Asked by Zahra Alasiri on May 12, 2024
Verified
When goods are sent f.o.b.shipment,the title and risk of loss pass to the:
A) carrier at the point of origin.
B) buyer at the point of origin.
C) buyer at the destination.
D) buyer when he/she accepts the goods.
F.o.b. Shipment
A shipping term indicating that the seller is responsible for the goods until they are loaded on a vehicle for transport, at which point responsibility shifts to the buyer.
Title
A legal term that represents ownership rights to property.
- Examine the potential for loss under different contractual situations.
Verified Answer
IA
Immanuela AnsahMay 16, 2024
Final Answer :
B
Explanation :
In an F.O.B. (Free On Board) shipment contract, the title and risk of loss pass to the buyer at the point of origin. This means that once the seller delivers the goods to the carrier at the origin point, the buyer assumes responsibility for any loss or damage to the goods during transit.
Learning Objectives
- Examine the potential for loss under different contractual situations.
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