Legal Definitions - Motor Carrier Act

The Motor Carrier Act was a significant federal law in the United States, first established in 1935. Its primary purpose was to regulate commercial businesses that transported goods (freight) or people (passengers) across state lines using motor vehicles, such as trucks and buses. This regulation initially fell under the authority of the Interstate Commerce Commission (ICC) and later the U.S. Department of Transportation (DOT). The Act aimed to ensure fair practices, safety standards, and stable pricing within the interstate trucking and bus industries. It's important to note that the Motor Carrier Act was eventually repealed in the 1980s as part of broader deregulation efforts.

Here are some examples illustrating the application of the Motor Carrier Act during its active period:

• Imagine a trucking company in the 1950s that wanted to expand its operations from delivering furniture solely within the state of Ohio to also transporting goods into Pennsylvania and New York. Under the Motor Carrier Act, this company would have been required to apply for a certificate of public convenience and necessity from the Interstate Commerce Commission. They would need to demonstrate that there was a public need for their proposed interstate service and that they met specific safety and financial requirements before they could legally operate across state lines.

  This example illustrates how the Act regulated commercial freight carriers operating in interstate commerce, mandating that they obtain official permission and adhere to specific regulations set by the ICC before expanding their routes.

• In the 1960s, a new bus line sought to offer routes connecting major cities like Chicago, St. Louis, and Kansas City. Before the company could begin selling tickets and operating these interstate routes, the Motor Carrier Act mandated that they submit their proposed fares and schedules to the Interstate Commerce Commission for approval. The ICC would review these submissions to ensure they were reasonable and non-discriminatory, thereby preventing predatory pricing or unfair competition among passenger carriers.

  This highlights the Act's role in regulating commercial passenger carriers (bus lines) involved in interstate travel, specifically regarding the approval of fares and schedules to maintain fair practices and protect consumers.

• During the 1970s, a large national trucking firm was accused by smaller regional carriers of using aggressive pricing strategies to drive them out of business on interstate routes. Because of the Motor Carrier Act, the smaller carriers could file a complaint with the Interstate Commerce Commission. The ICC had the authority to investigate such claims and intervene to ensure fair competition and prevent monopolistic practices within the interstate freight industry, protecting smaller businesses from being unfairly squeezed out.

  This demonstrates the Act's function in overseeing competitive practices and ensuring a level playing field among commercial motor carriers operating across state lines, utilizing the ICC's regulatory power to maintain market fairness.