Transportation Law
During the initials phases of US transportation regulation, there were competing philosophies around government control. What is the name of the philosophy that favored expanded federal government legislation? A.) The Progressive Era B.) The Granger Era C.) The Harter Era D.) The Lochner Era (or Laissez-Faire
A.) The Progressive Era
There are four independent agencies. Which of the following is NOT an independent agency? A.) Transportation Security Administration (TSA) B.) National Transportation Safety Board (NTSB) C.) Federal Maritime Commission (FMC) D.) Surface Transportation Board (STB)
A.) Transportation Security Administration (TSA)
A decision by the Surface Transportation Board (STB) overrides federal and state laws A.) True B.) False
A.) True
A rail "bottleneck" occurs when more than once railroad may be involved in providing service from an origin to a destination, but only one carrier can serve either the origin or destination. A.) True B.) False
A.) True
A written explanation of rates, rules and practices in the transportation industry is known as a tariff A.) True B.) False
A.) True
According to Dr. Henderson, the definition of transportation law includes statutory law, regulations, common law, treaties, rules and practices A.) True B.) False
A.) True
Before the 1800s, there were no international laws governing transportation. Each nation provided security and regulation for the goods in their territory A.) True B.) False
A.) True
Carmack requires liability for the full amount of the cargo unless a released rate is offered by the carrier and accepted by the shipper A.) True B.) False
A.) True
Generally, the direction of deregulation (reregulation) was to replace a strict Federal control model with a model that was more driven by market forces. A.) True B.) False
A.) True
Joint and several liability is when multiple parties can be held liable for the same event or act and all parties are responsible for any required restitution A.) True B.) False
A.) True
Most railroad cargo is hauled through confidential contracts that have no oversight from the STB A.) True B.) False
A.) True
The Carmack Amendment to the Hepburn Act of 1906 provided for liability for the full value of the actual loss in a shipment. In essence, railroads became virtual insurers. A.) True B.) False
A.) True
The Code of Federal Regulations (CFR) Title 49 also deals with transportation regulations. However, whereas USC is a compendium of the actual laws, CFR is a compendium of all the regulations created by the Executive Branch to implement the laws A.) True B.) False
A.) True
The Constitution of the United States gives Congress the authority to regulate interstate and foreign commerce. A.) True B.) False
A.) True
The Gilded Age was dominated by titans of industry collective known as robber barons A.) True B.) False
A.) True
The Legislative branch consists of the Senate and the House of Representatives and its role is to MAKE laws A.) True B.) False
A.) True
The Maritime Administration (MARAD) is an agency within the Department of Transportation and regulates domestic shipping. A.) True B.) False
A.) True
The United Stated Code Title 49 and the Code of Federal Regulations Title 49 both deal with regulation of interstate transportation A.) True B.) False
A.) True
The loosening of restrictions on railroads in the 1980s had many positive effects such as increased productivity and revenue. However, it also had some negative sides. What was one of those negatives? A.) Two rail companies came to dominate 95% of the market creating a phenomenon known as "Captive Shipper" B.) Complaints about the quality of service increased by 1200% C.) Railroads raised their rates so high they forced themselves into bankruptcy D.) Railroads quit servicing the western half of the US.
A.) Two rail companies came to dominate 95% of the market creating a phenomenon known as "Captive Shipper"
When must a claim be filed against a rail carrier for damage to cargo according to the Carmack Amendment A.) Within 9 months B.) Within 6 months C.) Within 7 days D.) Within 24 hours
A.) Within 9 months
Which of the following is not a step in the process of making and executing new legislation?
Adjournment to an Astros game
What was the name of the era which supported limited government control on private businesses A.) Progressive Era B.) Granger Era C.) Harter Era D.) Lochner Era or Laissez Faire
D.) Lochner Era or Laissez Faire
Carmack applies to A.) Rail Carriers B.) Motor Carriers C.) Rail and Motor Carriers D.) Rail and Motor Carriers and Freight Forwarders
D.) Rail and Motor Carriers and Freight Forwarders
All of the following are units with the DOT EXCEPT:
Surface Transportation Board
For most modes of transportation, where are the statutory laws passed by Congress and signed by the President encoded? A.) 49 USC B.) 27 USC C.) 49 CFR D.) 35 USC
A.) 49 USC
Which of the following statements is true about Carmack? A.) Any common carrier, railroad or transportation company handling an interstate shipment of property is liable for the full value of the goods being shipped if the cargo is damaged B.) Only the originating carrier is responsible for the cargo. If the cargo is transferred to another carrier, they are free of Carmack liability C.) The shipper is required to procure additional cargo insurance to get the benefits of Carmack D.) Carmack applies to railroads, motor carriers, air and ocean shipping.
