading or Mexican law when applicable), except ABF's liability shall not exceed the lesser of:

the actual value; or,
the lowest released value provided in ABF 100 Series or in STB NMF 100 Series,
$100,000 per shipment; or,
any general statutory or regulatory domestic or international cargo liability limitations

the maximum per pound per lost or damaged package outlined in Table A herein, for the weight of each article tendered on the shipment. Maximum liability will be derived from the actual class of the article tendered (as published in ABF 100 Series or in STB NMF 100 Series); or derived from the applicable FAK or class exception rating if charges are determined by application of an FAK or class exception rating

TABLE A
Class/FAK	Maximum Liability *	Class/FAK	Maximum Liability *	Class/FAK	Maximum Liability *
50	$ 2.00	85	$15.00	175	$25.00
55	$ 2.00	92.5	$20.00	200	$25.00
60	$ 3.00	100	$20.00	250	$25.00
65	$ 5.00	110	$25.00	300	$25.00
70	$ 7.00	125	$25.00	400	$25.00
77.5	$10.00	150	$25.00	500	$25.00
* Maximum liability is per pound per lost or damaged package.

for shipments originating in Canada, $2.00 Canadian per pound computed on the total weight of the damaged goods in the shipment (subject to the Canadian Bill of Lading), unless shipper clearly requests in writing, at the time of shipment, excess liability coverage in accordance with Item 780-1, ABF 111 Series.
for shipments moving in through trailer service by ABF from or to a point in Mexico, ABF's liability will not exceed $0.50 per pound per lost or damaged package during the portion of the transportation within Mexico, unless shipper clearly requests in writing, at the time of shipment, excess liability coverage in accordance with Item 780-1, ABF 111 Series.
for shipments moving under special services or special pricing options, see specific provisions noted in Item 780-1, ABF 111 Series.

The Customer may request, in writing in the section or box designated "Kind of Package, Description of Articles, Special Marks and Exceptions, or some similarly marked area of the bill of lading at the time of shipment, excess liability coverage in accordance with Item 780-1, ABF 111 Series. A statement of value without an express request for excess coverage will not increase ABF's liability, and charges for excess liability coverage will not be assessed.

For complete liability limitations provisions regarding cargo loss and damage claims see Item 780-1, ABF 111 Series.

ABF will investigate and dispose of cargo loss and damage claims under common carrier provisions as set forth in 49 C.F.R. Part 370, and NMF 100 Series, Items 300100 through 300155. Cargo claims must be filed within nine months after the delivery of the freight, except that for failure to make delivery must be filled within nine months after a reasonable time for delivery has elapsed. Subject to the foregoing, any action at law for cargo claims shall be instituted no later than two years and one day from the day when written notice of disallowance of claim is given.

ABF SHALL NOT BE LIABLE, AND HEREBY DISCLAIMS RESPONSIBILITY, FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL PUNITIVE, OR MULTIPLIED DAMAGES OR OTHER INDIRECT COSTS, LOST PROFITS, FEES, OR CHARGES OF ANY KIND ARISING FROM ANY FREIGHT CLAIMS FILED HEREUNDER OR ANY OTHER ACTS, INCLUDING DELAYS OR OMISSIONS OF ABF, WHETHER FORESEEABLE, DISCLOSED OR NOT.

Documentation - Transportation will be governed by the Uniform Straight Bill of Lading as shown in the NMFC, whether the document provided at shipment origination is a paper bill of lading, manifest or electronic transmission. ABF's responsibility concerning each instance of transportation service will begin at the time ABF executes the bill of lading.

ABF's President, Senior Vice President-Yield Management & Strategic Development, and Director-Pricing are the only representatives or employees authorized to sign agreements or contracts covering the price, terms and conditions of ABF's transportation services. No other employee or representative of ABF is authorized to sign such agreements or contracts on behalf of ABF.

The signature of an ABF employee on the bill of lading only acknowledges receipt of the freight and does not change the price, terms or conditions of movement. Continued use of an unauthorized bill of lading by the shipper will not constitute an implied acceptance by ABF.

Indemnification - See Item 568, ABF 111 Series.

Independent Contractor - ABF will perform each instance of transportation as an independent contractor and will be responsible for the operation and maintenance of its equipment and customary expenses. ABF assumes and Customer disclaims any and all responsibility for the control, direction, and supervision of ABF's employees and agents. ABF further assumes absolute responsibility to its employees for the payment of wages, all federal, state, local or other employment taxes, pensions, social security, or other related protection, unemployment, Workers' Compensation or other insurance, benefits, costs or expenses related to the employment of ABF's employees, and ABF will comply with any and all laws, rules or regulations concerning such.

Insurance - ABF operates as an interstate carrier self-insured to $1,000,000 auto liability under authority granted by the Federal Highway Transportation Administration (FWHA). In addition to this self-insurance, ABF provides excess coverage in limits greater than those required by Title 49 of the United States Code of Federal Regulations. General liability and worker's compensation insurance or self-insurance are also provided in sufficient limits. ABF offers limited liability coverage for motor truck cargo and ocean cargo (to the extent covered by the Carriage of Goods by Sea Act). ABF's liability for cargo liability is limited by law and by ABF's individual rules.

Overcharges - ABF will assume responsibility for freight bill overcharge, unidentified or duplicate payment claims under 49 U.S.C. Section 14705 (b), and will investigate and dispose of such claims as set forth in 49 C.F.R. Part 378, and NMF 100 Series, Items 300201 through 300209. It is ABF's policy to refund verified over collections upon discovery, without requiring claim application.

The NRA, TIRRA and ICCTA established limitations for filing overcharge/undercharge claims or challenging rates. For a shipment tendered after August 25, 1994, such claim or challenge must be received within 180 days after receipt of ABF of the shipment.

Payment Terms - Upon approved credit, ABF extends normal credit terms of 15 days. Payment terms are granted after a credit review has been performed and credit approved. Credit is retained through continued full and prompt payment. Invoices for payment are mailed within 3 days of pickup on prepaid shipments and within 2 days of delivery of collect shipments. Bills can be transmitted electronically via EDI 210 formats.

COD Shipments - ABF will accept Collect on Delivery (COD) shipments subject to the following forms of payment:

(1)	cash up to a maximum of $500.00;
(2)	bank cashier's check;
(3)	bank certified check;
(4)	money order; Note - Each of these first four forms will be accepted as interchangeable with the other three.
(5)	personal check of the consignee when so authorized in writing by the consignor.

ABF will accept checks and money orders only as the agent of the consignor and ABF's responsibility is limited to the due care and diligence in forwarding such checks to the designated recipient. The risk of nonpayment in COD shipments due to forgery or fraud is to be borne by the consignor. ABF will not be responsible for guaranteeing that a check is legitimate.