QUESTIONS AND ANSWERS WITH RATIONALES AND A STUDY GUIDE | EXPERT
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Question 1
Under California law, which state agency is currently responsible for the licensing and regulation
of Household Goods Movers?
A) The California Public Utilities Commission (CPUC)
B) The Department of Motor Vehicles (DMV)
C) The Bureau of Household Goods and Services (BHGS)
D) The Department of Consumer Affairs (DCA)
E) The California Highway Patrol (CHP)
Correct Answer: C) The Bureau of Household Goods and Services (BHGS)
Rationale: While the CPUC previously regulated movers, jurisdiction was transferred to the
BHGS (under the Department of Consumer Affairs) in 2018 to streamline oversight of
household moving and storage industries.
Question 2
When must a mover provide the "Important Information for Persons Moving Household Goods"
booklet to a prospective customer?
A) Only after the move is completed
B) At the time of first in-person contact or before the estimate is prepared
C) Only if the customer requests it in writing
D) At the time the Bill of Lading is signed on moving day
E) Within 10 days after the move
Correct Answer: B) At the time of first in-person contact or before the estimate is prepared
Rationale: California law requires movers to provide this consumer protection booklet early
in the process so customers understand their rights regarding estimates, liability, and
claims before committing to a contract.
Question 3
A "Basis for Binding Estimate" means that:
A) The price can change if the mover decides it was too low
B) The price is guaranteed regardless of changes to the inventory
C) The price is fixed for the services and quantities specifically listed on the estimate
D) The mover must charge the hourly rate no matter what
E) The customer must pay at least 25% more than the estimate
Correct Answer: C) The price is fixed for the services and quantities specifically listed on the
estimate
Rationale: A binding estimate is a contract stating that the price will not change as long as
the specific goods and services listed remain the same. If the customer adds items, the
estimate must be revised.
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Question 4
According to Max 4 Tariff rules, how much time must a mover allow for a customer to file a
claim for lost or damaged goods?
A) 30 days
) 60 days
C) 9 months
D) 1 year
E) 2 years
Correct Answer: C) 9 months
Rationale: Movers must allow customers at least nine months from the date of delivery (or
the date delivery was supposed to occur) to file a written claim for loss or damage.
Question 5
What is the standard "Released Value" liability (valuation) provided at no extra cost to the
consumer?
A) Full replacement value
B) $5.00 per pound per article
C) 60 cents per pound per article
D) $1.25 per pound per article
E) $0.30 per pound per article
Correct Answer: C) 60 cents per pound per article
Rationale: Unless the customer purchases additional "Full Value Protection," the mover’s
maximum liability is limited to $0.60 per pound per article, which is the industry standard
for basic coverage.
Question 6
Under Max 4 Tariff, "Double Drive Time" (DDT) applies to:
A) The time spent loading the truck
B) The time spent driving from the mover's office to the origin
C) The driving time between the origin and the destination
D) The time spent unloading the truck
E) The time spent taking a lunch break
Correct Answer: C) The driving time between the origin and the destination
Rationale: To compensate for the return trip and the trip to the origin, California law allows
movers to double the actual driving time between the pickup point and the drop-off point
and charge the hourly rate for that doubled duration.
Question 7
If a mover performs a move on an hourly basis, what is the minimum increment for recording
time on the document?
A) 5 minutes
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B) 10 minutes
C) 15 minutes
D) 30 minutes
E) 1 hour
Correct Answer: C) 15 minutes
Rationale: Max 4 Tariff requires that time be recorded in 15-minute (quarter-hour)
increments for accurate billing of hourly services.
Question 8
Which of the following documents serves as the contract between the mover and the customer?
A) The Inventory Sheet
B) The Weight Ticket
C) The Bill of Lading
D) The Estimate
E) The "Important Information" booklet
Correct Answer: C) The Bill of Lading
Rationale: The Bill of Lading is the official contract for the move. It contains the terms and
conditions, the services to be performed, and the final charges.
Question 9
A "Not-to-Exceed" price on a written estimate means:
A) The mover can charge whatever they want if the move takes longer
B) The mover cannot charge more than the estimated price unless the customer requests
additional services
C) The price is exactly what the customer will pay, even if the move is faster
D) The customer must pay in cash only
E) The mover can only charge for packing materials
Correct Answer: B) The mover cannot charge more than the estimated price unless the
customer requests additional services
Rationale: In California, a written estimate provided after a visual inspection is generally
considered a "Not-to-Exceed" amount, protecting the consumer from price gouging on
moving day.
Question 10
When a mover provides an estimate based on a visual inspection, the estimate must be:
A) Verbal only
B) In writing
C) Emailed within 48 hours after the move
D) Written on a napkin
E) Provided only if the move is over 100 miles
Correct Answer: B) In writing