Which of the following is true of products priced as "FOB origin"?
A)The purchase of these products permits the buyers to subtract transportation expenses from their bills.
B)The transportation costs of these products are uniformly distributed among all channel members including the final purchaser.
C)The legal title and responsibility of these products lies with the seller until it is delivered to the buyer.
D)The buyer pays all the freight charges to transport the product from the manufacturer's loading dock.

Question

Quizplus · Accepted Answer

FOB origin means that the buyer assumes responsibility for the product as soon as it leaves the manufacturer's loading dock. Therefore, the buyer not only pays for the freight charges but also assumes legal title and responsibility for the product during transit.

Which of the Following Is True of Products Priced as "FOB