Asked by Trishton Belisle on Jul 21, 2024
Verified
Growers Mart buys one hundred cases of berries from Hilltop Farm. The parties agree that the berries will be transported "F.O.B. Hilltop Farm" via Intrastate Trucking Company. Intrastate's truck and the berries are lost in a fire following an accident. The loss of the berries is suffered by
A) Growers.
B) Hilltop.
C) Intrastate.
D) all of the parties as owners in common in equal measure.
F.O.B. Hilltop Farm
A shipping term indicating that the buyer assumes responsibility for the goods once they are shipped from Hilltop Farm.
Intrastate Trucking Company
A company that operates trucks only within the boundaries of a single state, not crossing any state lines.
Lost In A Fire
Describes items, possessions, or assets that have been destroyed or severely damaged due to a fire incident.
- Recognize the moment of risk transition for loss in assorted circumstances related to goods in a contractual setting.
- Understand the effects of Free On Board (F.O.B.) terms on risk of loss and transportation expenses in sales agreements.
Verified Answer
MM
Michaela MasonJul 27, 2024
Final Answer :
A
Explanation :
The term "F.O.B. Hilltop Farm" means "Free on Board at Hilltop Farm," indicating that the seller's responsibility ends, and the buyer's responsibility begins, once the goods are loaded onto the transportation vehicle at the seller's location. Therefore, Growers Mart bears the risk of loss after the berries are loaded onto Intrastate Trucking Company's truck.
Learning Objectives
- Recognize the moment of risk transition for loss in assorted circumstances related to goods in a contractual setting.
- Understand the effects of Free On Board (F.O.B.) terms on risk of loss and transportation expenses in sales agreements.