The Rbbs Logistics' Learning Center's Required Basic Knowledge Quiz

1. What is an MC number?

Master Controller Number

Motor Carrier Number

Member Consolidation Number

Microsoft Computer Number

2. What are the two main factors for determining freight rate?

Weight and distance

Fuel costs and taxes

Break down expenses and detention pay

Hazardous material loads and permits

3. After the load has been successfully delivered you then should contact the shipper and inform them of the status of the load. The carrier should fax you the signed bill of lading to verify the delivery to the recipient. If there are any problems with the delivery of the load, it's a Freight Brokers job to notify all parties involved of the status of the delivery

True

False

4. Any sales experience is helpful as a freight broker agent.

True

False

5. Must I use a motor carrier that has a valid U.S. DOT number and valid operating authority issued by FMCSA to transport household goods in interstate or foreign commerce?

True

False

You may only act as a household goods broker for a motor carrier that has a valid, active U.S. DOT number and valid operating authority issued by FMCSA to transport household goods in interstate or foreign commerce.
49 CFR 371.105

Explanation

You may only act as a household goods broker for a motor carrier that has a valid, active U.S. DOT number and valid operating authority issued by FMCSA to transport household goods in interstate or foreign commerce.
49 CFR 371.105

6. Freight brokers CAN NOT perform any brokerage service under a different name than what's on their MC Registration

True

False

7. What does GPS stand for?

General Purpose Shipping

Gross Pounds Shipped

Global Positioning System

Global Product Shipment

8. Experience in the trucking or shipping industry is helpful but not necessary.

True

False

9. Freight Brokers CAN NOT take possession of cargo. They are not freight forwarders or carriers. They can only facilitate the arrangement of the delivery.

True

False

10. All brokers must keep records of all transactions and all shipments for which they arrange transportation. For how long do you need to keep these records on file?

10 Years

5 Years

3 Years

1 Year

Records to be Kept by Brokers, 49 CFR §371.3

Explanation

Records to be Kept by Brokers, 49 CFR §371.3

11. A broker's license is NOT a "mode" of transportation and a property broker can not take ownership of the bill of lading. Property brokers are in a fiduciary (trust) relationship with the motor carrier actually hauling the brokered freight.

True

False

12. If you have not fulfilled all the broker requirements within 20 days of filing your OP-1 application the FMCSA will issue you a notice that you have 60 days from the date of the notice in which to meet all the requirements or your application will be dismissed

True

False

Which means you have to complete both the BOC3 and BMC84 forms to be an active broker.

Explanation

Which means you have to complete both the BOC3 and BMC84 forms to be an active broker.

13. What is the definition of the word tariff?

A published schedule showing rates, fares, charges, classification, along with rules and regulations

It's when the carrier and the freight broker split the fuel tax

A type of citation, carriers receive for their trucks being over the legal weight limit

14. What is The minimum penalty if you are a household goods broker and you arrange transportation of a household goods shipment with a motor carrier with which you do not have a written agreement.

$20,000

$15,000

$10,000

$5,000

The minimum penalty is $10,000 if you are a household goods broker and you arrange transportation of a household goods shipment with a motor carrier with which you do not have a written agreement.
Consequences of Noncompliance with the Regulations, 49 CFR §371.121

Explanation

The minimum penalty is $10,000 if you are a household goods broker and you arrange transportation of a household goods shipment with a motor carrier with which you do not have a written agreement.
Consequences of Noncompliance with the Regulations, 49 CFR §371.121

15. What does LTL stand for?

Lower Than Load

Longer Than Length

Less-Than-Truckload

Less-Then-Load

Less than truckload shipping or less than load (LTL) is the transportation of relatively small freight. The alternatives to LTL carriers are parcel carriers or full truckload carriers. Parcel carriers usually handle small packages and freight that can be broken down into units less than 150 pounds (68 kg).

Explanation

Less than truckload shipping or less than load (LTL) is the transportation of relatively small freight. The alternatives to LTL carriers are parcel carriers or full truckload carriers. Parcel carriers usually handle small packages and freight that can be broken down into units less than 150 pounds (68 kg).

16. What does the term "accounts receivable" mean when you are in charge of the company bills?

Money owed to you by customer you have already provided service to

Money you owe a company for their services.

Money you have received for services rendered.

An account you hope to receive.

17. If you do not score well on this quiz, you won't make a good Freight Broker Agent.

True

False

Even if you score poorly on this practice quiz, don't give up hope on becoming an agent. The purpose of this course is to teach you everything you need to know to be a successful Freight Broker Agent.

Explanation

Even if you score poorly on this practice quiz, don't give up hope on becoming an agent. The purpose of this course is to teach you everything you need to know to be a successful Freight Broker Agent.

18. What does the term 'accounts payable' mean when you as an agent or broker are doing the accounting or bills?

Money owed by the customer, whom you've provided goods or services

Money owed by the business, to suppliers, who have provided goods or service but have yet to be paid.

It indicates who you make the check out to

Accounts that the charges can be forwarded to the carrier

19. What does the term 'accounts receivable' mean'?

Money owed by the business, to suppliers, who have provided goods or services

It is when you receive payment on a bill

Money owed by the customer, whom you've provided goods or service

Another word for an accountant

20. What are two important things you send the carrier for each load?

The pick-up and delivery time, and the addresses to the shipper and receiver

An exact piece count, total weight being shipped, and square feet of trailer room the freight will be taking up

The bill of laden and the shipper packet

Load confirmation and rate agreement form

21. Federal Motor Carrier Safety Administration (FMCSA) is the only governing body for Freight Brokers.

True

False

22. Freight brokers CAN receive commission on freight where the broker has a financial beneficial interest in the shipment.

True

False

23. "Agents number" on a bill of lading refers to which of the following?

The truck number of which the freight is on

Federal Department of Transportation number

The carrier's control number

The truck driver's employee number

24. Explain the 'bad debt to sales ratio'?

It's when a company has more debt than sales

The amount of debt divided by the sales

It's when you are owed money from your customers

It's when a company doesn't profit for that shipment transaction

25. The Agent of the freight broker (Freight Broker Agent) is responsible for the financial aspects of the company meaning the following: invoicing shippers, paying carriers, extending credit, claim assistance, paying agents…etc.)

True

False