CALIFORNIA HOUSEHOLD MOVERS’ EXAM BANK | ACCURATE REAL
EXAM QUESTIONS AND ANSWERS WITH RATIONALES AND A STUDY
GUIDE | EXPERT VERIFIFED FOR GUARANTEED PASS | LATEST UPDATE
| ALL VERSIONS
Question 1
What is the primary regulatory agency that governs household movers operating within the state
of California?
A) The Federal Motor Carrier Safety Administration (FMCSA)
B) The California Department of Transportation (Caltrans)
C) The California Department of Motor Vehicles (DMV)
D) The California Public Utilities Commission (CPUC)
E) The Bureau of Household Goods and Services (BHGS)
Correct Answer: D) The California Public Utilities Commission (CPUC)
Rationale: The CPUC is the state agency responsible for licensing and regulating intrastate
(within California) household moving companies, also known as "carriers." They set the
rules for rates, liability, advertising, and consumer protection, primarily through the
Maximum Rate Tariff 4 (MAX 4).
Question 2
What is the official name of the permit issued by the CPUC that allows a company to legally
transport used household goods and personal effects within California?
A) Motor Carrier Permit (MCP)
B) Commercial Vehicle License (CVL)
C) Household Mover Permit (HMP)
D) Moving and Transportation Registration (MTR)
E) Public Utilities Transport License (PUTL)
Correct Answer: D) Moving and Transportation Registration (MTR)
Rationale: To operate as a legal household mover in California, a company must obtain a
Moving and Transportation Registration (MTR) permit from the CPUC. This permit
number, often referred to as a "Cal-T" number, must be displayed in all advertising and on
all vehicles.
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Question 3
What is the primary purpose of the CPUC's Maximum Rate Tariff 4 (MAX 4)?
A) To set the exact price that all movers must charge for every service.
B) To establish the minimum insurance requirements for movers.
C) To provide a framework of maximum rates and rules for services to protect consumers.
D) To outline the vehicle maintenance schedules for moving trucks.
E) To list all the licensed moving companies in California.
Correct Answer: C) To provide a framework of maximum rates and rules for services to
protect consumers.
Rationale: MAX 4 is a consumer protection tariff. It does not set fixed prices, but rather
establishes the maximum rates a mover can charge for various services. It also contains the
rules regarding contracts, liability, claims, and other aspects of a move to ensure consumers
are treated fairly.
Question 4
Before a move begins, what is the most important document that a mover must issue to a shipper,
which contains the "Not to Exceed Price"?
A) The Bill of Lading
B) The Agreement for Service
C) The Change Order for Service
D) The Table of Measurements
E) The Inventory Sheet
Correct Answer: B) The Agreement for Service
Rationale: The Agreement for Service is the initial contract provided to the shipper before
the move. It must include all key details of the move, including the "Not to Exceed Price,"
which is the maximum amount the shipper can be charged unless a Change Order is
signed.
Question 5
What is the purpose of a "Not to Exceed Price" on the Agreement for Service?
A) It is the mover's best guess of the final cost, but the actual cost can be higher.
B) It is the absolute maximum amount the mover can charge for the services listed, unless the
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shipper agrees to and signs a Change Order.
C) It is the minimum charge for the move.
D) It is an estimate that is only valid if the shipper pays in cash.
E) It includes the cost of the move but excludes the cost of packing materials.
Correct Answer: B) It is the absolute maximum amount the mover can charge for the
services listed, unless the shipper agrees to and signs a Change Order.
Rationale: The "Not to Exceed Price" is a critical consumer protection feature. It prevents
a mover from "low-balling" an estimate and then presenting the customer with a much
larger bill at the end. The mover cannot legally charge more than this amount unless the
scope of the move changes and the shipper signs a "Change Order for Service" authorizing
the additional work and cost.
Question 6
During a move, a shipper asks the movers to pack an extra room that was not included in the
original "Not to Exceed Price." What must the mover do before performing this additional work?
A) Call the CPUC to get verbal approval.
