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Roles and Responsibilities Flashcards

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  1. A freight broker arranges transportation for a shipper but never takes possession of the freight. This distinguishes the broker from which party?

    Answer: Freight forwarder

    Unlike a freight forwarder, a broker never takes custody or legal possession of the cargo; the forwarder consolidates and assumes liability for shipments.

  2. Under 49 U.S.C. § 13102, a freight broker is defined as a person who, for compensation, arranges or offers to arrange transportation by:

    Answer: An authorized motor carrier

    The federal statutory definition specifically limits broker activity to arranging transportation by authorized motor carriers.

  3. When a freight broker acts as a co-broker, what is the primary obligation to the originating broker?

    Answer: Honor the load terms and pay agreed-upon fees

    A co-broker must honor the terms of the load tender and ensure agreed fees are paid, maintaining trust in the brokerage relationship.

  4. A shipper claims freight damage and sues both the broker and the carrier. Generally, a broker's liability exposure depends on whether the broker:

    Answer: Selected an unfit carrier or assumed carrier liability contractually

    Brokers can be held liable if they negligently selected an unfit carrier or if their contract explicitly assumed carrier-like liability.

  5. Which role is the freight broker primarily serving when negotiating rates between a shipper and a carrier?

    Answer: Independent intermediary

    A freight broker acts as an independent intermediary, representing neither party exclusively but facilitating the transaction.

  6. A broker's obligation of 'reasonable care' in carrier selection means the broker must at minimum:

    Answer: Verify carrier operating authority and safety fitness before tendering a load

    Reasonable care requires verifying that the carrier holds valid operating authority and has an acceptable safety rating before tendering freight.

  7. Which of the following actions would most likely constitute unauthorized brokering under federal law?

    Answer: Arranging shipments without a valid FMCSA broker license

    Operating as a broker without a valid FMCSA license (MC authority) is illegal and constitutes unauthorized brokering.