Question

Which INCOTERM places the most responsibility and liability for transportation with the buyer?

a) ex works
b) free alongside ship
c) free on board
d) cost & freight
e) delivery duty paid

Answer 1

The INCOTERM that places the most responsibility and liability for transportation with the buyer is cost & freight (CFR).

Step-by-step explanation:

The correct answer is option d) cost & freight. The INCOTERM that places the most responsibility and liability for transportation with the buyer is cost & freight (CFR). Under this term, the seller is responsible for delivering the goods to the port of destination and paying for the transportation to that port. However, once the goods are loaded onto the vessel, the buyer assumes all risks and costs associated with the transportation.

For example, if a buyer purchases goods under the CFR INCOTERM, they would be responsible for arranging and paying for the shipment from the port of destination to their desired location, as well as any insurance and customs clearance fees.