Under FOB Point of Origin terms, who generally pays the freight and when does ownership transfer?

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 Point of Origin terms, who generally pays the freight and when does ownership transfer?

Under FOB Point of Origin, the buyer takes ownership and bears risk as soon as the goods are loaded onto the carrier at the seller’s location. The seller’s obligation ends when the goods leave the seller’s premises, and the buyer pays the freight from that point onward. This means the buyer selects the carrier and covers the shipping costs, while the seller is only responsible for getting the goods to the carrier and providing the bill of lading. If ownership were to transfer at destination or the seller were to pay freight, that would align with FOB Destination rather than FOB Point of Origin.

Under FOB Point of Origin terms, who generally pays the freight and when does ownership transfer?

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 Point of Origin terms, who generally pays the freight and when does ownership transfer?

Get the latest from Passetra