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

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.

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

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

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

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

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

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 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.

(CFB) Certified Freight Broker Practice Test

(CFB) Certified Freight Broker Practice Test

CFB Roles and Responsibilities 5