Betty has agreed to purchase a new CT-scan device for her hospital under the terms FOB origin. Betty is expecting:
A)the device will be loaded, shipped, and installed.
B)the device will be loaded onto transportation but after that it is her responsibility.
C)FOB means freight, origin, buyer.
D)Free on board with shipping and installation paid by the seller.
E)FOB means friends of Bill and the government will pay for installation.

Question

Quizplus · Accepted Answer

FOB origin means that the buyer takes responsibility for the goods as soon as they are loaded onto transportation at the origin. Therefore, Betty is only responsible for the device after it has been loaded onto transportation.

Betty Has Agreed to Purchase a New CT-Scan Device for Her