Under FOB Factory terms, when does the buyer typically assume ownership?

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Prepare for the NYSID Interior Design Test. Study with flashcards and multiple choice questions, with explanations and hints provided. Ace your exam and advance in your career!

Multiple Choice

Under FOB Factory terms, when does the buyer typically assume ownership?

Explanation:
Under FOB Factory terms, ownership and risk pass to the buyer at the moment the seller loads the goods onto the carrier at the seller’s factory. This means once the goods are on the truck ready to depart, the buyer is responsible for freight, insurance, and any transit risks from that point onward. The seller’s duties end at the moment of loading, not at arrival at the destination, not at the time of purchase, and not after installation. Hence, the correct moment is when the goods are loaded on the truck at the factory.

Under FOB Factory terms, ownership and risk pass to the buyer at the moment the seller loads the goods onto the carrier at the seller’s factory. This means once the goods are on the truck ready to depart, the buyer is responsible for freight, insurance, and any transit risks from that point onward. The seller’s duties end at the moment of loading, not at arrival at the destination, not at the time of purchase, and not after installation. Hence, the correct moment is when the goods are loaded on the truck at the factory.

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