If Monrovia Nursery Company quotes an FOB origin price to a plant retailer, it means that the:
A)retailer will be reimbursed for all plants that died in transit.
B)Monrovia will pay all shipping costs.
C)the retailer will pay all shipping costs.
D)Monrovia and the retailer will split the shipping costs.
E)Monrovia will take complete responsibility for the product until it is placed in the retailer's hands.

Question

Quizplus · Accepted Answer

FOB origin means that the ownership of the goods and the responsibility for their transport passes from the seller (Monrovia Nursery) to the buyer (the retailer) when the goods leave the seller's facility. This means that the retailer is responsible for all shipping costs from Monrovia Nursery to their own location, hence why C is the correct answer.

If Monrovia Nursery Company Quotes an FOB Origin Price to a Plant