A.) Any common carrier, railroad or transportation company handling an interstate shipment of property is liable for the full value of the goods being shipped if the cargo is damaged
The dominant themes of deregulation include all the following EXCEPT: A.) Ban certain individuals from operating transport services B.) Substitute competitive market forces for detailed regulatory controls C.) Place consumers and transportation carriers on a level playing field D.) Reorganize government entities controlling transportation
A.) Ban certain individuals from operating transport services
Transportation legislation was first passed in the US in response to A.) Conflicts among the states about interstate practices, particularly concerning the railroads B.) The need for the government to assert some control over the growing country C.) Airline safety practices D.) Wealthy individuals creating monopolies in steel, coal, and railroads
A.) Conflicts among the states about interstate practices, particularly concerning the railroads
Name the agency whose primary mission is to reduce crashes, fatalities, and property loss involving large trucks and buses by regulating the workers involved A.) Federal Motor Carrier Safety Administration B.) Surface Transportation Board C.) Federal Marine Commission D.) Federal Aviation Agency
A.) Federal Motor Carrier Safety Administration
To file a liability claim, shippers must prove that A.) Goods were in good condition when delivered to the carrier B.) Carrier hired drivers with expired licenses C.) Goods could have been exported or imported D.) Driving conditions were not hazardous
A.) Goods were in good condition when delivered to the carrier
What was the name of the powerful farm association in the 1880s that began to lobby for state laws to regulate commerce? A.) Grangers B.) Rangers C.) Astros D.) Agricultural Associates (AA)
A.) Grangers
What major piece of legislation deregulated the trucking industry? A.) Motor Carrier Act of 1980 B.) Staggers Rail Act of 1980 C.) Elkins Act D.) Interstate Commerce Commission Termination Act of 1995
A.) Motor Carrier Act of 1980
The Federal Railroad Administration is responsible for A.) Promoting safe and fair railroad transportation and promoting intermodalism B.) Railroad rates and service issues C.) Railroad restructuring activities (merging with another railroad) D.) Oil and gas leases on railroad right of ways
A.) Promoting safe and fair railroad transportation and promoting intermodalism
The Staggers Act of 1980 addressed: A.) Railroads B.) International ocean shipping reform C.) Rebates D.) Motor Carriers
A.) Railroads
All of the following are true about the National Transportation Safety Board (NTSB) EXCEPT A.) The NTSB can create regulations B.) The NTSB is an independent agency C.) The NTSB investigates transportation accidents for all modes of transport D.) An NTSB investigation led to the requirement of Positive Train Control
A.) The NTSB can create regulations
The concept of "released rates" is A.) Shippers can sue a carrier for not "releasing" the cargo even if the rate is not paid B.) Carriers can limit their liability for damage or loss by offering a reduced rate for carriage C.) Carriers can negotiate a rate that is "released" from their filed tariffs D.) Shippers can be "released" from the "agreed to" rate under certain conditions
B.) Carriers can limit their liability for damage or loss by offering a reduced rate for carriage
Indemnify means A.) Accuse another party of a causing lose or damage to goods in transport B.) Compensate another part for loss or damage C.) File a claim for loss or damage D.) To be held liable for loss or damage
B.) Compensate another part for loss or damage
A carrier is required to offer two or more rates to a shipper reflecting the amount of liability the carrier will assume. However, those rates do not have include full liability as long as the carrier offers two different rates. A.) True B.) False
B.) False
After 1910, the Interstate Commerce Commission had little to no effect on transportation operations. A.) True B.) False
B.) False
Article 1, Section 8, Clause 3 of the United States Constitution allows the US government to regulate commerce within individual state borders A.) True B.) False
B.) False
Currently the railroads are not allowed to enter into confidential contracts. A.) True B.) False
B.) False
Regulations for all modes of transportation are exactly the same A.) True B.) False
B.) False
The consolidation of the railroads has been completely transparent (has had no effect) on shippers. A.) True B.) False
B.) False
The wave of deregulations of the transportation industry that began in the 70s had little or no effect on the transportation industry. A.) True B.) False
