Practice Test Geeks(CFB) Certified Freight Broker Practice Test
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Credential and Training Requirements Flashcards

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Read the first 7 Credential and Training Requirements flashcards as text

  1. A freight broker operating in California must comply with which additional state-level licensing requirement not mandated at the federal level?

    Answer: Registration with the California Public Utilities Commission (CPUC)

    California requires intrastate freight brokers to register with the CPUC in addition to holding FMCSA authority for interstate operations.

  2. Under the broker-carrier relationship, which federal regulation requires brokers to provide carriers with a copy of the rate confirmation or load confirmation upon request?

    Answer: 49 CFR 371.3

    49 CFR 371.3 requires brokers to maintain and provide upon request records showing the compensation paid to the carrier.

  3. Which scenario would result in a freight broker being required to reapply for operating authority rather than simply updating their existing registration?

    Answer: Changing the legal business entity type (e.g., sole proprietor to LLC)

    A change in legal entity type requires a new operating authority application because FMCSA authority is issued to a specific legal entity.

  4. What is the primary purpose of requiring freight brokers to maintain a surety bond or trust fund?

    Answer: To protect shippers and carriers from broker non-payment or fraud

    The surety bond protects shippers and carriers by providing a financial remedy if the broker fails to pay or acts fraudulently.

  5. A CTB candidate who fails the certification exam must wait how long before retaking it?

    Answer: 60 days

    TIA policy requires a 60-day waiting period between CTB exam attempts to allow candidates adequate time to prepare.

  6. Which legal doctrine makes a freight broker potentially liable for cargo loss if they selected a carrier they knew or should have known was unfit?

    Answer: Negligent selection

    Negligent selection holds brokers liable when they fail to properly vet a carrier's safety record before tendering freight.

  7. What information must a freight broker's operating authority registration include that directly relates to their compliance with 49 CFR Part 387 insurance requirements?

    Answer: Evidence of public liability insurance or surety bond

    49 CFR Part 387 requires brokers to file evidence of a surety bond or trust fund as proof of financial responsibility.