TRIP Regulations and Legal Liabilities 3

Question 1

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?

Accepted Answer

Broker-carrier agreement

Answer

A broker-carrier agreement outlines the terms, responsibilities, and liability allocation between the freight broker and the motor carrier for each transaction.

Question 2

What is the primary purpose of a BOC-3 filing required by the FMCSA?

Accepted Answer

To designate process agents in each state where the carrier operates

Answer

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.

Question 3

Under the Federal Aviation Administration Authorization Act (FAAAA), states are generally preempted from regulating motor carrier:

Accepted Answer

Prices, routes, and services

Answer

The FAAAA preempts state laws related to prices, routes, and services of motor carriers to preserve a uniform national transportation market.

Question 4

When a third-party logistics provider (3PL) is sued for cargo loss, courts typically examine whether the 3PL acted as a:

Accepted Answer

Motor carrier or freight broker, since different liability standards apply to each role

Answer

Courts analyze whether the 3PL assumed carrier-like responsibility (motor carrier liability under Carmack) or merely arranged transport (broker liability under common law).

Question 5

Which of the following best describes 'negligent entrustment' in transportation liability?

Accepted Answer

Entrusting a vehicle to a driver known to be incompetent or unfit

Answer

Negligent entrustment occurs when an owner or employer allows an unfit, incompetent, or unlicensed person to operate a vehicle, and that person causes harm.

(TRIP) Transportation Risk and Insurance Professional Practice Test

(TRIP) Transportation Risk and Insurance Professional Practice Test

TRIP Regulations and Legal Liabilities 3