FOB origin means what?

FOB origin means what?

• A. Buyer takes ownership at the seller's location
• B. Seller retains ownership until delivery
• C. Ownership transfers after payment
• D. Ownership transfers at delivery to buyer

Answer: (A)

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.

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.