Lump-Sum & Binding Estimate Types Flashcards

A carrier delivers a shipment under a binding estimate but the customer refuses to pay because they believe items were damaged. What must happen before the carrier can release the goods?

Answer: The carrier may hold the shipment until the full binding estimate amount is paid

Under a binding estimate, the carrier has a lien on the shipment and may hold it until the agreed binding price is paid, separate from any damage claims.

Which of the following is NOT typically included in a lump-sum moving estimate?

Answer: Third-party specialty services added after estimate

Third-party services added after the estimate was provided are generally not covered by the original lump-sum price.

How does a binding estimate differ from a non-binding estimate when actual shipment weight exceeds the estimate?

Answer: Binding: customer pays estimated price; Non-binding: customer pays actual charges

With a binding estimate, the price is locked at the estimate; with a non-binding estimate, the customer pays actual charges (subject to the 110% rule at delivery).

A CMC is reviewing a lump-sum proposal for a corporate relocation client. Which factor makes lump-sum pricing most advantageous for the client?

Answer: The client has budget certainty regardless of actual shipment size variations

Lump-sum pricing gives corporate relocation clients predictable, fixed costs that simplify budgeting regardless of minor variations in shipment size.

Under a binding estimate, if the carrier's actual costs significantly exceed the estimate due to an unforeseeable access issue at destination, the carrier's remedy is to:

Answer: Absorb the additional costs as per the binding agreement

Under a binding estimate, the carrier is generally obligated to honor the agreed price and absorb unforeseen costs unless a specific exception was written into the estimate.

What document must accompany a binding estimate to be considered complete under FMCSA household goods rules?

Answer: Your Rights and Responsibilities When You Move booklet

FMCSA requires carriers to provide the 'Your Rights and Responsibilities When You Move' booklet along with estimates to ensure consumers are informed.

A binding estimate is provided on March 1 for a move scheduled for June 15. The carrier's tariff rates increase on May 1. What is the carrier obligated to do?

Answer: Honor the March 1 binding estimate price for the June 15 move

A binding estimate, once accepted, locks in the price regardless of subsequent tariff changes; the carrier must honor the agreed price.