Question

When James sold protective window bars for a nursing home complex, he specified in the contract that the bars would be shipped FOB factory. According to the UCC, this means that:

a. the bars will not leave the manufacturer until payment had been received in full.
b. the seller does not expect payment for the bars until they are installed.
c. the seller has full title to the bars until the nursing home director receives them.
d. the buyer assumes responsibility, cost, and risk for shipping of the bars.
e. the delivering company assumes title for the bars while they are in transit.

Answer 1

Answer: D - the buyer assumes responsibility, cost, and risk for shipping of the bars.

Step-by-step explanation:

FOB is a termed Free on Board. This is a term used in the shipment of goods. It means that once the seller ships the goods, the seller will become responsible for all damaged, destroyed or missing goods during shipment. Here the buyer takes full responsibility of all that happens to the goods being shipped.