Question

Which common shipping term describes the situation where goods are shipped at the expenses of the seller with title and risk of loss passing to the buyer only when they receive the goods?

Answer 1

FOB (Free On Board) is the common shipping term that describes the situation where goods are shipped at the expenses of the seller with title and risk of loss passing to the buyer only when they receive the goods.

Step-by-step explanation:

The common shipping term that describes the situation where goods are shipped at the expenses of the seller with title and risk of loss passing to the buyer only when they receive the goods is FOB (Free On Board). Under FOB shipping terms, the seller is responsible for the cost of transporting the goods to the designated location and bears the risk of loss or damage until the goods are loaded onto the carrier. The buyer assumes ownership and the risk of loss or damage once the goods are received.