Quaff Café buys twenty-five crates of apples from Reynaldo Produce, Inc. The parties agree to ship the apples "F.O.B. Quaff" via Swift Trucking Company. The apples rot in transit. The loss is suffered by
A)Quaff.
B)Swift.
C)F)O.B.
D)Reynaldo.

Question

Quizplus · Accepted Answer

The term "F.O.B. Quaff" means "Free On Board" at Quaff's location, indicating that the seller, Reynaldo, is responsible for the goods until they reach Quaff. Since the apples rotted in transit, Reynaldo bears the loss.

Quaff Café Buys Twenty-Five Crates of Apples from Reynaldo Produce