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Holding out


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4 GUIDELINES. to the public, A carrier becomes a common carrier when it "holds itself out" or to a segment of the public, as willing to furnish transportation within the limits of its facilities to any person who wants it. Absence of tariffs or rate schedules, transportation only pursuant to separately negotiated contracts, or occasional refusals to transport, are not conclusive proof that the carrier is not a common carrier. There are four elements in defining a common carrier; (1) a holding out of a willingness to (2) transport persons or property (3) from place to place (4) for compensation. This "holding out" which makes a person a common carrier can be done in many ways and it does not matter how it is done.


a. Signs and advertising are the most direct means of "holding out" but are not the only ones


b. A "holding out" may be accomplished through the actions of agents, agencies, or salesmen who may, themselves , procure passenger traffic from the general public and collect them into groups to be carried by the operator. It is particularly important to determine if such agents or salesmen are in the business of selling transportation to the traveling public not only through the '*group*' approach but also by individual ticketing on known common carriers.


c. physicaly holding out without advertising where a reputation to serve all is gained is sufficient to constitute an offer to carry all customers. There are many means by which physical holding out may take place. For example, the expression of willingness to all customers with whom contact is made that the operator can and will perform the requested service is sufficient. The fact that the holding out generates little success is of no consequence. The nature and character of the operation are the important issue.

Edited by A-aron
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Word of mouth has been sufficient in the past to establish that an individual has held out a willingness to provide transportation for persons or goods.


While general guidelines are provided, be aware that the FAA looks at each situation on a case by case basis. What this means for you is that if you are clearly in violation, you'll have no leg upon which to stand. If you're in what you think is a grey area, what little leg you have may be much shorter than you think.

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