St Stevenz is a new Vancouver furniture designer with a scent for style. The company typically sends most of its furniture to foreign destinations "FOB (INCOTERMS 2000) (insert name of ship) Vancouver," but their new in- house lawyer discovers that transportation and insurance will be much lower if shipments are sent "EXW Vancouver." Why would that be? Under an EXW contract
A) St Stevenz will only be obligated to arrange for transportation to a ship at the Port of Vancouver, but not to pay for insurance against loss of the goods while they are in transit to the port.
B) St Stevenz will be obligated to pay for transportation to a ship at the Port of Vancouver and insurance against loss of the goods while they are in transit to the port, but the rates are less under an EXW contract.
C) St Stevenz will be obligated only to pay to transport the goods to a shipping terminal in Vancouver.
D) St Stevenz will not be obligated to arrange for transportation to a ship at the Port of Vancouver, but only to make the goods available to the buyer at its premises.
E) St Stevenz will be obligated only to insure against loss of the goods while they are in transit to the port, but the buyer will have to pay to transport the goods to the port.
Correct Answer:
Verified
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