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ITEM 503 Liability of CSA

CSA assumes no liability of deterioration of perishable products or on account of delays due to weather conditions and or conditions beyond CSA’s control.

ITEM 504 Acts of God – Definition

An Act of God is defined as an abnormal or unusual event which is strictly natural in origin with no human assistance or influence, including but not limited to tornadoes, earthquakes, floods and other catastrophic events of nature.

ITEM 505 Exceptions from Liability

CSA shall not be liable for loss, damage or delay to any of the goods described in the bill of lading caused by an Act of God, the Queen’s or public enemies, riots, strikes, a defect or inherent vice in the goods, the act or default of the consignor, owner or consignee authority of law, quarantine or differences in weights of grain, seed or other commodities caused by natural shrinkage.

ITEM 506 Delay

CSA is not bound to transport the goods by any particular vehicle or in time for any particular market or otherwise than with due dispatch unless by agreement specifically endorsed by an authorized manager of CSA in writing prior to the pickup of the shipment

Subject to reasonable requests CSA agrees to accept, transport and deliver with reasonable dispatch such merchandise as customer may tender to CSA for transportation. However CSA shall not be responsible for any damages, direct, indirect or consequential, which are the result of delay in delivery.

ITEM 507 Stoppage in Transit

Where goods are stopped and held in transit at the request of the party entitled to so request the goods are held at the risk of that party.

ITEM 508 Packing Requirements

When the proper packaging as provided in the NMFC is not adhered to and shipment is inadvertently accepted, CSA’s liability shall be limited to not exceed 10 cents per pound regardless of the RVNX shown on the bill of lading. If no specific packaging is provided in the NMFC and the commodity is shipped in an unprotected state (i.e. an uncrated machine shipped loose or on a skid) CSA’s liability shall be limited to not exceed 10 cents per pound.

ITEM 509 Valuation

Subject to the maximum liability clause 510, the amount of any loss or damage for which the carrier is liable, whether or not the loss of damage results from negligence, shall be computed on the cases of;

a) the value of the goods at the place and time of shipment including the freight and other charges if paid, or

b) where a value lower than that has been represented in writing by the consignor or has been agreed upon, such lower value shall be the maximum liability.

ITEM 510 Maximum Liability

The amount of any loss or damage computed under paragraph (a) or (b) of the above article shall not exceed $2.00 per pound (4.41 per kilogram) computed on the weight of the damaged or missing pieces unless a higher value is declared on the face of the bill of lading by the consignor, subject to ITEMS 501, 502, AND 511 .

ITEM 511 Declared Value

If the consignee has declared a value of the goods on the face of the bill which exceeds the MAXIMUM LIABILITY clause and CSA has agreed in writing to accept this shipment, the amount of any loss or damage for which CSA is liable shall not exceed the declared or actual value of the damaged or missing pieces. A charge of 2% of the value exceeding the $2.00 per pound, (4.41 per kilogram) shall be assessed

ITEM 512 Articles of Extraordinary Value

CSA is not bound to carry any documents or any articles of extraordinary value unless by a special agreement to do so. If such goods are carried without a special agreement and the nature of the goods is not disclosed, CSA shall not be liable for any loss or damage in excess of the maximum liability stipulated above.

ITEM 513 NOTICE OF CLAIM

1. All claims for loss, damage or delay must be filed within sixty (60) days of the date of delivery or in the case of non-delivery, within nine (9) months. The period for bringing a civil action against CSA will be two (2) years from the date CSA gives a person written notice that CSA has disallowed any part of the claim specified in the notice.

2. Claims not filed within the nine (9) months statute of limitations will be declined.

3. Customer shall not deduct or offset any cargo claim or other alleged claim or debt of CSA from the charges owed to CSA unless authorized in writing by CSA.

ITEM 514 Freight Charges

a) If required by CSA the freight and all other lawful charges accruing on the goods shall be paid before delivery and if upon inspection it is ascertained that the goods shipped are not those described in the bill of lading, the freight charges must be paid upon the goods actually shipped with any additional charges lawfully payable thereon.

b) Should consignor fail to indicate that a shipment is to ship prepaid, or fail to indicate how the shipment is to ship, it will automatically ship on a collect basis.

ITEM 515 Dangerous Goods

Every person, whether as principal or agent, shipping explosives or dangerous goods without previous full disclosure to CSA as required by law, shall indemnify CSA against a loss, damage or delay caused thereby and such goods may be warehoused at the consignor’s risk and expense.

ITEM 516 Undelivered goods

a) If through no fault of CSA the goods cannot be delivered, CSA shall immediately give notice to the consignor and consignee that delivery has not been made and shall request disposal instructions.

b) Pending receipt of such disposal instructions the goods may be stored in the warehouse of CSA subject to a reasonable charge for storage or if CSA has notified the consignor of this intention the goods may be removed to and stored in a public or licensed warehouse at the expense of the consignor, without liability on the part of CSA and subject to a lien for all freight and other lawful charges including a reasonable charge for storage.

ITEM 517 Return of Goods

If a notice has been given by CSA pursuant to ITEM 516 and no disposal instructions have been received within 10 (ten) days from the date of such notice, CSA may return to the consignor at the consignor’s expense, all undelivered shipments for which such notice has been given.

ITEM 518 Alterations

Subject to Item 518, any limitation on CSA’s liability on the bill of lading and any alteration to the bill of lading shall be signed or initialed by the consignor and the CSA driver or representative and unless signed and initialed shall be without effect.