B.) False
The words "statutory law" "regulations", "common law", "treaties" and "rules and practices" all mean exactly the same thing A.) True B.) False
B.) False
Today, the Department of Transportation (DOT) has authority for all modes of transportation both international and domestic A.) True B.) False
B.) False
Which federal agency has jurisdiction of domestic water shipping? A.) Federal Maritime Commission (FMC) B.) Maritime Administration (MARAD) C.) Surface Transportation Board (STB) D.) Domestic water shipping is not regulated
B.) Maritime Administration (MARAD)
All of the following Acts were signed into law before 1920 EXCEPT: A.) Elkins Act B.) Motor Carrier Act C.) Mann-Elkins Act D.) Hepburn Act
B.) Motor Carrier Act
The Surface Transportation Board has jurisdiction over all of the following EXCEPT: A.) Railroad rate and service issues B.) Motor carrier safety issues C.) Rates and services of certain pipelines D.) Rail restructuring transactions
B.) Motor carrier safety issues
What is the latest improvement in train safety (as discussed in class) A.) Air braking over bridges B.) Positive Train Control C.) Warning sirens at stations D.) Negative Ion Braking Mechanisms
B.) Positive Train Control
The primary stated purpose behind the Motor Carrier Act of 1935 was to A.) Reduce competition among motor carriers B.) Protect the fledgling industry from predatory pricing and uncontrolled competition C.) Increase trucking rates D.) Ensure that shippers had unlimited access to transportation
B.) Protect the fledgling industry from predatory pricing and uncontrolled competition
The Surface Transportation Board considered the bottleneck dilemma and decided: A.) Railroads must price the bottleneck section the same as the routes which have competition. B.) Railroads are free to price the bottleneck section differently than the routes which have competition C.) The STB disallowed all bottlenecks and ordered parallel tracks laid where there was no competition D.) The STB ignored the subject completely
B.) Railroads are free to price the bottleneck section differently than the routes which have competition
The current version of the Carmack amendment is encoded in 49 USC 11706 for railroads and 49 USC 14706 for motor carriers, both sections have the following commonalities EXCEPT A.) Receiving, delivering, and intermediate carriers are all covered B.) Railroads call it the "Karback" amendment and motor carriers call it the "St. Arnold's" amendment C.) Must issue a bill of lading D.) The carrier issuing the bill of lading is entitled to recover damages from other carriers.
B.) Railroads call it the "Karback" amendment and motor carriers call it the "St. Arnold's" amendment
The Motor Carrier Act of 1935 required the following A.) Drivers to log their hours and follow rules as to how much they could drive in a given period of time B.) Required new truckers to seek a "certificate of public convenience and necessity" from the Interstate Commerce Commission C.) Exempted carriers from the antitrust laws D.) Carriers could convey any commodity over any route that was convenient
B.) Required new truckers to seek a "certificate of public convenience and necessity" from the Interstate Commerce Commission
Regarding the railroads, what agency took over the duties of the ICC after the Interstate Commerce Commission Termination Act (ICCTA) of 1995? A.) FBI B.) STB C.) FAA D.) NSA
B.) STB
The United States Code (USC) defines three parties covered by transportation law A.) Buyer, Seller, Carrier B.) Shipper, Carrier, Consignee C.) Consignor, Consignee, Consignment D.) Freight Forwarder, NVOCC, vessel
B.) Shipper, Carrier, Consignee
What legislative event triggered the wave of railroad consolidations that began in the 1980s A.) The Interstate Commerce Commission Termination Act B.) The Staggers Act C.) The Transportation Act of 1980 D.) Motor Carrier Act of 1980
B.) The Staggers Act
The legal framework of the Federal Government includes all the following EXCEPT A.) The Judiciary B.) The city of Washington, DC C.) The Legislative Branch D.) The Executive Branch
B.) The city of Washington, DC
For water transportation regulations in the US, which of the following statements is true? A.) The US does not concern itself with water transportation. Instead it relies on international treaties for guidance. B.) There are two agencies in the US federal government concerned with water transport - MARAD for domestic carriers and the Federal Maritime Commission (FMC) for international water carriers C.) The Department of Transportation has sole responsibility for international shipments on the oceans D.) Water and air carriers are governed by the same agency within the Department of Transportation.
