Legal Question in Business Law in Texas

Billing freight

As a distributor, can you increase freight costed to you and make a profit from your customer? This is concerning the issue when the vendor invoices you for freight within an invoice for material. Does it matter whether or not the freight company cost a set cost (ie UPS) or if it's subject to change (ie Saia).


Asked on 12/14/05, 12:49 pm

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Billing freight

In addition to Charles White's response, consider the general "Shipping & handling" to cover freight plus overhead, etc.

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Answered on 12/14/05, 7:23 pm
Charles White Charles G. White

Re: Billing freight

I will asssume that as a "distributor" you are an independent contractor, meaning that you are at liberty to set your own prices without being required to show freight charges separately. However, if you elect to show freight as a separate charge to your customer, the freight charge should be honestly stated, with an explanation for any variation from actual freight cost (which can be more if the increase is honestly explained). Otherwise, you are setting yourself for a deceptive trade practice claim.

In summary, use a selling price without listing a freight charge, or if a freight charge is shown separately, be honest about it.

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Answered on 12/14/05, 1:51 pm


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