Free on board (FOB):
A) means that the buyer usually quotes a price for the goods.
B) applies only to vessel shipments.
C) means that the price is decided only upon delivery.
D) applies only at a designated inland shipping point.

Question

Quizplus · Accepted Answer

FOB stands for "Free on board" and typically applies to shipments made by vessel. It indicates that the seller is responsible for the goods until they are loaded onto the shipping vessel, after which point the buyer assumes responsibility. The specific price of the goods may already be established before shipment, but FOB does not necessarily mean that the price is only decided upon delivery. Additionally, FOB can apply to a variety of shipping points, not just inland ones.

Free on Board (FOB)