Regulations and Legal Liabilities Flashcards
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Read the first 7 Regulations and Legal Liabilities flashcards as text
A broker arranges a load but does not take possession of the cargo. Under federal law, which document defines the broker's legal relationship to the transaction?
Answer: Broker-carrier agreement
A broker-carrier agreement outlines the terms, responsibilities, and liability allocation between the freight broker and the motor carrier for each transaction.
What is the primary purpose of a BOC-3 filing required by the FMCSA?
Answer: To designate process agents in each state where the carrier operates
A BOC-3 designates process agents in each state, allowing legal papers to be served on a carrier or broker even if they have no physical presence in that state.
Under the Federal Aviation Administration Authorization Act (FAAAA), states are generally preempted from regulating motor carrier:
Answer: Prices, routes, and services
The FAAAA preempts state laws related to prices, routes, and services of motor carriers to preserve a uniform national transportation market.
When a third-party logistics provider (3PL) is sued for cargo loss, courts typically examine whether the 3PL acted as a:
Answer: Motor carrier or freight broker, since different liability standards apply to each role
Courts analyze whether the 3PL assumed carrier-like responsibility (motor carrier liability under Carmack) or merely arranged transport (broker liability under common law).
Which of the following best describes 'negligent entrustment' in transportation liability?
Answer: Entrusting a vehicle to a driver known to be incompetent or unfit
Negligent entrustment occurs when an owner or employer allows an unfit, incompetent, or unlicensed person to operate a vehicle, and that person causes harm.
Under FMCSA regulations, electronic logging devices (ELDs) are primarily required to:
Answer: Automatically record a driver's hours of service
ELDs automatically record driving time and other hours-of-service data to ensure compliance with federal HOS regulations and reduce falsification of logbooks.
In transportation law, 'independent contractor' status of a truck driver is significant primarily because it affects:
Answer: Whether the motor carrier is vicariously liable for the driver's negligent acts
If a driver is classified as an independent contractor rather than an employee, the motor carrier may argue it is not vicariously liable under respondeat superior for the driver's negligence.