If the Terms of the Contract Specify FOB (Free on Board)

question 107

Multiple Choice

If the terms of the contract specify FOB (free on board) factory:

• A) the seller has title until the goods are received at the destination
• B) the seller is responsible for any loss during transportation
• C) the buyer assumes the responsibility and risk for the merchandise as soon it leaves the factory
• D) the seller does not expect payment for the merchandise until it reaches its destination
• E) the goods are being sold on consignment

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Definitions:

Ambient Temperature

The temperature of the air surrounding a particular environment or object.

UV Light

Ultraviolet light, a type of electromagnetic radiation with a wavelength shorter than visible light but longer than X-rays, known for its capacity to induce sunburn and its use in sterilization.

Greenhouse Gas Emitters

Entities, such as industries, vehicles, or agriculture, that release gases capable of trapping heat in the earth's atmosphere, contributing to global warming.