Canadian Motor Traction Ltd exports motor vehicles specially modified for the use of physically handicapped adults from its plant in Yarmouth, Nova Scotia, to customers abroad. Each contract is denominated and priced "EXW," meaning that Canadian Motor Traction takes responsibility for delivery until the vehicles "pass the ship's rail" at the port of embarkation, at which point ownership and risk of loss pass to the buyer.

Question

Quizplus · Accepted Answer

"EXW" (Ex Works) means that the seller's responsibility is limited to making the goods available at their premises, and the buyer assumes all risks and costs from that point onward, including transportation and export duties. The description provided aligns more with "FOB" (Free On Board), where the seller's responsibility extends until the goods pass the ship's rail.

Canadian Motor Traction Ltd Exports Motor Vehicles Specially Modified for the Use