ITEM 519 Weights

1. It shall be the responsibility of the consignor to show correct shipping weight of the shipment on the bill of lading.

2. If the actual weight of the shipment does not agree with the weight shown on the bill of lading CSA may correct the weight shown on the bill of lading.

ITEM 520 Shipper Load or Consignee Unload

A. Shipper Load.

When pre-arranged with CSA’s local operations, CSA will spot or drop trailer at the shipper’s loading facility so the shipper may load the trailers at their convenience. Any discrepancy on those shipments tendered under the Shipper Load and Count arrangement will be handled in the following manner;

1. At pickup, CSA will include "SL&C" on the bill of lading, indicating that the Shipper counted and loaded the shipment without a CSA driver being present.

The Shipper will properly block and brace the freight. CSA’s failure to note "SL&C" on the bill of lading will not affect the liabilities of the parties if the Shipper has in fact performed the counting and loading without a representative from CSA present.

2. CSA will provide seals for security purposes to the Shipper when requested. Failure to seal a load will not affect the terms and conditions outlined in this paragraph or tariff.

3. CSA will notify the Shipper’s representative by auto-fax of any exceptions within 24 hours of first unloading. This will not include weekends or holidays. CSA cannot be liable for uncountable palletized orders picked up and delivered with wrap intact.

4. Shortage claims filed will be thoroughly investigated. CSA will work with the Shipper to use overage, as mutually agreeable, to offset their liability on valid claims.

5. Shortages will be reported as above. The Shipper will advise CSA disposition of any merchandise that could or should be applied to a valid shortage. In the event of a Shipper caused shortage the Shipper will allow CSA to adjust the bill of lading accordingly to reflect actual piece count and weight.

6. CSA will not accept liability for any loss or damage to product that has not been properly reported unless the loss or damage is one of a concealed nature. In this respect, any claim following will be settled based on the findings of the investigation.

7. CSA can be responsible for handing units only as applicable and to the extent that a piece count can be verified. Individual item numbers and purchase order shortages at delivery shall not be deemed as shortages against CSA when the handling unit count matches the amount properly reported as received on the SL&C trailer.

8. CSA will not decline liability of claims just because the bill of lading is noted "SL&C." The burden is CSA’s to either provide a clear proof of delivery, a properly reported exception or payment of the claim. The Shipper agrees not to file claims when discrepancies have been properly reported.

B. Consignee Unload.

CSA will drop or spot trailers at the Consignee’s facility so the receiver may unload the trailers. Any discrepancy on those shipments tendered as "CONSIGNEE UNLOAD" will be handled in the following manner unless a separate agreement is already established and signed in place;

1. CSA agrees to spot or drop trailers at Consignee’s place of business for the purpose of Consignee completing the unloading process within normal free time or as otherwise agreed to in writing.

2. Consignee will not utilize CSA’s equipment for any use other than the express purpose of unloading.

3. When the Consignee fails to report to CSA’s local service centre that equipment is empty and available to CSA for removal it will be subject to detention rules and charges.

4. Consignee will accept liability for any and all damages occurring to CSA’s equipment or for the loss of CSA’s equipment while in its physical possession, other than normal wear and tear or an Act of God. Consignee will promptly reimburse CSA for the cost or repairing or replacing such equipment.

5. CSA will note "CONSIGNEE UNLOAD" on the delivery receipt, indicating that the Consignee unloaded and counted the shipments without CSA’s driver present. CSA’s failure to note "CONSIGNEE UNLOAD" on the delivery receipts will not affect the liabilities of the parties if the Consignee has in fact performed the counting and unloading without a representative from CSA present.

6. CSA will provide sealed trailers with CSA’s seal number documented for security purposes. Failure to seal a load will not affect the terms and conditions outlined in this item.

7. CSA shall not be liable for uncountable palletized orders picked up and delivered with shrink wrap intact or for Shipper Load and Count orders that have been properly reported to the Shipper at first unloading.

8. Delivery receipts will be signed by the Consignee at the time the trailer is dropped for unloading or, if not operationally feasible, will be available to CSA no more than 24 hours after delivery.

a) the Consignee agrees to notify CSA by fax on a mutually approved form of any exceptions within 24 hours of the trailer being dropped. This will not include weekends or holidays. CSA shall not be liable for exceptions reported after 24 hours of trailer being dropped.

b) notice of any exception is to be faxed on the mutually approved form to the attention of the local service centre’s OS&D associate.

9. CSA shall only be responsible for handling units as signed for and tendered by Shipper Individual item numbers and purchase order shortages shall not be deemed shortages against CSA when the handling unit count matches the amount signed for at time of pickup or, as applicable, properly reported received on a Shipper Load and Count trailer.

10. Shipments tendered to the Consignee to be unloaded at their convenience are to be secured by the Consignee in a manner to prevent theft. CSA will not be held responsible for stolen product while in the possession of the Consignee.

11. CSA agrees not to decline liability of claims just because the delivery receipt is noted CONSIGNEE UNLOAD. The burden is CSA’s to provide a clear proof of delivery when the documents are returned to CSA. It is the Consignee’s responsibility to provide a properly reported discrepancy with dated fax confirmation for payment of the claim. The Consignee agrees not to file claims when discrepancies have not been properly reported.

12. The consignee will accept liability for any loss or damage to product that has not been properly reported unless the loss or damage is of the concealed nature reported within 15 days of the trailer being spotted for unloading. In this respect, concealed damage claims will be settled based on supporting facts and merits of the investigation.