CMC Moving Industry Regulations & Compliance 3 — Questions and Answers
Question 1: What is the key distinction between interstate and intrastate moving from a regulatory standpoint?
- Interstate moves are regulated by state PUCs; intrastate moves are regulated by FMCSA
- Interstate moves cross state lines and are federally regulated; intrastate moves stay within one state and are regulated by that state (Correct answer)
- Intrastate moves require federal licensing; interstate moves only need state permits
- There is no regulatory distinction between the two
Correct answer: Interstate moves cross state lines and are federally regulated; intrastate moves stay within one state and are regulated by that state
Interstate moves cross state boundaries and fall under federal FMCSA authority, while intrastate moves are governed by the individual state's public utility commission or equivalent.
Question 2: When a carrier issues a binding not-to-exceed estimate, what happens if the actual cost of the move is less than the estimate?
- The customer pays the full estimated amount
- The customer pays only the lower actual cost (Correct answer)
- The difference is held in escrow for 30 days
- The carrier charges a cancellation surcharge
Correct answer: The customer pays only the lower actual cost
A binding not-to-exceed estimate means the customer pays whichever is lower—the estimate cap or the actual cost.
Question 3: An Order for Service in household goods moving primarily serves as which type of document?
- A final invoice sent after delivery
- A written authorization from the customer to perform the move (Correct answer)
- A federal registration document filed with FMCSA
- A weight ticket certified by a state inspector
Correct answer: A written authorization from the customer to perform the move
The Order for Service is the customer's written authorization for the carrier to transport their goods on specified terms.
Question 4: Under FMCSA household goods regulations, what is the minimum released valuation coverage that must be offered to customers at no charge?
- $0.30 per pound per article
- $0.60 per pound per article (Correct answer)
- $1.00 per pound per article
- $1.25 per pound per article
Correct answer: $0.60 per pound per article
Carriers must offer released liability at $0.60 per pound per article as the free minimum valuation option.
Question 5: Which federal regulation requires interstate household goods carriers to offer full value protection to customers?
- 49 CFR Part 375 (Correct answer)
- 49 CFR Part 382
- 49 CFR Part 395
- 49 CFR Part 172
Correct answer: 49 CFR Part 375
49 CFR Part 375 governs the transportation of household goods and requires carriers to offer full value protection as a valuation option.
Question 6: A carrier must weigh a shipment at which points to determine the final charges on a non-binding estimate?
- Only at origin before loading
- At origin (tare) and after loading (gross), to calculate net weight (Correct answer)
- Only at destination after unloading
- Anywhere along the route at the carrier's discretion
Correct answer: At origin (tare) and after loading (gross), to calculate net weight
The standard process is to weigh the empty truck (tare), then weigh the loaded truck (gross); net weight = gross minus tare.
Question 7: If a customer requests a reweigh of their shipment, who is responsible for the cost of the reweigh if the new weight is lower than the original?
- The customer always pays for reweighs
- The carrier pays if the reweigh produces a lower weight (Correct answer)
- Costs are always split 50/50 between carrier and customer
- A neutral third party arbitrator pays
Correct answer: The carrier pays if the reweigh produces a lower weight
If a reweigh results in a lower weight, the carrier absorbs the reweigh cost and adjusts the charges accordingly.
CMC Moving Industry Regulations & Compliance 3
What is the key distinction between interstate and intrastate moving from a regulatory standpoint?