eatrightPREP Domain 3 Practice Exam 2026 – Your Complete All-in-One Guide to Exam Success!

FOB origin means ownership transfers to the buyer at the seller’s location when the goods are handed over to the carrier for shipment. From that moment, the buyer is responsible for the transport costs and bears the risk of loss or damage. In other words, once the seller loads the goods onto the carrier, the buyer owns them and must handle the shipment onward. This differs from terms where the seller retains ownership until delivery to the buyer, or where payment timing determines ownership; those reflect other arrangements, not FOB origin. For example, if items are sold FOB origin in New York and shipped to you, you own and assume risk as soon as they’re loaded onto the carrier at the seller’s dock.