B.) There are two agencies in the US federal government concerned with water transport - MARAD for domestic carriers and the Federal Maritime Commission (FMC) for international water carriers
All the following are separate railroad charges EXCEPT: A.) Carrier vs. Shipper supplied car B.) Demurrage C.) Storage charges D.) Line maintenance fees
D.) Line maintenance fees
Since 2015, the Surface Transportation Board is A.) Part of the judiciary B.) Part of the Department of Transportation C.) An independent agency D.) A congressional committee
C.) An independent agency
As supply chain, logistics and/or transportation professionals we should be concerned with insuring that our company complies fully with all appropriate laws, rules regulations and practices because: A.) Failure to do so has little or no effect B.) Failure to do always results in criminal prosecution and sentencing to prison time C.) As leaders in our company and community we carry a stewardship responsibility to the company, our fellow employees, our shareholders, our customers, our suppliers and our community to protect them from harm D.) Failure to do always results in loss of the authority to conduct business
C.) As leaders in our company and community we carry a stewardship responsibility to the company, our fellow employees, our shareholders, our customers, our suppliers and our community to protect them from harm
Which of the following is NOT one of the five defenses against Carmack liability? A.) The public enemy B.) Act of God C.) Bribery D.) Act of the shipper or owner
C.) Bribery
The Hepburn Act of 1906 allowed for regulating the liability of carriers, shippers, and consignees that is still very much in use today. What is that regulation called A.) Liability from the Hepburn Act B.) ICC C.) Carmack Amendment D.) Montreal Protocol
C.) Carmack Amendment
What was passed into Law in 1906 to clarify the issue of carrier liability for loss or damage of goods. A.) 1st Amendment to the U.S. Constitution B.) Jones Act C.) Carmack Amendment to the Hepburn Act D.) Staggers Act
C.) Carmack Amendment to the Hepburn Act
Released rates are valid when they pass a four part test. Which of the following is NOT part of the that test A.) Bill of Lading must reflect the liability agreement between the shipper and carrier B.) Shipper must have access to carrier's rate schedule C.) Carrier must have shipper's original signature on three copies of the Bill of Lading D.) Shipper must actively choose between two or more rate levels
C.) Carrier must have shipper's original signature on three copies of the Bill of Lading
Which agency keeps a list of the United State's international treaties A.) Department of Homeland Security B.) Environmental Protection Agency C.) Department of State D.) The Senate Committee on Commerce, Science & Transportation
C.) Department of State
There are two federal agencies associated with the railroads. Which one is concerned about ensuring safety? A.) STB B.) FMC C.) FRA D.) ICC
C.) FRA
All the following are original purposes of Carmack EXCEPT: A.) Adopt a uniform standard of liability for carriers engaged in interstate surface transportation B.) Codify common law liability of common carriers as "virtual insurers" liable for full actual loss of goods sustained while in carrier's possession C.) Get rid of the requirement of a bill of lading D.) Create joint and several liability in originating and delivering carriers
C.) Get rid of the requirement of a bill of lading
Which mode of international transportation is extensively used, yet has the LEAST US federal involvement? A.) International Shipping B.) International Rail C.) International Air D.) International Trucking
C.) International Air
The Department of Transportation (DOT) has jurisdiction over all modes of transportation EXCEPT: A.) Motor Carriers B.) Railroads C.) International Shipping D. Airlines
C.) International Shipping
Which was the first federal law to regulate private industry A.) Mann-Elkins Act B.) Hepburn Act C.) Interstate Commerce Act D.) Staggers Act
C.) Interstate Commerce Act
Starting in the 1950s, Congress created several additional agencies to strengthen Federal control over transportation. These included all the following EXCEPT: A.) NASA B.) FAA C.) Marine Corps D.) DOT
C.) Marine Corps
