If Berylia Nursery Company quotes an FOB origin price to a plant retailer,it indicates that:
A) the retailer will be reimbursed for all plants that died in transit.
B) Berylia will pay all shipping costs.
C) the plant retailer will pay all shipping costs.
D) Berylia and the retailer will split the shipping costs.
E) Berylia will take complete responsibility for the product until it is placed in the retailer's hands.

Question

Quizplus · Accepted Answer

FOB (Free on Board) origin means that the seller (in this case, Berylia Nursery Company) will only be responsible for the products until they are loaded onto the carrier (typically a truck or a ship). Once the products have been loaded onto the carrier, the responsibility and costs associated with shipping the products will transfer to the buyer or retailer (in this case). Therefore, the plant retailer will be responsible for paying all shipping costs.

If Berylia Nursery Company Quotes an FOB Origin Price to a Plant