Final answer:
With FOB shipping, ownership of merchandise during transit depends on if the terms are FOB shipping point or FOB destination. In FOB shipping point, the buyer has ownership in transit, while in FOB destination, the seller retains ownership until delivery.
Step-by-step explanation:
Ownership with FOB shipping (Free on Board Shipping) depends on the specific terms of the agreement, which usually include either FOB destination or FOB shipping point.
In FOB shipping point, ownership of the merchandise is transferred to the buyer at the moment the goods leave the seller's warehouse, meaning that the buyer is responsible for the goods during transit.
Conversely, with FOB destination, ownership is transferred to the buyer only when the goods arrive at the buyer's warehouse, so the seller retains responsibility until delivery is completed.