A company is sending a shipment to its customer in Italy. It elects to pay the freight and be responsible for any liability and damage claims. Which of the following free on board (FOB) terms is the company using?
A) FOB destination, freight collect
B) FOB destination, freight prepaid
C) FOB origin, freight prepaid
D) FOB origin, freight collect

Question

Quizplus · Accepted Answer

FOB destination, freight prepaid means that the seller is responsible for the shipment until it reaches its destination and the seller pays the freight charges. This is the most appropriate option for a company that is responsible for any liability and damage claims.

A Company Is Sending a Shipment to Its Customer in Italy