CPIM Practice Exam

Once a common carrier is selected, which service do they provide?

1. Only personal transport services

2. Guaranteed delivery within 24 hours

3. Service for one selected customer without regulation

4. Managed rates and liability under public regulation

The correct answer is: Managed rates and liability under public regulation

The correct answer is focused on the nature of common carriers, which are entities that provide transportation services to the general public under a set of regulatory standards. Common carriers are required to offer their services to anyone who requests them, without discrimination. This means that they manage rates and liability as dictated by public regulations, ensuring a level of accountability and standardization for consumers. The option about guaranteed delivery within 24 hours implies a specific service level that is not universally applicable to all common carriers; different carriers may have different delivery schedules depending on their operational capabilities. Similarly, the notion of providing service for only one selected customer without regulation does not align with the fundamental principles of common carriage, which is all about serving the general public and adhering to regulations. Lastly, restricting services only to personal transport does not reflect the broader spectrum of roles that common carriers can fill, which often includes freight and cargo transport, among others. Thus, the essence of being a common carrier lies in regulated, public service – encapsulated accurately in the correct answer.