Asked by Shubhansh Singh on Jul 11, 2024
Verified
The selection of the FOB point is important to the purchaser,because it determines:
A) who pays the carrier.
B) when legal title to goods being shipped passes to the buyer.
C) who is responsible for preparing and pursuing loss or damage claims.
D) who routes the freight.
E) who pays the carrier,when legal title to goods being shipped passes to the buyer,who is responsible for preparing and pursuing loss or damage claims and who routes the freight.
FOB Point
A shipping term indicating the point at which the ownership and risk related to goods are transferred from seller to buyer, defined in terms of location.
Legal Title
A formal recognition of ownership of property or assets which includes the rights to use, sell, or control the said property or assets.
- Grasp the significance of the FOB point in determining costs, legal title, and claims responsibility.
Verified Answer
ED
Ekrem Demirbo?aJul 18, 2024
Final Answer :
E
Explanation :
The FOB point determines all of the options listed in the answer choices, meaning that the purchaser should carefully consider which FOB point to choose in order to understand their responsibilities and costs regarding shipping and transportation.
Learning Objectives
- Grasp the significance of the FOB point in determining costs, legal title, and claims responsibility.