Goods shipped from a seller's warehouse on Nov 10,2010,arrived at the buyer's warehouse on Nov 16,2010.The invoice for the goods arrived at the buyer's accounting
Department on Nov 13,2010 and was paid on Nov 20,2010.If the goods were sold FOB
Shipping point,the buyer took legal title on:
A)Nov 20,2010
B)Nov 13,2010
C)Nov 10,2010
D)Nov 16,2010

Question

Quizplus · Accepted Answer

FOB Shipping point means that the buyer takes legal title to the goods as soon as they leave the seller's warehouse, which in this case was Nov 10, 2010. The invoice and payment dates do not affect the transfer of legal title. Therefore, the buyer took legal title on Nov 10, 2010, when the goods were shipped from the seller's warehouse.

Goods Shipped from a Seller's Warehouse on Nov 10,2010,arrived at the Buyer's