Home Products Store buys furniture from Ideal Furniture, Inc. The parties agree that the furniture will be shipped "F.O.B. Ideal's ware?house" to Home Products via Jiffy Shipping Corporation. The furniture is lost in transit. The loss is suffered by

Question

Quizplus · Accepted Answer

F.O.B. stands for "free on board" and typically means that the seller (Ideal Furniture) is responsible for delivering the goods to the shipping carrier (Jiffy Shipping) and once the carrier takes possession of the goods, the buyer (Home Products) assumes responsibility for any loss or damage during transit. Therefore, the loss is suffered by Home Products only as they assumed the risk once the furniture was in Jiffy Shipping's possession. Ideal Furniture is not responsible for the loss as they shipped the furniture in good condition and as agreed upon. Jiffy Shipping may be liable for the loss as they were responsible for the safe delivery of the goods, but this would depend on the terms of their agreement with Home Products.

Home Products Store Buys Furniture from Ideal Furniture, Inc