Ryan orders 16 dozen fishing lures from Strike Right for $375. When he gets the invoice, he is furious that $25 in freight charges has been tacked onto his bill because he thought the price included freight costs. Ryan should have been certain that the order terms were
A)F.O.B. origin.
B)F.O.B. factory.
C)C.O.D.
D)2/10, n/30.
E)F.O.B. destination.

Question

Quizplus · Accepted Answer

F.O.B. destination means the seller pays for the freight charges, so Ryan would not have been charged extra for freight if this was the term.

Ryan Orders 16 Dozen Fishing Lures from Strike Right for $375