CMC Cargo Claim Filing & Resolution 3 — Questions and Answers
Question 1: Under 49 CFR Part 370, how long does a carrier have to pay, deny, or make a settlement offer on a cargo claim after receiving all required documentation?
- 120 days (Correct answer)
- 60 days
- 30 days
- 90 days
Correct answer: 120 days
Once a carrier has all necessary claim documentation, federal regulations require disposition (payment, denial, or offer) within 120 days.
Question 2: A customer purchased Full Value Protection for their move. A flat-screen TV is damaged beyond repair. The mover's obligation is to:
- Repair, replace with a like item, or pay the current market value (Correct answer)
- Pay $0.60 per pound of the TV
- Pay the original purchase price regardless of age
- Replace only if the item is listed on the high-value inventory
Correct answer: Repair, replace with a like item, or pay the current market value
Full Value Protection requires the carrier to repair, replace with a like item of equal quality, or pay the current market replacement value.
Question 3: A shipper discovers concealed damage to a grandfather clock two weeks after delivery. Under federal rules, what is the deadline for filing a concealed damage claim?
- 9 months from the delivery date (Correct answer)
- 30 days from the delivery date
- 60 days from the delivery date
- 1 year from the move date
Correct answer: 9 months from the delivery date
Federal law allows shippers 9 months from the delivery date to file a loss or damage claim, including concealed damage discovered after delivery.
Question 4: Which of the following is NOT a valid reason for a carrier to deny a cargo claim?
- The shipper packed the item themselves in a sturdy box (Correct answer)
- The damage was caused by inherent vice of the goods
- The damage resulted from an act of God
- The shipper's negligence caused the damage
Correct answer: The shipper packed the item themselves in a sturdy box
Shipper-packed items can still give rise to valid claims if the carrier's negligence caused the damage; proper packing by the shipper alone is not an absolute defense.
Question 5: When a carrier makes a settlement offer that the shipper considers too low, what is the shipper's FIRST recommended step?
- Submit a written counter-proposal with supporting documentation (Correct answer)
- Immediately file a lawsuit in federal court
- Accept the offer and seek additional compensation from their homeowner's insurance
- File a complaint with the FMCSA
Correct answer: Submit a written counter-proposal with supporting documentation
Submitting a written counter-proposal with documentation (repair estimates, appraisals) is the standard first step before escalating to litigation or regulatory complaints.
Question 6: What is the purpose of a 'high-value inventory' form in a household goods move?
- To declare items worth more than $100 per pound so the carrier is aware of extraordinary value (Correct answer)
- To list items the shipper will pack themselves
- To identify items that will be stored in transit
- To document items excluded from the carrier's liability
Correct answer: To declare items worth more than $100 per pound so the carrier is aware of extraordinary value
The high-value inventory form notifies the carrier of articles with extraordinary value (over $100/lb) to ensure they are covered under the shipment valuation.
Question 7: A mover delivers goods and the customer notes damage on the delivery receipt but does not specify which items are damaged. How should the moving consultant advise the customer to protect their claim?
- Follow up with a detailed written claim letter specifying each damaged item within the filing deadline (Correct answer)
- The general notation is sufficient and no further action is needed
- File a police report within 24 hours
- Immediately demand a replacement shipment
Correct answer: Follow up with a detailed written claim letter specifying each damaged item within the filing deadline
A general notation preserves the right to file but must be followed by a detailed written claim identifying specific items, damages, and values within the filing deadline.
CMC Cargo Claim Filing & Resolution 3
Under 49 CFR Part 370, how long does a carrier have to pay, deny, or make a settlement offer on a cargo claim after receiving all required documentation?