[Anonymous]

It is so annoying when the question states “FOB Seller’s Loading Dock”

and the answer is

“Risk of loss transfers when goods are delivered to carrier”

Shouldn’t the answer say “Risk of loss transfers when carrier picks up goods”

How the eff do you deliver goods off of your loading dock to a carrier? You would either have to A) Take the goods from your loading dock to the carrier or B) Simply hand the goods from your loading dock to the carriers truck NOT deliver them to the carrier

Am I justified for being pissed at this wording or am I wrong?

[Anonymous]

@LifeIsNotGood — I apologize, but I don't see a problem with the wording. Free on board – Seller's Loading Dock means that the minute it leaves the seller's loading dock, risk of loss is transferred and revenue can be recognized (presuming that the other criteria have been met). Typically, a truck would pull up to the loading dock and would load the materials into the truck. Once the materials are on the truck, ROL has transferred. I hope that helps.

[shiggity80]

Think of it like this.

The seller has a warehouse with all the goods ready to go. A large 18 wheeler FedEx truck backs up his trailer to the loading dock of that warehouse. The seller then loads up the FedEx truck with the goods.

At that point, the risk of loss transfers to the buyer. That's how I view it.

(I just went over this MCQ earlier this evening)

FAR: 87
AUD: 86
BEC: 86
REG: 84! Officially Done!

[shiggity80]

Oh and for your explanation of B), “handing them over” is the same thing as “delivering it to the carrier”

FAR: 87
AUD: 86
BEC: 86
REG: 84! Officially Done!

[Author]

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