Question

A seller's invoice reads: "Seller pays the cost of loading said merchandise onto a common carrier. At the point of loading, title to such products passes to the buyer, who assumes responsibility for damage in transit, except as covered by the transportation agency." This shipment has been shipped:_______.

A. F.O.B. delivered.B. F.O.B. shipping point.C. F.O.B. mill, freight absorbed.D. F.O.B. buyer's factory.E. F.O.B. seller's factory—freight prepaid.

Answer 1

The correct answer is letter "B": F.O.B. shipping point.

Step-by-step explanation:

Free On Board (FOB) shipping point is a contractual term that implies that the buyers take delivery of goods sent to them by the sellers once the goods leave the sellers' shipping dock. Since then, buyers are fully responsible for what could happen with the goods unless the courier agency has a contractual term with the buyer in front of damages during transportation.