CFB Roles and Responsibilities 2

Question 1

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

Accepted Answer

Freight forwarder

Answer

Carrier

Answer

Customs broker

Answer

Third-party logistics provider

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:

Accepted Answer

An authorized motor carrier

Answer

Any mode of transport including air

Answer

A railroad carrier only

Answer

The broker's own equipment

Question 3

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

Accepted Answer

Honor the load terms and pay agreed-upon fees

Answer

Disclose all carrier contact details immediately

Answer

Assume all shipper liability directly

Answer

Renegotiate the rate with the carrier

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:

Accepted Answer

Selected an unfit carrier or assumed carrier liability contractually

Answer

Held a valid BOL at the time of shipment

Answer

Was physically present at pickup

Answer

Quoted a rate below market value

Question 5

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

Accepted Answer

Independent intermediary

Answer

Agent of the carrier

Answer

Employee of the shipper

Answer

Certified logistics auditor

Question 6

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

Accepted Answer

Verify carrier operating authority and safety fitness before tendering a load

Answer

Visit the carrier's terminal before every shipment

Answer

Guarantee on-time delivery

Answer

Provide cargo insurance on every shipment

Question 7

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

Accepted Answer

Arranging shipments without a valid FMCSA broker license

Answer

Negotiating spot rates with an authorized carrier

Answer

Collecting a commission after freight is delivered

Answer

Signing a broker-carrier agreement electronically