Roofing Company buys asphalt tiles from Shingles,Inc.The parties agree that the tile will be shipped "F.O.B.Shingles warehouse" to Roofing's location via Shipping Corporation.The tiles are lost in transit.The loss is suffered by

Question

Roofing Company buys asphalt tiles from Shingles,Inc.The parties agree that the tile will be shipped "F.O.B.Shingles warehouse" to Roofing's location via Shipping Corporation.The tiles are lost in transit.The loss is suffered by​

Quizplus · Accepted Answer

F.O.B. (Free on Board) means that the seller, Shingles,Inc., is responsible for the goods until they are loaded onto the carrier (Shipping Corporation), but once the carrier takes possession of the goods, the responsibility for any loss or damage is transferred to the buyer, Roofing Company. Therefore, Roofing Company is the party that suffers the loss of the tiles in transit.

Roofing Company Buys Asphalt Tiles from Shingles,Inc