Safety Corporation in New York sells a truckload of protective suits, masks, and other safety gear to Toxic, Inc., in Connecticut, "F.O.B. New York." Safety arranges with US Truckline to transport the goods. If the goods are destroyed in transit from New York to Connecticut, the loss will be suffered by

Question

Quizplus · Accepted Answer

"F.O.B. New York" means "Free On Board" at the point of shipment, which indicates that the buyer assumes the risk of loss once the goods are shipped. Therefore, the buyer, Toxic, Inc., bears the risk of loss during transit.

Safety Corporation in New York Sells a Truckload of Protective