What responsibility does the supplier retain under 'FOB Destination, prepaid freight'?

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

Under the term 'FOB Destination, prepaid freight', the supplier retains the responsibility for filing damage claims. This terminology indicates that the supplier is responsible for the goods until they arrive at the buyer's location. The 'prepaid freight' aspect means that the supplier has already paid for the freight costs, and as such, they are also responsible for any issues that may arise during the shipping process, including damage to the goods.

In this arrangement, the risk of loss or damage remains with the supplier until the goods reach the destination. Therefore, if the items are damaged during transit, the supplier must handle the resolution of those claims, ensuring that the buyer receives the products in good condition. This creates an assurance for the buyer that they will not need to deal with shipping issues, as those responsibilities are firmly with the supplier until the buyer takes possession of the goods at their location.

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