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 who signs a 'carrier agreement' that includes a clause making the broker liable as a carrier for cargo loss would be:

    Answer: Assuming liability beyond the standard broker role by contract

    Signing such a clause voluntarily expands the broker's liability beyond its typical intermediary role, making it contractually responsible for cargo loss like a carrier.

  2. Which scenario best illustrates a broker fulfilling its 'duty to avoid conflicts of interest'?

    Answer: Disclosing to a shipper that the broker has a financial interest in the carrier being tendered the load

    Disclosing financial interests in carriers protects the shipper's trust and fulfills the broker's obligation to avoid undisclosed conflicts.

  3. Under the Carmack Amendment, which party has primary liability for cargo loss or damage on an interstate shipment?

    Answer: The motor carrier

    The Carmack Amendment places primary cargo liability on the motor carrier that physically transported the freight.

  4. A broker arranges a load and the carrier abandons the shipment mid-route. The broker's immediate responsibility is to:

    Answer: Secure an alternate carrier and notify the shipper to minimize cargo risk

    When a carrier fails mid-transit, the broker must act quickly to arrange rescue transportation and keep the shipper informed to protect the cargo.

  5. What is the key difference between 'brokering' and 'dispatching' in freight transportation?

    Answer: A broker arranges transport for shippers as an intermediary; a dispatcher coordinates operations for a carrier's own drivers

    A broker is a licensed intermediary connecting shippers to carriers, while a dispatcher works on behalf of a carrier to manage its own drivers and routes.

  6. A broker is presented with a shipper's Request for Proposal (RFP) for a dedicated lane. Accepting the RFP and committing to a rate creates what type of obligation?

    Answer: A contractual commitment to source capacity and meet the agreed service and rate terms

    Accepting an RFP creates a binding contractual obligation for the broker to provide capacity and service at the committed terms.

  7. Which of the following best describes the broker's role in the 'procure-to-pay' freight cycle?

    Answer: The broker arranges the shipment, collects payment from the shipper, and remits payment to the carrier

    In the procure-to-pay cycle, the broker invoices the shipper and uses those funds to pay the carrier, acting as the financial intermediary.