Life and Family

Doing Your Job

My contract I have states that I'm supposed to get reasonable mileage per month. What’s reasonable? And, is it legal to charge me $200 for administration for my truck loan?

The reason carriers use a word like ‘reasonable’ in a contract is that it’s practically impossible to define. What’s reasonable for you may be 10,000 - 12,000 miles, while for the carrier ‘reasonable’ may be only 4,000 - 5,000 miles. Reasonable means nothing, so the term can’t be defined under any set of criteria except what you believe is reasonable and what they think is reasonable. In other words, it’s like trying to define how high is the sky?

As for the other part of the question... It would be legal for the carrier to charge you $2,000 per month in administration for the truck loan if you agreed to it in the contract. They set the price and you agreed to pay it when you accepted the deal.

This question really underscores the need for the owner-operator to seek some legal advise before entering any kind of contract with a carrier. If you aren’t sure what something means, then for heaven’s sake ask a lawyer. It’s a lot cheaper to pay a lawyer $100 for a bit of advice that to be stuck paying $200 per month to the carrier over and above the cost of the truck.

You pays your money, you takes you chances. You should be taking steps to protect your own interests in any kind of a deal like this.
Jim Park