[Code of Federal Regulations]

[Title 49, Volume 5]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 49CFR375.211]



[Page 89-90]

 

                        TITLE 49--TRANSPORTATION

 

                      DEPARTMENT OF TRANSPORTATION

 

PART 375_TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE COMMERCE; 

CONSUMER PROTECTION REGULATIONS--Table of Contents

 

           Subpart B_Before Offering Services to My Customers

 

Sec. 375.211  Must I have an arbitration program?



    (a) You must have an arbitration program to resolve property loss 

and damage disputes for individual shippers. You must establish and 

maintain an arbitration program with the following 11 minimum elements:

    (1) You must design your arbitration program to prevent you from 

having any special advantage in any case where the claimant resides or 

does business at a place distant from your principal or other place of 

business.

    (2) Before execution of the order for service, you must provide 

notice to the individual shipper of the availability of neutral 

arbitration, including all three of the following items:

    (i) A summary of the arbitration procedure.

    (ii) Any applicable costs.

    (iii) A disclosure of the legal effects of election to use 

arbitration.

    (3) Upon the individual shipper's request, you must provide 

information and forms you consider necessary for initiating an action to 

resolve a dispute under arbitration.

    (4) You must require each person you authorize to arbitrate to be 

independent of the parties to the dispute and capable of resolving such 

disputes, and you must ensure the arbitrator is authorized and able to 

obtain from you or the individual shipper any material or relevant 

information to carry out a fair and expeditious decisionmaking process.

    (5) You must not charge the individual shipper more than one-half of 

the total cost for instituting the arbitration proceeding against you. 

In the arbitrator's decision, the arbitrator may determine which party 

must pay the cost or a portion of the cost of the arbitration 

proceeding, including the cost of instituting the proceeding.

    (6) You must refrain from requiring the individual shipper to agree 

to use arbitration before a dispute arises.

    (7) Arbitration must be binding for claims of $5,000 or less, if the 

individual shipper requests arbitration.

    (8) Arbitration must be binding for claims of more than $5,000, if 

the individual shipper requests arbitration and the carrier agrees to 

it.

    (9) If all parties agree, the arbitrator may provide for an oral 

presentation of a dispute by a party or representative of a party.

    (10) The arbitrator must render a decision within 60 days of receipt 

of written notification of the dispute, and a decision by an arbitrator 

may include any remedies appropriate under the circumstances.

    (11) The arbitrator may extend the 60-day period for a reasonable 

period if you or the individual shipper fail to



[[Page 90]]



provide, in a timely manner, any information the arbitrator reasonably 

requires to resolve the dispute.

    (b) You must produce and distribute a concise, easy-to-read, 

accurate summary of your arbitration program, including the items in 

this section.



[68 FR 35091, June 11, 2003, as amended at 69 FR 10575, Mar. 5, 2004]