CRP Legal Compliance in Relocation 5 — Questions and Answers
Question 1: Under federal rules, what is the default carrier liability for interstate household goods when the shipper waives Full Value Protection?
- $0.60 per pound per article (Correct answer)
- $1.00 per pound per article
- $6.00 per pound per shipment
- The replacement value of each article
Correct answer: $0.60 per pound per article
Released Value Protection limits carrier liability to 60 cents per pound per article and comes at no extra charge.
Question 2: What must interstate household goods carriers give shippers under FMCSA rules?
- A copy of the carrier's insurance policy
- An appraisal of all goods shipped
- A state moving license for each state crossed
- The 'Ready to Move' brochure and the 'Your Rights and Responsibilities When You Move' information (Correct answer)
Correct answer: The 'Ready to Move' brochure and the 'Your Rights and Responsibilities When You Move' information
FMCSA requires movers to provide the consumer protection booklets 'Ready to Move' and 'Your Rights and Responsibilities When You Move.'
Question 3: During an international relocation, an RMC's local agent pays a customs official to speed up clearance of a U.S. company's shipment. Which law is most directly involved?
- Carmack Amendment
- Foreign Corrupt Practices Act (Correct answer)
- Fair Housing Act
- Sarbanes-Oxley Section 404 only
Correct answer: Foreign Corrupt Practices Act
The FCPA prohibits corrupt payments to foreign officials, and companies can be liable for payments made by third-party agents.
Question 4: An RMC transfers EU employees' personal data to a U.S. vendor. Which regulation requires a lawful transfer mechanism, such as standard contractual clauses?
- HIPAA
- CCPA only
- GDPR (Correct answer)
- FERPA
Correct answer: GDPR
The EU General Data Protection Regulation restricts transfers of personal data outside the EU unless an approved transfer mechanism is in place.
Question 5: Before an L-1A or L-1B transfer to the U.S., how long must the employee usually have worked for a qualifying related employer abroad?
- One continuous year within the three years before admission (Correct answer)
- Six months in the last year
- Two years in the last five years
- Three continuous years
Correct answer: One continuous year within the three years before admission
L-1 eligibility requires at least one continuous year of qualifying work abroad within the three years before the petition (except under certain blanket provisions).
Question 6: Relocation benefits are taxable to the employee. Why do employers often 'gross up' these benefits?
- To meet the accountable plan rules
- To turn the benefits into non-taxable fringe benefits
- To avoid reporting the benefits on Form W-2
- To cover the extra tax so the employee is not out of pocket (Correct answer)
Correct answer: To cover the extra tax so the employee is not out of pocket
A gross-up adds money to cover the income taxes on taxable benefits, and the gross-up itself is also taxable wages.
Question 7: A relocating employee with a disability asks for a ground-floor temporary apartment. Under the ADA, what should the employer do?
- Deny the request, since housing is not part of the job
- Start the interactive process and provide a reasonable accommodation unless it causes undue hardship (Correct answer)
- Require the employee to pay any extra cost
- Delay the relocation until the employee no longer needs the accommodation
Correct answer: Start the interactive process and provide a reasonable accommodation unless it causes undue hardship
Employer-provided relocation benefits are a privilege of employment, so the ADA requires reasonable accommodation through the interactive process.
