TruckDisp Cargo Claims and Carrier Liability Flashcards
7 cards from real Truck Dispatcher practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 TruckDisp Cargo Claims and Carrier Liability flashcards as text
Under FMCSA regulations, what minimum cargo insurance level must for-hire motor carriers maintain for general freight?
Answer: $750,000
For-hire motor carriers transporting general freight must maintain a minimum of $750,000 in cargo liability insurance per FMCSA requirements.
A dispatcher is coordinating a load of hazardous materials that is damaged in transit. Who bears primary liability for the cleanup costs?
Answer: The motor carrier transporting the goods
The motor carrier in physical possession of hazardous materials during an incident bears primary liability for spill cleanup and environmental remediation costs.
What is a 'concealed shortage' and how does it differ from a concealed damage claim?
Answer: A concealed shortage means fewer items than invoiced; concealed damage means hidden physical damage
A concealed shortage refers to missing items discovered after delivery, while concealed damage refers to physical damage found after delivery without external signs.
A carrier's tariff limits liability to $50 per shipment, but the shipper claims the goods were worth $5,000. What determines the applicable limit?
Answer: The terms agreed upon in the bill of lading and any declared value endorsement
The applicable liability limit is governed by the bill of lading terms, carrier tariff, and any declared value the shipper paid additional charges to obtain.
Which of the following scenarios would result in a carrier being fully liable for cargo damage?
Answer: Cargo damage caused by the driver's negligent loading
Carriers are fully liable when damage results from their own negligence, such as a driver improperly securing or loading cargo.
What is the purpose of a 'letter of protest' in cargo claims?
Answer: To preserve a shipper's right to file a claim when damage is discovered after signing a clean delivery receipt
A letter of protest is sent promptly to the carrier to notify them of discovered damage when a clean delivery receipt was signed, preserving the shipper's claim rights.
When a broker arranges a shipment and cargo is lost, what is the broker's typical liability?
Answer: Brokers generally have no direct cargo liability unless they acted as the carrier
Licensed freight brokers typically are not liable for cargo loss unless they held themselves out as the carrier or took physical custody of the goods.