Question 1

The U.S. Department of Commerce has primary responsibility for resolving railroad rate and service disputes as well as reviewing potential rail mergers.

Accepted Answer

The Surface Transportation Board (STB), an independent federal agency, is primarily responsible for resolving railroad rate and service disputes and reviewing potential rail mergers, not the U.S. Department of Commerce.

Question 2

Economic regulation in transportation refers to control over business practices and activities such as entry and exit; pricing; service; accounting and financial issues; mergers and acquisitions.

Accepted Answer

Economic regulation in transportation involves oversight of various business practices, including entry and exit, pricing, service standards, financial matters, and mergers, to ensure fair competition and protect public interests.

Question 3

Common carrier transportation companies have four specific obligations.

Accepted Answer

Common carrier transportation companies have the obligations of providing services to the general public for a reasonable rate, accepting goods from any customer willing to pay for transportation, delivering goods to the intended destination, and exercising reasonable care and diligence in transporting goods.

Question 4

U.S. commercial airline pilots face mandatory retirement at age 70.

Accepted Answer

U.S. commercial airline pilots face mandatory retirement at age 65.

Question 5

Private transportation is most prevalent in the pipeline industry.

Accepted Answer

The pipeline industry primarily uses pipelines for the transportation of goods such as oil and gas, which is considered a form of public or common carrier transportation, not private transportation.

Question 6

Which of the two routing alternatives would you recommend? Why?

Accepted Answer

The answer of Which of the two routing alternatives would...

Question 7

One disadvantage to private transportation is that managerial costs are often ignored or underestimated.

Accepted Answer

Managerial costs, such as maintenance, insurance, and depreciation, are often overlooked when considering the expenses of private transportation.

Question 8

The level and degree of transportation regulation varies from country to country.

Accepted Answer

Different countries have different policies, laws, and regulations related to transportation, which may vary in their level and degree of strictness.

Question 9

Assume you are Vanderpool. Draft the comparison Pon just requested.
Many students will calculate transportation costs. For the movement via Chicago, they will choose to use rail. Here's the comparison:

Accepted Answer

The answer of Assume you are Vanderpool. Draft the comparison...

Question 10

The U.S. Department of Homeland Security is the federal government body with primary responsibility for transportation safety regulation.

Accepted Answer

The U.S. Department of Homeland Security is primarily responsible for securing the nation from threats and hazards, but transportation safety regulation is primarily handled by other agencies such as the Federal Aviation Administration (FAA), Federal Motor Carrier Safety Administration (FMCSA), and Federal Railroad Administration (FRA).

Question 11

Assume that the buyer in Saudi Arabia has made other large purchases in the United States and is considering consolidating all of its purchases and loading them onto one large ship, which the buyer will charter. The buyer contacts HDT and, although acknowledging its commitment to buy FAS Doha, asks how much HDT would subtract from the $172,000 per truck price if the selling terms were changed to FOB HDT's Crown Point plant. How much of a cost reduction do you think HDT should offer the buyer? Under what terms and conditions?

Accepted Answer

The answer of Assume that the buyer in Saudi Arabia...

Question 12

Private carriers do not have to comply with environmental and safety regulations.

Accepted Answer

All carriers, including private ones, have to comply with environmental and safety regulations. Failure to do so can result in fines, legal action, and even the revocation of a carrier's operating authority.

Question 13

Environmental regulation of transportation is concerned with water, noise, and air pollution.

Accepted Answer

Environmental regulation of transportation is concerned with minimizing water, noise, and air pollution caused by transportation activities. Regulations aim to reduce the harmful effects of transportation on the environment and public health.

Question 14

A contract carrier is under no obligation to render services to the general public.

Accepted Answer

Contract carriers operate under specific contracts with particular clients, rather than offering their services to the general public. They are not obligated to accept new customers outside of these contracts.

Question 15

U.S. pipelines are so safe that there is no federal safety agency assigned to regulate them.

Accepted Answer

This statement is false. The Pipeline and Hazardous Materials Safety Administration (PHMSA) is a federal agency responsible for regulating pipelines in the United States.

Question 16

Assume that it is the year 2005 and the cost to HDT of borrowing money is 12% per year. Because the buyer will pay for trucks as they are delivered, would it be advantageous for HDT to pay overtime to speed up production, ship the trucks as they were finished via the Port of Baltimore, and collect their payment earlier? Why or why not?

Accepted Answer

The answer of Assume that it is the year 2005...

Question 17

Since economic deregulation, transportation carriers are no longer constrained with respect to the variety of service they can offer.

Accepted Answer

Economic deregulation removed many of the previous constraints on transportation carriers, allowing them to offer a wider variety of services.

Question 18

A transportation broker looks to match a shipper's freight with a carrier to transport it.

Accepted Answer

This is the definition of a transportation broker.

Question 19

Parcels refer to packages weighing up to 100 pounds.

Accepted Answer

Parcels typically refer to packages that are smaller and lighter, often under 70 pounds, and the specific weight limit can vary by carrier.

Quiz 12: Transportation Correct Answers Are Bolded