FREE CFB Regulations and Compliance Questions and Answers
What can happen if a freight broker fails to comply with FMCSA regulations?
Non-compliance with FMCSA regulations can lead to severe consequences, including suspension or revocation of a broker’s operating authority, preventing them from legally operating within the industry.
Which of the following documents must freight brokers maintain to comply with federal regulations?
Freight brokers are required to keep records of contracts and agreements with carriers and shippers as part of federal compliance. These documents are essential in case of audits and for resolving disputes that may arise.
Which government agency is responsible for regulating freight brokers in the United States?
The FMCSA is the primary regulatory body overseeing freight brokers. They set licensing requirements, bonding, and compliance standards to ensure brokers operate legally and safely within the U.S.
What is the purpose of the $75,000 surety bond requirement for freight brokers?
The $75,000 surety bond acts as a financial guarantee that protects carriers and shippers if the broker fails to pay them, ensuring accountability in transactions and providing security for the industry.
How often must a freight broker renew their operating authority with the FMCSA?
The FMCSA requires freight brokers to renew their operating authority every two years to maintain compliance and stay active in the industry. This process helps ensure that brokers continuously meet regulatory standards.