Final answer:
Title to merchandise under FOB destination passes to the buyer when the merchandise is received by the purchaser, indicating the seller's responsibility during transit.
Step-by-step explanation:
Under FOB destination, title to merchandise passes to the purchaser when the merchandise is received by the purchaser. This term means that the seller bears shipping costs and retains the risk of loss of the merchandise until it is delivered to the purchaser's location. In contrast to FOB shipping point where the buyer takes on responsibility once the goods are shipped, FOB destination ensures the buyer is not responsible for goods during transportation.