FOB Point of Origin, freight collect: Point of origin, freight collected, buyer pays for freight, seller arranges it.

Study for the CPPB Domain II Sourcing Test. Dive into multiple choice questions with hints and explanations. Ensure your success with well-structured quizzes and study guides!

Multiple Choice

FOB Point of Origin, freight collect: Point of origin, freight collected, buyer pays for freight, seller arranges it.

Explanation:
FOB origin places ownership and risk with the buyer as soon as the goods are handed to the carrier. When freight is collected, the carrier bills the party receiving the goods for the transport charges, meaning the buyer pays the freight. In this setup, the seller handles getting the shipment onto a carrier (arranges the transport) but does not pay the freight itself. So the combination that best fits this scenario is: the buyer pays for the freight, and the seller arranges the shipment. The other options mix up who pays the freight or who is responsible for arranging the transport, which doesn’t align with FOB origin plus freight collect.

FOB origin places ownership and risk with the buyer as soon as the goods are handed to the carrier. When freight is collected, the carrier bills the party receiving the goods for the transport charges, meaning the buyer pays the freight. In this setup, the seller handles getting the shipment onto a carrier (arranges the transport) but does not pay the freight itself. So the combination that best fits this scenario is: the buyer pays for the freight, and the seller arranges the shipment. The other options mix up who pays the freight or who is responsible for arranging the transport, which doesn’t align with FOB origin plus freight collect.

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