Mitchell buys 100 bales of hay from New Grain Fields.The parties agree that the hay will be transported "F.O.B.New Grain Fields" via Farm County Trucking Company.Farm County's truck and the hay are lost in a fire following an accident.The loss is suffered by
A)Mitchell.
B)New Grain Fields.
C)Farm County Trucking.
D)all of the parties in equal measure.

Question

Quizplus · Accepted Answer

The loss is suffered by Mitchell because F.O.B. (Free on Board) means that the seller (New Grain Fields) is responsible for the goods until they are loaded onto the shipping vehicle, which in this case is Farm County Trucking Company. Once the goods are loaded, the responsibility shifts to the buyer (Mitchell), and any loss or damage that occurs during transportation is his responsibility.

Mitchell Buys 100 Bales of Hay from New Grain Fields