Transportation regulations cover all of the following EXCEPT: A.) Rates B.) Liability C.) Number of employees per company D.) Safety
C.) Number of employees per company
The STB has jurisdiction over all of the following EXCEPT A.) Line construction B.) Line abandonment C.) Proprietary railroads D.) Acquiring new rail lines
C.) Proprietary railroads
In regards to the railroads, what agency took over the duties of the ICC after the Interstate Commerce Commission Termination Act (ICCTA) of 1995? A.) FAA B.) FBI C.) STB D.) NSA
C.) STB
The Transportation Act of 1940 made the following change to domestic commercial transportation. A.) It allowed water carriers to remain under separate authority B.) It required airlines to be regulated by the Interstate Commerce Commission C.) It required airlines to file tariffs with the Interstate Commerce Commission D.) It required domestic water carriers to be regulated by the Interstate Commerce Commission
D.) It required domestic water carriers to be regulated by the Interstate Commerce Commission
The mission of the DOT is A.) Spend trillions of taxpayer dollars on Interstate Highway expansion, maintenance and improvement B.) Insure that trucking companies operating in interstate commerce meet all federal safety requirement. This is the DOTs only mission. C.) Serve the United States by ensuring a fast, safe, efficient, accessible and convenient transportation system that meets our vital national interests and enhances the quality of life of the American people, today and into the future D.) Issue operating authority to anyone who offers a small stipend to the registration cler
C.) Serve the United States by ensuring a fast, safe, efficient, accessible and convenient transportation system that meets our vital national interests and enhances the quality of life of the American people, today and into the future
Between the United States and Canada, how many Class 1 railroads are there? A.) Three B.) Five C.) Seven D.) Nine
C.) Seven
The concept of "released rate" to the railroads means that A.) The railroad will only hand over (release) cargo after the rate has been paid B.) Railroads are liable for the full value of the cargo in all circumstances C.) Shippers may claim a value for their cargo in exchange for a negotiated rate with the railroad. The railroad is liable only for the value claimed by the shipper D.) The term became popular after the demise of the ICC when rates were "released" from regulations
C.) Shippers may claim a value for their cargo in exchange for a negotiated rate with the railroad. The railroad is liable only for the value claimed by the shipper
The ICCTA of 1995: A.) Did not address liability B.) Stated that cargo liability must be handled via an amendment to the U.S. Constitution C.) Split Carmack into two sections in the USC D.) Was directed toward Russian hacking interference
C.) Split Carmack into two sections in the USC
Regarding railroads and commodities, all the following are true EXCEPT: A.) Many commodities such as agriculture, lumber, poultry and automobiles are exempt from STB rate oversight as long as adequate competition is available B.) There is very little recourse to shippers for perceived overcharging C.) The STB will move quickly and revoke exempt status when they receive 150 complaints in one year. D.) The agriculture industry has made some progress with STB oversight towards obtaining contracts with the railroads to haul their products.
C.) The STB will move quickly and revoke exempt status when they receive 150 complaints in one year.
A famous ancient trade route discussed in class is called A.) The Chissom Trail B.) Roman route C.) The Silk Road D.) China to India pathway
C.) The Silk Road
When we say transportation is a "derived" need, we mean A.) People "derive" pleasure from driving around and only drive around when they feel like it. B.) The transportation industry was "derived" as an occupation to supply jobs C.) Transportation of goods is a means to connect sellers and buyers. Without buyers and sellers there would be no need for the transportation of goods. D.) Congress mandated that the transportation industry be referred to as "derived".
C.) Transportation of goods is a means to connect sellers and buyers. Without buyers and sellers there would be no need for the transportation of goods.
