Ace the 2025 Certified Materials Maestro Exam – Resources Ready, Set, Go!

When equipment is shipped under the terms of FOB (Free On Board) shipping point, the responsibility for the goods transfers from the seller to the buyer as soon as the goods leave the seller's location. This means that once the items are shipped, the receiver assumes full responsibility for the goods, which includes both shipping charges and the responsibility to file damage claims if necessary.

In this scenario, the receiver is accountable for any risks associated with the shipment, such as loss or damage during transit. Therefore, they must manage the logistics, which includes paying for the shipping costs incurred to transport the goods. Additionally, if any issues arise, such as damage or loss during shipping, the receiver is required to address these by filing claims with the shipping company or carrier.

This understanding not only clarifies the receiver's role but also aligns with standard shipping practices and legal frameworks concerning FOB shipping terms.