If an item purchased under FOB origin terms is damaged in truck transit, against whom can the purchaser file its damage claim?
A)against the manufacturer
B)against the common carrier
C)against all of the supply chain members
D)against the driver

Question

Quizplus · Accepted Answer

FOB origin terms indicate that the seller fulfills their obligation by delivering the goods to the carrier, and the buyer assumes responsibility for the goods from that point forward. This means that if the item is damaged during transit, the buyer can file a claim against the common carrier (the party responsible for transporting the goods). It is not appropriate for the buyer to file a claim against the manufacturer, supply chain members, or driver unless they had specific responsibility for causing the damage.

If an Item Purchased Under FOB Origin Terms Is Damaged