Fine Material Corporation in New Jersey sells fifty tons of fabric to Great Clothing, Inc., in Ohio, F.O.B. New Jersey. The cost of transport?ing the fab?ric to Ohio will be paid by
A) Fine Material.
B) Great Clothing.
C) New Jersey.
D) Ohio.

Question

Quizplus · Accepted Answer

F.O.B. (Free on Board) New Jersey means that the seller (Fine Material Corporation) is responsible for getting the fabric to the shipping point in New Jersey, but the buyer (Great Clothing, Inc.) assumes responsibility for the cost of transportation from New Jersey to Ohio. Therefore, choice B is correct.

Fine Material Corporation in New Jersey Sells Fifty Tons of Fabric