Inga runs a Swedish health spa in Connecticut.She orders 100 loofah sponges from a company in California.They are sent "F.O.B.Hartford,Connecticut," but they never arrive at Inga's.What consequence?
A) Inga has to pay anyway since it was a destination contract.
B) The California company is required to bear the loss since the sponges had not yet reached the F.O.B.point.
C) The California company and Inga will have to split the loss since they did not specify in their contract when the risk of loss would pass to Inga.
D) It cannot be determined from the information given who has the risk of loss.

Question

Quizplus · Accepted Answer

F.O.B. stands for "free on board," which means the seller is responsible for the goods until they are loaded onto the shipping vehicle. In this case, the sponges never arrived, so the California company is responsible for the loss.

Inga Runs a Swedish Health Spa in Connecticut