Asked by
Precious Persuade
on Dec 15, 2024
Verified
The fashion buyer for Neiman Marcus is in Italy to view the new collections and to order for the coming season. In Milan, she negotiates a good price for a quantity of shoes in a range of sizes and styles, FOB factory. This means that
A) the factory selects the mode of transportation, pays the freight charges, and is responsible for any damage because the seller retains title to the goods until they are delivered to Neiman Marcus.
B) Neiman Marcus selects the mode of transportation, pays freight charges, and is responsible for any damage while the shoes are in transit because title passes to the firm at the point of loading.
C) Neiman Marcus and the factory will split the freight costs.
D) the factory pays the freight cost to a designated port (airport or seaport) in the United States while Neiman Marcus pays the freight from that port to its final destination within the United States.
E) the factory passes the title when the goods are loaded but will pay all shipping costs.
FOB Factory
FOB Factory, or Free on Board Factory, is a pricing term that indicates the buyer takes responsibility for goods once they leave the seller's premises.
Neiman Marcus
is a luxury department store chain in the United States known for its high-end clothing, accessories, and home furnishings.
Milan
A city in Italy, known for its significant influence in fashion, design, and finance sectors.
- Identify the role transportation and geographic factors play in determining pricing strategies and the dissemination of products.
- Understand the implications of FOB (Free on Board) terms on shipping responsibilities and costs.
Verified Answer
OG
Learning Objectives
- Identify the role transportation and geographic factors play in determining pricing strategies and the dissemination of products.
- Understand the implications of FOB (Free on Board) terms on shipping responsibilities and costs.