Practice Test Geeks(CFB) Certified Freight Broker Practice Test
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Roles and Responsibilities Flashcards

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  1. A freight broker discovers mid-transit that the carrier it booked has a conditional safety rating. What is the broker's best immediate action?

    Answer: Notify the shipper and assess whether to reroute to a satisfactory carrier

    The broker should promptly inform the shipper of the safety concern and evaluate rerouting options to protect the shipper's cargo.

  2. In a typical broker-shipper contract, the 'shipper's agent' clause may make the broker responsible for:

    Answer: Paying freight claims directly on behalf of the shipper

    Some contracts designate the broker as shipper's agent, which can create direct responsibility for freight claims paid to the shipper.

  3. Which party typically issues the bill of lading (BOL) on a truckload shipment arranged by a freight broker?

    Answer: The shipper or the carrier, not the broker

    The BOL is typically issued by the shipper or the carrier; the broker arranges transportation but is not a party to the BOL contract.

  4. How does a freight broker's role differ from that of a shipper's agent (or employee shipper)?

    Answer: A broker is an independent business that arranges transport for compensation; an employee shipper works in-house

    A freight broker is an independent, licensed intermediary compensated for arranging transport, whereas a shipper's in-house logistics employee acts exclusively for that employer.

  5. A broker who also operates as a carrier on the same shipment must:

    Answer: Disclose its dual role to the shipper and comply with both broker and carrier regulations

    A broker acting as a carrier on the same load must disclose the dual role and comply with all applicable regulations for both capacities.

  6. What is the primary purpose of a broker-carrier agreement (BCA)?

    Answer: To establish terms, rates, and liabilities between the broker and the motor carrier

    A BCA outlines the working terms, payment conditions, carrier requirements, and liability allocation between the broker and the carrier.

  7. A shipper asks a freight broker to 'double-broker' a load without disclosing the secondary carrier. This is considered:

    Answer: Unethical and potentially fraudulent, as it conceals the actual carrier from the shipper

    Undisclosed double-brokering is widely considered fraudulent because it hides the actual carrier performing the transport from the shipper.