Cargo Claim Filing & Resolution Flashcards

A shipper accepted a carrier's settlement offer for a damaged antique but later discovers the item's value was significantly higher. Can the shipper reopen the claim?

Answer: No, a signed settlement agreement is a binding release of the claim

Once a shipper signs a settlement release, the claim is closed and legally binding; new valuations do not entitle the shipper to reopen the matter.

Which federal agency has jurisdiction over household goods carrier complaint investigations related to cargo claims?

Answer: The Federal Motor Carrier Safety Administration (FMCSA)

The FMCSA is the federal agency responsible for regulating household goods movers and investigating related consumer complaints.

A customer's shipment is delayed due to a truck breakdown and several frozen food items spoil. Under standard released value, is the carrier liable for the food loss?

Answer: Generally no, because perishable goods are typically excluded from carrier liability

Perishable goods are typically excluded from standard cargo claim coverage because their condition depends on factors outside the mover's control.

What does 'subrogation' mean in the context of a moving cargo claim?

Answer: The insurer's right to pursue the carrier after paying the shipper's claim

Subrogation allows an insurer that has paid a claim to step into the shipper's shoes and pursue recovery from the responsible carrier.

A carrier denies a cargo claim citing 'Act of God' as a defense. What must the carrier prove to successfully use this defense?

Answer: That the loss was caused by an unforeseeable natural event and no carrier negligence contributed

To invoke the Act of God defense, the carrier must prove both that the event was extraordinary and unforeseeable and that its own negligence played no role.

A shipper files a cargo claim for $2,000 on a 400-pound shipment under released value protection. The carrier calculates liability as $240. Why is the carrier's calculation correct?

Answer: Released value limits liability to $0.60 per pound, so 400 lbs × $0.60 = $240

Under released value protection, the carrier's liability is $0.60 per pound per article — 400 pounds times $0.60 equals $240 regardless of actual value.

When must a household goods carrier provide written notice to a shipper about their valuation options?

Answer: Before the shipment is loaded, as part of the order for service

Federal regulations require carriers to inform shippers of their valuation options (released value vs. full value protection) before the move begins, typically on the order for service.