{"id":187395,"date":"2025-02-04T11:34:00","date_gmt":"2025-02-04T11:34:00","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=187395"},"modified":"2025-02-04T11:34:02","modified_gmt":"2025-02-04T11:34:02","slug":"if-goods-in-transit-are-shipped-fob-shipping-point-by-a-carrier-named-by-the-buyer","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/02\/04\/if-goods-in-transit-are-shipped-fob-shipping-point-by-a-carrier-named-by-the-buyer\/","title":{"rendered":"If goods in transit are shipped FOB shipping point by a carrier named by the buyer"},"content":{"rendered":"\n

If goods in transit are shipped FOB shipping point by a carrier named by the buyer,
the seller has legal title to the goods until they are delivered.
the buyer has legal title to the goods when a public carrier accepts the goods from the seller.
the seller is responsible for paying the shipping charges.
Ono one has legal title to the goods until they are delivered.<\/p>\n\n\n\n

The Correct Answer and Explanation is :<\/strong><\/mark><\/p>\n\n\n\n

The correct answer is:
The buyer has legal title to the goods when a public carrier accepts the goods from the seller.<\/strong><\/p>\n\n\n\n

Explanation:<\/h3>\n\n\n\n

When goods are shipped under FOB (Free on Board) shipping point<\/strong>, the ownership (legal title) of the goods transfers from the seller to the buyer as soon as the goods are handed over to the carrier<\/strong> at the seller\u2019s location. This means that from the moment the carrier accepts the goods, the buyer is responsible for any risks, such as damage or loss, during transit.<\/p>\n\n\n\n

Here\u2019s a breakdown of why this is the correct answer:<\/p>\n\n\n\n

    \n
  1. Definition of FOB Shipping Point:<\/strong><\/li>\n<\/ol>\n\n\n\n
      \n
    • “FOB” stands for Free on Board<\/strong>, which is a shipping term that determines when ownership and responsibility for goods shift from the seller to the buyer.<\/li>\n\n\n\n
    • “Shipping point” means that the transfer of title and risk occurs at the seller\u2019s location when the goods are shipped.<\/li>\n<\/ul>\n\n\n\n
        \n
      1. Legal Title Transfer:<\/strong><\/li>\n<\/ol>\n\n\n\n
          \n
        • Under FOB shipping point terms, the legal ownership passes to the buyer when the goods are placed on the carrier.<\/li>\n\n\n\n
        • The seller is no longer responsible once the carrier accepts the shipment.<\/li>\n<\/ul>\n\n\n\n
            \n
          1. Incorrect Answer Explanations:<\/strong><\/li>\n<\/ol>\n\n\n\n
              \n
            • “The seller has legal title to the goods until they are delivered.”<\/strong>
              \u274c Incorrect: The seller does not retain ownership once the goods leave their premises.<\/li>\n\n\n\n
            • “The seller is responsible for paying the shipping charges.”<\/strong>
              \u274c Incorrect: Under FOB shipping point, the buyer pays for transportation unless otherwise agreed.<\/li>\n\n\n\n
            • “No one has legal title to the goods until they are delivered.”<\/strong>
              \u274c Incorrect: Legal title cannot be “in limbo”; it transfers immediately to the buyer upon shipment.<\/li>\n<\/ul>\n\n\n\n

              Thus, under FOB shipping point terms, the buyer takes ownership and assumes all risks when the goods are handed over to the carrier.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

              If goods in transit are shipped FOB shipping point by a carrier named by the buyer,the seller has legal title to the goods until they are delivered.the buyer has legal title to the goods when a public carrier accepts the goods from the seller.the seller is responsible for paying the shipping charges.Ono one has legal […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-187395","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/187395","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=187395"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/187395\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=187395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=187395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=187395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}