B) Have the shipper sign a "Change Order for Service" detailing the new work and additional
cost.
C) Complete the work and add the extra charges to the final bill.
D) Inform the shipper that no changes are allowed once the move has started.
E) Only perform the extra work if the shipper agrees to pay in cash.
Correct Answer: B) Have the shipper sign a "Change Order for Service" detailing the new
work and additional cost.
Rationale: A "Not to Exceed Price" can only be lawfully exceeded if the shipper requests
additional services not included in the original agreement. The mover must document this
change on a "Change Order for Service," which must detail the additional services, the
cost, and be signed by the shipper before the work is performed.
Question 7
What is the legal contract for the transportation of goods that is issued to the shipper on the day
of the move?
A) The Agreement for Service
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B) The Bill of Lading
C) The Not to Exceed Price document
D) The MTR Permit
E) The Change Order for Service
Correct Answer: B) The Bill of Lading
Rationale: The Bill of Lading is the contract between the shipper and the carrier for the
transportation of the goods. It is issued on moving day and serves as a receipt for the goods.
It contains critical information such as the valuation level chosen, the start time, and the
terms and conditions of the move.
Question 8
Under CPUC regulations, what is the minimum level of liability a household mover is
responsible for, unless the shipper declares a higher value?
A) $1.25 per pound per article
B) $100 per article
C) $0.60 per pound per article
D) The full actual cash value of the item
E) $1,000 for the entire shipment
Correct Answer: C) $0.60 per pound per article
Rationale: This is the basic, minimum level of protection included in all moves at no
additional charge. If an item is lost or damaged, the mover's liability is limited to 60 cents
multiplied by the weight of the item. For example, a 10-pound lamp would result in a
settlement of $6.00 (10 lbs x $0.60).
Question 9
A shipper's 50-pound television is destroyed during a move. The shipper did not select Full Value
Protection and is therefore covered under basic valuation. What is the maximum amount the
mover is liable for?
A) The full replacement cost of the television.
B) $60.00
C) $30.00
EXAM QUESTIONS AND ANSWERS WITH RATIONALES AND A STUDY
GUIDE | EXPERT VERIFIFED FOR GUARANTEED PASS | LATEST UPDATE
| ALL VERSIONS
Question 1
What is the primary regulatory agency that governs household movers operating within the state
of California?
A) The Federal Motor Carrier Safety Administration (FMCSA)
B) The California Department of Transportation (Caltrans)
C) The California Department of Motor Vehicles (DMV)
D) The California Public Utilities Commission (CPUC)
E) The Bureau of Household Goods and Services (BHGS)
Correct Answer: D) The California Public Utilities Commission (CPUC)
Rationale: The CPUC is the state agency responsible for licensing and regulating intrastate
(within California) household moving companies, also known as "carriers." They set the
rules for rates, liability, advertising, and consumer protection, primarily through the
Maximum Rate Tariff 4 (MAX 4).
Question 2
What is the official name of the permit issued by the CPUC that allows a company to legally
transport used household goods and personal effects within California?
A) Motor Carrier Permit (MCP)
B) Commercial Vehicle License (CVL)
C) Household Mover Permit (HMP)
D) Moving and Transportation Registration (MTR)
E) Public Utilities Transport License (PUTL)
Correct Answer: D) Moving and Transportation Registration (MTR)
Rationale: To operate as a legal household mover in California, a company must obtain a
Moving and Transportation Registration (MTR) permit from the CPUC. This permit
number, often referred to as a "Cal-T" number, must be displayed in all advertising and on
all vehicles.
,[Type here]
Question 3
What is the primary purpose of the CPUC's Maximum Rate Tariff 4 (MAX 4)?
A) To set the exact price that all movers must charge for every service.
B) To establish the minimum insurance requirements for movers.
C) To provide a framework of maximum rates and rules for services to protect consumers.
D) To outline the vehicle maintenance schedules for moving trucks.
E) To list all the licensed moving companies in California.
