Cargo Claim Filing & Resolution Flashcards

A shipper's claim is denied because the carrier argues the box was improperly packed by the shipper. What is the carrier's burden of proof in this situation?

Answer: The carrier must prove that improper packing, not carrier negligence, caused the damage

Under the Carmack Amendment, once a shipper shows goods were delivered in good condition and arrived damaged, the carrier bears the burden of proving a valid defense such as improper packing.

What is the purpose of arbitration programs offered by household goods carriers for disputed claims?

Answer: To provide an alternative to litigation for resolving claims between $1,000 and $10,000

FMCSA-required arbitration programs give shippers an accessible, lower-cost alternative to federal court for resolving disputed claims, typically in the $1,000–$10,000 range.

Which of the following best describes 'constructive delivery' in the context of cargo claims?

Answer: Goods placed in storage at the shipper's request are considered delivered for claim timing purposes

When goods are placed in SIT (storage-in-transit) at the shipper's request, constructive delivery occurs at the time of storage, starting the claim filing clock.

A mover loses a customer's artwork that was properly declared on the high-value inventory. Under Full Value Protection, how is the settlement value determined?

Answer: The current market replacement value of the artwork

Under Full Value Protection, the carrier must pay the current market replacement value for lost or destroyed items that were properly declared.

A consignee refuses delivery of a damaged shipment and returns all goods to the carrier. What type of claim should the shipper file?

Answer: A total loss claim for the full declared value of the shipment

When a shipment is rejected in full due to damage, the shipper files a total loss claim for the entire declared value of the refused goods.

A moving company's tariff states that the filing deadline for claims is 6 months. Is this tariff provision enforceable under federal law?

Answer: No, federal law requires a minimum 9-month filing period for loss or damage claims

Federal law (49 U.S.C. § 14706) mandates a minimum 9-month claim filing period for household goods; any tariff provision setting a shorter deadline is unenforceable.

After a cargo claim is settled and paid, a carrier discovers that the shipper had misrepresented the value of a claimed item. What recourse does the carrier have?

Answer: The carrier can pursue the shipper for fraud or misrepresentation to recover the overpayment

Fraudulent misrepresentation in a cargo claim gives the carrier grounds to sue for recovery of overpayment and potentially additional damages.