Asked by Martin Sanchez on Apr 28, 2024

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Goods are to be sent from Buffalo, NY to Raleigh, NC by UPS using the delivery terms F.O.B. Buffalo, NY. Where does tender occur?

A) Where the goods are identified.
B) Where the goods are shipped.
C) Where the goods are delivered and picked up by the buyer.
D) Where the goods are taken by the buyer.

F.O.B. Buffalo

An Incoterm meaning Free On Board Buffalo, indicating that the seller delivers when the goods are loaded on board a vessel at the Buffalo location, with the seller covering transportation to that point but the buyer taking responsibility thereafter.

Tender

An offer of payment or delivery of goods in fulfillment of an obligation or contract.

Buffalo, NY

A city in New York State, known for its snow-heavy winters and as the home of the Buffalo wings.

  • Assess the relevance of transport conditions such as F.O.B., and their role in shifting the risk point between the seller and buyer.
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ZK
Zybrea KnightMay 04, 2024
Final Answer :
B
Explanation :
F.O.B. (Free On Board) Buffalo, NY means that the seller fulfills their obligation to deliver when the goods have been placed on board the transport (in this case, UPS) at the specified location, which is Buffalo, NY. Tender occurs where the goods are shipped from, not where they are identified, delivered, or taken by the buyer.