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A freight broker agent must have a contract with what type of person or organization?

1) Shipper
2) Carrier
3) Both Shipper and Carrier
4) None of the above

1 Answer

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Final answer:

A freight broker agent must have a contract with a licensed freight broker, which serves as the legal framework for their operations and authority to negotiate transport deals.

Step-by-step explanation:

A freight broker agent must typically have a contract with a licensed freight broker. This contractual relationship is essential because the freight broker agent acts as an intermediary between shippers who need to transport goods and carriers who have the equipment to move those goods. The agent works under the authority of the broker, who is responsible for securing business and ensuring compliance with all transportation laws and regulations. Therefore, having a contract with a licensed freight broker provides the legal framework for the agent to operate and facilitates the proper handling of shipments.

Additionally, some agents may also have contracts with carriers or shippers, but this depends on the business model and the legal requirements of the jurisdiction. Importantly, this contract defines the terms of the agent's compensation, responsibilities, and the scope of authority to negotiate on behalf of the broker.

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