Final answer:
When a vendor specifies "FOB shipping point," it means that the buyer takes ownership and responsibility for the goods as soon as they are loaded onto the carrier at the seller's shipping point. The buyer is responsible for transportation costs, risk of loss, and any damage that may occur during transit.
Step-by-step explanation:
When a vendor specifies "FOB shipping point," it means that the buyer takes ownership and responsibility for the goods as soon as they are loaded onto the carrier at the seller's shipping point. In other words, the buyer is responsible for the transportation costs, risk of loss, and any damage that may occur during transit.
For example, if a vendor specifies FOB shipping point and the goods are damaged during transit, it is the buyer's responsibility to file a claim with the carrier and bear the cost of any repairs or replacements.
On the other hand, if a vendor specifies "FOB destination," the seller retains ownership and responsibility for the goods until they reach the buyer's designated location.