If Berylia Nursery Company quotes an FOB origin price to a plant retailer,it indicates that:
A) the retailer will be reimbursed for all plants that die in transit.
B) Berylia will pay all shipping costs.
C) the plant retailer will pay all shipping costs.
D) Berylia and the plant retailer will split the shipping costs.
E) Berylia will take complete responsibility for the product until it reaches the plant retailer.

Question

Quizplus · Accepted Answer

FOB stands for "Free on Board" and in this case, FOB origin means that the plant retailer will be responsible for paying all shipping costs from the origin (Berylia Nursery Company) to the destination (the plant retailer's location). Berylia will not be responsible for any damage or loss during transit.

If Berylia Nursery Company Quotes an FOB Origin Price to a Plant