Truck Dispatcher TruckDisp Cargo Claims and Carrier Liability 5 — Questions and Answers
Question 1: How long does a carrier have to pay, deny, or make a settlement offer on a cargo claim under federal regulations?
- 60 days
- 90 days
- 120 days
- 180 days (Correct answer)
Correct answer: 180 days
Federal regulations require carriers to pay, deny, or offer settlement on a cargo claim within 120 days of receipt.
Question 2: A shipper wants to declare a value of $100,000 on a shipment. What additional step is typically required?
- Filing a form with the FMCSA
- Paying an excess valuation charge to the carrier (Correct answer)
- Obtaining a separate cargo insurance policy
- Getting written approval from the consignee
Correct answer: Paying an excess valuation charge to the carrier
To declare a higher cargo value, the shipper must pay an excess valuation charge to the carrier, which increases the carrier's liability limit accordingly.
Question 3: What is the significance of the phrase 'said to contain' on a bill of lading?
- It confirms the carrier inspected and verified the contents
- It indicates the carrier did not verify the contents and limits their liability accordingly (Correct answer)
- It means the shipper is unsure of the contents
- It is required language for all international shipments
Correct answer: It indicates the carrier did not verify the contents and limits their liability accordingly
'Said to contain' means the carrier accepted the shipper's description without verifying contents, reducing the carrier's liability for content discrepancies.
Question 4: A reefer unit malfunctions during transit, causing $50,000 worth of frozen food to thaw and spoil. Who is liable?
- The shipper for choosing refrigerated transport
- The carrier, because maintaining the reefer unit is their responsibility (Correct answer)
- The consignee for not having backup storage
- The equipment manufacturer for mechanical failure
Correct answer: The carrier, because maintaining the reefer unit is their responsibility
The carrier is responsible for maintaining equipment in proper working order; a reefer malfunction during transit makes the carrier liable for resulting spoilage.
Question 5: What documentation is essential to support a high-value cargo claim?
- Only the bill of lading
- Commercial invoice, BOL, delivery receipt with exceptions, and photos of damage (Correct answer)
- Driver's trip log and fuel receipts
- Insurance certificate and broker agreement
Correct answer: Commercial invoice, BOL, delivery receipt with exceptions, and photos of damage
A complete cargo claim requires the commercial invoice proving value, BOL as the contract, delivery receipt showing exceptions, and photographic evidence of damage.
Question 6: What does 'mitigation of damages' require of a shipper or consignee after discovering cargo damage?
- They must file a claim within 24 hours
- They must take reasonable steps to prevent further loss or damage to the goods (Correct answer)
- They must hire an independent surveyor immediately
- They must return the damaged goods to the carrier
Correct answer: They must take reasonable steps to prevent further loss or damage to the goods
The duty to mitigate requires that parties take reasonable actions to prevent additional loss once damage is discovered, such as refrigerating perishables or covering exposed goods.
Question 7: A carrier delivers goods under a 'clean' bill of lading but the shipper later claims the cargo was already damaged before pickup. What does the clean BOL indicate?
- The carrier admitted the goods were in perfect condition at pickup
- The carrier accepted the goods without noting any visible damage at the time of pickup (Correct answer)
- The shipper certified the goods were undamaged
- The consignee waived their right to file a claim
Correct answer: The carrier accepted the goods without noting any visible damage at the time of pickup
A clean bill of lading means the carrier accepted the goods without noting any visible defects or damage at the time of pickup.
Truck Dispatcher TruckDisp Cargo Claims and Carrier Liability 5
How long does a carrier have to pay, deny, or make a settlement offer on a cargo claim under federal regulations?