If equipment is shipped under FOB shipping point, who is accountable for both shipping charges and filing damage claims?

Study for the CMRP Exam. Prepare with flashcards and multiple choice questions, each with hints and explanations. Get ready with us!

When equipment is shipped under FOB (Free On Board) shipping point, the term indicates that ownership and responsibility for the goods transfer from the seller to the buyer at the shipping point. As a result, the receiver is accountable for both the shipping charges and for filing any damage claims that may arise during transit. This means that the buyer assumes the risks associated with the goods as soon as they leave the seller's location.

The receiver must handle any claims related to shipping damages because they are considered the owner of the goods at that point. It is essential for the buyer to be diligent in inspecting the goods upon receipt and ensuring that any damages are reported to the carrier promptly to facilitate potential claims.

In this context, the other options would not reflect the responsibilities laid out under FOB shipping point. The seller does not bear responsibility for shipping once the goods have shipped, nor does the shipping company handle claims related to the ownership of goods. Additionally, the manufacturer does not have the liability once the shipment has left their facility under these terms.

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