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Lump-Sum & Binding Estimate Types Flashcards

7 cards from real CMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Lump-Sum & Binding Estimate Types flashcards as text

  1. In corporate relocation, a lump-sum allowance given directly to the transferee differs from a carrier lump-sum estimate because:

    Answer: The transferee manages the move and keeps or covers any cost difference

    A lump-sum allowance gives the employee a fixed amount to manage their own move, keeping savings or covering overages personally.

  2. Which scenario would most likely cause a binding estimate to be renegotiated?

    Answer: The customer adds a grand piano not listed in the original inventory

    Adding a large specialty item like a grand piano that was not part of the original inventory is a material change that justifies issuing a revised binding estimate.

  3. A non-binding estimate of $3,000 results in actual charges of $3,500. Under the FMCSA 110% rule, how much must the customer pay at delivery?

    Answer: $3,300 — 110% of the non-binding estimate

    Under the 110% rule, the customer must pay no more than 110% of the non-binding estimate at delivery ($3,300), with the remainder billed within 30 days.

  4. When preparing a binding estimate for a large household move, which survey method is generally considered most accurate?

    Answer: In-home visual survey by a trained moving consultant

    An in-home visual survey by a trained consultant is the most accurate method for identifying all items, access conditions, and special handling needs.

  5. A binding estimate includes a stated fuel surcharge of 8%. Diesel prices spike dramatically after the estimate is signed. The carrier may:

    Answer: Not charge above the binding estimate amount, including fuel

    Under a binding estimate, the total price is locked; the carrier cannot add surcharges beyond the agreed amount, including for fuel price increases.

  6. For binding estimates on interstate moves, a carrier must retain a copy of the signed estimate for at least:

    Answer: 3 years

    FMCSA regulations require interstate carriers to retain shipping documents, including binding estimates, for a minimum of 3 years.

  7. A customer signs a binding estimate but then calls to reduce the number of items before the move. The carrier should:

    Answer: Issue a revised lower binding estimate reflecting the reduced inventory

    When items are removed from the inventory, the carrier should issue a revised binding estimate to reflect the reduced scope and protect both parties.