Brandon 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. Brandon should have been certain that the order terms were
A)F.O.B. origin.
B)F.O.B. factory.
C)F.O.B. destination.
D)2/10, n/30.
E)C.O.D.

Question

Quizplus · Accepted Answer

F.O.B. destination means that the seller pays for the freight and the costs are included in the purchase price. This is what Brandon expected, indicating that the order terms should have been F.O.B. destination to avoid additional freight charges.

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