Although authorized by the Constitution to regulate interstate and foreign commerce, Congress did not become involved until: A.) The Civil War B.) The American Revolution C.) The US landed men on the moon D.) 1887
D.) 1887
All of the following are true about Carmack requirements for Bills of Lading EXCEPT A.) A carrier must issue a bill of lading B.) Failure to issue a bill of lading does not affect liability C.) The bill of lading includes a box to declare the value of the shipment D.) A bill of lading may include language that limits the carriers liability in all circumstances
D.) A bill of lading may include language that limits the carriers liability in all circumstances
Which of the following modes of transport were deregulated during the 70s & 80s A.) Air B.) Railroads C.) Motor Carriers D.) All of the above
D.) All of the above ++
All of the following statements about the Surface Transportation Board (STB) and the Federal Railroad Administration (FRA) are true EXCEPT: A.) The STB is focused on ensuring rates are fair and reasonable B.) The FRA is focused on ensuring railroads are safe for both people and goods C.) The STB responsibilities include more than just railroads D.) Both the STB and the FRA report up through the Department of Transportation
D.) Both the STB and the FRA report up through the Department of Transportation
All the following are examples of railroad behaviors/practices during the Gilded Age EXCEPT: A.) Pooling; associations of competing railroads to set rates and routes B.) Discriminatory and predatory pricing C.) Rapid and widespread construction D.) Careful conservative borrowing practices to finance expansions
D.) Careful conservative borrowing practices to finance expansions
Railroads often instituted severe restrictions on released value rates. Which of the following examples is NOT noted in the course work A.) Shipper must notify carrier no less than 72 hours before shipment is released for transportation that shipper chooses Carmack Liability protection B.) Shipper must prepay the Carmack Liability rate of tariff rate + 250% C.) Shipping instructions must note that shipment is moving under 49 U.S.C. §11706 liability terms and that shipment is subject to special pricing authority (specifically noted) D.) Carmack must be referred to as "The Carmack Liability as prescribed by the US Government" in all documents or the liability coverage is void
D.) Carmack must be referred to as "The Carmack Liability as prescribed by the US Government" in all documents or the liability coverage is void
Congress gained momentum regarding deregulation and in quick succession passed laws deregulating all modes of transportation. Which of the following laws was not concerned with deregulation? A.) Air Transportation Regulatory Reform Act of 1977 B.) Motor Carrier Act of 1980 C.) Staggers Rail Act of 1980 D.) Civil Aeronautics Act of 1938
D.) Civil Aeronautics Act of 1938
The ______________ is a Secretary level department whose head is on the Cabinet and who is part of the Executive Branch and is responsible for transportation matters A.) DOD B.) OSHA C.) DEA D.) DOT
D.) DOT
The job of putting laws into effect belongs to the ______________ A.) Judiciary B.) House of Representatives C.) Department of Defense D.) Executive Branch
D.) Executive Branch
Which of the following is NOT a requirement of the Interstate Commerce Act? A.) Non-preferential rates B.) Rates published in publicly available tariffs C.) No price discrimination against small markets D.) High rates on "bottleneck" sections of routes
D.) High rates on "bottleneck" sections of routes
In 1887, the Federal government began to exercise its Constitutional authority and passed the "Interstate Commerce Act" which among other things, established the A.) FBI B.) CAB C.) DOT D.) ICC
D.) ICC
All of the following statements are true about the Reed Bullwinkle Act of 1948 EXCEPT: A.) Allowed trucking companies to fix rates in concert with one another B.) Its passage was opposed by antitrust groups C.) Its passage led to thousands of complaints filed with the ICC D.) It applied to railroads, domestic water carriers and airlines as well as motor carriers
D.) It applied to railroads, domestic water carriers and airlines as well as motor carriers
Prior to the signing into law of the Carmack Amendment all the following statements about carrier liability are true EXCEPT: A.) There was no law governing carrier liability for transit losses B.) The results from claims were unpredictable and inequitable C.) Railroads held all the cards vs shippers D.) Railroads set aside special funds to help people who were financially hurt by transit losses
D.) Railroads set aside special funds to help people who were financially hurt by transit losses
The actual effect of the Motor Carrier Act of 1935 A.) Increased competition among motor carriers B.) It had no effect C.) Decreased trucking rates D.) Severely limited competition
D.) Severely limited competition
Freight forwarders are regulated by the US government for three of the four modes (rail, motor, air, and water) of transport covered in this class. Which mode does NOT regulate freight forwarders? A.) Rail B.) Motor C.) Air D.) Water
D.) Water
The two Congressional committees that are responsible for initiating laws regarding transportation are A.) Committee for Transportation & Infrastructure (House) B.) Committee for Commerce, Science and Transportation (Senate) C.) Ways and Means Committee D.) Senate Judiciary Committee E.) A and B
E.) A and B