CFB Roles and Responsibilities 5

Question 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:

Accepted Answer

Assuming liability beyond the standard broker role by contract

Answer

Automatically licensed as a carrier by the FMCSA

Answer

Exempt from the $75,000 surety bond requirement

Answer

Acting within the normal scope of broker authority

Question 2

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

Accepted Answer

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

Answer

Routing all loads to a carrier the broker's owner partially owns without disclosure

Answer

Accepting undisclosed kickbacks from a preferred carrier

Answer

Hiding volume incentive agreements from shippers

Question 3

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

Accepted Answer

The motor carrier

Answer

The freight broker

Answer

The shipper

Answer

The consignee

Question 4

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

Accepted Answer

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

Answer

Withdraw from the transaction and direct the shipper to FMCSA

Answer

Wait for the original carrier to resolve the situation independently

Answer

Bill the shipper for the full rate and then seek reimbursement from the carrier

Question 5

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

Accepted Answer

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

Answer

A dispatcher holds FMCSA broker authority; a broker does not need authority

Answer

Dispatching always involves LTL freight; brokering involves only TL

Answer

There is no regulatory distinction between the two activities

Question 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?

Accepted Answer

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

Answer

A regulatory filing obligation with the Surface Transportation Board

Answer

An automatic upgrade to freight forwarder status

Answer

A requirement to purchase dedicated trucking equipment

Question 7

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

Accepted Answer

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

Answer

The broker provides financing to the shipper for freight costs

Answer

The broker issues customs clearance documents for international cargo

Answer

The broker holds cargo at a warehouse until the shipper pays in full