AD Banker Property and Casualty Practice Exam

A sidetrack agreement is a contractual arrangement between a railroad company and a servicing business, which outlines the terms under which the servicing business can use a specific section of the railroad's tracks to load or unload goods. This agreement allows the servicing business to facilitate its operations by providing direct access to the railroad's infrastructure, thereby supporting efficient transportation and logistics operations.

This type of agreement is essential for businesses that rely on rail transport to ensure that they can effectively manage their supply chain and shipping processes. While rate, service, and maintenance agreements can involve aspects of transportation services, they do not specifically pertain to the use of tracks or sidetracks, which is the unique focus of a sidetrack agreement. Consequently, a sidetrack agreement is the correct choice when discussing the relationship and operational logistics between a railroad and a servicing business.