If shipping terms are FOB JOBSITE, between which parties is the Bill of Lading?

Prepare for the Associate Contractors License Exam. Study using flashcards and multiple choice questions, each question is equipped with hints and explanations. Get exam-ready today!

The correct answer is that the Bill of Lading is between the common carrier and the vendor when the shipping terms are FOB JOBSITE.

In a FOB (Free on Board) JOBSITE scenario, the vendor (the seller or supplier of the goods) is responsible for the goods while they are in transit until they reach the job site. The Bill of Lading serves as a document of title and receipt issued by the carrier (the common carrier responsible for transporting the goods). It outlines the agreement between the vendor and the carrier, indicating that the goods are being shipped to a specific location.

Once the goods are delivered to the job site, the responsibility shifts to the purchaser or contractor. However, during transport, the relationship established by the Bill of Lading exists primarily between the common carrier and the vendor, as it details the obligations regarding the shipment of the goods.

Understanding this relationship is crucial in logistics and contract management, as it clarifies liability and responsibility for the goods during transit.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy