VERIFIED DETAILED ANSWERS
1: What agency regulates household goods carriers in California?
A. California Department of Motor Vehicles (DMV)
B. California Public Utilities Commission (CPUC)
C. Federal Motor Carrier Safety Administration (FMCSA)
D. California Department of Transportation (Caltrans)
CORRECT ANSWER: B. California Public Utilities Commission (CPUC)
Rationale: The CPUC regulates intrastate household goods carriers in California, including
permitting, rates, and consumer protection.
2: What is the minimum insurance requirement for a California household goods carrier?
A. $100,000 liability
B. $300,000 liability
C. $750,000 liability
D. $1,000,000 liability
CORRECT ANSWER: C. $750,000 liability
Rationale: CPUC regulations require household goods carriers to maintain at least $750,000 in
liability insurance.
3: Which document serves as the contract between the carrier and the customer?
A. Estimate
B. Bill of Lading
C. Inventory Sheet
D. Claim Form
CORRECT ANSWER: B. Bill of Lading
Rationale: The Bill of Lading is the legal contract that outlines the terms, conditions, and liability
for the move.
4: What is the maximum deposit a carrier can require for a local move?
A. 10% of estimated cost
B. 20% of estimated cost
,C. 50% of estimated cost
D. No deposit allowed
CORRECT ANSWER: A. 10% of estimated cost
Rationale: CPUC rules limit deposits for local moves to no more than 10% of the estimated total
cost.
5: Which form must be provided to the customer before a move begins?
A. Final invoice
B. Written estimate
C. Claim form
D. Insurance certificate
CORRECT ANSWER: B. Written estimate
Rationale: Carriers must provide a written estimate before beginning any household goods
move in California.
6: What is the time limit for filing a claim for loss or damage?
A. 30 days
B. 60 days
C. 90 days
D. 180 days
CORRECT ANSWER: C. 90 days
Rationale: Customers must file claims for loss or damage within 90 days of delivery (or
scheduled delivery date).
7: Which type of estimate is binding on the carrier?
A. Non-binding estimate
B. Binding estimate
C. Verbal estimate
D. Approximate estimate
CORRECT ANSWER: B. Binding estimate
Rationale: A binding estimate guarantees the total cost; the carrier cannot charge more than
the estimated amount.
8: What must a carrier do if the actual weight exceeds the estimated weight?
,A. Charge the customer the difference automatically
B. Re-weigh and get customer approval for additional charges
C. Absorb the extra cost
D. Cancel the move
CORRECT ANSWER: B. Re-weigh and get customer approval for additional charges
Rationale: For weight-based moves, if actual weight exceeds estimate, the carrier must re-weigh
and obtain customer approval for extra charges.
9: Which document lists all items being moved and their condition?
A. Bill of Lading
B. Inventory Sheet
C. Estimate
D. Claim Form
CORRECT ANSWER: B. Inventory Sheet
Rationale: The Inventory Sheet itemizes all goods and notes their condition at pickup and
delivery.
10: What is the carrier's liability limit for lost or damaged goods under basic coverage?
A. Full replacement value
B. $0.60 per pound per article
C. $1.00 per pound per article
D. No liability
CORRECT ANSWER: B. $0.60 per pound per article
Rationale: Basic carrier liability (released value) is limited to $0.60 per pound per article unless
additional valuation is purchased.
11: Which law requires carriers to provide a copy of "Your Rights and Responsibilities When
You Move"?
A. California Vehicle Code
B. Federal Moving Act
C. CPUC Regulations
D. Local ordinances
CORRECT ANSWER: C. CPUC Regulations
, Rationale: CPUC regulations require carriers to provide the CPUC publication "Your Rights and
Responsibilities When You Move" to customers.
12: What is prohibited regarding estimates?
A. Providing written estimates
B. Providing estimates without an on-site survey for local moves
C. Charging for estimates
D. Providing estimates by phone
CORRECT ANSWER: B. Providing estimates without an on-site survey for local moves
Rationale: For local moves, carriers must perform an on-site survey before providing a written
estimate (with limited exceptions).
13: What must a carrier do if a customer disputes the final charges?
A. Demand immediate payment
B. Follow tariff dispute resolution process
C. Abandon the goods
D. Sue immediately
CORRECT ANSWER: B. Follow tariff dispute resolution process
Rationale: Carriers must follow their filed tariff procedures for resolving billing disputes, which
may include arbitration.
14: Which document proves the carrier's insurance coverage?
A. Business license
B. CPUC Permit
C. Insurance Certificate
D. Vehicle registration
CORRECT ANSWER: C. Insurance Certificate
Rationale: The Insurance Certificate (or proof of insurance) demonstrates the carrier meets
CPUC insurance requirements.
15: What is the requirement for a carrier to operate in California?
A. Only a business license
B. CPUC Permit and insurance
C. Only federal authority
D. No special requirements