Question

FOB destination means that the buyer assumes title when:

a. the goods reach the seller’s receiving dock
b. the seller puts the goods in the hands of the carrier for delivery
c. the goods are delivered to the buyer’s specified delivery point
d. none of the above.

Answer 1

FOB destination indicates that the buyer assumes title to the goods at the point of delivery to their specified location. The seller retains risk and responsibility for the goods until they reach this point.

Step-by-step explanation:

The term FOB destination means that the buyer assumes title to the goods when they are delivered to the buyer's specified delivery point. This means the responsibility and risk of transporting the goods remain with the seller until the goods reach the buyer's location. Therefore, in response to the question, FOB destination means that the buyer assumes title when the goods are delivered to the buyer’s specified delivery point, making option (c) the correct answer.