If Betty agrees to purchase a new CT scan device for her hospital under the terms FOB origin,which of the following is most likely to happen?
A) The device will be loaded, shipped, and installed for free by the company selling it.
B) The device will be loaded onto transportation but after that it is Betty's responsibility.
C) The company will ship the device for free but not install it.
D) The company will install the device for free and charge for shipping.
E) Betty will pay half of the shipping and installation price.

Question

Quizplus · Accepted Answer

FOB origin means that the buyer (Betty) takes responsibility for the product and any associated costs as soon as it leaves the seller's facility. Therefore, in this scenario, the device will be loaded onto transportation by the company selling it but after that, it is Betty's responsibility to ensure that it is safely delivered and installed at her hospital.

If Betty Agrees to Purchase a New CT Scan Device