What happens if a shipper does not notify the carrier of a lower liability limit under the Carmack Amendment?

Under the Carmack Amendment, if a shipper fails to notify the carrier of a lower liability limit, the carrier retains full liability for any loss or damage that occurs during transport. This provision aims to protect shippers by ensuring they are aware of the carrier’s liability terms before transporting their goods.

If a shipper does not make the carrier aware of a lower liability limit, the carrier defaults to their maximum liability as established in the contract of carriage. This means the shipper can hold the carrier fully accountable for any losses or damages, as the carrier’s responsibility is not diminished without such notification.

The other options do not reflect the legal implications of the Carmack Amendment. Limited or partial liability would only apply if the shipper explicitly communicated a lower limit at the time of shipping. Similarly, the idea that the shipper would be exempt from responsibility is contradictory to the regulations, as the shipper retains the responsibility of informing the carrier regarding liability.