CMC Lump-Sum & Binding Estimate Types 2 — Questions and Answers
Question 1: Under a lump-sum estimate, what happens if the actual weight of the shipment is less than the estimated weight?
- The customer receives a refund for the weight difference
- The customer still pays the full agreed lump-sum price (Correct answer)
- The carrier must re-weigh and adjust the invoice
- The estimate is voided and a new price is negotiated
Correct 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.
Question 2: Which federal regulation governs binding estimates in interstate household goods moves?
- FMCSA 49 CFR Part 375 (Correct answer)
- DOT 23 CFR Part 630
- ICC Termination Act Title IV
- FMCSA 49 CFR Part 386
Correct answer: FMCSA 49 CFR Part 375
49 CFR Part 375 (Transportation of Household Goods in Interstate Commerce) establishes the rules for binding estimates.
Question 3: A binding estimate becomes void if the customer adds items to the shipment. What is the carrier's correct course of action?
- Refuse to transport any added items
- Issue a revised written binding estimate before loading (Correct answer)
- Charge the standard tariff rate only for the added items
- Continue with the original estimate and bill separately after delivery
Correct 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.
Question 4: What distinguishes a 'binding estimate not to exceed' from a standard binding estimate?
- The customer pays the binding price even if actual costs are higher
- The customer pays the lower of the binding price or actual charges (Correct answer)
- The carrier can charge above the binding price with 24-hour notice
- It applies only to moves under 500 miles
Correct 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.
Question 5: For a binding estimate to be legally valid under FMCSA rules, it must be provided in writing:
- Only if the customer requests it in writing
- At least 72 hours before the move
- Before the shipment is loaded onto the carrier's vehicle (Correct answer)
- Within 24 hours after the in-home survey
Correct 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.
Question 6: 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?
- The carrier, because the virtual survey was their chosen method
- The customer, because the lump-sum was based on the inventory provided (Correct answer)
- FMCSA, which mediates disputes about virtual surveys
- The third-party survey software vendor
Correct 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.
Question 7: When a carrier collects a binding estimate deposit, what is the maximum deposit allowed under standard FMCSA guidance before delivery?
- 10% of the estimated charges
- 25% of the estimated charges
- 50% of the estimated charges
- No regulatory cap; carriers set their own deposit amounts (Correct answer)
Correct 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.
CMC Lump-Sum & Binding Estimate Types 2
Under a lump-sum estimate, what happens if the actual weight of the shipment is less than the estimated weight?