Lump-Sum & Binding Estimate Types Flashcards
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Read the first 7 Lump-Sum & Binding Estimate Types flashcards as text
Under a lump-sum estimate, what happens if the actual weight of the shipment is less than the estimated weight?
Answer: The customer still pays the full agreed lump-sum price
In a lump-sum agreement, the price is fixed regardless of actual weight, so the customer pays the agreed amount even if the shipment weighs less.
Which federal regulation governs binding estimates in interstate household goods moves?
Answer: FMCSA 49 CFR Part 375
49 CFR Part 375 (Transportation of Household Goods in Interstate Commerce) establishes the rules for binding estimates.
A binding estimate becomes void if the customer adds items to the shipment. What is the carrier's correct course of action?
Answer: Issue a revised written binding estimate before loading
When a customer adds items not covered by a binding estimate, the carrier must issue a new revised written binding estimate before the move proceeds.
What distinguishes a 'binding estimate not to exceed' from a standard binding estimate?
Answer: The customer pays the lower of the binding price or actual charges
A 'not to exceed' binding estimate means the customer pays whichever is lower — the estimated price or the actual tariff charges.
For a binding estimate to be legally valid under FMCSA rules, it must be provided in writing:
Answer: Before the shipment is loaded onto the carrier's vehicle
FMCSA requires that a binding estimate be provided in writing before the shipment is loaded to be enforceable.
A moving company provides a lump-sum estimate based on a virtual survey. The customer later claims additional items were not included. Who bears the risk?
Answer: The customer, because the lump-sum was based on the inventory provided
The lump-sum price is tied to the inventory the customer disclosed; undisclosed items are not covered and remain the customer's responsibility.
When a carrier collects a binding estimate deposit, what is the maximum deposit allowed under standard FMCSA guidance before delivery?
Answer: No regulatory cap; carriers set their own deposit amounts
FMCSA does not set a specific maximum deposit percentage; carriers establish their own deposit policies, though industry practice varies.