SHIPPING TERMS

After a purchase has been made, the cost of transporting the goods from the seller to the buyer must be determined. Shipping merchandise may cause some concern with respect to ownership since the question often arises: "When does the ownership title pass from the seller to the buyer ?"

Whoever has title to the goods bears the element of risk of owning those goods. Should something happen to the goods in transit, then ownership must be determined.

These are some shipment arrangements.

• F.O.B. Origin or Factory.
• F.O.B. Origin, Freight Prepaid.
• F.O.B. Origin,  Freight Equalized.

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