CFB Roles and Responsibilities 2 — Questions and Answers
Question 1: A freight broker arranges transportation for a shipper but never takes possession of the freight. This distinguishes the broker from which party?
- Carrier
- Freight forwarder (Correct answer)
- Customs broker
- Third-party logistics provider
Correct 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.
Question 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:
- An authorized motor carrier (Correct answer)
- Any mode of transport including air
- A railroad carrier only
- The broker's own equipment
Correct answer: An authorized motor carrier
The federal statutory definition specifically limits broker activity to arranging transportation by authorized motor carriers.
Question 3: When a freight broker acts as a co-broker, what is the primary obligation to the originating broker?
- Disclose all carrier contact details immediately
- Honor the load terms and pay agreed-upon fees (Correct answer)
- Assume all shipper liability directly
- Renegotiate the rate with the carrier
Correct 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.
Question 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:
- Selected an unfit carrier or assumed carrier liability contractually (Correct answer)
- Held a valid BOL at the time of shipment
- Was physically present at pickup
- Quoted a rate below market value
Correct 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.
Question 5: Which role is the freight broker primarily serving when negotiating rates between a shipper and a carrier?
- Agent of the carrier
- Independent intermediary (Correct answer)
- Employee of the shipper
- Certified logistics auditor
Correct answer: Independent intermediary
A freight broker acts as an independent intermediary, representing neither party exclusively but facilitating the transaction.
Question 6: A broker's obligation of 'reasonable care' in carrier selection means the broker must at minimum:
- Verify carrier operating authority and safety fitness before tendering a load (Correct answer)
- Visit the carrier's terminal before every shipment
- Guarantee on-time delivery
- Provide cargo insurance on every shipment
Correct 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.
Question 7: Which of the following actions would most likely constitute unauthorized brokering under federal law?
- Arranging shipments without a valid FMCSA broker license (Correct answer)
- Negotiating spot rates with an authorized carrier
- Collecting a commission after freight is delivered
- Signing a broker-carrier agreement electronically
Correct 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.
CFB Roles and Responsibilities 2
A freight broker arranges transportation for a shipper but never takes possession of the freight.
This distinguishes the broker from which party?