Asked by
Derek Samodia
on Dec 19, 2024
Verified
If a seller supplies ten dishwashers in response to an order for ten washing machines-"F.O.B. the seller's warehouse"-and the goods are damaged in transit to the buyer's store, the loss falls on the seller.
F.O.B.
F.O.B. (Free On Board) is a shipping term indicating that the seller bears delivery expenses and risks until the goods reach the specified point, at which the buyer takes over.
Dishwashers
Appliances designed for automatically cleaning dishware, cookware, and cutlery.
Washing Machines
Appliances designed for cleaning laundry by combining water, detergent, and mechanical action.
- Discern the instant when the peril of loss moves in various settings concerning goods tied to a contract.
- Recognize the implications of F.O.B. terms in sales contracts on risk of loss and transportation costs.
Verified Answer
TS
Learning Objectives
- Discern the instant when the peril of loss moves in various settings concerning goods tied to a contract.
- Recognize the implications of F.O.B. terms in sales contracts on risk of loss and transportation costs.