CFB Roles and Responsibilities 3

Question 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?

Accepted Answer

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

Answer

Continue the shipment and document the rating for future reference

Answer

Cancel the shipper's load without notice

Answer

File a complaint with the DOT after delivery

Question 2

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

Accepted Answer

Paying freight claims directly on behalf of the shipper

Answer

Setting fuel surcharge rates industry-wide

Answer

Auditing the carrier's safety program

Answer

Filing hazmat paperwork with the EPA

Question 3

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

Accepted Answer

The shipper or the carrier, not the broker

Answer

Always the freight broker

Answer

The FMCSA regional office

Answer

The consignee upon delivery

Question 4

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

Accepted Answer

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

Answer

A broker owns the freight during transit; a shipper's agent does not

Answer

A broker is regulated by the FTC; a shipper's agent is regulated by FMCSA

Answer

There is no legal distinction between the two roles

Question 5

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

Accepted Answer

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

Answer

Only maintain broker authority since carrier authority is redundant

Answer

Surrender its broker license while operating as a carrier

Answer

Obtain a special dual-mode waiver from the ICC

Question 6

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

Accepted Answer

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

Answer

To replace the bill of lading for LTL shipments

Answer

To register the carrier's equipment with the FMCSA

Answer

To allow the broker to file claims on the carrier's behalf

Question 7

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

Accepted Answer

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

Answer

Standard industry practice that requires no disclosure

Answer

Legal as long as the secondary carrier is licensed

Answer

Permissible if the shipper's rate is not affected