1. Determine the type of shipment contract involved in the following transactions.

a. The seller of custom exercise equipment manufactures the equipment in a plant in Atlanta, Georgia. The buyer's business is in Columbia, South Carolina. The terms of shipment by the seller are F.O.B point of manufacture. What type of contract has been created, and who is responsible for the goods?

b. Same facts as above, but the shipment terms are F.O.B Atlanta. What type of contract has been created, and who is responsible for the goods? Explain your response.

c. Mercy Memorial Hospital is located in Hollywood, Florida. They have just purchased 50 portable dialysis machines to use in their hospital. The manufacturer of the machines is in San Diego, California. Mercy wants the goods to be delivered directly to the hospital. The shipment terms are F.O.B Hollywood. What type of contract was created, and will the goods be delivered to the hospital? Explain your response.

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Shipment Contract Types and Responsibilities a FOB Point of Manufacture Contract type EXW Ex Works R... View the full answer