Free on board is part of purchase contract

Assignment Help Operation Management

Reference no: EM131435723

FOUNDAMENTAL OF BUSINESS LAW TODAY- Chapter 14

1. The seller is in New York and the buyer is in Philadelphia. The 3rd party carrier shipping contract reads F. O. B. Philadelphia. What type of contract is this and who bears the risk of loss?

Free On Board (FOB) is a part of purchase contract where the shipping cost is borne by the supplier from the production point to destination point and the responsibility is taken by the buyer at the destination point. There are two types of FOB contract. They are:

· FOB destination

· FOB Origin

In this scenario, this is a FOB destination contract where the buyer destination is Philadelphia. The risk is borne by the seller up to the time of delivery.

2. What if the contract in Question 1, read F.O.B., New York? What type of contract would that be and who would bear the risk of loss?

Reference no: EM131435723

Questions Cloud

Design a data entry screen for entering new members : Tools 4 U is a tool rental company that reaches out to people with little or no experience. The firm has a staff of technicians to help customers select the right tools, show them how to use the tools, and provide 24/7 support. Design a data entry sc..

What is the primary benefit of the ventilation system : A certain ventilation system would cost a firm approximately $60,000, which can be amoritized over its useful life at a cost of $15,000/year. Annual maintenace costs are expected to be $600 per year and amonthly operating costs (utilities) $150 per m..

World trade continues to increase due to supply and demand : As world trade continues to increase due to supply and demand, how will ports accommodate this increase in cargo? What are the issues facing ports as they promote themselves and increase cargo? What are some specific solutions that address these issu..

Describe the process of quantitative analysis : Describe the process of quantitative analysis. Categorize business problems that can be solved through quantitative analysis. Solve business problems with appropriate quantitative decision-making models.

Free on board is part of purchase contract : The seller is in New York and the buyer is in Philadelphia. The 3rd party carrier shipping contract reads F. O. B. Philadelphia. What type of contract is this and who bears the risk of loss? Free On Board (FOB) is a part of purchase contract where th..

Ethical conduct of our culture versus the foreign culture : How can a North American company operating abroad balance the different points of view of social responsibility and ethical conduct of our culture versus the foreign culture?

Constructed in conventional cost accounting systems : Explain how manufacturing overhead rates are constructed in conventional cost accounting systems. Speak separately about fixed versus variable overhead application rates. What key choices must be made in establishing these rates?

Emerging trends-what are tangible and intangible benefits : n 2008, Walgreens, one of the nation’s largest drugstore retailers, opened a state-of-the-art distribution center in Windsor, Connecticut. It is the company’s second facility designed specifically to employ people with disabilities and patterned afte..

A manufacturer sells product in two regions : A manufacturer sells a product in two regions. Weekly demand in each region is Normally distributed with mean 1,000 and standard deviation 300. Lead time is one week. Demand in the two regions has a correlation coefficient of -.35. They are consideri..

User Account

All Pages