CTB Ethics & Business Communication Practices 4 — Questions and Answers
Question 1: A broker notices that a carrier consistently delivers late but always has a low rate. What ethical consideration should guide the broker's continued use of this carrier?
- Rate is the primary consideration; use the carrier for cost-sensitive shippers
- Service reliability is a material factor; shippers must be accurately informed of the carrier's performance history (Correct answer)
- Only stop using the carrier after the shipper complains
- Offer the carrier a bonus to improve performance without telling shippers
Correct answer: Service reliability is a material factor; shippers must be accurately informed of the carrier's performance history
Recommending a carrier with known performance issues without disclosure is deceptive and violates the broker's duty to represent services accurately.
Question 2: What is 'carrier vetting' and why is it an ethical obligation for freight brokers?
- Negotiating the lowest possible rate from carriers
- Verifying carrier authority, insurance, and safety ratings before tendering loads (Correct answer)
- Reviewing carrier invoices for billing accuracy
- Requesting references from other brokers about a carrier
Correct answer: Verifying carrier authority, insurance, and safety ratings before tendering loads
Carrier vetting ensures that brokers only use legally authorized, properly insured, and safety-compliant carriers, protecting shippers from liability.
Question 3: A broker's employee makes an unauthorized commitment to a shipper for a guaranteed rate. What is the ethical course of action for the broker?
- Deny the commitment was made since the employee lacked authority
- Honor the commitment, address the employee internally, and use the situation to clarify authorization policies (Correct answer)
- Bill the shipper for the higher market rate since the employee had no authority
- Ask the shipper to sign a new agreement at the correct rate
Correct answer: Honor the commitment, address the employee internally, and use the situation to clarify authorization policies
Honoring commitments made on a company's behalf maintains trust; internal corrections should follow without penalizing the shipper.
Question 4: Which of the following is an example of deceptive advertising prohibited under ethical brokerage standards?
- Claiming to have access to thousands of carriers without the ability to verify actual capacity (Correct answer)
- Advertising competitive rates based on current market data
- Promoting 24/7 customer service availability
- Listing industry certifications on a company website
Correct answer: Claiming to have access to thousands of carriers without the ability to verify actual capacity
Claiming carrier access or capabilities the broker cannot actually deliver is deceptive and violates ethical marketing standards.
Question 5: When a broker discovers an overbilling error that favored the broker rather than the shipper, what is the ethical response?
- Keep the overpayment since billing errors are the shipper's responsibility to catch
- Proactively notify the shipper and issue a credit or refund (Correct answer)
- Reduce future invoices by the overbilled amount without explanation
- Await the shipper's audit before addressing the discrepancy
Correct answer: Proactively notify the shipper and issue a credit or refund
Proactively correcting billing errors in the shipper's favor demonstrates integrity and builds long-term trust.
Question 6: What does professional communication ethics require when a broker must deliver bad news to a shipper about a missed delivery?
- Delay communication until a solution is already in place
- Communicate promptly, factually, and with a clear plan for resolution (Correct answer)
- Let the carrier communicate directly with the shipper
- Only communicate if the shipper asks about the shipment status
Correct answer: Communicate promptly, factually, and with a clear plan for resolution
Timely, factual communication with a resolution plan is a core professional ethics standard when service failures occur.
Question 7: A broker is offered a kickback by a carrier in exchange for exclusive load tenders. Accepting this arrangement would violate which ethical principle?
- Fair competition
- Duty of loyalty to the broker's employer
- Impartial representation of shipper interests (Correct answer)
- Carrier rate transparency
Correct answer: Impartial representation of shipper interests
Accepting kickbacks compromises the broker's duty to select carriers based on shipper benefit rather than personal financial gain.
CTB Ethics & Business Communication Practices 4
A broker notices that a carrier consistently delivers late but always has a low rate.
What ethical consideration should guide the broker's continued use of this carrier?