A driver is using the 160-kilometre daily-log exemption federally, but the carrier does not keep accurate records of duty status and elected cycle for six months. What is the problem?

1. The exemption conditions are not met because carrier records are required
2. The exemption still applies because distance is the only condition
3. The driver can use handwritten fuel receipts instead of duty records
4. The exemption applies only after crossing a provincial border