Correct Answer: C) To provide a framework of maximum rates and rules for services to
protect consumers.
Rationale: MAX 4 is a consumer protection tariff. It does not set fixed prices, but rather
establishes the maximum rates a mover can charge for various services. It also contains the
rules regarding contracts, liability, claims, and other aspects of a move to ensure consumers
are treated fairly.
Question 4
Before a move begins, what is the most important document that a mover must issue to a shipper,
which contains the "Not to Exceed Price"?
A) The Bill of Lading
B) The Agreement for Service
C) The Change Order for Service
D) The Table of Measurements
E) The Inventory Sheet
Correct Answer: B) The Agreement for Service
Rationale: The Agreement for Service is the initial contract provided to the shipper before
the move. It must include all key details of the move, including the "Not to Exceed Price,"
which is the maximum amount the shipper can be charged unless a Change Order is
signed.
Question 5
What is the purpose of a "Not to Exceed Price" on the Agreement for Service?
A) It is the mover's best guess of the final cost, but the actual cost can be higher.
B) It is the absolute maximum amount the mover can charge for the services listed, unless the
,[Type here]
shipper agrees to and signs a Change Order.
C) It is the minimum charge for the move.
D) It is an estimate that is only valid if the shipper pays in cash.
E) It includes the cost of the move but excludes the cost of packing materials.
Correct Answer: B) It is the absolute maximum amount the mover can charge for the
services listed, unless the shipper agrees to and signs a Change Order.
Rationale: The "Not to Exceed Price" is a critical consumer protection feature. It prevents
a mover from "low-balling" an estimate and then presenting the customer with a much
larger bill at the end. The mover cannot legally charge more than this amount unless the
scope of the move changes and the shipper signs a "Change Order for Service" authorizing
the additional work and cost.
Question 6
During a move, a shipper asks the movers to pack an extra room that was not included in the
original "Not to Exceed Price." What must the mover do before performing this additional work?
A) Call the CPUC to get verbal approval.
B) Have the shipper sign a "Change Order for Service" detailing the new work and additional
cost.
C) Complete the work and add the extra charges to the final bill.
D) Inform the shipper that no changes are allowed once the move has started.
E) Only perform the extra work if the shipper agrees to pay in cash.
Correct Answer: B) Have the shipper sign a "Change Order for Service" detailing the new
work and additional cost.
Rationale: A "Not to Exceed Price" can only be lawfully exceeded if the shipper requests
additional services not included in the original agreement. The mover must document this
change on a "Change Order for Service," which must detail the additional services, the
cost, and be signed by the shipper before the work is performed.
Question 7
What is the legal contract for the transportation of goods that is issued to the shipper on the day
of the move?
A) The Agreement for Service
, [Type here]
B) The Bill of Lading
C) The Not to Exceed Price document
D) The MTR Permit
E) The Change Order for Service
Correct Answer: B) The Bill of Lading
Rationale: The Bill of Lading is the contract between the shipper and the carrier for the
transportation of the goods. It is issued on moving day and serves as a receipt for the goods.
It contains critical information such as the valuation level chosen, the start time, and the
terms and conditions of the move.
Question 8
Under CPUC regulations, what is the minimum level of liability a household mover is
responsible for, unless the shipper declares a higher value?
A) $1.25 per pound per article
B) $100 per article
C) $0.60 per pound per article
D) The full actual cash value of the item
E) $1,000 for the entire shipment
Correct Answer: C) $0.60 per pound per article
Rationale: This is the basic, minimum level of protection included in all moves at no
additional charge. If an item is lost or damaged, the mover's liability is limited to 60 cents
multiplied by the weight of the item. For example, a 10-pound lamp would result in a
settlement of $6.00 (10 lbs x $0.60).
Question 9
A shipper's 50-pound television is destroyed during a move. The shipper did not select Full Value
Protection and is therefore covered under basic valuation. What is the maximum amount the
mover is liable for?
A) The full replacement cost of the television.
B) $60.00
C) $30.00
