CMRP Exam Dumps | When a sale is designated FOB shipping point, who owns the merchandise while it is in transit?

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SMRP.CMRP.v2025-05-12.q83
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Question 4/83

When a sale is designated FOB shipping point, who owns the merchandise while it is in transit?

A. The seller

B. The purchaser

C. The shipping company

D. None of the above

Correct Answer: B

When a sale is designated FOB (free on board) shipping point,
the purchaser owns the merchandise while it is in transit FOB shipping point means that the purchaser assumes ownership and becomes responsible for shipping costs when the merchandise is picked up from the seller. Therefore, while it is in transit, the purchaser is considered to own the merchandise.

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