The Hot Cargo Clause is a provision in a contract that allows the buyer to reject or refuse delivery of goods that have been damaged or spoiled during transportation. This clause protects the buyer from receiving goods that are no longer in a sellable condition and ensures that the seller is responsible for any damages incurred during shipping. The clause is commonly used in contracts for perishable goods or items that require specific temperature control during transportation.
A hot cargo clause is a provision in a contract that prohibits the transportation or handling of goods produced by non-union workers or in violation of labor agreements.
Hot cargo clauses are used to protect the interests of labor unions by preventing the transportation or handling of goods produced under unfair labor conditions.
Hot cargo clauses are generally legal, as they are protected under the National Labor Relations Act (NLRA) and are considered a legitimate exercise of a union’s right to engage in collective bargaining.
Employers can challenge hot cargo clauses if they believe they are being used in an unfair or discriminatory manner. However, such challenges are often difficult to succeed unless there is evidence of bad faith or an unreasonable burden on the employer.
Hot cargo clauses are typically included in collective bargaining agreements between labor unions and employers. However, they can also be included in other types of contracts, such as transportation or shipping agreements.
If a hot cargo clause is violated, the union may take legal action against the employer, such as filing a grievance or seeking an injunction to prevent the transportation or handling of the goods in question.
Hot cargo clauses can be waived or modified through mutual agreement between the union and the employer. However, any changes to the clause must be made in good faith and in accordance with applicable labor laws.
There may be exceptions to hot cargo clauses in certain circumstances, such as when the goods in question are perishable or when there is a legitimate safety concern that outweighs the enforcement of the clause.
Hot cargo clauses are generally enforceable against third parties, such as transportation companies or subcontractors, if they have knowledge of the clause and knowingly violate it.
Hot cargo clauses can be used in international trade, but their enforceability may vary depending on the laws and regulations of the countries involved. It is important to consult with legal experts familiar with international labor and trade laws when including hot cargo clauses in international contracts.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 13th April 2024.
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