CMC Lump-Sum & Binding Estimate Types 2

Question 1

Under a lump-sum estimate, what happens if the actual weight of the shipment is less than the estimated weight?

Accepted Answer

The customer still pays the full agreed lump-sum price

Answer

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?

Accepted Answer

FMCSA 49 CFR Part 375

Answer

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?

Accepted Answer

Issue a revised written binding estimate before loading

Answer

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?

Accepted Answer

The customer pays the lower of the binding price or actual charges

Answer

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:

Accepted Answer

Before the shipment is loaded onto the carrier's vehicle

Answer

FMCSA requires that a binding estimate be provided in writing before the shipment is loaded to be enforceable.

(CMC) Certified Moving Consultant Practice Test