Question

Merchandise sold FOB destination indicates that:

A.The full order is back-ordered to its destination.

B.The seller holds the title until the merchandise is received at the buyer’s location.

C.The buyer pays the freight to the destination.

D.The buyer is responsible for delivery of the merchandise to the destination.

Answer 1

Answer: Option B The seller holds the title until the merchandise is received at the buyer’s location

Explanation:

FOB refers to  "Free on Board Destination." The term FOB Destination means that the buyer takes delivery of goods being shipped to it by a supplier once the goods arrive at the buyer's receiving dock. Here in this the buyer gets the title rights only after the merchandise reaches the Buyer location until then the seller holds the title.