Ross Plants Wholesalers contracts with Bi-Mart,Inc.for the sale of 24 pallets of fresh herbs and shrubs,to be delivered FOB to Bi-Mart in Emmett,Idaho.The 24 pallets are identified and put on a receiving dock.Before the shipper,EXpress Trucking,can pick them up and sign appropriate documentation,a fire destroys the plants causing a total loss.In this case,Ross Plants bears the risk of loss.

FOB

Free on Board; a contractual term indicating that the seller assumes responsibility for the goods until they are loaded onto a transport vessel.

Risk of Loss

The responsibility for damage or destruction to goods, typically determining who bears the cost when property is damaged during a transaction or transportation.

Total Loss

A situation in which property is so extensively damaged that repair is not reasonable and it's considered a complete write-off.