Under FOB Destination terms, who pays freight and who owns goods in transit?

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

Under FOB Destination terms, who pays freight and who owns goods in transit?

FOB Destination means the seller is responsible for getting the goods to the buyer’s location and covers the transportation cost. The seller also holds ownership and risk while the items are in transit, with ownership transferring to the buyer only when the goods arrive at the destination. So the correct understanding is: the supplier pays the freight and owns the goods in transit until delivery is completed. The other ideas would imply the buyer pays for shipping or loses ownership during transit, which isn’t how FOB Destination works.

Under FOB Destination terms, who pays freight and who owns goods in transit?

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!

Under FOB Destination terms, who pays freight and who owns goods in transit?

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